THIS CIRCULAR IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION
If you are in any doubt as to any aspect of this circular or as to the action to be taken, you should consult your licensed securities dealer or registered institution in securities, bank manager, solicitor, professional accountant or other professional adviser.
If you have sold or transferred all your shares in Shenzhen Investment Limited, you should at once hand this circular to the purchaser or to the transferee or to the bank, licensed securities dealer or registered institution in securities, or other agent through whom the sale or transfer was effected, for transmission to the purchaser or the transferee.
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this circular, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this circular.
(Incorporated in Hong Kong with limited liability) (Stock Code: 00604)
MAJOR TRANSACTION CAPITAL CONTRIBUTION TO HENGDA REAL ESTATE GROUP COMPANY LIMITED
A letter from the board of directors of Shenzhen Investment Limited is set out on pages 7 to 25 of this circular.
24 November 2017 CONTENTS
Page
Definitions ...... 1
Letter from the Board ...... 7
Appendix I – Financial information of the Group ...... I-1
Appendix II – Financial information of Hengda Real Estate ...... II-1
Appendix III – Unaudited pro forma financial information of the Group following the Capital Contribution ...... III-1
Appendix IV – Valuation report of Hengda Real Estate Group ...... IV-1
Appendix V – General information...... V-1
–i– DEFINITIONS
In this circular, the following expressions shall have the following meanings unless the context otherwise requires:–
“Accountants’ Report Waiver” has the meaning ascribed to it under the section headed “Letter from the Board – Waiver from strict compliance with Rules 5.02, 14.66(11), 14.67(6)(a)(i) and 14.67(7) of the Listing Rules – B. Waiver from strict compliance with Rules 14.67(6)(a)(i) and 14.67(7) of the Listing Rules in relation to the preparation and inclusion of accountants’ report and management discussion and analysis”
“Board” the board of Directors
“Business Day” any day (not being a Saturday, Sunday or a statutory holiday) on which banks in the PRC are open for normal business
“Buy-back Option” has the meaning ascribed to it in paragraph (i) under the section headed “Letter from the Board – The Investment Agreement – Exit rights”
“Capital Contribution” the contribution of RMB5.5 billion to the capital of Hengda Real Estate by the Subsidiary pursuant to the terms of the Investment Agreement
“CBRE” CBRE Limited
“China Evergrande” China Evergrande Group, a company incorporated in the Cayman Islands, the shares of which are listed on the Main Board of the Stock Exchange
“Company” Shenzhen Investment Limited, a company incorporated in Hong Kong with limited liability, the shares of which are listed on the Main Board of the Stock Exchange
“connected person” has the meaning ascribed to it under the Listing Rules
“controlling shareholder” has the meaning ascribed to it under the Listing Rules
“CSRC” the China Securities Regulatory Commission
“Director(s)” the director(s) of the Company
–1– DEFINITIONS
“First Announcement” the announcement of the Company dated 31 May 2017 in relation to the entering into of the Principal Investment Agreement
“First Round Investors” the first round strategic investors who have invested in Hengda Real Estate by contributing to its capital pursuant to the first round investment agreements entered into by them with Hengda Real Estate and Kailong Real Estate as announced by China Evergrande in its announcement dated 31 December 2016
“First Supplemental Investment the supplemental agreement dated 31 May 2017 entered Agreement” into amongst the Subsidiary, Kailong Real Estate and Hengda Real Estate in relation to the amendments to the terms of the Principal Investment Agreement and such supplemental agreement has lapsed upon the taking effect of the Third Supplemental Investment Agreement after the Third Supplemental Investment Agreement was signed by the parties thereto
“Group” the Company and its subsidiaries
“Hengda Real Estate” 恒大地產集團有限公司 (Hengda Real Estate Group Company Limited*), a limited liability company established in the PRC and approximately 73.88% of its equity interest is held by Kailong Real Estate as at the Latest Practicable Date
“Hengda Real Estate Group” Hengda Real Estate and its subsidiaries
“HK$” Hong Kong dollars, the lawful currency of Hong Kong
“Hong Kong” the Hong Kong Special Administrative Region of the PRC
“Investment Agreement” the Principal Investment Agreement, as amended and supplemented by the First Supplemental Investment Agreement and further amended and supplemented by the Second Supplemental Investment Agreement and the Third Supplemental Investment Agreement
“Investors” the First Round Investors, the Second Round Investors and the Third Round Investors
–2– DEFINITIONS
“Kailong Real Estate” 廣州市凱隆置業有限公司 (Guangzhou Kailong Real Estate Company Limited*), a limited liability company established in the PRC and a wholly-owned subsidiary of China Evergrande
“Latest Practicable Date” 21 November 2017, being the latest practicable date prior to the printing of this circular for the purpose of ascertaining certain information for inclusion in this circular
“Listco” a PRC company the shares of which are listed on the Shanghai Stock Exchange or the Shenzhen Stock Exchange, including but not limited to Shenzhen Real Estate
“Listing Rules” the Rules Governing the Listing of Securities on the Stock Exchange
“Lock-up Period” has the meaning ascribed to it under the section headed “Letter from the Board – The Investment Agreement – Lock-up undertaking by Kailong Real Estate”
“MD&A Waiver” has the meaning ascribed to it under the section headed “Letter from the Board – Waiver from strict compliance with Rules 5.02, 14.66(11), 14.67(6)(a)(i) and 14.67(7) of the Listing Rules – B. Waiver from strict compliance with Rules 14.67(6)(a)(i) and 14.67(7) of the Listing Rules in relation to the preparation and inclusion of accountants’ report and management discussion and analysis”
“Mr. Hui” Mr. Hui Ka Yan, a director and controlling shareholder of China Evergrande
“net profit” for the purpose of the Investment Agreement, the net profits attributable to the holding company after deducting extraordinary profits and losses
“Performance Undertaking the undertaking in respect of the minimum amount(s) of Amount(s)” net profit of Hengda Real Estate for the Performance Undertaking Period given by Kailong Real Estate and Hengda Real Estate under the Investment Agreement
“Performance Undertaking the three financial years ending 31 December 2017, 2018 Period” and 2019
–3– DEFINITIONS
“PRC” the People’s Republic of China, for the purpose of this circular, excludes Hong Kong, Taiwan and the Macau Special Administrative Region of the PRC
“Principal Investment the principal investment agreement dated 31 May 2017 Agreement” entered into amongst the Subsidiary, Kailong Real Estate and Hengda Real Estate in relation to the Capital Contribution (as amended and supplemented by the First Supplemental Investment Agreement)
“Property Valuation Waiver” has the meaning ascribed to it under the section headed “Letter from the Board – Waiver from strict compliance with Rules 5.02, 14.66(11), 14.67(6)(a)(i) and 14.67(7) of the Listing Rules – A. Waiver from strict compliance with Rules 5.02 and 14.66(11) of the Listing Rules in relation to the inclusion of a valuation report for property interests held by Hengda Real Estate (the “Property Valuation Waiver”)”
“Proposed Reorganisation” the proposed major assets reorganisation of Shenzhen Real Estate where Shenzhen Real Estate will by way of issue of RMB ordinary shares (A shares) and/or the payment of cash consideration, acquire 100% of the equity interest in Hengda Real Estate, which will result in Kailong Real Estate becoming the controlling shareholder of Shenzhen Real Estate
“PwC” PricewaterhouseCoopers Zhong Tian LLP
“Reorganisation Agreement” the reorganisation agreement to be entered into between Kailong Real Estate, Hengda Real Estate, Shenzhen Real Estate and SIH in relation to the Proposed Reorganisation
“RMB” Renminbi, the lawful currency of the PRC
“Second Announcement” the announcement of the Company dated 29 June 2017 in relation to the entering into of the Second Supplemental Investment Agreement
–4– DEFINITIONS
“Second Round Investors” the second round strategic investors (including the Subsidiary) who have invested in Hengda Real Estate by contributing to its capital pursuant to the second round investment agreements entered into by them with Hengda Real Estate and Kailong Real Estate as announced by China Evergrande in its announcement dated 31 May 2017
“Second Supplemental the supplemental agreement dated 28 June 2017 entered Investment Agreement” into amongst the Subsidiary, Kailong Real Estate, Hengda Real Estate and Mr. Hui in relation to the amendments to the terms of the Principal Investment Agreement
“SFO” the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong)
“Share(s)” the ordinary share(s) of the Company
“Shareholder(s)” shareholder(s) of the Company
“Shenzhen Real Estate” 深圳經濟特區房地產(集團)股份有限公司(Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.*), a joint stock company established in the PRC, the shares of which are listed on the Shenzhen Stock Exchange (Shenzhen Stock Exchange A share stock code: 000029, B share stock code: 200029)
“Shum Yip Group” 深業集團有限公司 (Shum Yip Group Limited*), a company established in the PRC and the holding company of Shum Yip Holdings, which is ultimately wholly-owned by Shenzhen Municipal People’s Government and under the administration of 深圳市人民 政府國有資產監督管理委員會 (Shenzhen SASAC)
“Shum Yip Holdings” Shum Yip Holdings Company Limited (深業(集團)有限 公司), a company incorporated in Hong Kong and wholly-owned by Shum Yip Group
“SIH” 深圳市投資控股有限公司 (Shenzhen Investment Holding Co. Ltd.*), a company established in the PRC, the controlling shareholder of Shenzhen Real Estate
“Stock Exchange” The Stock Exchange of Hong Kong Limited
–5– DEFINITIONS
“Subsidiary” 馬鞍山市茂文科技工業園有限公司 (Maanshan Maowen Technology Park Co. Ltd.*), a company established in the PRC with limited liability and an indirect wholly-owned subsidiary of the Company
“Third Announcement” the announcement of the Company dated 6 November 2017 in relation to the entering into of the Third Supplemental Investment Agreement
“Third Round Investors” the third round strategic investors who have agreed to invest in Hengda Real Estate by contributing to its capital pursuant to the Third Round Investment Agreements
“Third Round Investment the third round investment agreements entered into by the Agreements” Third Round Investors with Hengda Real Estate, Kailong Real Estate and Mr. Hui as announced by China Evergrande in its announcement dated 6 November 2017
“Third Supplemental Investment the supplemental agreement dated 6 November 2017 Agreement” entered into amongst the Subsidiary, Kailong Real Estate and Hengda Real Estate in relation to the amendments to the terms of the Principal Investment Agreement (as amended and supplemented by the Second Supplemental Investment Agreement)
“Valuation Report” has the meaning ascribed to it under the section headed “Letter from the Board – Waiver from strict compliance with Rules 5.02, 14.66(11), 14.67(6)(a)(i) and 14.67(7) of the Listing Rules – A. Waiver from strict compliance with Rules 5.02 and 14.66(11) of the Listing Rules in relation to the inclusion of a valuation report for property interests held by Hengda Real Estate (the “Property Valuation Waiver”)”
“%” per cent.
* The English translation is for identification purpose only.
–6– LETTER FROM THE BOARD
(Incorporated in Hong Kong with limited liability) (Stock Code: 00604)
Executive Directors: Registered office: Dr. LU Hua (Chairman) 8th Floor, Mr. HUANG Wei (President) New East Ocean Centre, Mr. MOU Yong 9 Science Museum Road, Mr. LIU Chong Tsim Sha Tsui, Kowloon, Non-Executive Directors: Hong Kong Dr. WU Jiesi Mr. LIU Shichao
Independent Non-Executive Directors: Mr. WU Wai Chung, Michael Mr. LI Wai Keung Dr. WONG Yau Kar, David
24 November 2017
To the Shareholders
Dear Sir or Madam,
MAJOR TRANSACTION CAPITAL CONTRIBUTION TO HENGDA REAL ESTATE GROUP COMPANY LIMITED
INTRODUCTION
Reference is made to the First Announcement in relation to the entering into of the Principal Investment Agreement among the Subsidiary (an indirect wholly-owned subsidiary of the Company), Kailong Real Estate and Hengda Real Estate (both are subsidiaries of China Evergrande), pursuant to which the Subsidiary has agreed to contribute an amount of RMB5.5 billion to the capital of Hengda Real Estate in return for approximately 2.0522% of the enlarged equity interest in Hengda Real Estate.
Reference is also made to the Second Announcement in relation to the entering into of the Second Supplemental Investment Agreement among the Subsidiary, Kailong Real Estate, Hengda Real Estate and Mr. Hui (a director and controlling shareholder of China Evergrande), pursuant to which the parties thereto agreed to amend the terms of the Principal Investment Agreement in relation to exit rights of the Subsidiary as disclosed in the First Announcement under the section headed “The Investment Agreement – Exit rights”.
–7– LETTER FROM THE BOARD
Reference is further made to the Third Announcement in relation to the entering into of the Third Supplemental Investment Agreement among the Subsidiary, Kailong Real Estate and Hengda Real Estate, pursuant to which the parties thereto agreed to amend the terms of the Principal Investment Agreement (as amended and supplemented by the Second Supplemental Investment Agreement) in relation to the Performance Undertaking Amounts, and dividend payment prior to and after the entering into of the Reorganisation Agreement as disclosed in the First Announcement under the section headed “The Investment Agreement – Performance undertaking and indemnity”.
The purpose of this circular is to provide you with, among other things, further information on the Investment Agreement and the Capital Contribution and other information as required under the Listing Rules.
THE INVESTMENT AGREEMENT
Set out below is a summary of the principal terms of the Investment Agreement:
Date
Date of the Principal Investment Agreement: 31 May 2017
Date of the Second Supplemental Investment Agreement: 28 June 2017
Date of the Third Supplemental Investment Agreement: 6 November 2017
Parties to the Principal Investment Agreement
(1) the Subsidiary;
(2) Kailong Real Estate; and
(3) Hengda Real Estate.
Parties to the Second Supplemental Investment Agreement
(1) the Subsidiary;
(2) Kailong Real Estate;
(3) Hengda Real Estate; and
(4) Mr. Hui.
–8– LETTER FROM THE BOARD
Parties to the Third Supplemental Investment Agreement
(1) the Subsidiary;
(2) Kailong Real Estate; and
(3) Hengda Real Estate.
To the best of the knowledge, information and belief of the Directors, having made all reasonable enquiries, Kailong Real Estate, Hengda Real Estate and their ultimate beneficial owners (including Mr. Hui) are third parties independent of and not connected with the Company or its connected persons.
Amount of Capital Contribution
Pursuant to the terms of the Investment Agreement, the Subsidiary has contributed an amount of RMB5.5 billion to the capital of Hengda Real Estate, in return for equity interest in Hengda Real Estate which was determined as follows:
Shareholding percentage = Amount of the Capital Contribution RMB198 billion + Total capital contribution (being the accepted to Hengda Real Estate valuation of actually made by Hengda Real Estate the Investors prior to the capital contribution by the Investors)
By making the Capital Contribution, the Subsidiary has acquired approximately 2.0522% of the enlarged equity interest of Hengda Real Estate (which will subsequently be diluted to approximately 1.7626% of the enlarged equity interest of Hengda Real Estate after the capital contributions to Hengda Real Estate pursuant to the Third Round Investment Agreements are made).
Conditions
The Capital Contribution is conditional upon the satisfaction of the following conditions within 10 Business Days after the date of the Principal Investment Agreement:
(A) The Subsidiary having completed the following approval procedures in relation to the Capital Contribution:–
(a) the Subsidiary having received approval of the Capital Contribution from its board of directors/executive director(s), shareholders (if necessary) or similar decision making body;
–9– LETTER FROM THE BOARD
(b) if the Subsidiary is a wholly State-owned enterprise or a State-controlled enterprise, the approval of the Capital Contribution by the State-owned Assets Administration Bureau or its authorised departments having been obtained;
(c) other approvals from the relevant supervisory departments; and
(B) Hengda Real Estate and Kailong Real Estate having completed the following approval procedures in relation to the Capital Contribution:–
(a) the shareholders of Hengda Real Estate having approved the Capital Contribution and the amendments to the articles of association of Hengda Real Estate in accordance with the Investment Agreement; and
(b) the board of directors of China Evergrande (and if necessary, the shareholders of China Evergrande) having approved the Capital Contribution.
As at the date of the Principal Agreement, all of the conditions mentioned in (A) above (if applicable) had been fulfilled and, as informed by Hengda Real Estate and Kailong Real Estate, all the conditions mentioned in (B) above had also been fulfilled.
Basis of determining the amount of the Capital Contribution
The Subsidiary had contributed an amount of RMB5.5 billion to the capital of Hengda Real Estate, of which RMB69,444,444 was contributed to the registered capital of Hengda Real Estate and the remaining to its capital reserve.
The amount of Capital Contribution was determined after arm’s length negotiations with reference to, among others, the net asset value and registered capital of Hengda Real Estate and the appreciation in the value of the total shareholders’ equity of Hengda Real Estate as indicated by an independent third party valuer as at 30 June 2016 as referred to in the announcement of China Evergrande dated 31 December 2016, the development strategy of Hengda Real Estate, the prevailing market conditions, the land reserves of Hengda Real Estate and the development potentials of such projects, and potential synergy and benefits of the Proposed Reorganisation. Please refer to the section headed “Letter from the Board – Reasons for and benefit of the entering into of the Investment Agreement” below for further information.
Timing for the Capital Contribution
The Capital Contribution amount was payable by the Subsidiary within 3 Business Days from the signing of the Principal Investment Agreement. Accordingly, such amount was paid by the Subsidiary on 31 May 2017.
The parties to the Principal Investment Agreement agreed to procure Hengda Real Estate to complete the capital verification procedures and process the relevant registration of the Capital Contribution with the Market Supervisory Administration Bureau (市場監督管理局) within 20 Business Days from the date of receipt of all capital contribution amount by Hengda Real Estate from the Investors. The above mentioned procedures and processes were completed on 1 June 2017, and accordingly, the Subsidiary has acquired approximately 2.0522% of the
–10– LETTER FROM THE BOARD enlarged equity interest in Hengda Real Estate in return for the Capital Contribution (which will subsequently be diluted to approximately 1.7626% of the enlarged equity interest of Hengda Real Estate after the capital contributions to Hengda Real Estate pursuant to the Third Round Investment Agreements are made).
Performance undertaking and indemnity
Performance undertaking
Under the terms of the Investment Agreement, Kailong Real Estate and Hengda Real Estate have undertaken to the Subsidiary that the Performance Undertaking Amounts of Hengda Real Estate for the financial years of 2017, 2018 and 2019 will not be less than RMB24.3 billion, RMB50 billion and RMB55 billion, respectively.
The Performance Undertaking Amounts of Hengda Real Estate for the financial years ending 31 December 2018 and 2019, however, were to be finally determined with reference to the valuation report issued by a valuer with relevant securities and futures industry qualifications and approved by the relevant authorised State-owned assets supervision and administration commission, in relation to the valuation of the equity interests of all shareholders of Hengda Real Estate as at 30 June 2017 but in any event will not be less than RMB30.8 billion and RMB33.7 billion, respectively.
As at the Latest Practicable Date, the valuation report has been issued, and the Performance Undertaking Amounts of Hengda Real Estate for the financial years ending 31 December 2018 and 2019 were finally determined to be RMB50 billion and RMB55 billion respectively.
Dividend payment prior to the entering into of the Reorganisation Agreement
The Subsidiary, Kailong Real Estate and Hengda Real Estate have agreed that prior to the entering into of the Reorganisation Agreement and subject to Hengda Real Estate continues to operate normally, Hengda Real Estate will distribute at least 68% of its net profit for each of the financial years under the Performance Undertaking Period to its shareholders in accordance with their respective percentage of equity interest in it as cash dividends.
If the net profit of Hengda Real Estate for any financial year in the Performance Undertaking Period (as audited and confirmed by auditors with relevant securities and futures industry qualifications to be employed by Hengda Real Estate) is less than the Performance Undertaking Amount for that financial year, the proportional dividend to be paid by Hengda Real Estate to the Subsidiary will be adjusted upward in accordance with the following formulae:
(A) Percentage ratio of the proportional dividend payable to all of the Investors
Percentage of equity interest held by Percentage ratio of the all of the Investors proportional dividend payable = (Actual net profit of Hengda Real to all of the Investors Estate for that financial year/the Performance Undertaking Amount for that year)
–11– LETTER FROM THE BOARD
If the percentage ratio of the proportional dividend payable to all of the Investors calculated by the above formula is greater than 100%, then such percentage shall be 100%.
(B) Percentage ratio of the proportional dividend payable to the Subsidiary
Percentage of equity Percentage ratio of interest held by the Percentage ratio of the proportional Subsidiary the proportional = × dividend payable to Percentage of equity dividend payable to the Subsidiary interest held by all of all of the Investors the Investors
The dividend payment arrangement mentioned above will lapse upon the execution of the Reorganisation Agreement.
Dividend payment after the entering into of the Reorganisation Agreement
Following completion of the Proposed Reorganisation, dividend payment will be made by Listco in accordance with the applicable requirements of the CSRC, the relevant stock exchange and the constitutional documents of Listco. On conditions that Listco maintains the ability to continue with its operations normally, and that there is no breach of the laws of the PRC, the constitutional documents of Listco and its dividend distribution system, after the end of each financial year during the Performance Undertaking Period, Kailong Real Estate shall propose that Listco distributes a cash dividend of at least 68% of its distributable net profit for such year, and for any other year within the Performance Undertaking Period when cash dividend has not been paid in accordance with the arrangement mentioned under this section or the section headed “Dividend payment prior to the entering into of the Reorganisation Agreement” above (as the case may be). Kailong Real Estate is also required to vote in favour of such proposal at the relevant shareholders’ meeting of Listco.
If, for any reasons, the Proposed Reorganisation is terminated after the execution of the Reorganisation Agreement, Hengda Real Estate will make up for any shortfall in the dividend paid to the Subsidiary during the period between the execution of the Reorganisation Agreement and the termination of the Proposed Reorganisation in accordance with the terms of the Investment Agreement as if the Reorganisation Agreement had not been entered into.
After the termination of the listing procedures contemplated under the Proposed Reorganisation, Hengda Real Estate should follow the dividend payment arrangement mentioned in the section headed “Dividend payment prior to the entering into of the Reorganisation Agreement” above. Thereafter, if the listing procedures are recommenced, the dividend payment arrangements mentioned under the sections headed “Dividend payment prior to the entering into of the Reorganisation Agreement” and “Dividend payment after the entering into of the Reorganisation Agreement” will apply as appropriate.
–12– LETTER FROM THE BOARD
Exit rights
If the Proposed Reorganisation as contemplated under the Reorganisation Agreement is not completed by 31 January 2020 and the failure to complete is not caused by reasons attributable to the Subsidiary, the Subsidiary may within two months of the expiry of such deadline demand Kailong Real Estate to either:
(i) buy back the entire equity interest in Hengda Real Estate held by the Subsidiary at the original amount of capital contributed by it, provided that Kailong Real Estate may choose not to buy back such equity interest from the Subsidiary, in which case, the Subsidiary will have the right to request Mr. Hui to buy back the entire equity interest held by the Subsidiary at the original amount of capital contributed by it (“Buy-back Option”); or
(ii) transfer shares in Hengda Real Estate to the Subsidiary at nil consideration in accordance with the following formula as compensation:
Percentage of equity interest in Hengda Real Estate held by the Percentage of equity Subsidiary on the signing of the interest in Hengda Real compensation agreement Estate to be transferred by = × 50% (excluding any additional equity Kailong Real Estate to the interest acquired by the Subsidiary as compensation Subsidiary after the date of the Principal Investment Agreement)
Upon completion of the compensation procedures mentioned above, the Subsidiary will have the right to transfer its equity interest in Hengda Real Estate through listing-for-sale at property and share rights exchange or other means, with Kailong Real Estate or Mr. Hui having a right of first refusal to purchase such equity interest upon the same terms and conditions.
The Subsidiary’s entitlement to dividend distribution of Hengda Real Estate for 2019 is unaffected by the exercise of the exit rights mentioned above.
–13– LETTER FROM THE BOARD
Lock-up undertaking by Kailong Real Estate
Kailong Real Estate has undertaken that, after the completion of the Proposed Reorganisation, if pursuant to the Administrative Measures on Significant Asset Restructuring of Listed Companies (《上市公司重大資產重組管理辦法》) and other relevant regulations issued by the CSRC, the Subsidiary is prohibited from transferring the shares of Listco which were issued to it by Listco as consideration for the acquisition of the Subsidiary’s equity interest in Hengda Real Estate within a specified period of time (the “Lock-up Period”), Kailong Real Estate will not, until after the first anniversary of the expiry date of the Lock-up Period, transfer the shares of Listco issued to it by Listco as consideration for the acquisition of Kailong Real Estate’s equity interest in Hengda Real Estate (other than a transfer to the other companies controlled by person actually controlling Kailong Real Estate).
Undertaking by the Subsidiary
The Subsidiary has undertaken to Kailong Real Estate and Hengda Real Estate that for a period of three years from completion of the Capital Contribution or immediately prior to the completion of the Proposed Reorganisation (whichever is earlier), it will not transfer its interests in Hengda Real Estate (whether in whole or in part) or create any encumbrances over such interests without the consent of Kailong Real Estate. The Subsidiary has also undertaken that from the date of completion of the Capital Contribution to completion of the Proposed Reorganisation, it will not alter its direct or indirect interests in Hengda Real Estate or carry out any acts which would adversely affect the Proposed Reorganisation.
INFORMATION ABOUT HENGDA REAL ESTATE
Hengda Real Estate is a limited liability company established in the PRC and is principally engaged in the business of property development in the PRC.
According to the audited financial statements of Hengda Real Estate provided to the Company, the financial results of Hengda Real Estate for the two years ended 31 December 2015 and 2016 are as follows:
For the year ended 31 December 2016 2015 (audited) (audited) RMB’million RMB’million
Net profit before tax 26,510 29,284 Net profit after tax 17,701 21,484
The consolidated net asset value of Hengda Real Estate as at 31 December 2016 was RMB88,142 million.
–14– LETTER FROM THE BOARD
China Evergrande announced on 3 October 2016 that Kailong Real Estate and Hengda Real Estate had entered into a cooperation agreement with Shenzhen Real Estate and SIH pursuant to which the parties agreed to work towards the entering into of the Reorganisation Agreement with regard to the Proposed Reorganisation. Under the Proposed Reorganisation, Shenzhen Real Estate will, by way of issue of RMB ordinary shares and/or payment of cash consideration, acquire all of the equity interest in Hengda Real Estate. Upon completion of the Proposed Reorganisation, Kailong Real Estate will become the controlling shareholder of Shenzhen Real Estate and China Evergrande’s real estate related assets will effectively be listed on the Shenzhen Stock Exchange A-share market through the Proposed Reorganisation.
REASONS FOR AND BENEFIT OF THE ENTERING INTO OF THE INVESTMENT AGREEMENT
The Capital Contribution was made after considering various factors including the following:–
1. The development strategy of Hengda Real Estate and potential synergy and benefits of the Proposed Reorganisation
The development strategy of Hengda Real Estate complements that of the Group. The Group’s current development strategy is to focus on property development in Shenzhen, other first-tier cities in the PRC, as well as second-tier cities where the Group has already established a presence. Such strategy was formulated with reference to the Group’s available land reserves, human resources structure and organizational structure. In contrast, Hengda Real Estate’s development projects span across the whole country, reaching not only third-tier and fourth-tier cities, but also certain economically-vibrant counties. Tapping into Hengda Real Estate’s wider market share and presence in cities which are unexplored by the Group, it was believed that by investing in Hengda Real Estate, it would strengthen the Group’s resilience to potential market fluctuations.
2. The prevailing market conditions
The Group is principally engaged in property development, property investment and property management in the PRC. Based on the Group’s solid experience and knowledge of the property market in the PRC, the Group is optimistic about the future macroeconomic development of the country, as well as the prospect of its property market. Against this wider backdrop of a vibrant economy and property market, it was trusted that the Capital Contribution to Hengda Real Estate, one of the largest property developers in the PRC, will yield handsome return for the Group.
–15– LETTER FROM THE BOARD
3. The land reserves of Hengda Real Estate and the development potentials of its projects
Against the property market boom in the PRC since 2016, the cost of land acquisition has escalated to new heights. In some cities, the extent of increase in land prices has already surpassed that of property prices. Land bank is a scarce resource which has become a general concern of property developers in the PRC. Hengda Real Estate boasted a grand reserve of undeveloped land with massive construction area. By investing in Hengda Real Estate, the Group may share in the future profits generated from Hengda Real Estate’s abundant land reserve.
4. The terms of the Investment Agreement being beneficial to the Group
The Capital Contribution was viewed as a relatively valuable investment opportunity to the Group, which was expected to bring about favourable returns. With the benefit of the following terms, details of which are disclosed above, for the three financial years of 2017, 2018 and 2019, the Group will effectively enjoy an average annual return of not less than 9.3% from the dividends that it will receive from Hengda Real Estate:–
(a) the net profit of Hengda Real Estate for the three financial years of 2017, 2018 and 2019 shall not be less than RMB24.3 billion, RMB50 billion and RMB55 billion, respectively;
(b) prior to the entering into of the Reorganisation Agreement and subject to Hengda Real Estate continues to operate normally, Hengda Real Estate will distribute at least 68% of its net profit for each of the financial years under the Performance Undertaking Period to its shareholders in accordance with their respective percentage of equity interest in it as cash dividends;
(c) following completion of the Proposed Reorganisation, on conditions mentioned under the section headed “Dividend payment after the entering into of the Reorganisation Agreement” above, after the end of each financial year during the Performance Undertaking Period, Kailong Real Estate will propose that Listco distributes a cash dividend of at least 68% of its distributable net profit for such year, and for any other year within the Performance Undertaking Period when cash dividend has not been paid in accordance with the arrangement mentioned under the section headed “Dividend payment after the entering into of the Reorganisation Agreement” above or the section headed “Dividend payment prior to the entering into of the Reorganisation Agreement” above (as the case may be), and Kailong Real Estate will also vote in favour of such proposal at the relevant shareholders’ meeting of Listco;
–16– LETTER FROM THE BOARD
(d) if the net profit of Hengda Real Estate for any financial year in the Performance Undertaking Period (as audited and confirmed by auditors with relevant securities and futures industry qualifications to be employed by Hengda Real Estate) is less than the Performance Undertaking Amount for that financial year, the proportional dividend to be paid by Hengda Real Estate to the Subsidiary will be adjusted upward in accordance with the terms of the Investment Agreement; and
(e) if the Proposed Reorganisation as contemplated under the Reorganisation Agreement is not completed by 31 January 2020 and the failure to complete is not caused by reasons attributable to the Subsidiary, the Subsidiary may within two months of the expiry of such deadline exercise its exit rights stipulated under the Investment Agreement and the exercise of such exit rights will not affect the Subsidiary’s entitlement to dividend distribution of Hengda Real Estate for 2019.
Therefore, from a business point of view, the Directors considered that the Capital Contribution was an appropriate and reasonable investment.
5. The net asset value and registered capital of Hengda Real Estate and the value of the total shareholders’ equity of Hengda Real Estate as indicated by an independent third party valuer as at 30 June 2016 as referred to in the announcement of China Evergrande dated 31 December 2016
Taking all of the above factors into account, and with reference to the Group’s available financial resources and investment arrangement, the Group had ultimately agreed to contribute an amount of RMB5.5 billion to the capital of Hengda Real Estate.
The equity interest in return for the Capital Contribution was determined according to a formula applicable to all Investors alike, which took into account the net asset value and registered capital of Hengda Real Estate, the value of the total shareholders’ equity of Hengda Real Estate (as indicated by an independent third party valuer (engaged by another Investor independent from the Group) as at 30 June 2016 as referred to in the announcement of China Evergrande dated 31 December 2016), as well as the total capital contribution to Hengda Real Estate actually made by the First Round Investors and the Second Round Investors (the “Total Capital Contribution”). Such formula is disclosed under the section headed “Letter from the Board – The Investment Agreement – Amount of Capital Contribution”. With the valuation of Hengda Real Estate prior to the capital contribution by the First Round Investors and the Second Round Investors being accepted by all the First Round Investors and the Second Round Investors to be RMB198 billion, and with the Total Capital Contribution being determined to be RMB39.5 billion, the Group has acquired approximately 2.0522% of the enlarged equity interest of Hengda Real Estate following the making of the capital contributions made by the Second Round Investors to Hengda Real Estate. The Group’s percentage of equity interest in Hengda Real Estate will subsequently be diluted to approximately 1.7626% of the enlarged equity interest of Hengda Real Estate after the capital contributions to Hengda Real Estate pursuant to the Third Round Investment Agreements are made.
–17– LETTER FROM THE BOARD
The Capital Contribution and the terms of the Investment Agreement (including the terms of the Second Supplemental Investment Agreement, which requires Mr. Hui to buy back the entire equity interest held by the Subsidiary at the original amount of capital contributed by it in case Kailong Real Estate chooses not to buy back such equity interest from the Subsidiary, and provides better exit opportunity to the Subsidiary in case the Proposed Reorganisation as contemplated under the Reorganisation Agreement does not materialise, and the terms of the Third Supplemental Investment Agreement, which provides for the possibility of an increase in the Performance Undertaking Amount in the financial years ended 2018 and 2019 and additional measures with a view to ensure that the amount of dividend payment following completion of the Proposed Reorganisation as agreed under the Investment Agreement will be given effect to) were determined after arm’s length negotiations, and the Investment Agreement was concluded based on normal commercial terms. After considering the various factors including those mentioned above, the Directors consider that the terms of the Investment Agreement and the transactions contemplated thereunder are fair and reasonable and in the interests of the Company and the Shareholders as a whole.
As of the Latest Practicable Date, the Capital Contribution has been paid from the Group’s internal resources.
FINANCIAL EFFECTS OF THE TRANSACTIONS
Following the completion of the Capital Contribution, the Group has acquired a minority shareholding of approximately 2.0522% in Hengda Real Estate (which will subsequently be diluted to approximately 1.7626% of the enlarged equity interest of Hengda Real Estate after the capital contributions to Hengda Real Estate pursuant to the Third Round Investment Agreements are made). Hengda Real Estate has not become a subsidiary or associate of the Company, and the financial results of Hengda Real Estate will not be consolidated in the financial statements of the Group nor be equity accounted for in the Group’s consolidated financial statements as an associate. For details of the unaudited pro forma financial information of the Group following the Capital Contribution, please refer to Appendix III to this circular.
Assets and liabilities
According to the annual report of the Group for the year ended 31 December 2016, the Group had total assets, total liabilities and net assets of approximately HK$96,546 million, HK$60,325 million and HK$36,221 million respectively as at 31 December 2016. Based on the unaudited pro forma consolidated statement of assets and liabilities of the Group as set out in Appendix III to this circular, the Capital Contribution would not result in any change in total assets, total liabilities or net assets of the Group.
–18– LETTER FROM THE BOARD
Earnings
Since the Group would only be interested in 2.0522% of the equity interest in Hengda Real Estate after completion of the Capital Contribution and such percentage will be reduced to 1.7626% after the making of the capital contributions to Hengda Real Estate pursuant to the Third Round Investment Agreements (assuming that there is no other change to the issued share capital of Hengda Real Estate after the Latest Practicable Date), the financial results and financial position of Hengda Real Estate will not be consolidated with those of the Group. The Group’s interest in Hengda Real Estate would only be accounted for as other financial assets which would be recorded at its fair value.
Save for the dividends that may be declared and distributed by Hengda Real Estate (if any) to the Group and any changes in fair value of the shares of Hengda Real Estate, the Capital Contribution is not expected to have any significant impact on the earnings of the Group.
LISTING RULES IMPLICATIONS
As one of the applicable percentage ratios under Rule 14.07 of the Listing Rules in respect of the Capital Contribution is more than 25% but less than 100%, the Capital Contribution constitutes a major transaction for the Company and is subject to the reporting, announcement and shareholders’ approval requirements under Chapter 14 of the Listing Rules. As no Shareholder is interested in the Investment Agreement and the transactions contemplated thereunder (including the Capital Contribution) and thus no Shareholder is required to abstain from voting if the Company were to convene a general meeting for the approval of the Investment Agreement and the transactions contemplated thereunder (including the Capital Contribution), and the Company has already obtained written approvals of the Investment Agreement (including the Second Supplemental Investment Agreement and the Third Supplemental Investment Agreement) and the transactions contemplated thereunder (including the Capital Contribution) from Shum Yip Holdings, a Shareholder holding 4,897,856,631 Shares (representing approximately 60.78% of the issued share capital of the Company), pursuant to Rule 14.44 of the Listing Rules, the Company is exempted from the requirement to obtain Shareholders’ approval of the Investment Agreement (including the Second Supplemental Investment Agreement and the Third Supplemental Investment Agreement) and the transactions contemplated thereunder (including the Capital Contribution) at a general meeting. Accordingly, this circular is despatched to the Shareholders for information purpose only.
–19– LETTER FROM THE BOARD
The Buy-back Option granted to the Subsidiary under the Investment Agreement constitutes an option under Rule 14.72 of the Listing Rules. As the exercise of the Buy-back Option is at the discretion of the Subsidiary, pursuant to Rule 14.75(1) of the Listing Rules, on the grant of such option, only the premium will be taken into consideration for the purpose of transaction classification. As no premium is payable for the grant of the Buy-back Option to the Subsidiary, such grant does not constitute a notifiable transaction of the Company. The Company will comply with the Listing Rules requirements, if applicable, on the exercise of the Buy-back Option.
WAIVER FROM STRICT COMPLIANCE WITH RULES 5.02, 14.66(11), 14.67(6)(a)(i) AND 14.67(7) OF THE LISTING RULES
A. Waiver from strict compliance with Rules 5.02 and 14.66(11) of the Listing Rules in relation to the inclusion of a valuation report for property interests held by Hengda Real Estate (the “Property Valuation Waiver”)
Pursuant to Rules 5.02 and 14.66(11) of the Listing Rules, for an acquisition of a company whose assets consist solely or mainly of property, where any of the percentage ratios of the acquisition is or is above 25%, a valuation of and information on the property in conformity with Chapter 5 of the Listing Rules must be included in the circular issued to shareholders in connection with the acquisition. In this regard, the Company would be, but for the Property Valuation Waiver, required under the Listing Rules to include a valuation report for property interests held by Hengda Real Estate.
The Company has applied to the Stock Exchange for the Property Valuation Waiver, on the following grounds:
1. The Company has no access to information required for the compilation of the valuation report
The Company has enquired with China Evergrande and Hengda Real Estate as to whether the necessary property information and documents in relation to the properties of Hengda Real Estate, which an independent qualified valuer would require to compile a valuation report in compliance with the contents requirements under Chapter 5 of the Listing Rules, could be made available to the Company. As the Company (through the Subsidiary) is merely a minority shareholder holding only approximately 2.0522% interest in Hengda Real Estate (which will subsequently be diluted to approximately 1.7626% of the enlarged equity interest of Hengda Real Estate after the capital contributions to Hengda Real Estate pursuant to the Third Round Investment Agreements are made), the Company has not been granted any access to such information. It is therefore impossible for the Company to arrange for the preparation of a valuation report which satisfies the requirements under Chapter 5 of the Listing Rules.
–20– LETTER FROM THE BOARD
2. Valuation report in relation to the property interests of the Hengda Real Estate Group as arranged by China Evergrande is publicly available and has been reproduced in Appendix IV to this circular as alternative disclosure
From China Evergrande’s perspective, the Capital Contribution from the Group, together with the capital contributions from other Second Round Investors to Hengda Real Estate (together, the “Capital Increase”), constituted a deemed disposal of China Evergrande’s interest in Hengda Real Estate, and, as disclosed by China Evergrande, was a major transaction for China Evergrande under Chapter 14 of the Listing Rules. China Evergrande was therefore similarly subject to the requirements under Rules 5.02 and 14.66(11) of the Listing Rules to include in its circular in relation to the Capital Increase a valuation report in relation to the property interests of Hengda Real Estate.
China Evergrande issued a circular in relation to the Capital Increase on 13 June 2017, in which a valuation report from CBRE containing a summary of its valuation on the properties interests held by Hengda Real Estate as of 31 March 2017 was included (the “Valuation Report”). CBRE has confirmed in the Valuation Report that all requirements contained in Chapter 5 and Practice Note 12 of the Listing Rules were complied with. The circular issued by China Evergrande mentioned above is published on the website of the Stock Exchange at www.hkexnews.hk and therefore is publicly available. As an alternative disclosure, a copy of the Valuation Report has been reproduced in Appendix IV to this circular.
3. Impracticable and unduly burdensome to arrange for the valuation report
Given that the Hengda Real Estate Group has interests in over 1,500 properties located in various provinces of the PRC and that the Group only has a small percentage shareholding interest in Hengda Real Estate, it would be impracticable, unduly burdensome, costly and disproportionate to require the Company to prepare a valuation report in respect of such property interests in compliance with Chapter 5 of the Listing Rules.
Based on the grounds and alternative disclosure mentioned above, the Stock Exchange has granted the Property Valuation Waiver sought by the Company and the Company is therefore not required to include a valuation report for the property interests held by Hengda Real Estate in this circular in strict compliance with Rules 5.02 and 14.66(11) of the Listing Rules.
–21– LETTER FROM THE BOARD
B. Waiver from strict compliance with Rules 14.67(6)(a)(i) and 14.67(7) of the Listing Rules in relation to the preparation and inclusion of accountants’ report and management discussion and analysis
(I) Accountants’ report
Pursuant to Rule 14.67(6)(a)(i) of the Listing Rules, a listed issuer is required to include in its circular an accountants’ report on the business, company or companies being acquired in accordance with Chapter 4 of the Listing Rules. There is a proviso in the said Rule 14.67(6)(a)(i) which provides that where any company in question has not or will not become a subsidiary of the listed issuer, the Stock Exchange may be prepared to relax such requirements. Pursuant to the said Rule, an accountants’ report is required to relate to the three financial years immediately preceding the issue of the circular and (where applicable) a stub period ending 6 or less months before the issue of the circular. The financial information on the business, company or companies being acquired as contained in such accountants’ report is also required to be prepared using accounting policies which should be materially consistent with those of the listed issuer.
As the Group has only acquired approximately 2.0522% of the enlarged registered capital of Hengda Real Estate following completion of the Capital Contribution (which will subsequently be diluted to approximately 1.7626% of the enlarged equity interest of Hengda Real Estate after the capital contributions to Hengda Real Estate pursuant to the Third Round Investment Agreements are made), pursuant to the proviso to Rule 14.67(6)(a)(i), the Company has applied to the Stock Exchange for a waiver from strict compliance with the requirement under Rule 14.67(a)(i) of the Listing Rules to include an accountants’ report on Hengda Real Estate (the “Accountants’ Report Waiver”), on the following grounds:-
1. The Group has only acquired a very small interest in the registered capital of Hengda Real Estate
Pursuant to the Capital Contribution, the Group has acquired a minority shareholding of only approximately 2.0522% in Hengda Real Estate (which will subsequently be diluted to approximately 1.7626% of the enlarged equity interest of Hengda Real Estate after the capital contributions to Hengda Real Estate pursuant to the Third Round Investment Agreements are made). Hengda Real Estate has not become a subsidiary or an associate of the Company, and the financial results of Hengda Real Estate will not be consolidated in the financial statements of the Group nor be equity accounted for in the Group’s consolidated financial statements as an associate. Requiring the Company to arrange for an accountants’ report on Hengda Real Estate to be prepared for inclusion in this circular would thus be out of proportion to the size of the Capital Contribution.
–22– LETTER FROM THE BOARD
2. The Company has no access to Hengda Real Estate’s non-public financial information, and strict compliance will be impossible and unduly burdensome
The Company has requested China Evergrande and Hengda Real Estate to assist in and provide information for the preparation of the required accountants’ report on Hengda Real Estate for inclusion in this circular. However, given that (i) the financial information of Hengda Real Estate which was not generally available to the shareholders of Hengda Real Estate and the shareholders of China Evergrande was considered inside information or sensitive information of the China Evergrande group; (ii) Hengda Real Estate constitutes China Evergrande’s major asset; and (iii) China Evergrande is itself subject to regulations in Hong Kong (including the Listing Rules), China Evergrande and Hengda Real Estate considered it inappropriate to disclose, and has not disclosed, such financial information and underlying books and accounts of Hengda Real Estate to the Company (being a minority investor of Hengda Real Estate, and a competitor of China Evergrande in the businesses of property development, property investment and property management) or the Company’s accountants for the preparation of an accountants’ report on Hengda Real Estate to be included in this circular. Therefore, strict compliance with the requirement to prepare the relevant accountants’ report would be impossible and unduly burdensome to the Company.
3. Certain audited annual financial statements of Hengda Real Estate Group are publicly available and has been reproduced in Appendix II to this circular as alternative disclosure
In the second quarter of 2015, Hengda Real Estate issued public bonds to qualified investors and such bonds are listed on the Shanghai Stock Exchange. In accordance with the rules and regulations in the PRC, certain documents in relation to Hengda Real Estate and the bonds have since then been published by Hengda Real Estate and made available on the website of Shanghai Stock Exchange (http://www.sse.com.cn) on a regular basis, and such documents include (i) the 2015 annual report on corporate bonds of Hengda Real Estate, enclosing, among others, the audited annual financial statements of Hengda Real Estate for the year ended 31 December 2015 (which also shows certain financial information of Hengda Real Estate for the year ended 31 December 2014 for comparison purpose); (ii) the 2016 annual report on corporate bonds of Hengda Real Estate, enclosing, among others, the audited annual financial statements of Hengda Real Estate for the year ended 31 December 2016 (in each case audited by PwC and prepared based on the China Accounting Standards for Business Enterprises (“CASBE”), being accounting standards expressly recognized by the Listing Rules in the case of a PRC issuer under Rule 4.11(c) of the Listing Rules); and (iii) the unaudited consolidated and company-level statement of financial position of Hengda Real Estate as at 30 June 2017, the unaudited consolidated and company-level statement of profit and loss of Hengda Real Estate for the 6 months ended 30 June 2017, the unaudited consolidated and company-level statement of cash flow of Hengda Real Estate for the 6 months ended 30 June 2017, the unaudited consolidated and company-level statement of changes in equity of Hengda Real Estate for the 6 months ended 30 June 2017, and the notes to the unaudited consolidated and company-level financial
–23– LETTER FROM THE BOARD
statements of Hengda Real Estate for the 6 months ended 30 June 2017 prepared based on CASBE and therefore such reports and unaudited financial statements are publicly available. As an alternative disclosure, such annual reports and unaudited financial statements has been reproduced in Appendix II to this circular.
4. Hengda Real Estate is the major asset of China Evergrande, which in turn is a company listed on the Stock Exchange
The waiver sought is consistent with the spirit underlying Rule 14.67A(1) of the Listing Rules, which provides for the relaxation of certain disclosure requirements in a major transaction circular if the conditions specified in such Rule are satisfied, including without limitation, (a) the unavailability of non-public information being caused by lack of cooperation by the board of directors in the target company and/or legal or regulatory restrictions; and (b) the target company being listed on a recognised stock exchange (including the Stock Exchange).
(II) Management discussion and analysis
Pursuant to Rule 14.67(7) of the Listing Rules, the Company is also required to include in this circular a discussion and analysis of results of Hengda Real Estate covering all those matters set out in paragraph 32 of Appendix 16 to the Listing Rules for the period reported in the required accountants’ report.
Since the Company is not able to obtain the necessary non-public financial information of Hengda Real Estate for the purpose of preparing the required accountants’ report for the reasons given above, the Company is similarly unable to obtain the necessary non-public financial information of Hengda Real Estate for the purpose of preparing, and it is impracticable and unduly burdensome to require the Company to prepare, the relevant management discussion and analysis. The Company has therefore applied for waiver to dispense with the requirements to comply with Rule 14.67(7) in relation to this circular (the “MD&A Waiver”).
Based on the grounds and alternative disclosure mentioned above, the Stock Exchange has granted the Accountants’ Report Waiver and the MD&A Waiver sought by the Company and the Company is therefore not required to include an accountants’ report on Hengda Real Estate in strict compliance with Rule 14.67(6)(a)(i) of the Listing Rules or a management discussion and analysis on the results of Hengda Real Estate in strict compliance with Rule 14.67(7) of the Listing Rules.
GENERAL
The Group is principally engaged in property development, property investment and property management.
China Evergrande and its subsidiaries are principally engaged in the development of large scale residential properties and integrated commercial properties in the PRC.
–24– LETTER FROM THE BOARD
RECOMMENDATION
The Directors consider that the terms of the Investment Agreement and the transactions contemplated thereunder are on normal commercial terms, are fair and reasonable, and the entering into of the Investment Agreement and the transactions contemplated thereunder are in the best interests of the Company and the Shareholders as a whole.
ADDITIONAL INFORMATION
Your attention is drawn to the financial and general information as set out in the appendices to this circular.
By order of the Board of Shenzhen Investment Limited LU Hua Chairman
–25– APPENDIX I FINANCIAL INFORMATION OF THE GROUP
1. FINANCIAL INFORMATION OF THE GROUP
Details of the audited financial information of the Group for each of the three years ended 31 December 2014, 2015 and 2016 are disclosed in the following annual reports of the Company for the years ended 31 December 2014, 2015 and 2016, respectively, and details of the unaudited interim financial information of the Group for the six months ended 30 June 2017 are disclosed in the following interim report of the Company for the six months ended 30 June 2017, which have been published and are available on the website of the Stock Exchange (www.hkex.com.hk) and the website of the Company (http://www.shenzheninvestment.com):
• the annual report 2014 of the Company for the year ended 31 December 2014 which is published on 27 April 2015 (available on: http://www.hkexnews.hk/listedco/listconews/SEHK/2015/0427/LTN20150427678.pdf), please refer to pages 76 to 240 in particular;
• the annual report 2015 of the Company for the year ended 31 December 2015 which is published on 27 April 2016 (available on: http://www.hkexnews.hk/listedco/listconews/SEHK/2016/0427/LTN20160427254.pdf), please refer to pages 92 to 242 in particular;
• the annual report 2016 of the Company for the year ended 31 December 2016 which is published on 27 April 2017 (available on: http://www.hkexnews.hk/listedco/listconews/SEHK/2017/0427/LTN201704271070.pdf), please refer to pages 103 to 241 in particular; and
• the interim report 2017 of the Company for the six months ended 30 June 2017 which is published on 21 September 2017 (available on: http://www.hkexnews.hk/listedco/listconews/SEHK/2017/0921/LTN20170921193.pdf), please refer to pages 22 to 72 in particular.
The said financial statements are hereby incorporated by reference in, and form an integral part of, this circular.
2. INDEBTEDNESS STATEMENT
As at the close of business on 30 September 2017, being the latest practicable date for the purpose of this indebtedness statement prior to printing of this circular, the Group had total outstanding interest-bearing bank loans, entrusted loans due to the ultimate holding company and other borrowing of approximately HK$24,059 million, comprising unsecured current bank loans of approximately HK$3,446 million, unsecured non-current bank loans of approximately HK$15,726 million, unsecured non-current entrusted loans due to the ultimate holding company of approximately HK$1,544 million, secured non-current bank loans of approximately HK$470 million, and unsecured other borrowing of approximately HK$2,873 million. As at 30 September 2017, certain land and buildings and investment properties of the Group had been pledged to banks to secure bank loans granted to the Group.
As at 30 September 2017, the Group had given guarantees to a maximum extent of approximately HK$6,516 million to banks for housing loans extended by the banks to the purchasers of the Group’s properties.
– I-1 – APPENDIX I FINANCIAL INFORMATION OF THE GROUP
Save as aforesaid or otherwise disclosed herein, as at the close of business on 30 September 2017, the Group did not have any debt securities and loan capital issued and outstanding, and authorised or otherwise created but unissued, bank overdrafts, loans or other similar indebtedness, liabilities under acceptances or acceptance credits, debentures, mortgages, charges, hire purchase commitments, guarantees or other material contingent liabilities.
3. MATERIAL ADVERSE CHANGE
As at the Latest Practicable Date, the Directors were not aware of any material adverse change in the financial or trading position of the Group since 31 December 2016, being the date to which the latest published audited consolidated financial statements of the Group were made up.
4. WORKING CAPITAL
The Directors are of the opinion that, after taking into account the effects of the Capital Contribution and the financial resources available to the Group, the Group has sufficient working capital to satisfy its requirements for at least the next 12 months from the date of publication of this circular in the absence of unforeseen circumstances.
5. FINANCIAL AND TRADING PROSPECT OF THE GROUP
Business outlook
The Shenzhen market is in the period of adjustment, but quality assets still have long-term value
Real estate market is complex and volatile. Stringent macro-controlling policies are the cause of the adjustment period, which is represented by slacking supply and demand, a substantial decrease in transaction volume and a relatively stable price. It is anticipated that the macro-controlling policies on real estate will continue to the end of the year 2017, and the transaction volume and price will remain at the current level. In the long run, Shenzhen will become a technology innovative center of the PRC. As the development strategy of the Guangdong – Hong Kong – Macau big bay area is being carried out, Shenzhen will further stand out as “a core area of technology innovation”, with rising competitiveness and stronger attractiveness to non-local population, accordingly, the conflict between robust housing demand and scarcity of land resources can hardly be changed in the short term. The aforementioned fundamentals will strongly support the long term development of the real estate market in Shenzhen, and our Group’s quality assets located at core areas of Shenzhen will have long-term value.
– I-2 – APPENDIX I FINANCIAL INFORMATION OF THE GROUP
Against the stringent macro-controlling policies, the Group will consistently make it a priority to ensure Shareholders’ interests and focus on corporate profit growth and realization of the long-term value of its assets. The Group will take into account the macro-controlling policies and current market conditions when seeking for the achievement of generating long-term value for its high-quality projects by adjusting sales models, on condition that corporate capital chain and profit growth will be maintained.
Housing rental is becoming predominant as the long-term effective mechanism of the real estate industry gradually develops
As the real estate industry in the PRC develops in the last 20 years, the current average living space per capita in the PRC has reached up to 40 square meters, resulting in the market increase reaching its limit. The Central Government recently proposed to establish a long-term effective mechanism for real estate to guide real estate companies to deleverage to control risks. The return of building houses to the purpose of living is an important principle for the establishment of a long-term effective mechanism for real estate and will also become the policy direction in the future. Of which, the development of the housing rental market will play an important part in accelerating the supply-side structural reform in real estate market and establishing the housing system of co-development of purchasing and rental market.
The Group has previously ventured into the long-term leasing apartment business segment through its previous launch of the “Youth Apartment Scheme” together with relevant authorities in Shenzhen. We will continue to pay attention to the formulation of relevant policies and project opportunities on long-term leasing apartment business in key cities, put great efforts in creating our proprietary brand for long-term leasing apartments and explore sustainable business opportunities of long-term leasing apartment development in key cities.
Means of acquiring land needs to be changed as it is more and more difficult to acquire land resources
Given the current real estate market condition, costs and risks in acquiring land through public market have risen, and it is extremely difficult to acquire quality projects. The Group upholds the principle of “cooperation + collaboration” and applies the following methods of resources acquisition flexibly with reference to suitability on a case by case basis:
– deepening its cooperation with its parent company to increase its land reserves in Shenzhen and the big bay area;
– strengthening the cooperation on mergers and acquisitions with state-owned and private enterprises to increase new projects in Shenzhen;
– leveraging on the Group’s advantage as a coordinator in urban areas reformation in Shenzhen as well as its professional abilities in introducing industries, comprehensive operation and arranging public space and ancillary facilities to secure more quality land resources by collaborating with the government in the process of urban redevelopment;
– I-3 – APPENDIX I FINANCIAL INFORMATION OF THE GROUP
– capitalizing on its overseas investment advantage and improving professional abilities in park operation services to proactively expand more resources in the construction of the Guangdong – Hong Kong – Macau big bay area, and continue to identify project opportunities in key cities including but not limited to Hong Kong, Guangzhou and Nanjing.
Financial strategy
The Group will adhere to the consistent principle of maintaining healthy financial position, and will endeavour to reduce financing costs, and to improve capital turnover efficiency to provide concrete protection of financial resources for its business development.
Corporate prospect
Consistently following the corporate vision of “Leader in Value Creation for City Spaces”, the Group will continue to firmly intensify the development in Shenzhen while focusing on the development strategies in the first-and second-tier key cities. By intensifying the development in Shenzhen, maintain steady growth in the size of development and sales; by moderately enlarging the scale of its investment properties, optimizing its investment properties portfolio, constantly seek higher asset quality and level of return; and by building an operation and service platform with core competitiveness, leverage on its professional operation advantages to continuously enhance value of the urban space.
Through unremitting efforts, the Group will be able to achieve a balance between scale expansion and value enhancement in the next five years and a constant optimization of the structure of land reserves and assets by leveraging on urban operation advantage, proactively innovating methods of resource acquisition, establishing itself in Shenzhen whilst paying attention to the Guangdong – Hong Kong – Macau big bay area to bring better returns to the Shareholders.
– I-4 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
The followings are the English translations of the texts of (i) the 2015 annual report on corporate bonds of Hengda Real Estate, enclosing, among others, the audited annual financial statements of Hengda Real Estate for the year ended 31 December 2015, which were audited by PwC in the report dated 15 April 2016; (ii) the 2016 annual report on corporate bonds of Hengda Real Estate, enclosing, among others, the audited annual financial statements of Hengda Real Estate for the year ended 31 December 2016, which were audited by PwC in the report dated 28 April 2017; and (iii) the unaudited financial statements of Hengda Real Estate for the 6 months ended 30 June 2017, all published on the website of the Shanghai Stock Exchange ((i), (ii) and (iii) above together, the “Financial Information on Hengda Real Estate”). For the avoidance of doubt, references in the Financial Information on Hengda Real Estate in this Appendix II to “the Company” are to Hengda Real Estate and not to the Company.
The Financial Information on Hengda Real Estate was originally prepared in Chinese. The English version in this Appendix appears for information purposes only. In case of any discrepancy or inconsistency between the Chinese version and its English translation, the Chinese version shall prevail.
The Financial Information on Hengda Real Estate was not prepared for the Company or its shareholders, nor for the purpose of incorporation in this circular. Neither Hengda Real Estate nor PwC shall take or assume any responsibility or liability for the contents of the Financial Information on Hengda Real Estate as reproduced in this circular towards the Company, its Shareholders or any other persons making use of this circular.
The contents of the Financial Information on Hengda Real Estate has also not been independently verified by the Group or any of its affiliates, advisers, agents, directors, employees, officers or representatives. Neither the Group nor any of its affiliates, advisers, agents, directors, employees, officers or representatives make any representation as to the accuracy, completeness or fairness of the contents of the Financial Information on Hengda Real Estate, nor shall take or assume any responsibility for the contents of the Financial Information on Hengda Real Estate.
– II-1 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)
Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) Annual Report on Corporate Bonds (2015)
April 2016
1
– II-2 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)
Important Notice
The directors (the “Directors”), the supervisors (the “Supervisors”) and the senior management (the “Senior Management”) of the Company hereby warrant the truthfulness, accuracy and completeness of the contents of the annual report, guarantee that there are no false representations, misleading statements or material omissions, and have a corresponding liability.
PricewaterhouseCoopers Zhong Tian LLP has audited the financial statements of the Company for 2015 and has issued a standard unqualified auditor’s report.
2
– II-3 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)
Material Risk Warnings
I. The risk associated with a higher gearing ratio
As at the end of 2014 and 2015, the gearing ratio of the Company was relatively high at 88.14% and 88.54% respectively. The Company may maintain a larger debt size and a higher gearing ratio as the size of the real estate development of the Company gradually expands and the project development expenditure will increase accordingly. If the continuous financing capabilities of the Company are restricted or there are material adverse changes in the macroeconomic environment in the future, the debt service obligations of the Company may increase, which may have negative effect on the ordinary course of its business activities.
II. Uncertainty risk associated with sale of inventories
As at the end of 2014 and 2015, the inventories of the Company amounted to RMB204,214 million and RMB318,764 million respectively, accounting for 46.24% and 49.01% of the total assets respectively. The inventories of the Company are primarily property inventories, which mainly include properties held for sale and properties under development. The macroeconomic situation and the state policy have greater effect on the property development business of the Company. If the supply and demand relationship in the domestic property market changes further in the future, the sales of the property projects of the Company may be affected to a greater extent, and, accordingly, there is uncertainty over the sales or liquidation of the property-related inventories to a certain extent.
III. The risk associated with the greater scale of the restricted assets
As at the end of 2015, the book amount of the restricted assets of the Company amounted to RMB202,735 million, accounting for 31.18% of the total assets for the same period. The restricted assets are primarily the assets pledged as collateral for borrowings from financial institutions. They are primarily the property projects developed by, and the cash and bank balances held by the Company and its subsidiaries. As at the end of 2015, the Company had a total of 642 subsidiaries, where the equity interests of 94 subsidiaries are pledged or partly pledged. There is uncertainty over subsequent financing and the normal use of assets of the Company to a certain extent as the Company has large-scale restricted assets.
IV. The risk associated with accumulated new borrowings and a higher external guarantee amount
As at the end of 2015, the accumulated new borrowings of the Company (excluding those from issuance of bonds) amounted to RMB142,231 million, and the accumulated bonds issued amounted to RMB40,000 million, which was higher than the net assets as at the end of 2014 (the audited net assets of the Company as at the end of 2014 amounted to RMB52,356 million) by over 20%.
As at the end of 2015, the balance of external guarantee of the Company provided to related parties and non-related parties amounted to RMB24,187 million and RMB2,714 3
– II-4 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)
million respectively. The external guarantee of the Company provided in 2015 was higher than the net assets as at the end of the last year (the audited net assets of the Company as at the end of 2014 amounted to RMB52,356 million) by over 20%.
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Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)
Contents
Definitions ...... 6 I Profile of the Company and the Relevant Intermediaries ...... 7 I. Company Information...... 7 II. Information on Information Disclosure Affairs ...... 7 III. Information on the Controlling Shareholder, the De Facto Controller, Directors, Supervisors and Senior Management of the Company During the Reporting Period ...... 8 IV. Information on the Relevant Intermediaries ...... 9 II Corporate Bonds ...... 10 I. Basic Information of Bonds ...... 10 II. Use of Proceeds from the Issuance of Bonds ...... 10 III. Credit Rating and Ongoing Rating Arrangements ...... 11 IV. Implementation of Credit Enhancement Mechanism, Debt Repayment Plan and Other Safeguard Measures ...... 11 III Financial and Asset Conditions ...... 13 I. Major Accounting Data and Financial Indicators ...... 13 II. Audit of the Annual Financial Report of the Company ...... 14 III. Analysis of Changes in Major Assets and Liabilities ...... 15 IV. Restricted Assets ...... 19 V. Other Bonds or Debt Financing Instruments Issued by the Company ...... 19 VI. Change in External Guarantees of the Company ...... 20 VII. Credit and Bank Loan Repayment ...... 21 IV Operations and Corporate Governance ...... 22 I. Operations, Changes in Industry Environment and Management Discussion ...... 22 II. Operation Discussion and Analysis for the Reporting Period ...... 22 III. Future Business Development and Possible Risks ...... 24 IV. Other Information about Operations of the Company ...... 26 V Major Events ...... 27 I. Pending Litigation, Arbitration and Administrative Penalty of the Company ...... 27 II. Bankruptcy Reorganization of the Company During the Reporting Period ...... 27 III. Risk Regarding Suspension of Trading or Delisting of Corporate Bonds During the Term ...... 27 IV. The Company, its Controlling Shareholder and De Facto Controller being Investigated by Judicial Authorities for Suspected Violation of Laws, and the Directors, Supervisors and Senior Management of the Company Suspected for Being Subject to Compulsory Measures as Implemented by Judicial Authorities ...... 28 V. Other Major Events ...... 28 VI Financial Report ...... 29 VII Documents available for Inspection ...... 30
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Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)
Definitions
In this annual report, unless the context otherwise requires, the following terms shall have the following meanings:
Company or Hengda Hengda Real Estate Group Company Limited* (恒大 means Real Estate 地產集團有限公司) Evergrande Real Estate Group Limited, a Hong Kong listed company registered in the Cayman Islands Evergrande means of the United Kingdom (stock code: 3333.HK). It (Cayman) wholly owns 100% equity interest of the Company through subsidiaries at multiple levels CSRC means China Securities Regulatory Commission SZSE means Shenzhen Stock Exchange SSE means Shanghai Stock Exchange investors who own the corporate bonds issued by the Bondholders means Company registered in their name as shown in the records of the bond registrar Articles of the Articles of Association of Hengda Real Estate means Association Group Company Limited the board of directors of Hengda Real Estate Group Board means Company Limited the supervisor(s) of Hengda Real Estate Group Supervisor(s) means Company Limited Reporting Period means 1 January 2015 to 31 December 2015 Company Law means Company Law of the People’s Republic of China Securities Law means Securities Law of the People’s Republic of China Administrative Measures for the Issuance and Trading Administrative means of Corporate Bonds (《公司債券發行與交易管理辦 Measures 法》) RMB, RMB000, Renminbi 1 Yuan, Renminbi 1,000 Yuan, Renminbi RMB0,000 and means 10,000 Yuan and Renminbi 100 million Yuan, unless RMB00 million otherwise specified
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Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)
I Profile of the Company and the Relevant Intermediaries
I. Corporate Information
Chinese name: 恒大地產集團有限公司(“恒大地產”)
Legal representative: Zhao Changlong
Registered address: Room 3801, No. 78 Huangpu Avenue West, Tianhe District, Guangzhou
Office address: Room 3801, No. 78 Huangpu Avenue West, Tianhe District, Guangzhou
Postal code: 510620
Company’s website: www.evergrande.com
II. Information on Information Disclosure Affairs
Person in charge of information disclosure: Cao Shen
Contact address: 37/F, Evergrande Center, No. 78 Huangpu Avenue West, Tianhe District, Guangzhou
Tel: 020-89182201
Fax: 020-89183000
Email: [email protected]
Website where the annual reports are published: www.sse.com.cn
Address where the annual reports are kept: 37/F, Evergrande Center, No. 78 Huangpu Avenue West, Tianhe District, Guangzhou
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Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)
III. Information on the Controlling Shareholder, the De Facto Controller, Directors, Supervisors and the Senior Management of the Company during the Reporting Period
(I) Information on the Controlling Shareholder and the De Facto Controller of the Company
During the Reporting Period, there was no change of the controlling shareholder and the de facto controller of the Company. The information on the controlling shareholder and the de facto controller is consistent with those disclosed in the prospectus.
(II) Information on the Directors, Supervisors and Senior Management of the Company
The information on the current directors, supervisors and the senior management of the Company is set out in the following table:
Name Current position Zhao Changlong Chairman He Miaoling Director Lu Baoping Director Ji Xingshun Supervisor Xia Haijun President Liang Weikang Executive Vice President Lin Manjun Vice President Wu Liqun Vice President Tse Wai Wah Chief Financial Officer Xu Jianhua Vice President Li Guodong Vice President Sun Yunchi Vice President Wei Keliang Vice President Xu Zhijian Vice President Ju Zhiming Vice President
The changes of the directors, supervisors and the senior management of the Company during the Reporting Period are set out below:
Name Position during the term Status Ju Zhiming Vice President Newly appointed
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Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)
I V. Information on the Relevant Intermediaries
During the Reporting Period, there was no change of the intermediaries engaged by the Company. The basic information on the specific intermediaries is set out below:
(I) Accounting Firm
Information on the institution Name PricewaterhouseCoopers Zhong Tian LLP 18/F, PricewaterhouseCoopers Center, No. 10 Zhujiang Xi Road, Office address Pearl River New City, Tianhe District, Guangzhou Signing accountants Lin Yupeng and Che Jie
(II) Entrusted Bond Managers
Information on the institution Corporate bonds Name Guotai Junan Securities Co. Ltd. 10/F, Tower 2, Yingtai Center, No. 28 Office address 15恒大01, 15恒大02, Financial Street, Xicheng District, Beijing 15恒大03 and Contact person Wei Jin 16恒地01 Contact number 010-59312900 Information on the institution Corporate bonds Name CSC Financial Co., Ltd. 2/F, Block B, Kaiheng Center, No. 2 Office address Chaonei Avenue, Dongcheng District, 15恒大04 and Beijing 15恒大05 Contact person Guo Chunlei, Zhou Bin and Xing Chao Contact number 010-85130311
(III) Credit Rating Institution
Information on the intermediary Name China Chengxin Securities Rating Co., Ltd. 21/F, Anji Building, No. 760 South Tibet Road, Office address Huangpu District, Shanghai
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Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)
II Corporate Bonds
I. Basic Information on Bonds
2015 Corporate Bonds of Hengda Real Estate Group 2015 Corporate Bonds of Hengda Real Estate Group Name of bond Company Limited (First Company Limited (Second Tranche) Tranche) Abbreviated name of 15恒大01 15恒大02 15恒大03 bond Bond code 122383 122392 122393 Issuance date 18 June 2015 7 July 2015 7 July 2015 19 June 2020; if the 8 July 2019; if the 8 July 2022; if the Bondholders exercise their Bondholders exercise their Bondholders exercise their rights to sell back the rights to sell back the rights to sell back the Maturity date bonds, then the maturity bonds, then the maturity bonds, then the maturity date of such portion of date of such portion of date of such portion of bonds is 19 June 2018 bonds is 8 July 2017 bonds is 8 July 2020 Balance of bond RMB5 billion RMB6.8 billion RMB8.2 billion Coupon rate 5.38% 5.30% 6.98% The interest is calculated annually, regardless of compound interest, and is paid Method of principal once every year. The principal will be returned upon maturity. The last interest will and interest payment be paid together with the principal. Being listed and traded Shanghai Stock Exchange on Arrangement on Public offering to the qualified investors under the Administrative Measures suitability of investors Interest payment of There was no default in interest payment or risk of due repayment during the corporate bonds during Reporting Period. the Reporting Period No performance of special No performance of special No performance of special Performance of special terms during the Reporting terms during the Reporting terms during the Reporting terms Period Period Period
II. Use of Proceeds from the Issuance of Bonds
The Company entered into a proceeds supervisory agreement with the supervisory bank and the entrusted manager within a month upon the completion of every tranche of corporate bond issuance. During the Reporting Period, the proceeds from the issuance of relevant corporate bonds were used in strict compliance with those mentioned in the prospectus as approved by the CSRC and did not exceed the scope of use as mentioned in the prospectus of bonds.
As at 31 December 2015, the use of proceeds from the relevant issuance of corporate bonds is set out below:
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Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)
Unit: RMB100 million Whether it Balance of is consistent Operation unutilized with the use of the Gross Approved use proceeds Bond code Actual use of proceeds of proceeds designated proceeds of proceeds as at the mentioned account for end of the in the proceeds year prospectus All used for repayment of 15恒大01 50 – RMB15 billion bank loans would be used for repayment RMB10 billion was used of loans from for repayment of loans from 15恒大02 financial financial institutions, and institutions, Standard RMB5 billion was used for Yes and RMB5 replenishment of working operation 150 0.2 billion would capital; RMB2,146 million in be used for replenishment the portion of replenishment 15恒大03 of working of working capital was capital used for the replacement of existing loans
Note: 15恒大02及15恒大03 are two forms of bonds issued in the same tranche, so their use of proceeds are aggregated for disclosure.
III. Credit Rating and Ongoing Rating Arrangements
China Chengxin Securities Rating Co., Ltd. expects to issue the regular ongoing rating reports for 15恒大01, 15恒大02 and 15恒大03 within two months after the issue of the annual audit report of the Company. During the term of the bonds, in case of any significant event which may affect the credit rating of the bonds of the Company, the credit rating institution will study and analyze such matters and publish non-scheduled ongoing rating results. Regular and non-scheduled ongoing rating results and other relevant information will be announced on the websites of China Chengxin Securities Rating Co., Ltd. (www.ccxr.com.cn) and the Shanghai Stock Exchange (www.sse.com.cn).
During the Reporting Period, there was no difference between the rating for issuing other bonds and debt financing instruments in China and the rating of the relevant corporate bonds in this report.
I V. Implementation of Credit Enhancement Mechanism, Debt Repayment Plan and Other Safeguard Measures
During the Reporting Period, there was no change in the credit enhancement mechanism, debt repayment plan and other safeguard measures provided by the Company for the issued corporate bonds.
(I) Commitments from Evergrande (Cayman) As at the end of the Reporting Period, Evergrande (Cayman), as the covenantor, maintained normal operation and sound performance. During the Reporting Period, no event occurred which would require Evergrande (Cayman) to perform the obligation of buying bonds.
(II) Implementation of Debt Repayment Plan and Debt Repayment Safeguard Measures
As at the end of the Reporting Period, the Company was not subject to interest payment, and the debt repayment arrangements and safeguard measures maintained sound operation.
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Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)
(III) Convening Bondholders’ Meetings
During the Reporting Period, the Company did not need to convene a bondholders’ meeting for the issued corporate bonds.
(IV) Performance of Duties of the Entrusted Manager
During the Reporting Period, the entrusted bond manager strictly complied with the Bond Entrusted Management Agreement of the corporate bonds to perform its duties as an entrusted manager and keep tracking the conditions of the Company for better understanding. The Entrusted Management Report is expected to be disclosed on the website of the Shanghai Stock Exchange by 30 June 2016.
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Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)
III Financial and Asset Conditions
The financial and accounting information and the related analysis in this section reflect the financial and asset conditions of the Company in the last two years. PricewaterhouseCoopers Zhong Tian LLP had audited the Company’s financial reports for 2014 and 2015 and issued standard unqualified audit opinions. Unless otherwise specified, the financial and accounting data in this section is extracted from the above financial reports.
I. Major Accounting Data and Financial Indicators
(I) Major Accounting Data and Financial Indicators in the Past Two Years
Unit: RMB100 million Major Accounting Data and Financial Indicators 2015 2014 Change Operating income 1,175.15 983.77 19.45% Net profit attributable to shareholders of the parent company 169.06 157.65 7.24% EBITDA 325.13 287.03 13.27% Net cash flows from operating activities -9.23 -305.93 96.98% Net cash flows from investing activities -107.66 -132.09 18.49% Net cash flows from financing activities 549.40 380.85 44.26% Major Accounting Data and Financial 31 December 31 December Indicators 2015 2014 Change Balance of cash and cash equivalents as at the end of the period 692.20 259.68 166.56% Net assets attributable to shareholders of the parent company 645.18 460.47 40.11% Total assets 6,503.61 4,416.22 47.27% Current ratio 1.31 1.35 -2.96% Quick ratio 0.53 0.60 -11.67% Gearing ratio 88.54% 88.14% 0.45% Interest coverage ratio 1.54 1.92 -19.79% Cash interest coverage ratio 1.13 -1.35 183.70% EBITDA to total liabilities ratio 0.12 0.17 -29.41% EBITDA interest coverage ratio 1.59 1.97 -19.29% Loan repayment ratio (%) 100 100 – Interest repayment ratio (%) 100 100 –
The indicators are calculated as follows: 1. EBITDA to total liabilities ratio = EBITDA/total liabilities 2. Interest coverage ratio = EBIT/(interest expenses recognized in finance costs + capitalized interest expenses) 3. Cash Interest coverage ratio = (net cash flows from operating activities + cash interest expenses + income tax paid in cash)/cash interest expenses 4. EBITDA interest coverage ratio = EBITDA/(interest expenses recognized in finance costs + capitalized interest expenses) 5. Loan repayment ratio = actual amount of loan repayment/loan amount repayable 6. Interest repayment ratio = interests actually paid/interests payable
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Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)
(II) Analysis of Changes in Major Accounting Data and Financial Indicators
1. Net cash flows from operating activities
Net cash flows from operating activities represented a year-on-year increase of 96.98%, mainly due to sales growth and increase in sales proceeds;
2. Net cash flows from financing activities
Net cash flows from financing activities represented a year-on-year increase of 44.26%, mainly due to the larger size of financing as a result of the increase in scale of operation of the Company;
3. Balance of cash and cash equivalents as at the end of the period
Balance of cash and cash equivalents as at the end of the period increased, mainly due to the improvement in the net cash flows from operating activities and growth in net cash flows from financing activities;
4. Net assets attributable to shareholders of the parent company
Net assets attributable to shareholders of the parent company increased by 40.11% as compared to the end of last year, mainly due to the net profit attributable to shareholders of the parent company of RMB16,906 million recorded for the period;
5. Total assets
Total assets increased by 47.27% as compared to the end of last year, mainly due to the increases in inventories, investment properties and cash and bank balances as a result of expansion in scale of operation;
6. Cash interest coverage ratio
Cash interest coverage ratio grew year on year, mainly due to the gradual improvement in the net cash flows from operating activities.
II. Audit of the Annual Financial Report of the Company
PricewaterhouseCoopers Zhong Tian LLP issued a standard unqualified audit opinion for the annual financial report of the Company. For details, please refer to the 2015 Auditor’s Report on Hengda Real Estate Group Company Limited in the appendix.
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– II-15 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)
During the Reporting Period, there was no change in the accounting policies of the Company.
III. Analysis of Changes in Major Assets and Liabilities
(I) Analysis of Asset Structure
Unit: RMB100 million 31 December 2015 31 December 2014 Item Change Amount Percentage Amount Percentage Cash and bank balances 1,244.12 19.13% 542.07 12.27% 129.51% Financial assets at fair value – – 109.50 2.48% -100.00% through profit or loss Notes receivable 2.10 0.03% 0.04 0.00% 5150.00% Trade receivables 46.14 0.71% 62.55 1.42% -26.24% Other receivables 573.74 8.82% 491.57 11.13% 16.72% Prepayments 209.27 3.22% 398.48 9.02% -47.48% Inventories 3,187.64 49.01% 2,042.14 46.24% 56.09% Other current assets 67.35 1.04% 35.45 0.80% 89.99% Total current assets 5,364.46 82.48% 3,681.80 83.37% 45.70% Available-for-sale financial assets 0.03 0.00% 11.18 0.25% -99.73% Long-term receivables 89.67 1.38% 46.94 1.06% 91.03% Long-term equity investments 95.55 1.47% 10.62 0.24% 799.72% Investment properties 818.33 12.58% 530.59 12.01% 54.23% Fixed assets 73.40 1.13% 64.41 1.46% 13.96% Construction in progress 26.05 0.40% 31.93 0.72% -18.42% Intangible assets 19.40 0.30% 19.65 0.44% -1.27% Deferred income tax assets 16.33 0.25% 18.38 0.42% -11.15% Long-term deferred expenses 0.39 0.01% 0.72 0.02% -45.83% Total non-current assets 1,139.15 17.52% 734.42 16.63% 55.11% Total assets 6,503.61 100.00% 4,416.22 100.00% 47.27%
1. Cash and bank balances
As at the end of 2015, cash and bank balances amounted to RMB124,412 million, representing year-on-year growth of 129.51%, mainly due to the consistent growth in cash and bank balances by virtue of timely adjustment in development pace and sales strategy, adherence to the positioning of ordinary residential products for end users and intensified efforts in marketing and collecting sales proceeds. At the same time, the Company made flexible adjustments in financing structure to meet business development needs, and the related financing as at the end of 2015 was not fully allocated to project development and daily operations, resulting in growth of cash and bank balances.
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– II-16 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)
2. Financial assets at fair value through profit or loss
In 2015, the Company liquidated all the relevant investment and wealth management products according to the market conditions, resulting in nil balance as at the end of the Reporting Period.
3. Trade receivables and long-term receivables
As at the end of 2015, trade receivables amounted to RMB4,614 million, representing a year-on-year decrease of 26.24%; long-term receivables amounted to RMB8,967 million, representing a year-on-year increase of 91.03%; both of them represented year-on-year growth of 24.04% in aggregate. With the expanding scale of sales in the property business of the Company, the proceeds from sales of commodity housing receivable by the Company also increased. Most of the trade receivables had aging within 1 year and between 1 to 2 years, which was consistent with the sales policy of the Company.
4. Inventories
Inventories are mostly property inventories comprising properties held for sale and properties under development. As at the end of 2015, inventories amounted to RMB318,764 million, representing an increase of 56.09% as compared to the end of 2014, mainly due to the rapid growth of the property development business of the Company with increasing investment in new projects and properties under development.
5. Other current assets
Other current assets mainly comprise prepayments of land appreciation taxes, corporate income taxes and business taxes. As at the end of 2015, other current assets amounted to RMB6,735 million, representing year-on-year growth of 89.99%, mainly due to the increases in prepayments of land appreciation taxes, corporate income taxes and business taxes as a result of the increase in receipt in advance for sales of housing with increased sales of properties of the Company.
6. Available-for-sale financial assets
Available-for-sale financial assets mainly comprise the equity investment in non-listed companies at cost held by the Company. As at the end of 2015, the available-for-sale financial assets of the Company amounted to RMB3 million, representing a year-on-year decrease of 99.73%, mainly due to the reclassification of the investees into associates and subsidiaries of the Company resulting from the increased investment in the equity interests in the investees by the Company in 2015.
7. Long-term equity investments
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Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)
As at the end of 2015, long-term equity investments amounted to RMB9,555 million, representing a year-on-year increase of 799.72%. Long-term equity investments of the Company were investments in joint ventures and associates, among which long-term equity investments in joint ventures and associates amounted to RMB8,426 million and RMB1,129 million respectively. In November 2015, the Company acquired 50% equity interest in Great Eastern Life Assurance (China) Co., Ltd.* (中新大東方人壽保險有限公司) at a consideration of RMB3,939 million. Great Eastern Life Assurance (China) Co., Ltd. was then renamed as Evergrande Life Insurance Company Limited (“Evergrande Life”). In December 2015, the Company made additional capital investment of RMB3,000 million in Evergrande Life.
8. Investment properties
Investment properties mainly comprise self-owned commercial properties, including self-owned stores, offices and garages. As at the end of 2015, the investment properties of the Company amounted to RMB81,833 million, representing year-on-year growth of 54.23%, mainly due to the increases in the area of commercial properties under development and completed self-owned commercial properties year by year as well as the increase in value of the commercial properties.
(II) Analysis of Changes in Liabilities
Unit: RMB100 million 31 December 2015 31 December 2014 Item Change Amount Percentage Amount Percentage Short-term borrowings 364.24 6.33% 299.28 7.69% 21.71% Notes payable 363.12 6.31% 226.53 5.82% 60.30% Trade payables 794.90 13.80% 596.54 15.32% 33.25% Receipts in advance 721.79 12.53% 416.87 10.71% 73.15% Employee remuneration payable 8.27 0.14% 6.35 0.16% 30.24% Tax payable 203.77 3.54% 147.87 3.80% 37.80% Interests payable 43.89 0.76% 31.70 0.81% 38.45% Dividends payable 10.76 0.19% 40.76 1.05% -73.60% Other payables 845.44 14.68% 614.16 15.78% 37.66% Non-current liabilities due within 746.97 12.97% 352.57 9.06% 111.86% one year Total current liabilities 4,103.15 71.26% 2,732.63 70.20% 50.15% Long-term borrowings 1,112.43 19.32% 1,010.74 25.97% 10.06% Bonds payable 395.49 6.87% – – Long-term payables 23.54 0.41% 69.19 1.78% –65.98% Deferred income tax liabilities 123.77 2.15% 80.10 2.06% 54.52% Total non-current liabilities 1,655.23 28.74% 1,160.03 29.80% 42.69% Total liabilities 5,758.38 100.00% 3,892.66 100.00% 47.93%
1. Notes payable
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– II-18 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)
As at the end of 2015, notes payable amounted to RMB36,312 million, representing year-on-year growth of 60.30%, mainly due to the increase in payment with the use of notes by the Company in order to optimize its payment structure by virtue of the expanding scale of operations of the Company and suppliers’ recognition of the creditworthiness and payment ability of the Company.
2. Trade payables
As at the end of 2015, trade payables amounted to RMB79,490 million, representing year-on-year growth of 33.25%, mainly due to the increase in construction payments year by year as a result of the expanding scales of operation of the Company.
3. Receipts in advance
As at the end of 2015, receipts in advance amounted to RMB72,179 million, representing year-on-year growth of 73.15%, mainly due to the increase in sales proceeds received in advance as a result of the strong growth in contracted sales of the Company.
4. Tax payable
As at the end of 2015, tax payable amounted to RMB20,377 million, representing year- on-year growth of 37.80%, mainly due to the increases in land appreciation Tax payable and corporate income Tax payable with growth consistent with the growth in the scale of operation.
5. Interests payable
As at the end of 2015, interests payable amounted to RMB4,389 million, representing year-on-year growth of 38.45%, mainly due to the increase in new borrowings and bonds payable for the year.
6. Dividends payable
As at the end of 2015, dividends payable amounted to RMB1,076 million, representing a year-on-year decrease of 73.60%, mainly due to the distribution of certain dividends to shareholders by the Company in November 2015.
7. Other payables
As at the end of 2015, other payables amounted to RMB84,544 million, representing year-on-year growth of 37.66%, mainly due to the increases in due to related parties, land payments payable, and the payables for acquisition of subsidiaries and joint ventures.
8. Non-current liabilities due within one year
As at the end of 2015, non-current liabilities due within one year amounted to RMB74,697 million, representing year-on-year growth of 111.86%, mainly due to the expansion of scale of financing.
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– II-19 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)
9. Long-term payables
As at the end of 2015, long-term payables amounted to RMB2,354 million, representing a year-on-year decrease of 65.98 %, mainly due to the decrease in cash advances from holders of the consolidated investment entities.
10. Deferred income tax liabilities
As at the end of 2015, deferred income tax liabilities amounted to RMB12,377 million, representing year-on-year growth of 54.52%. The deferred income tax liabilities of the Company mainly come from the temporary difference arising from the change in fair value of investment properties and the temporary difference arising from the excess of the book value of the assessed properties over the tax base. As at the end of 2015, the fair value of the investment properties of the Company increased, resulting in simultaneous growth in deferred income tax liabilities.
IV. Restricted Assets
As at 31 December 2015, the restricted assets of the Company amounted to RMB202,735 million, which mainly comprised restricted inventories and restricted cash and bank balances. Details are as follows:
Unit: RMB100 million Types of restricted Percentage to Book value Reason of restriction assets total assets Provide guaranty or pledge for Cash and bank balances 551.92 8.49% interest-bearing liabilities Provide guaranty or pledge for Inventories 1,314.49 20.22% interest-bearing liabilities Fixed assets, investment Provide guaranty or pledge for properties, land use 160.94 2.48% interest-bearing liabilities rights and others Total 2,027.35 31.18%
V. Other Bonds or Debt Financing Instruments Issued by the Company
In October 2015, the Company issued corporate bonds of RMB20 billion through non- public offering on SSE, among which the first form of bonds (15恒大04) had an issuance size of RMB17.5 billion with a term of 5 years (where the issuer shall have the right to increase the coupon rate after the end of the third year and the investors shall have the right to sell back the bonds) and an interest rate of 7.38%, and the second form of bonds (15恒大05) had an issuance size of RMB2.5 billion with a term of 5 years and an interest rate of 7.88%.
In January 2016, the Company completed the non-public offering of the first tranche of corporate bonds (16恒地01) of RMB10 billion with a term of 4 years (where the issuer shall have the right to increase the coupon rate after the end of the second year and the investors shall have the right to sell back the bonds) and an interest rate of 6.98%.
During the Reporting Period, the above bonds did not have any default in interest payment or risk of due repayment.
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Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)
VI. Change in External Guarantees of the Company
(I) Guarantees Provided by the Company for Related Parties and Non-related Parties
As at the end of 2015, the balance of guarantees provided by the Company for related parties and non-related parties amounted to RMB24,187 million and RMB2,714 million. The basic information of the major guaranteed parties is as follows:
Registered Amount of capital/ Credit Type of guarantee Term of Company name Principal business Relationship Statutory status guarantee (in RMB100 guarantee share capital million) Development, investment, management and Indirect USD1,000 construction of real Pledge Evergrande (Cayman) Good controlling 191.47 One year million estate and other guarantee shareholder services related to real estate development Zhong Yu Property Controlled Development Company USD131 Real estate by the same Guaranty Good 10 Two years Limited* (重慶中渝 million development ultimate holding guarantee 物業發展有限公司) company Hengda Grains and Controlled Production, Oil (Group) Company RMB300 by the same Guaranty processing and sale Good 8 One year Limited* ( million ultimate holding guarantee 恒大糧油 of grains and oil 集團有限公司) company Shenzhen Xiacun Real Controlled Estate Development RMB100 Real estate by the same Guaranty Company Limited* Good 7 One year million development ultimate holding guarantee ( 深圳市廈村房地產 company 開發有限公司) Dongguan Zehe Controlled Industrial Company RMB10 Real estate by the same Guaranty Good 6.95 One year Limited* (東莞市澤 million development ultimate holding guarantee 和實業有限公司) company Nanjing Hengda Fufeng Controlled Property Company RMB229 Real estate by the same Guaranty Good 5.5 One year Limited* (南京恒大 million development ultimate holding guarantee 富豐置業有限公司) company Hainan Oriental Controlled Pearl Real Estate RMB70 Real estate by the same Guaranty Development Company Good 4 One year million development ultimate holding guarantee Limited* ( 海南東方 company 明珠房地產有限公司) Total 232.92
As at the end of 2015, the balance of guarantees provided by the Company for Evergrande (Cayman) amounted to RMB19,147 million. The guarantees were provided for the overseas financing of Evergrande (Cayman), which were mainly used in the daily business activities, repayment of overseas interest-bearing liabilities and profit distribution.
(II) Guarantees Provided by the Company for Home Buyers
As the Company is engaged in the real estate industry, the Company has to provide guarantees for the mortgage loans of home buyers according to the relevant requirements
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Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)
of the People’s Bank of China. Recently, the Company provides periodic joint-and-several guarantees for buyers of commodity housing with a term from the date of lending by mortgage banks to the date of completing the procedures of property ownership certificates by mortgage banks for home buyers. If the home buyers do not fulfill their obligations as debtors during the abovementioned guarantee period, the Company has the right to repossess the properties sold, so such guarantees do not incur actual losses for the Company. As at 31 December 2015, the Company and its subsidiaries provided guarantees for the mortgage loans of commodity housing for the banks in an amount of RMB128.667 billion.
VII. Credit and Bank Loan Repayment
With a good credit status, the Company has good credit profiles in the large banks and has obtained high credit lines from the large banks. As at the end of 2015, the aggregated credit line of the Company granted by banks amounted to RMB272.0 billion, among which RMB137.3 billion was unutilized.
As at the end of 2015, the bank loans in the interest-bearing liabilities of the Company amounted to RMB82,529 million, representing an increase of RMB21,434 million as compared to the end of 2014. During the Reporting Period, the Company made timely repayment of bank loans without any default or loan extension.
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Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)
IV Operations and Corporate Governance
I. Operations, Changes in Industry Environment and Management Discussion
The Company is one of the real estate developers with the highest presence, the greatest brand influence and the strongest comprehensive strengths in China. As at the end of 2015, the Company had 339 large-scale real estate projects in 153 major cities. Adhering to its development strategy of “scale + brand”, implementing the rolling development and operating efficiently, the Company had developed strong comprehensive competitive edges. In 2015, the Company recorded operating income of RMB117,515 million, representing a year-on-year increase of 19.45%. The operations developed rapidly, and the growth in operating income scale and operations reflected the leading position of the Company in China’s real estate industry.
The profound change continued in China’s real estate industry. In line with the key note of “Stabilizing demand, destocking and accelerating transformation”, a string of accommodative policies on both supply and demand ends led to a significant recovery in market turnover. The transaction volume of commodity housing nationwide increased year-on-year by 14.4% to RMB8,728.1 billion, a record high which surpassed the level in 2013. However, the area sold of commodity housing was 1,284.95 million square meters, representing an increase of 6.5% from the last year.
On the other hand, with further market divergence and clearer urban value regression, 30 large and medium cities accounted for nearly half of the total sales nationwide. Developers returned to first and second-tier cities for land reserves, leading to the increase of land premium in first and second-tier cities.
Facing the unprecedented and profound transformation in the industry as well as the complicated market environment, the Board, based on its well-grounded judgments, was devoted to capture the opportunities in the market through constantly strengthening the principal business and foundation of real estate and optimizing the regional layout of residential property projects by leveraging its strong execution. The total assets amounted to RMB650,361 million, representing a year-on-year increase of 47.27%; the Company recorded operating income of RMB117,515 million, representing a year-on-year increase of 19.45%; profits attributable to owners of the parent company amounted to RMB16,906 million, representing a year-on-year increase of 7.24%; the total cash of the Company amounted to RMB124,412 million, representing a year-on-year increase of 129.51%.
II. Operation Discussion and Analysis for the Reporting Period
(I) Overall Operation Review for 2015
The Company was a professional real estate developer. Most of its real estate development projects were middle- to high-end residential properties, which were supplemented by the operation of commercial properties and residential ancillary facilities. The developed products included low density buildings, multi-storey garden-view houses, multi-storey residential buildings, mid-rise and high-rise residential buildings, etc.
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Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)
Unit: RMB100 million 2015 Item Operating Operating Operating Gross profit income costs gross profit margin Residential properties 1,050.53 723.47 327.06 31.13% Commercial properties 68.93 21.49 47.44 68.82% Garages and parking spaces 5.66 2.91 2.75 48.57% Others 50.03 35.93 14.10 28.18% Total 1,175.15 783.8 391.35 33.30% 2014 Item Operating Operating Operating Gross profit income costs gross profit margin Residential properties 879.42 612.22 267.20 30.38% Commercial properties 52.82 15.28 37.54 71.07% Garages and parking spaces 13.16 4.47 8.69 66.01% Others 38.38 27.05 11.33 29.51% Total 983.77 659.02 324.75 33.01%
Recently, the Company experienced rapid development with operating scale expanding continuously. Operating income for the period increased by RMB19,138 million or 19.45% as compared to the corresponding period of last year, of which operating income from sales of properties accounted for approximately 96%. Its principal operations performed outstandingly, while the performance of other segments also improved as compared to the corresponding period of last year. The operating costs for the period increased by RMB12,478 million or 18.93% as compared to the corresponding period of last year, which was slightly lower than the operating income growth. Such trend reflected the stringent cost control of the Company, By virtue of the above two reasons, the operating gross profit for the period increased by RMB6,660 million or 20.51%.
The composition and changes in expenses of the Company during the past two years are set out below:
Unit: RMB100 million Item 2015 2014 Change Selling expenses 95.88 81.43 17.75% Administrative expenses 39.71 27.95 42.08% Financial expenses 10.66 24.95 -57.27% Total expenses for the period 146.25 134.33 8.87% Selling expenses/operating income 8.16% 8.28% -1.45% Administrative expenses/operating income 3.38% 2.84% 19.01% Financial expenses/operating income 0.91% 2.54% -64.17% Total operating expense ratio for the period 12.45% 13.65% -8.79%
The proportion of financial expenses to operating income for the period decreased mainly due to the sustained robust operation of the Company, gradual improvement in cash flows of operating activities, and more capital investment in projects, and the interests appropriated for replenishing working capital decreased accordingly.
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– II-24 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)
The composition and changes in profit during the past two years are set out below:
Unit: RMB100 million Item 2015 2014 Change Investment income 61.75 7.08 772.18% Gain/loss from changes in fair value 64.69 124.07 -47.86% Operating profit 250.13 217.33 15.09% Non-operating income 3.40 7.18 -52.65% Non-operating expenses 7.92 4.75 66.74% Total profit 245.61 219.76 11.76% Net profit 185.24 170.16 8.87% Net profit attributable to owners of the parent 169.06 157.65 7.24% company
In 2015, the investment income of the Company reached RMB6,175 million, representing a year-on-year increase of 772.18% mainly due to the investment income from the disposal of financial assets held for investment of the Company by virtue of the flourishing securities market for the year.
(II) Significant Investing activities
During the year, the Company had additional long-term equity investment in associates and joint ventures of RMB9,555 million, which did not exceed 20% of the audited net assets of the preceding year.
In November 2015, the Company acquired 50% equity interest in Great Eastern Life Assurance (China) Co., Ltd.* at a consideration of RMB3,939 million. Great Eastern Life Assurance (China) Co., Ltd. was then renamed as Evergrande Life Insurance Company Limited (“Evergrande Life”). In December 2015, the Company increased the capital investment in Evergrande Life by RMB3,000 million.
III. Future Business Development and Possible Risks
(I) Future Development Outlook
”De-stocking for a more sustainable real estate market” as explicitly put forward at the Central Economic Work Conference held in December 2015, together with the five key tasks for the Reform of the Supply Side elaborated at the twelfth meeting of the Central Leading Group on Financial and Economic Affairs held in February 2016, marked the initiation of the aforesaid reforms and ambition of the central government in 2016 to advance reforms fundamentally for a stable and healthy real estate market. In particular, an array of reform measures regarding accelerating urbanization, the household registration system, rural land transfer and abolishment of outdated administrative restrictions are expected to further boost the sustainable development of the real estate sector.
Looking forward to 2016, the management is of the view that under the new normal led by the Reform of the Supply Side, China’s economy will maintain moderately rapid
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– II-25 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)
growth and long-term promising outlook with a stable real estate industry as an economic pillar. Meanwhile, the real estate market will undergo radical evolutions driven by emerging trends such as restoration of the property inherent value, polarization of the market and financialization of the industry.
Based on the research on the “new normal” of China’s economy and the real estate industry, the management will adopt comprehensive measures to optimize the regional layout of residential housing projects, to firmly strengthen sales and collection of sales proceeds, to put costs and expenses under tight control, to increase profitability, to strictly control financial risks, and to consolidate the principal real estate business.
(II) Possible Risk Exposures
1. Cyclical Economic Risk
The real estate market, where the principal businesses of the Company operate, is closely related to the macroeconomic condition, and the industry development has a stronger correlation with the domestic economy sentiment. Hence, macroeconomic factors, such as the investment scale of fixed assets and the progress of urbanization, will have greater impact on the real estate market. In recent years, the total investment in fixed assets in China has maintained rapid growth, and, accordingly, the investment in urban real estate development has also maintained a high growth rate, which created favorable external conditions for the development of the Company’s operations. However, there are numerous uncertainties in domestic economic condition at present. In the event that there is any slowdown in the domestic economy or cyclical macroeconomic fluctuation, and the Company fails to predicate such situation and adjust its operations correspondingly, the overall performance and profitability of the Company will be adversely affected.
2. Cross-Regional Real Estate Operating Risk
The real estate business of the Company covered 153 cities across China. The resources allocation has been optimizing with the use of the brand influence of “Evergrande” brand. The Company has to understand and fulfill the market demands in different regions, and allocate resources to different regions by fully utilizing its available resources. Although the Company has already established a strict, efficient internal control system, it is more difficult to manage and control with the increasing complexity in fund allocation, construction quality, safety production and contract performance as a result expansion in operation regions. In the event that the Company fails to adjust the operating strategies in different regions based on actual condition, or its internal control has been weakened, the Company may be exposed to cross- regional operating and management risk, thus adversely affecting the overall operation of the Company.
3. Greater Risk Exposure in relation to Capital Expenditure for Land Acquisition and Project Development
The real estate development business is a capital intensive operation with long construction phase. The timing of preliminary land acquisition, construction safety investment and collection of sales proceeds will experience mismatch to a certain extent. The Company has to maintain sufficient land reserve in order to ensure continuous and steady operation. The land reserves of the Company are located across China with a large scale. The total
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– II-26 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)
land reserves balance as at the end of 2015 was 134 million square meters. The real estate development business of the Company experienced rapid growth. The expenses for project development and land acquisition increased with larger cash outflows for operating activities.
I V. Other Information about Operations of the Company
(I) Default Events
There was no significant default event in the course of business with major clients during the Reporting Period.
(II) Independence
The issuer conducts its operations strictly in accordance with relevant laws and regulations including the Company Law and the Securities Law, as well as the requirments under the Articles of Association. It has an independent and comprehensive system for asset and business, and is capable to operate independently in the market.
(III) Description on Non-operating Current Capital
As at the end of 2015, other receivables of the Company in related party transactions amounted to RMB48,844 million. As the Company is a domestic subsidiary of Evergrande (Cayman), there are numerous related parties within China and overseas market. Hence, the Company has quite a number of related party transactions with other subsidiaries of Evergrande (Cayman) in relation to daily payment and collection clearance amount, capital transfer and other aspects, generating more receivables in related party transactions under other receivables. Meanwhile, as at the end of 2015, other payables of the Company in related party transactions amounted to RMB50,037 million. Taking into account of other receivables and capital flows with related parties under other payables, net capital flows with related parties generated from non-operating activities of the Company as at the end of the reporting period amounted to RMB-1,193 million. Although the proportion of net capital flows with related parties to total assets is relatively low, the normal operations of the Company will not be significantly affected.
The breakdown of other receivables in related party transactions as at the end of 2015 is set out below:
Unit: RMB100 million Name of related party Balance Guangzhou Kailong Real Estate Company Limited* (廣州市凱隆置業有限公司) 100.58 Evergrande Real Estate Group (Shenzhen) Limited 67.64 Evergrande (Cayman) 60.96 Qidong Tongyu Real Estate Co., Ltd.* (啟東通譽置業有限公司) 25.76 Zhuhai Hongyue Commodity Company Limited* (珠海泓粵日用品有限公司) 16.37 Guangzhou Hengda (Zengcheng) Real Estate Development Company Limited* 15.61 (廣州恒大（增城）房地產開發有限公司) Nanjing Hengda Fufeng Property Company Limited* (南京恒大富豐置業有限公司) 12.31
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– II-27 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)
Hangzhou Jingli Property Company Limited* (杭州晶立置業有限公司) 11.90 Shanghai Suihua Property Company Limited* (上海穗華置業有限公司) 9.89 Ningbo Sanli Xianghe Property Company Limited* (寧波三立祥和置業有限公司) 9.47 Hainan Oriental Pearl Real Estate Company Limited* 9.33 (海南東方明珠房地產有限公司) Guangzhou Chaofeng Land Company* (廣州市超豐置業有限公司) 7.43 Changjiang Guangyi Real Estate Development Company Limited 7.39 (昌江廣億房地產開發有限公司) Huludao Jia Shan Property Company Limited* (葫蘆島嘉汕置業有限公司) 7.30 Yangzhou Honglitai Real Estate Development Company Limited 7.06 (揚州宏利泰房地產開發有限公司) Chengdu Tianfu Shuicheng Real Estate Development Company Limited* 6.97 (成都天府水城房地產開發有限公司) Benxi Jiaxi Property Company Limited* (本溪嘉熙置業有限公司) 6.59 Qidong Baofeng Property Company Limited* (啟東寶豐置業有限公司) 5.84 Dongying Yujing Property Co., Ltd. (東營御景置業有限公司) 5.73 Chongqing Hengda Xinding Property Company Limited* 4.90 (重慶恒大鑫鼎置業有限公司) Others 89.40 Total 488.44
(IV) Provision of Guarantee for its Controlling Shareholder, De Facto Controller and their Related Parties in Violation of Laws
As at the end of 2015, the Company provided guarantees of RMB24,187 million in total for its related parties. During the Reporting Period, the Company did not provide any guarantee for its controlling shareholder, de facto controller or their related parties in violation of laws.
(V) Compliance of Corporate Governance
During the reporting period, the Company did not violate the Company Law and the Articles of Association in respect of corporate governance, internal control and other aspects. The Company has strictly complied with and performed relevant agreements and commitments made under the prospectus. There was no event that would have a material adverse impact on the interests of bond investors. V Major Events
I. Pending Litigation, Arbitration and Administrative Penalty of the Company During the Reporting Period, the Company was not subject to any pending litigation, arbitration and administrative penalty which may have a material adverse impact on the normal operation, financial position and solvency of the Company.
II. Bankruptcy Reorganization of the Company During the Reporting Period During the Reporting Period, the Company did not undergo any bankruptcy reorganization.
III. Risk Regarding Suspension of Trading or Delisting of Corporate Bonds During the Term During the reporting period, the corporate bonds were not exposed to any risk regarding suspension of trading or delisting during the term.
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– II-28 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)
I V. The Company, its Controlling Shareholder and De Facto Controller being Investigated by Judicial Authorities for Suspected Violation of Laws, and the Directors, Supervisors and Senior Management of the Company Suspected for Being Subject to Compulsory Measures as Implemented by Judicial Authorities
During the Reporting Period, neither the Company, its controlling shareholder nor de facto controller, directors, supervisors nor senior management were subject to any pending litigation, arbitration and administrative penalty which may have a greater impact on the financial position, operating results, reputation, business activities and outlook of the Company.
V. Other Major Events
Happened Updates and No. Major event or not? impacts Material changes in operating directions, 1 operating scope or external operating and product No conditions of the issuer; 2 Changes in credit rating of the issuer; No Major assets of the issuer being sealed up, 3 No impounded or frozen; The issuer fails to repay debts due, causing a 4 No default; Accumulated new borrowings or external Please refer to guarantees provided by the issuer for the current “Material Risk 5 Yes year exceeds 20% of net assets as at the end of Warnings” of this the last year; report Creditor’s rights or properties forfeited by the 6 issuer exceed 10% of net assets as at the end of No the last year; The issuer incurs material loss which exceeds 7 No 10% of net assets as at the end of the last year; The issuer decides to conduct capital reduction, 8 merger, separation, dissolution and apply for No bankruptcy; The issuer is subject to material litigation, 9 No arbitration or significant administrative penalty; Material changes in guarantor, collateral or other 10 No remedial measures; Material changes in the issuer which might result 11 in no longer being in compliance with the listing No requirements for the corporate bonds; The issuer being investigated by judicial authorities for suspected violation of laws, and the issuer’s directors, supervisors and senior 12 No management being subject to compulsory measures as implemented by judicial authorities for suspected violation of laws;
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– II-29 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)
VI Financial Report
Please refer to the appendix for the audited financial report.
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Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)
VII Documents Available for Inspection
(I) The 2015 financial statements and auditor’s report of the Company;
(II) The original copies of all of the documents and announcements of the Company disclosed in the designated newspaper as approved by China Securities Regulatory Commission during the Reporting Period; and
(III) The annual report, the summary of annual report and the annual financial information disclosed publicly on the website of the Shanghai Stock Exchange.
* for identification purpose only
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– II-31 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)
(This page contains no text and shall be sealed by the Company for the Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公 司) (2015).)
Hengda Real Estate Group Company Limited
25 April 2016
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Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)
Appendix:
2015 audited financial report
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HENGDA REAL ESTATE GROUP COMPANY LIMITED
FINANCIAL STATEMENTS AND AUDITOR’S REPORT FOR YEAR 2015
[English translation for reference only. Should there be any inconsistency between the Chinese and English versions, the Chinese version shall prevail.]
– II-34 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
Hengda Real Estate Group Company Limited
Financial Statements and Auditor’s Report For Year 2015 [English translation for reference only]
Content Page
Auditor’s Report 1 - 2
Financial statements for year 2015
Consolidated and the company’s balance sheet 1 - 2
Consolidated and the company’s income statement 3
Consolidated and the company’s statement of cash flows 4
Consolidated statement of changes in owners’ equity 5
Company statement of changes in owners’ equity 6
Notes to the financial statements 7 - 68
– II-35 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
[English Translation for Reference Only]
Auditor’s Report
PwC ZT Shen Zi (2016) No.24790 (Page 1/2)
To the Board of Directors of Hengda Real Estate Group Company Limited,
We have audited the accompanying financial statements of Hengda Real Estate Group Company Limited (hereinafter “the Company”), which comprise the consolidated and company balance sheets as at 31 December 2015, and the consolidated and company income statements, the consolidated and company statements of changes in owners’ equity and the consolidated and company cash flow statements for the year then ended, and the notes to the financial statements.
Management’s Responsibility for the Financial Statements
Management of the Company is responsible for the preparation and fair presentation of these financial statements in accordance with the requirements of Accounting Standards for Business Enterprises, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with China Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
普華永道中天會計師事務所（特殊普通合夥） PricewaterhouseCoopers Zhong Tian LLP, 11/F PricewaterhouseCoopers Center 2 Corporate Avenue, 202 Hu Bin Road, Huangpu District, Shanghai 200021, PRC T: +86 (21) 2323 8888, F: +86 (21) 2323 8800, www.pwccn.com
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PwC ZT Shen Zi (2016) No.24790 (Page 2/2)
Opinion
In our opinion, the accompanying financial statements present fairly, in all material respects, the consolidated and company’s financial position of the Company as at 31 December 2015, and their financial performance and cash flows for the year then ended in accordance with the requirements of Accounting Standards for Business Enterprises.
PricewaterhouseCoopers Zhong Tian LLP Certified Public Accountant 林宇鵬
Shanghai, the People’s Republic of China Certified Public Accountant 15 April 2016 陳潔
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– II-37 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
CONSOLIDATED AND THE COMPANY BALANCE SHEET AS AT 31 DECEMBER 2015 (Expressed in millions of RMB, unless otherwise indicated)
Consolidated The Company 31 December 31 December 31 December 31 December Assets Notes 2015 2014 2015 2014
Current assets Cash and bank balances 7(1) 124,412 54,207 28,435 14,105 Financial assets at fair value through profit or loss – 10,950 – – Notes receivable 7(2) 210 4 – – Trade receivables 7(3) 4,614 6,255 3 10 7(4)(a), Other receivables 16(1) 57,374 49,157 77,482 57,739 7(4)(c), Dividends receivable 16(2) 157 – 38 201 Prepayment 20,727 39,848 1,960 37 Inventories 7(5) 318,764 204,214 2,699 2,017 Other current assets 7(6) 6,735 3,545 12 7 Non-current assets due within one year 7(4)(b) 3,253 – – – Total current assets 536,446 368,180 110,629 74,116
Non-current assets Available-for-sale financial assets 7(8) 3 1,118 – 180 Long-term receivables 7(4)(b) 8,967 4,694 39 – Long-term equity investments 7(9), 16(3) 9,555 1,062 55,433 38,215 Investment properties 7(10) 81,833 53,059 2,151 2,910 Fixed assets 7(11) 7,340 6,441 664 632 Construction in progress 7(12) 260 3,193 – 6 Intangible assets 7(13) 1,940 1,965 53 45 Long-term deferred expenses 7(14) 39 72 2 1 Deferred income tax assets 7(24)(a) 1,633 1,838 – 39 Total non-current assets 113,915 73,442 58,342 42,028
TOTAL ASSETS 650,361 441,622 168,971 116,144
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– II-38 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
CONSOLIDATED AND THE COMPANY BALANCE SHEET AS AT 31 DECEMBER 2015 (CONTINUED) (Expressed in millions of RMB, unless otherwise indicated)
Consolidated The Company 31 December 31 December 31 December 31 December Liabilities and owners’equity Notes 2015 2014 2015 2014
Current liabilities Short-term borrowings 7(15) 36,424 29,928 – – Notes payable 7(16) 36,312 22,653 168 83 Trade payables 79,490 59,654 119 90 Receipts in advance 7(17) 72,179 41,687 141 66 Employee remuneration payable 7(18) 827 635 103 31 Tax payable 7(19) 20,377 14,787 100 15 Interests payable 4,389 3,170 979 – Dividends payable 7(20) 1,076 4,076 1,076 4,076 Other payables 7(22) 84,544 61,416 113,205 102,357 Non-current liabilities due within one year 74,697 35,257 2,200 200 Total current liabilities 410,315 273,263 118,091 106,918
Non-current liabilities Long-term borrowings 7(22) 111,243 101,074 1,480 2,600 Bonds payable 7(23) 39,549 – 39,549 – Long-term payables 7(21) 2,354 6,919 – – Deferred income tax liabilities 7(24)(d) 12,377 8,010 201 543 Total non-current liabilities 165,523 116,003 41,230 3,143
Total liabilities 575,838 389,266 159,321 110,061
Owners’ equity Paid-up capital 1 2,500 2,500 2,500 2,500 Capital reserve 7(25) 1,565 – 518 518 Surplus reserve 7(26) 1,250 841 1,250 841 Retained profits 59,203 42,706 5,382 2,224 Total equity attributable to owners of the parent company 64,518 46,047 9,650 6,083 Minority interests 10,005 6,309 – – Total owners’ equity 75,523 52,356 9,650 6,083
Total liabilities and owners’ equity 650,361 441,622 168,971 116,144
The accompanying notes form an integral part of these financial statements.
Person-in-charge of the Company: Person-in-charge of accounting: Head of accounting department: Zhao Changlong 潘大榮 王小鵬
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– II-39 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
CONSOLIDATED AND THE COMPANY INCOME STATEMENT FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
Consolidated The Company Items Notes 2015 2014 2015 2014
7(27), I. Operating income 16(4) 117,515 98,377 1,280 1,233 7(27), Less: Operating costs 16(4) (78,380) (65,902) (105) (166) Operating taxes and surcharges 7(28) (12,310) (10,424) (190) (236) Selling expenses 7(30) (9,588) (8,143) (885) (102) Administrative expenses 7(30) (3,971) (2,795) (1,013) (718) Financial expenses – net 7(29) (1,066) (2,495) (228) (133) Asset impairment loss/(reversal) 169 – – – 7(32), Investment gains 16(5) 6,175 708 4,535 3,386 Including: Share of (loss)/profit of associates and joint ventures 7(9) (291) (104) (373) (54) Add: Gain/(loss) from changes in fair value 7(31) 6,469 12,407 (142) 5
II. Operating profit 25,013 21,733 3,252 3,269 Add: Non-operating income 7(33)(a) 340 718 17 50 Less: Non-operating expenses 7(33)(b) (792) (475) (5) (62)
III. Total profit 24,561 21,976 3,264 3,257 Less: Income tax expenses/(credit) 7(34) (6,037) (4,960) 303 (12)
I V. Net profit 18,524 17,016 3,567 3,245 Including: Net profit of the acquired entities under common control before the incorporation – (2) – – Net profit attributable to owners of the parent company 16,906 15,765 3,567 3,245 Profit and loss attributable to minority interests 1,618 1,251 – –
V. Net amount of other comprehensive income after tax – 157 – – Other comprehensive income attributable to owners of the parent company, net of tax Other comprehensive income reclassified to profit or loss in subsequent periods Changes in fair value of available-for-sale financial assets – 157 – –
VI. Total comprehensive income 18,524 17,173 3,567 3,245
Total comprehensive income attributable to owners of the parent company 16,906 15,922 3,567 3,245 Total comprehensive income attributable to minority interests 1,618 1,251 – –
The accompanying notes form an integral part of these financial statements.
Person-in-charge of the Company: Person-in-charge of accounting: Head of accounting department: Zhao Changlong 潘大榮 王小鵬
– 3 –
– II-40 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
CONSOLIDATED AND THE COMPANY CASH FLOWS STATEMENT FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
Consolidated Consolidated Items Notes 2015 2014 2015 2014 I. Cash flows generated from operating activities Cash received from the sale of goods and provision of labour services 137,957 101,074 1,323 213 Tax rebates received 118 – – – Cash received from other operating activities 1,158 406 545 191 Sub-total of cash inflows from operating activities 139,233 101,480 1,868 404 Cash paid for the purchase of goods and engagement of labour services (99,122) (103,842) (650) (259) Cash paid to/for employees (6,193) (5,341) (564) (344) Tax charges paid (13,141) (11,112) (119) (372) Cash paid for other operating activities (21,700) (11,778) (1,485) (432) Sub-total of cash outflows from operating activities (140,156) (132,073) (2,818) (1,407) Net cash flows generated from operating 7(35)(a), activities 16(6) (923) (30,593) (950) (1,003)
II. Cash flows generated from investing activities Cash received from disposal of investments 17,081 5,851 – 4 Cash received from investment gains 72 210 5,071 4,933 Net cash received from disposal of fixed assets, investment properties, intangible assets and other long-term assets 1,006 1,402 695 2 Cash received from other investing activities 7(35)(f) 13,001 272 – – Sub-total of cash inflows from investing activities 31,160 7,735 5,766 4,939 Cash paid for acquisition of fixed assets, investment properties, intangible assets and other long-term assets (15,757) (7,099) (191) (60) Cash paid for investments (9,591) (9,326) (18,599) (7,172) Cash paid to dispose subsidiaries and other business units 7(35)(e) (13) (15) – – Cash paid to acquire subsidiaries and other business units 7(35)(f) (2,790) (80) – – Cash paid for other investing activities (13,775) (4,424) (20,429) (9,570) Sub-total of cash outflows from investing activities (41,926) (20,944) (39,219) (16,802) Net cash flows generated from investing activities (10,766) (13,209) (33,453) (11,863)
III. Cash flows generated from financing activities Cash received from investors 624 1,844 – – Cash received from borrowings 149,606 145,855 1,480 500 Cash received from bond issuance 39,522 – 39,522 – Cash received from other financing activities 7(35)(g) 24,198 6,337 10,460 34,562 Sub-total of cash inflows from financing activities 213,850 154,036 51,462 35,062 Cash paid for repayment of debts (95,102) (73,238) (600) (513) Cash paid for distribution of dividends, profits or repayment of interests (23,158) (19,646) (3,132) (9,357) Cash paid for other financing activities 7(35)(g) (40,650) (23,067) (6,701) (12,331) Sub-total of cash outflows from financing activities (158,910) (155,951) (10,433) (22,201) Net cash flows generated from financing activities 54,940 38,085 41,029 12,861
I V. Effects of changes in foreign exchange rate on cash and cash equivalents 1 – – –
V. Net change in cash and cash equivalents 43,252 (5,717) 6,626 (5) Add: Balance of cash and cash equivalents at the beginning of the year 7(35)(c) 25,968 31,685 516 521
VI. Balance of cash and cash equivalents at the end of the year 7(35)(d) 69,220 25,958 7,142 516
The accompanying notes form an integral part of these financial statements.
Person-in-charge of the Company: Person-in-charge of accounting: Head of accounting department: Zhao Changlong 潘大榮 王小鵬
– 4 –
– II-41 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN OWNERS’ EQUITY FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
Minority Total owners’ Equity attributable to the owners of the parent company interests equity Other Paid-up Capital comprehensive Surplus Retained Items capital reserve income reserve profits
Opening balance at 1 January 2014 2,500 – (157) 398 38,758 3,214 44,713
Changes for the year 2014 Subtotal of comprehensive income Net profit – – – – 15,765 1,251 17,016 Other comprehensive income – – 157 – – – 157 Total comprehensive income – – 157 – 15,765 1,251 17,173 Capital contributed and withdrawn by owners Capital contributed by owners – – – – – 1,444 1,444 Business combinations under common control – – – – (18) – (18) Disposal of some interests in subsidiaries without change of control – – – – – 400 400 Profit distribution Appropriation of surplus reserve – – – 443 (443) – – Profit distribution to owners – – – – (11,356) – (11,356) Closing balance at 31 December 2014 2,500 – – 841 42,706 6,309 52,356
Opening balance at 1 January 2015 2,500 – – 841 42,706 6,309 52,356
Changes for the year 2015 Subtotal of comprehensive income Net profit – – – – 16,906 1,618 18,524 Other comprehensive income – – – – – – – Total comprehensive income – – – – 16,906 1,618 18,524 Capital contributed and withdrawn by owners Increase in minority interests through businesses combinations not under common control – – – – – 814 814 Increase in minority interests through acquisitions of subsidiaries – – – – – 886 886 Capital contributed by owners – – – – – 624 624 Transfer of subsidiaries under common control – 1,620 – – – – 1,620 Acquisition of minority interests of some subsidiaries – (55) – – – (49) (104) Profit distribution Appropriation of surplus reserve – – – 409 (409) – – Profit distribution to owners – – – – – (197) (197)
Closing balance at 31 December 2015 2,500 1,565 – 1,250 59,203 10,005 74,523
The accompanying notes form an integral part of these financial statements.
Person-in-charge of the Company: Person-in-charge of accounting: Head of accounting department: Zhao Changlong 潘大榮 王小鵬
– 5 –
– II-42 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
THE COMPANY STATEMENT OF CHANGES IN OWNERS’ EQUITY FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
Paid-up Capital Surplus Retained Total owners’ Items capital reserve reserve profits equity
Opening balance at 1 January 2014 2,500 520 398 10,778 14,196
Changes for the year 2014 Subtotal of comprehensive income Net profit – – – 3,245 3,245 Total comprehensive income – – – 3,245 3,245 Capital contributed and withdrawn by owners Business combinations under common control – (2) – – (2) Profit distribution Appropriation of surplus reserve – – 443 (443) – Profit distribution to owners – – – (11,356) (11,356) Closing balance at 31 December 2014 2,500 518 841 2,224 (6,083)
Opening balance at 1 January 2015 2,500 518 841 2,224 6,083
Changes for the year 2015 Subtotal of comprehensive income Net profit – – – 3,567 3,567 Total comprehensive income – – – 3,567 3,567 Profit distribution Appropriation of surplus reserve – – 409 (409) –
Closing balance at 31 December 2015 2,500 518 1,250 5,382 9,650
The accompanying notes form an integral part of these financial statements.
Person-in-charge of the Company: Person-in-charge of accounting: Head of accounting department: Zhao Changlong 潘大榮 王小鵬
– 6 –
– II-43 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
1 GENERAL INFORMATION OF THE COMPANY
Hengda Real Estate Group Company Limited (“the Company”) is a limited liability company incorporated by Guangzhou Kailong Real Estate Company Limited on 24 June 1996 in the People’s Republic of China with long approved operating period. Its registered and paid-up capital is RMB2.5 billion.
The Company’s parent company is Guangzhou Kailong Real Estate Company Limited. Its intermediate holding company is Evergrande Real Estate Group Limited, the shares of which are listed on the Stock Exchange of Hong Kong Limited. Its ultimate holding company is Xin Xin (BVI) Limited, the beneficial controller of which is Dr. Hui Ka Yan.
The approved operating scope of the Company and its subsidiaries (hereinafter collectively referred to as “the Group”) include property development, property investment, construction general contracting, building materials, property management and hotel operation. During 2015, the actual principal business of the Group falls under the approved operating scope mentioned above.
These financial statements are approved and authorised for issue by the Company’s legal representative on 15 April 2016.
2 BASIS OF PREPARATION FOR THE FINANCIAL STATEMENTS
The Group has prepared the financial statements in accordance with the Accounting Standard for Business Enterprises – Basic Standards, and the specific accounting standards and other relevant regulations issued by the Ministry of Finance on 15 February 2006 (hereinafter collectively referred to as the “Accounting Standards for Business Enterprises” or “CAS”).
The financial statements are prepared on a going concern basis.
3 STATEMENT OF COMPLIANCE WITH THE ACCOUNTING STANDARDS FOR BUSINESS ENTERPRISES
The financial statements of the Company for year 2015 are in compliance with the Accounting Standards for Business Enterprises, and truly and completely present information including the consolidated and the company’s financial position as at 31 December 2015 and the consolidated and the company’s operating results and cash flow for year 2015.
4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES
(1) Accounting year
The Company’s accounting year starts on 1 January and ends on 31 December.
(2) Recording currency
The recording currency is Renminbi (RMB).
(3) Foreign currency translation
Foreign currency transactions are translated into RMB using the spot exchange rates prevailing at the dates of the transactions.
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– II-44 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
(3) Foreign currency translation (Continued)
At the balance sheet date, monetary items denominated in foreign currencies are translated into RMB using the spot exchange rates on the balance sheet date. Exchange differences arising from these translations are recognised in profit or loss for the current period, except for those attributable to foreign currency borrowings that have been taken out specifically for the acquisition or construction of qualifying assets, which are capitalised as part of the cost of those assets. Non-monetary items denominated in foreign currencies that are measured at historical costs are translated at the balance sheet date using the spot exchange rates at the date of the transactions. The effect of exchange rate changes on cash is presented separately in the cash flow statement.
(4) CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise cash on hand, deposits that can be readily drawn on demand, and short-term and highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
(5) FINANCIAL ASSETS
Financial assets are classified into the following categories at initial recognition: financial assets at fair value through profit or loss, held-to-maturity investments, receivables, and available-for-sale financial assets. The classification of financial assets depends on the Group’s intention and ability to hold the financial assets. During the reporting period, the financial assets of the Group merely included financial assets at fair value through profit or loss, receivables and available-for-sale financial assets.
(a) Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for the purpose of selling in the short term.
(b) Receivables
Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market, including trade and other receivables (note 4(7)).
(c) Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial assets that are either designated in this category or not classified in any of the other categories at initial recognition. Available-for-sale financial assets are included in other current assets on the balance sheet if management intends to dispose of them within 12 months after the balance sheet date.
(d) Recognition and measurement
Financial assets are recognised at fair value on the balance sheet when the Group becomes a party to the contractual provisions of the financial instrument. In the case of financial assets at fair value through profit or loss, the related transaction costs incurred at the time of acquisition are recognised in profit or loss for the current period. For other financial assets, transaction costs that are attributable to the acquisition of the financial assets are included in their initially recognised amounts. Financial assets are derecognized when the contractual rights for collecting the cash flow of the said financial assets expire or substantially all risks and rewards related to the said financial assets have been transferred.
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– II-45 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
(5) Financial assets (Continued)
(d) Recognition and measurement (Continued)
Financial assets at fair value through profit or loss and available-for-sale financial assets are subsequently measured at fair value. Investments in equity instruments are measured at cost when they do not have a quoted market price in an active market and whose fair value cannot be reliably measured. Receivables are measured at amortised cost using the effective interest method.
Gains or losses arising from change in the fair value of financial assets at fair value through profit or loss are recognised in profit or loss. Interests and cash dividends received during the period in which such financial assets are held, as well as the gains or losses arising from disposal of these assets are recognised in profit or loss for the current period.
Gains or losses arising from change in fair value of available-for-sale financial assets are recognised directly in equity, except for impairment losses and foreign exchange gains and losses arising from translation of monetary financial assets. When such financial assets are derecognised, the cumulative gains or losses previously recognised directly into equity are recycled into profit or loss for the current period. Interests on available-for-sale investments in debt instruments calculated using the effective interest method during the period in which such investments are held and cash dividends declared by the investee on available-for-sale investments in equity instruments are recognised as investment income, which is recognised in profit or loss for the period.
(e) Impairment of financial assets
The Group assesses the carrying amounts of financial assets other than those at fair value through profit or loss at each balance sheet date. If there is objective evidence that a financial asset is impaired, an impairment loss is provided for.
If an impairment loss on a financial asset carried at amortised cost incurs, the amount of loss is provided for at the difference between the asset’s carrying amount and the present value of its estimated future cash flows (excluding future credit losses that have not been incurred). If there is objective evidence that the value of the financial asset recovered and the recovery is related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed and the amount of reversal is recognised in profit or loss.
If there is objective evidence indicating an impairment loss on available-for-sale financial assets measured at fair value incurs, the cumulative losses arising from the decline in fair value that has been recognised directly in equity are transferred out from equity and into impairment loss. For an investment in debt instrument classified as available- for-sale on which impairment losses have been recognised, if, in a subsequent period, its fair value increases and the increase can be objectively related to an event occurring after the impairment loss was recognised in profit or loss, the previously recognised impairment loss is reversed into profit or loss for the current period. For an investment in an equity instrument classified as available-for-sale on which impairment losses have been recognised, the increase in its fair value in a subsequent period is recognised directly in equity.
If an impairment loss on an available-for-sale financial asset measured at cost incurs, the amount of loss is measured at the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the current market rate of return for a similar financial asset and recognised in profit or loss for the current period. The previously recognised impairment loss will not be reversed in subsequent periods.
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– II-46 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
(6) Financial liabilities
Financial liabilities are classified into the following categories at initial recognition: financial liabilities at fair value through profit or loss and other financial liabilities. The financial liabilities of the Group mainly comprise other financial liabilities, including payables, borrowings and bonds payable.
Payables, including trade and other payables, are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.
Borrowings and bonds payable are recognised initially at fair value, net of transaction costs incurred, and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities with maturities no more than one year (inclusive) are classified as current liabilities. Other financial liabilities with maturities over one year but are due within one year (inclusive) at the balance sheet date are classified as the Non-current liabilities due within one year. Others are classified as non-current liabilities.
A financial liability is derecognised or partly derecognised when the current obligation is discharged or partly discharged. The difference between the carrying amount of the financial liability or the derecognised part of the financial liability and the consideration paid is recognised in profit or loss for the current period.
Financial assets and financial liabilities are separately presented in the statement of financial position without any offsetting, except when:
(a) the Company has a legally enforceable right to offset the recognized amounts;
(b) the Company has intention to settle on a net basis, or realize the asset and settle the liability simultaneously.
(7) Receivables
Receivables comprise trade and other receivables. Trade receivables arising from sales of goods or rendering of services are initially recognised at fair value of the contractual payments from the buyers or service recipients.
Receivables with amounts that are individually significant are subject to separate assessment for impairment. If there exists objective evidence that the Group will not be able to collect the amount under the original terms, provision for impairment of that receivable is determined at the excess amount of its carry amount over the present value of the future cash flow expected to be derived from the receivable.
Receivables with amounts that are not individually significant and those receivables that have been individually assessed for impairment and have not been found impaired are classified into certain groupings based on their credit risk characteristics. The provision for bad debts is determined based on the historical loss experience for the groupings of receivables with similar credit risk characteristics, taking into consideration of the current circumstances.
When the Group transfers the Trade receivables to the financial institutions without recourse, the difference between the proceeds received from the transaction and their carrying amounts and the related taxes is recognised in profit or loss for the current period.
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– II-47 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
(8) Inventories
Inventories are categorized by real estate properties and non-real estate properties. Real estate properties include completed properties and properties under development. Non-real estate properties refer to inventory goods and others.
A completed property refers to the property that has completed construction and is held for sale. A property under development refers to a property that has not completed construction and is held for sale.
Inventories are initially measured at cost. At the balance sheet date, inventories are measured at the lower of cost and net realisable value.
Costs of real estate properties include land costs, construction costs, and other direct and indirect development costs. Borrowing costs that are eligible for capitalization are also included in the costs of real estate properties.
Provision for impairment of inventories is determined at the excess amount of the carrying amounts of the inventories over their net realisable value. Net realisable value is determined based on the estimated selling price in the ordinary course of business, less the estimated costs to completion and estimated costs necessary to make the sale and related taxes.
(9) Long-term equity investments
Long-term equity investments comprise the Company’s long-term equity investments in its subsidiaries, and the Group’s long-term equity investments in its joint ventures and associates.
(a) Subsidiaries
Subsidiaries are the investees over which the Company is able to exercise control. Investments in subsidiaries are presented in the Company’s financial statements using the cost method, and are adjusted to the equity method when preparing the consolidated financial statements.
Long-term equity investments accounted for using the cost method are measured at the initial investment cost. Cash dividends or profit distributions declared by the investees are recognised as investment income in profit or loss.
(b) Joint ventures and associates
A joint venture is a joint arrangement which is structured through a separate vehicle over which the Group has joint control together with other parties and only has rights to the net assets of the arrangement based on legal forms, contractual terms and other facts and circumstances. An associate is the investee that the Group has significant influence on its financial and operating policies.
Investments in joint ventures and associates are accounted for using the equity method. Where the initial investment cost exceeds the Group’s share of the fair value of the investee’s identifiable net assets at the time of acquisition, the long-term equity investment is measured at the initial investment cost; where the initial investment cost is less than the Group’s share of the fair value of the investee’s identifiable net assets at the time of acquisition, the difference is included in profit or loss for the current period and the cost of the long-term equity investment is adjusted upwards accordingly.
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– II-48 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
(9) Long-term equity investments (Continued)
For long-term equity investments accounted for using the equity method, the Group recognises the investment income according to its share of net profit or loss of the investee. The Group discontinues recognising its share of the net losses of an investee after the carrying amounts of the long-term equity investment together with any long-term interests that in substance form part of the investor’s net investment in the investee are reduced to zero. However, if the Group has obligations for additional losses and the criteria with respect to recognition of provisions under the accounting standards on contingencies are satisfied, the Group continues recognising the investment losses and the provisions. The changes of the Group’s share of the investee’s owners’ equity other than those arising from the net profit or loss, other comprehensive income and profit distribution, are recognised in Capital reserve with a corresponding adjustment to the carrying amounts of the long-term equity investment. The carrying amount of the investment is reduced by the Group’s share of the profit distribution or cash dividends declared by an investee. The unrealised profits or losses arising from the transactions between the Group and its investees are eliminated in proportion to the Group’s equity interest in the investees, based on which the investment gains or losses are recognised. Any losses resulting from transactions between the Group and its investees attributable to asset impairment losses are not eliminated.
(10) Investment properties
Investment properties, including land use rights that have already been leased out, buildings that are held for the purpose of leasing and buildings that are being constructed or developed for future use for leasing, are measured initially at cost. Subsequent expenditures incurred in relation to an investment property are included in the cost of the investment property when it is probable that the associated economic benefits will flow to the Group and their costs can be reliably measured; otherwise, the expenditures are recognised in profit or loss in the period in which they are incurred.
The Group adopts the fair value model to subsequent measurement of investment properties and does not provide depreciation or amortisation. The carrying amount of investment properties is adjusted based on their fair value at the balance sheet day and the difference between the fair value and the original carrying amount is recognised in profit or loss for the current period.
When investment properties are transferred to owner-occupied property, they are reclassified to fixed assets or intangible assets with the carrying amount determined at the fair value of the investment properties at the date of transfer and the difference between the fair value and the original carrying amount of the investment properties is recognized in profit or loss for the current period. When an owner-occupied property is transferred out for earning rentals or for capital appreciation, the fixed assets or intangible assets is transferred to investment properties with the carrying amount determined at the fair value at the date of transfer. If the fair value at the date of transfer is less than the original carrying amount of the fixed asset or the intangible asset, the difference is recognised in profit or loss for the current period, otherwise, it is included in other comprehensive income.
An investment property is derecognised on disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from its disposal. The net amount of proceeds from sale, transfer, retirement or damage of an investment property after its carrying amount and related taxes and expenses is recognised in profit or loss for the current period.
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– II-49 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
(11) Fixed assets
Fixed assets comprise buildings, machinery and equipment, transportation tools and office equipment. Fixed assets purchased or constructed by the Group are initially measured at cost at the time of acquisition.
Subsequent expenditures incurred for a fixed asset are included in the cost of the fixed asset when it is probable that the associated economic benefits will flow to the Group and the related cost can be reliably measured. The carrying amount of the replaced part is derecognised. All the other subsequent expenditures are recognised in profit or loss in the period in which they are incurred.
Fixed assets are depreciated using the straight-line method to allocate the cost of the assets to their estimated residual values over their estimated useful lives. For the fixed assets that have been provided for impairment loss, the related depreciation charge is prospectively determined based upon the adjusted carrying amounts over their remaining useful lives.
The estimated useful lives, the estimated residual values expressed as a percentage of cost and the annual depreciation rates of fixed assets are as follows:
Estimated Annual Estimated useful lives net residual values depreciation rates
Buildings 20 to 30 years 5% 3% to 5% Machinery and equipment 5 to 10 years 3% 10% to 19% Transportation tools 5 to 10 years 5% 10% to 19% Office equipment 5 to 10 years 5% 10% to 19%
The estimated useful life and the estimated net residual value of a fixed asset and the depreciation method applied to the asset are reviewed, and adjusted as appropriate at each year-end.
A fixed asset is derecognised on disposal or when no future economic benefits are expected from its use or disposal. The amount of proceeds from disposals on sale, transfer, retirement or damage of a fixed asset net of its carrying amount and related taxes and expenses is recognised in profit or loss for the current period.
(12) Construction in progress
Construction in progress is measured at actual cost. Actual cost comprises construction costs, installation costs, borrowing costs that are eligible for capitalisation and other costs necessary to bring the fixed assets ready for their intended use. Construction in progress is transferred to fixed assets when the assets are ready for their intended use, and depreciation begins from the following month.
(13) Intangible assets
Intangible assets comprise land use rights, software licenses and others. Intangible assets are measured at cost and amortized evenly over their estimated useful lives.
(a) Land use rights
Land use rights are amortised evenly over their useful lives of 40 to 70 years. If the acquisition costs of the land use rights and the buildings located thereon cannot be reasonably allocated between the land use rights and the buildings, all of the acquisition costs are recognised as fixed assets.
– 13 –
– II-50 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
(13) Intangible assets (Continued)
(b) Software licenses
The software licenses purchased by the Group are measured at actual cost and amortised evenly over their useful lives.
(c) Periodical review of useful life and amortisation method
For an intangible asset with a finite useful life, review of its useful life and amortisation method is performed at each year-end, with adjustment made as appropriate.
The estimated useful lives, estimated net residual values and annual depreciation rates of intangible assets are as follows:
Estimated Annual Estimated useful lives net residual values depreciation rates
Land use rights 40 to 70 0% 1.43% to 2.50% Others 3 to 20 0% 5% to 33.33%
(14) Long-term deferred expenses
Long-term deferred expenses refer to the expenditure for improvements to fixed assets held under operating leases. Long-term deferred expenses are amortised evenly over the expected beneficial period and are presented at actual expenditure net of accumulated amortisation.
(15) Impairment of long-term assets
Fixed assets, construction in progress, intangible assets with a finite useful life, Long-term deferred expenses and long- term equity investments in subsidiaries, joint ventures and associates are tested for impairment if there is any indication that an asset may be impaired at the balance date. If the result of the impairment test indicates that the recoverable amount of an asset is less than its carrying amount, a provision for impairment and an impairment loss are recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less disposal costs and the present value of the future cash flows expected to be derived from the asset. Provision for asset impairment is determined and recognised on the individual asset basis. If it is not possible to estimate the recoverable amount of an individual asset, the recoverable amount of a group of assets to which the asset belongs is determined. A group of assets is the smallest group of assets that is able to generate independent cash inflows.
Once the above asset impairment loss is recognised, it will not be reversed for the value recovered in the subsequent periods.
– 14 –
– II-51 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
(16) Borrowing costs
The borrowing costs that are directly attributable to the acquisition and construction of a fixed asset that needs a substantially long period of time for its intended use commence to be capitalised and recorded as part of the cost of the asset when expenditures for the asset and borrowing costs have been incurred, and the activities relating to the acquisition and construction that are necessary to prepare the asset for its intended use have commenced. The capitalisation of borrowing costs ceases when the asset under acquisition or construction becomes ready for its intended use and the borrowing costs incurred thereafter are recognised in profit or loss for the current period. Capitalisation of borrowing costs is suspended during periods in which the acquisition or construction of an asset is interrupted abnormally and the interruption lasts for more than 3 months, until the acquisition or construction is resumed.
(17) Borrowings
Borrowings are recognised initially at fair value, net of transaction costs incurred, and subsequently measured at amortised cost using the effective interest method. Borrowings due within one year (inclusive) are classified as short- term borrowings, and the others are classified as long-term borrowings.
(18) Employee benefits
Employee benefits refer to all forms of consideration compensation given by the Group in exchange for service rendered by employees or for the termination of employment relationship, which include short-term employee benefits, post- employment benefits and wages or salaries bore by China Evergrande Group for some of the staffs under the Group.
(a) Short-term employee benefits
Short-term employee benefits include employee wages or salaries, bonus, allowances and subsidies, staff welfare, premiums or contributions on medical insurance, work injury insurance and maternity insurance, housing funds, labour union funds and employee education costs and etc. The short-term employee benefits actually occurred are recognised in the accounting period in which the service is rendered by the employees, with a corresponding charge to the profit or loss for the current period or the cost of relevant assets. Employee benefits which are non-monetary benefits are measured at fair value.
(b) Post-employment benefits
The Group classifies post-employment benefit plans as either defined contribution plans or defined benefit plans. Defined contribution plans are post-employment benefit plans under which the Group pays fixed contributions into a separate fund and will have no obligation to pay further contributions; and defined benefit plans are post-employment benefit plans other than defined contribution plans. During the reporting period, the Group’s post-employment benefits mainly include basic pensions and unemployment insurance, both of which belong to the defined contribution plans.
(c) Basic pensions
The Group’s employees participate in the basic pension plan set up and administered by local authorities of Ministry of Human Resource and Social Security. Monthly payments of premiums on the basic pensions are calculated according to prescribed bases and percentage by the relevant local authorities. When employees retire, the relevant local authorities are obliged to pay the basic pensions to them. The amounts based on the above calculations are recognised as liabilities in the accounting period in which the service has been rendered by the employees, with a corresponding charge to the profit or loss for the current period or the cost of relevant assets.
– 15 –
– II-52 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
(19) Construction contracts
If the outcome of a construction contract can be estimated reliably, contract revenue and cost should be recognised by reference to the percentage of completion method at the balance sheet date. The term “the outcome of a construction contract can be estimated reliably” refers to the fact where the total income of the contract can be estimated reliably, the economic benefits associated with the contract will flow to the Company, the progress of completion and the cost necessary to complete the contract can be determined reliably at the balance sheet date, and the actual contract cost incurred for the completion of the contract can be differentiated clearly and measured reliably to compare the actual contract cost with the previous estimated costs.
The stage of completion is measured by the proportion of completed works to the estimated total works of the contracts or the surveying progress of the completed works, or the proportion of contract costs actually incurred to the estimated total costs of contracts, based on the nature of construction.
For construction contract completed in the current period, the balance of total income of the actual contract is recognized as income for the period after deducting the accumulated income recognized in the previous year. Meanwhile, the balance of total accumulated cost of the actual contract is recognized as cost for the period after deducting the accumulated cost recognized in the previous year.
When the outcome of a construction contract cannot be estimated reliably, if contract costs can be recovered, contract revenue shall be recognised only to the extent that the contract costs incurred are expected to be recovered, with the contract costs recognised as expenses in the period in which they are incurred. When contract costs cannot be recovered, these costs shall be recognised as expenses promptly when incurred and no contract revenue may be recognised.
In the case where the estimated total costs of contract exceed the estimated total revenue, the estimated losses of the contract shall be included into profit or loss for the current period.
(20) Deferred income tax assets and Deferred income tax liabilities
Deferred income tax assets and Deferred income tax liabilities are calculated and recognised based on the differences arising between the tax bases of assets and liabilities and their carrying amounts (temporary differences). Deferred tax asset is recognised for the deductible losses that can be carried forward to subsequent years for deduction of the taxable profit in accordance with the tax laws. No deferred tax liability is recognised for a temporary difference arising from the initial recognition of goodwill. No deferred tax asset or deferred tax liability is recognised for the temporary differences resulting from the initial recognition of assets or liabilities due to a transaction other than a business combination, which affects neither accounting profit nor taxable profit (or deductible loss). At the balance sheet date, Deferred income tax assets and Deferred income tax liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled.
Deferred income tax assets are only recognised for deductible temporary differences, deductible losses and tax credits to the extent that it is probable that taxable profit will be available in the future against which the deductible temporary differences, deductible losses and tax credits can be utilised.
– 16 –
– II-53 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
(20) Deferred income tax assets and Deferred income tax liabilities (Continued)
Deferred income tax liabilities are recognised for temporary differences arising from investments in subsidiaries, associates and joint ventures, except where the Group is able to control the timing of reversal of the temporary difference, and it is probable that the temporary difference will not be reversed in the foreseeable future. When it is probable that the temporary differences arising from investments in subsidiaries, associates and joint ventures will be reversed in the foreseeable future and that the taxable profit will be available in the future against which the temporary differences can be utilised, the corresponding Deferred income tax assets are recognised.
Deferred income tax assets and Deferred income tax liabilities are offset when:
• the deferred taxes assets and Deferred income tax liabilities are related to the same tax payer within the Group and the same taxation authority; and, • that tax payer within the Group has a legally enforceable right to offset current tax assets against current tax liabilities in net value.
(21) Revenue recognition
The amount of revenue is determined in accordance with the fair value of the consideration received or receivable for the sales of goods and services in the ordinary course of the Group’s activities. Revenue is shown net of discounts, rebates and returns.
Revenue is recognised when the economic benefits associated with the transaction will flow to the Group, the related revenue can be reliably measured, and the specific revenue recognition criteria have been met for each type of the Group’s activities as described below:
(a) Sales of properties
Revenue from sales of properties is recognised when the Group has transferred the risks and rewards incidental to the property to the buyer, that is, the completion of construction for the relevant property and the property has been delivered to the buyer, and when it is reasonably recognized that the relevant receivables are recoverable. If the Group is required to carry out other works on the property which has been delivered to the buyer, the relevant expenses must be recognized at the same time.
Property income received but has yet to reach revenue recognition is included in receipt in advance by the Group, and will be recognized as revenue upon satisfaction of the aforementioned conditions for revenue recognition.
(b) Sales of goods
The Group sells building materials and mineral water. The sales income of the goods is confirmed when the product is delivered to the customer.
(c) Rendering of services
The income generated from property management is recognized on straight line basis during the accounting period in which the service is rendered as the contract requires.
(d) Hotel operation
Hotel income from guest room rentals, catering sales and other ancillary services is confirmed upon delivery of goods or services.
– 17 –
– II-54 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
(21) Revenue recognition (Continued)
(e) Income from construction contracts
For the accounting policies in relation to the income from construction contracts, please refer to Note 4(19).
(22) Government grants
Government grants refer to the monetary or non-monetary assets obtained by the Group from the government, including tax rebates received, financial subsidies and others.
Government grants are recognised when the Group can comply with all attached conditions and the government grant can be received. If a government grant is a monetary asset, it will be measured at the amount received or receivable. If a government grant is a non-monetary asset, it will be measured at fair value; if it is unable to obtain its fair value reliably, it will be measured at nominal amount.
Government grants related to assets refer to government grants which are obtained by the Group for the purpose of purchase, construction or acquisition of the long-term assets. Government grants related to income refer to government grants other than those related to assets.
Government grants related to assets are recognised as deferred income, and evenly amortised to profit or loss over the useful life of the related assets. Government grants measured at nominal amount are directly recorded into profit or loss for the current period.
Government grants related to income are recorded as deferred income and recognised in profit or loss in the period in which the related expenses are recognised if the grants are intended to compensate for future expenses or loss and otherwise recognised in profit or loss for the current period in which the grants are used to compensate for expenses or losses that have been incurred.
(23) Leases
A lease that transfers substantially all the risks and rewards incidental to ownership of an asset is a finance lease. An operating lease is a lease other than a finance lease.
(a) Operating leases
Lease payments under an operating lease are recognised on a straight-line basis over the period of the lease, and are either capitalised as part of the cost of related assets, or charged as profit or loss for the current period.
Rental income from an operating lease is recognised on a straight-line basis over the period of the lease.
– 18 –
– II-55 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
(24) Financial guarantee contract
Financial guarantee contracts are classified as financial liabilities and are initially recorded at the fair value plus the direct attributable transaction costs of the acquisition or issuance of the financial guarantee contract. After the initial recognition, the Group will calculate the financial guarantee contract with the higher of the estimated present value of the expenses required to repay the current debt, and the initially recognized amount minus accumulated amortization.
Financial guarantee liabilities are derecognised from the balance sheet when, and only when, the obligation specified in the contract is discharged or cancelled or expired.
(25) Profit Distribution
The profits to be distributed are recognized as liabilities in the current period approved by the Board of Directors.
(26) Business combinations
Business combinations involving entities not under common control
The cost of combination and identifiable net assets obtained by the acquirer in business combinations are measured at fair value at the acquisition date. Where the cost of the combination exceeds the acquirer’s interest in the fair value of the acquiree’s identifiable net assets, the difference is recognised as goodwill; where the cost of combination is lower than the acquirer’s interest in the fair value of the acquiree’s identifiable net assets, the difference is recognised in profit or loss for the current period. Costs directly attributable to the combination are included in profit or loss in the period in which they are incurred. Transaction costs associated with the issue of equity or debt securities for the business combinations are included in the initially recognised amounts of the equity or debt securities.
(27) Preparation of consolidated financial statements
The consolidated financial statements comprise the financial statements of the Company and all of its subsidiaries and the structured entities controlled by the Group.
A subsidiary is an entity that is controlled by the Group. Control refers to the right over the investee, to participate in the relevant activities of the investee and enjoy a variable return, and the ability to exercise its power over the investee to influence the amount of return. The Group has more than half of the voting rights in the investee directly or indirectly through the subsidiaries, indicating that the Group is able to control the investee and shall recognize the investee as a subsidiary and incorporate it in the consolidated scope of the consolidated financial statements. Subsidiaries are consolidated from the date on which the Group obtains control and are de-consolidated from the date that such control ceases. For a subsidiary that is acquired in business combinations involving entities under common control, it is included in the consolidated financial statements from the date when it, together with the Company, comes under the control of the same ultimate holding company. The portion of the net profits realised before the combination date is presented separately in the consolidated income statement.
Structured entity is to the decisive factors (such as where voting rights merely related to administrative affairs) when the voting right or similar rights are not taken as the designed structure of the entity when judging the controlling party of the entity, and the relevant activity of the entity is subject to the contract or corresponding arrangements.
– 19 –
– II-56 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
(27) Preparation of consolidated financial statements (Continued)
When the Group initiates the establishment of a special asset management plan as the original equity owner and subordinated equity owner, the Group will assess whether the Group is exercising decision-making power as the principal responsible person for the structured entity. If the other parties (other investors of the structured entity) exercise the decision-making power, the Group does not control the structured entity. However, if the Group is judged to exercise the decision-making power, it is the principal responsible person and thus controls the structured entity.
Subsidiaries are consolidated from the date on which the Group obtains control and are de-consolidated from the date that such control ceases. For a subsidiary that is acquired in business combinations involving entities under common control, it is included in the consolidated financial statements from the date when it, together with the Company, comes under the control of the same ultimate holding company. The portion of the net profits realised before the combination date is presented separately in the consolidated income statement.
In preparing the consolidated financial statements, where the accounting policies and the accounting periods of the Company and subsidiaries are inconsistent, the financial statements of the subsidiaries are adjusted in accordance with the accounting policies and the accounting period of the Company. For subsidiaries acquired from business combinations involving entities not under common control, the individual financial statements of the subsidiaries are adjusted based on the fair value of the identifiable net assets at the acquisition date.
All significant intra-group balances, transactions and unrealised profits are eliminated in the consolidated financial statements. The portion of subsidiaries’ owners’ equity and the portion of subsidiaries’ net profits and losses and comprehensive income for the period not attributable to the Company are recognised as minority interests, net profit attributed to minority interests and total comprehensive income attributed to minority interests and presented separately in the consolidated financial statements under owners’ equity, net profits and total comprehensive income respectively. If the subsidiaries’ loss for the current period attributed to the minority shareholders exceed the minority interests brought down, the amount will be deducted from the minority interests. Unrealised profits and losses resulting from the sale of assets by the Company to its subsidiaries are fully eliminated against net profit attributable to shareholders of the parent company. Unrealised profits and losses resulting from the sale of assets by a subsidiary to the Company are eliminated and allocated between net profit attributable to shareholders of the parent company and minority interests in accordance with the allocation proportion of the parent company in the subsidiary. Unrealised profits and losses resulting from the sale of assets by one subsidiary to another are eliminated and allocated between net profit attributable to shareholders of the parent company and minority interests in accordance with the allocation proportion of the parent company in the seller subsidiary.
If the accounting treatment of a transaction which considers the Group as an accounting entity is different from that considers the Company or its subsidiaries as an accounting entity, it is adjusted from the perspective of the Group.
(28) Segment information
The Group identifies operating segments based on the internal organisation structure, management requirements and internal reporting system, and discloses segment information of reportable segments which is determined on the basis of operating segments.
An operating segment is a component of the Group that satisfies all of the following conditions: (1) the component is able to earn revenue and incur expenses from its ordinary activities; (2) whose operating results are regularly reviewed by the Group’s management to make decisions about resources to be allocated to the segment and to assess its performance, and (3) for which the information on financial position, operating results and cash flows is available to the Group. If two or more operating segments have similar economic characteristics and satisfy certain conditions, they are aggregated into one single operating segment.
– 20 –
– II-57 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
(29) Critical accounting estimates and judgements
The Group continually evaluates the critical accounting estimates and key judgements applied based on historical experience and other factors, including expectations of future events that are believed to be reasonable.
The critical accounting estimates and key assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next accounting year are outlined below:
(a) Income taxes
There are some transactions and events for which the ultimate tax determination is uncertain during the ordinary course of business. Significant judgement is required from the Group in determining the provision for income taxes and recognition of deferred tax in each of these jurisdictions. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made.
(b) Land value-added tax
In accordance with the relevant PRC tax law, the Group shall pay the land value-added tax. The local tax authorities have not yet issued the “Approval Letter” for the taxable amount of land value-added tax for some development projects. The Group calculates the taxable amount based on the Provisional Rules on Land Value-Added Tax and its Implementing Rules. If the local tax authorities confirm the taxable amount and the original book amount is inconsistent, the difference will be included in the period the land value-added tax clearing is completed.
(c) Fair value assessment of investment properties
The best evidence of fair value is the current price of the properties with similar leases and other contracts on the active market. In the absence of relevant information, the Group will set the amount to be within the estimated range of reasonable fair value. When making a judgment, the Group will take into consideration information from multiple sources, including: (i) the current prices of properties of different natures, conditions or locations or of properties subject to different leases or other contracts on the active markets and shall be adjusted to reflect the differences; (ii) the recent prices of similar properties on the inactive market and are adjusted to reflect any changes in the economic condition from the date on which transaction is made at such price; and (iii) discounted cash flows made on the reliable estimate of future cash flows. The estimate is derived from the terms of any existing leases and other contracts and, if possible, from external evidences such as the prevailing market rents of similar properties in the same location and condition, using the discount rate of existing market assessments that reflect the amount of cash flow and the time uncertainty. The Group assesses the fair value of its investment properties based on the valuation determined by the independent professional qualified valuer.
(d) Provision for impairment of inventories
At the balance sheet date, the Group calculates the value of the inventories at the lower of the cost and the net realizable value. Assumptions and estimates are required for the calculation of net realizable value. If the management’s revision of estimated selling price and the cost and expenses to be incurred at the time of completion will affect the estimation of the net realizable value of the inventories, the difference will post an impact on the provision for impairment of inventories.
– 21 –
– II-58 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
(29) Critical accounting estimates and judgements (Continued)
(e) Impairment provision for fixed assets
The Group regularly reviews whether there is any indication of impairment of the fixed assets. If the carrying amount of the assets is lower than its recoverable amount (ie, the higher value of the net selling price or the value in use), the relevant impairment provision will be recognized. In determining the value in use of the fixed assets, the Group will assess the present value of the estimated future cash flows for the expected continuous use of the assets and the sale of the assets at the end of the useful life of the assets. The Group shall adopt relevant estimates and judgments when recognizing future cash flows and discount rates.
(f) Estimate total cost of the property
The Group estimates the total cost of property construction when recognising the cost of property sales. The estimate is based on management’s detailed budgetary information on the development of the property and is regularly assessed during the construction. If the relevant estimate does not match the cost actually incurred, the difference will affect the correctness of the recognized cost of sales.
5. TAXATION
Taxes applicable to the Group are listed below with their rates:
Tax Basis of Assessment Rate
Value-added Tax Assessable value-added amount (calculated by 17% assessable sales multiplied by applicable rate, net of deductible input tax of the period) Business Tax Rental or sales income 5% Construction income 3% Land Appreciation Tax The value-added amount in transferring the property 30% – 60% of the progressive tax Property Tax Original costs of the property or rental income 1.2% of the original costs or 12% of the rent Income Tax Assessable income amount 25%
– 22 –
– II-59 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
6. SUBSIDIARIES
(1) Key subsidiaries consolidated in 2015
Total Total Registered shareholding percentage of Place of capital Nature of percentage of voting right of Name of key subsidiary incorporation (RMB million) business the Company the Company
恒大長基（沈陽）置業有限公司 PRC 1,595,375,090 Property development 99% 99% 南寧銀象房地產開發有限責任公司 Nanning Yinxiang Real Estate Development Company Liability Limited PRC 20,000,000 Property development 100% 100% 佛山市南海俊誠房地產開發有限公司 Foshan Nanhai Jun Cheng Property Development Company Limited PRC 20,000,000 Property development 100% 100% 太原俊景房地產開發有限公司 Taiyuan Junjing Real Estate Development Corporation Limited PRC 782,200,000 Property development 66% 66% 恒大地產集團蘭州置業有限公司 Hengda (Lanzhou) Real Estate Group Company Limited PRC 495,748,985 Property development 100% 100% 鄭州御邦置業有限公司 Zhengzhou Yubang Property Company Limited PRC 30,000,000 Property development 100% 100% 哈爾濱市誠業房地產開發有限公司 Haerbin Chengye Real Estate Company Limited PRC 450,000,000 Property development 100% 100% 北京沙河恒大置業有限公司 Shahe Hengda (Beijing) Property Company Limited PRC 1,330,000,000 Property development 100% 100% 江陽盛建置業有限公司 PRC 98,039,200 Property development 51% 51% 合肥粵泰置業有限公司 Yuetai (Hefei) Property Company Limited PRC 30,000,000 Property development 100% 100% 常德鑫澤置業有限公司 Xinze (Changde) Property Company Limited PRC 110,000,000 Property development 60% 60% 恒大地產集團北京有限公司 Hengda (Beijing) Real Estate Group Company Limited PRC 1,830,000,000 Property development 100% 100% 柳州恒大金碧置業有限公司 Hengda Jinbi (Liuzhou) Property Company Limited PRC 20,000,000 Property development 100% 100% 北京恒興盛房地產開發有限公司 Hengxingsheng (Beijing) Real Estate Company Limited PRC 3,520,000,000 Property development 100% 100% 邯鄲市大業房地產開發有限公司 Daye (Handan) Real Estate Company Limited PRC 150,000,000 Property development 70% 70% 北京恒龍置業有限公司 Henglong (Beijing) Property Company Limited PRC 1,200,000,000 Property development 100% 100% 成都恒大新北城置業有限公司 PRC 800,000,000 Property development 63% 63% 成都市恒大新西城置業有限公司 PRC 710,000,000 Property development 51% 51% 太原盛世君泰房地產開發有限公司 Shengshi Juntai (Taiyuan) Real Estate Company Limited PRC 261,428,600 Property development 70% 70% 太原金世恒房地產開發有限金司 PRC 589,530,000 Property development 100% 100% 鄭州恒林置業有限公司 Henglin (Zhengzhou) Property Company Limited PRC 378,200,000 Property development 51% 51% 中山長信宏展房地產有限公司 Changxin Hongzhan (Zhongshan)Real Estate Company Limited PRC 10,000,000 Property development 100% 100% 儋州信恒房地產開發有限公司 Xinheng (Danzhou) Real Estate Company Limited PRC 20,000,000 Property development 100% 100% 恒大地產重慶有限公司 PRC 4,821,000,000 Property development 100% 100% 湖北怡清雅築房地產開發有限公司 Hubei Yiqingyazhu Real Estate Development Company Limited PRC 320,000,000 Property development 100% 100% 恒大地產集團洛陽有限公司 Hengda (Luoyang) Real Estate Group Company Limited PRC 457,000,000 Property development 100% 100% 長沙寶瑞房地產開發有限公司 Baorui (Changsha) Property Company Limited PRC 470,000,000 Property development 100% 100% 恒大地產集團海南有限公司 Hengda (Hainan) Real Estate Group Company Limited PRC 352,000,000 Property development 100% 100% 濟南恒大綠州置業有限公司 PRC 870,000,000 Property development 100% 100% 恒大地產集團呼和浩特有限公司 Hengda (Huhehaote) Real Estate Group Company Limited PRC 390,000,000 Property development 100% 100% 安陽通瑞達房地產開發有限公司 Tongruida (Anyang) Property Company Limited PRC 200,000,000 Property development 100% 100% 濟南恒大西區置業有限公司 Hengda West District (Jinan) Property Company Limited PRC 1,000,000,000 Property development 60% 60% 長春泰基房地產開發有限公司 Hengda (Huhehaote) Real Estate Group Company Limited PRC 600,000,000 Property development 100% 100% 佛山市南海盈裕房地產發展有限公司Foshan Nanhai Yingyu Real Estate Development Company Limited PRC 980,000,000 Property development 100% 100% 恒大地產鷹潭有限公司 Hengda (Yingtan) Real Estate Group Company Limited PRC 452,789,200 Property development 100% 100%
– 23 –
– II-60 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
6. SUBSIDIARIES (CONTINUED)
(1) Key subsidiaries consolidated in 2015 (Continued)
Total Total Registered shareholding percentage of Place of capital Nature of percentage of voting right of Name of key subsidiary incorporation (RMB million) business the Company the Company
清遠市銀湖城投資有限公司 PRC 45,000,000 Property development 100% 100% 恒大地產集團韶關有限公司 Hengda Real (Shaoguan) Estate Group Company Limited PRC 230,000,000 Property development 100% 100% 東莞市城邦房地產開發有限公司 PRC 301,000,000 Property development 100% 100% 齊齊哈爾恒大永興房地產開發有限公司Hengda Yongxing (Qiqihaer) Real Estate Company Limited PRC 291,000,000 Property development 100% 100% 濟南恒大翡翠華庭置業有限公司 Jinan Hengda Feicuihuating Property Company Limited PRC 750,000,000 Property development 100% 100% 新鄉御景置業有限公司 Xinxiang Yujing Property Corporation Limited PRC 100,000,000 Property development 100% 100% 邢台雙達房地產開發有限公司 Xingtai Shuangda Real Estate Company Limited PRC 21,430,000 Property development 72% 72% 唐山兆瑞投資有限公司 Tangshan Zhaorui Investment Company Limited PRC 50,000,000 Property development 60% 60% 長春永基房地產開發有限公司 Yongji (Changchun) Real Estate Company Limited PRC 950,000,000 Property development 100% 100% 衢州恒大盛建置業有限公司 Hengda Shengjian (Quzhou) Property Company Limited PRC 250,000,000 Property development 100% 100% 恒大地產集團湛江御景置業有限公司 Hengda (Zhanjiang) Real Estate Group Company Limited PRC 350,000,000 Property development 100% 100% 漯河御盛房地產開發有限公司 Luohe Yusheng Real Estate Company Limited PRC 355,000,000 Property development 100% 100% 四川省仁基恒業投資有限公司 Renji Hengye (Sichuan) Investment Company Limited PRC 875,000,000 Property development 60% 60% 恒大廊坊房地產開發有限公司 Hengda Langfang Real Estate Company Limited PRC 10,000,000 Property development 100% 100% 宜昌楚天恒大房地產開發有限公司 Chutian Hengda (Yichang) Real Estate Company Limited PRC 150,000,000 Property development 60% 60% 長春京房地產開發有限公司 PRC 621,000,000 Property development 100% 100% 寧夏昊天房地產開發有限公司 Haotian (Ningxia) Real Estate Company Limited PRC 486,010,000 Property development 100% 100% 柳州恒大房地產開發有限公司 Hengda (Liuzhou) Real Estate Company Limited PRC 20,000,000 Property development 100% 100% 杭州穗華置業有限公司 Hangzhou Suihua Property Company Limited PRC 1,500,000,000 Property development 100% 100% 平頂山恒榮置業有限公司 Pingdingshan Hengrong Property Company Limited PRC 50,000,000 Property development 57% 57% 南京旭泰房地產開發有限公司 Nanjing Xutai Real Estate Company Limited PRC 970,000,000 Property development 100% 100% 南京美旭房地產開發有限公司 Nanjing Meixu Real Estate Development Company Limited PRC 1,503,000,000 Property development 100% 100% 石獅金碧置業有限公司 Shishi Jinbi Property Company Limited PRC 20,000,000 Property development 100% 100% 上海悅安置業有限公司 Shanghai Yuean Property Company Limited PRC 325,000,000 Property development 100% 100% 太原市俊恒房地產開發有限公司 Taiyuan Junheng Real Estate Company Limited PRC 50,000,000 Property development 100% 100% 大連世誠房地產開發有限公司 Dalian Shicheng Real Estate Company Limited PRC 50,000,000 Property development 60% 60% 濟南華府置業有限公司 Jinan Huafu Property Company Limited PRC 100,000,000 Property development 100% 100% 鄭州合廣置業有限公司 Zhengzhou Heguang Property Company Limited PRC 30,000,000 Property development 100% 100% 南寧金碧恒大置業有限公司 Nanning Jinbi Hengda Property Company Limited PRC 50,000,000 Property development 100% 100% 武漢三江航天投資發展有限公司 Sanjiang Spaceflight (Wuhan) Investment Development Company Limited PRC 10,000,000 Property development 100% 100% 恒大世紀城（清遠）酒店有限公司 Hengda Central City (Qingyuan)Hotel Limited PRC 6,000,000 Hotel operation 100% 100% 恒大地產集團天津薊縣酒店有限公司 PRC 8,000,000 Hotel operation 100% 100% 深圳市建設（集團）有限公司 PRC 620,000,000 Construction 48% 48%
– 24 –
– II-61 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
6. SUBSIDIARIES (CONTINUED)
(2) Key subsidiaries deconsolidated in 2015
Name of Key Subsidiaries Reason for Deconsolidation
珠海泓粵日用品有限公司(Note 7(25)) Transfer under common control
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT
(1) Cash and bank balances
31 December 2015 31 December 2014
Treasury cash 32 21 Bank deposits 69,188 25,947 Other cash and bank balances 55,192 28,239 124,412 54,207 Less: Restricted cash and bank balances (55,192) (28,239) Cash and cash equivalents 69,220 25,968
Other cash and bank balances, which is restricted, represents the deposits for housing mortgage, the deposits for clearance compensation, and the pledged guarantee for bank borrowings deposited to the designated bank account by the Group (note 7(35)(d)).
(2) Financial assets at fair value through profit or loss
31 December 2015 31 December 2014
Investments in equity instruments held for trading – 10,950
As at 31 December 2015, the Group had no financial assets at fair value through profit or loss (31 December 2014: the financial assets at fair value through profit or loss were the investment in equity instruments in the market of China’s A share with publicly available quotations in the active market).
The fair value of the equity instruments held for trading is recognised based on the last trading day of Shanghai Stock Exchange in the Years.
– 25 –
– II-62 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(3) Notes receivable
31 December 2015 31 December 2014
Commercial promissory note 200 3 Bank promissory note 10 1 210 4
(4) Trade and other receivables
(a) Trade receivables
31 December 31 December 2014 2015
Amounts due from related parties (Note 10(4)(a)) 186 218 Amounts due from third parties 6,241 4,396 6,427 4,614 Decrease in the Year Less: Allowance for bad debt (172) 172 – 6,255 4,614
An ageing analysis of trade receivables and allowance for bad debt is as follows:
31 December 2015 31 December 2014 Total Allowance Total Allowance Amount percentage for bad debt Amount percentage for bad debt
Within one year 4,233 92% – 5,269 82% – Over one year but within two years 353 8% – 986 15% – Over two years 28 0% – 172 3% (172) 4,614 100% – 6,427 100% (172)
As at 31 December 2015, trade receivables of RMB586 million (31 December 2014: RMB252 million) were past due but not impaired. The Group considered the amount to be recoverable based on the financial position and the credit report of the clients. An ageing analysis of the trade receivables is as follows:
31 December 2015 31 December 2014
Within one year 512 243 Over one year but within two years 68 8 Over two years 6 1 586 252
– 26 –
– II-63 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(4) Trade and other receivables (Continued)
(b) Long-term receivables
31 December 2015 31 December 2014
Long-term loan instalment receivables 12,220 4,694 Less: Non-current assets due within one year (3,253) – 8,967 4,694
(c) Other receivables
31 December 31 December 2014 2015
Deposits receivable 1,285 2,984 Amounts due from related parties (note 10(4)(c)) 43,681 48,844 Others 4,217 5,575 49,183 57,403 Increase in the Year Less: Allowance for bad debt (26) (3) (29) 49,157 57,374
An analysis of other receivables and allowance for bad debt is as follows:
31 December 2015 31 December 2014 Total Allowance Total Allowance Amount percentage for bad debt Amount percentage for bad debt
Within one year 53,657 94% – 47,110 96% – Over one year but within two years 1,853 3% – 1,048 2% – Over two years 1,893 3% (29) 1,025 2% (26) 57,403 100% (29) 49,183 100% (26)
As at 31 December 2015 and 31 December 2014, there were no other receivables that were past due but not impaired.
(5) Prepayments
31 December 2015 31 December 2014 Total Total Amount percentage Amount percentage
Within one year 13,376 64% 32,019 81% Over one year but within two years 3,945 19% 4,580 11% Over two years 3,606 17% 3,249 8% 20,927 100% 39,848 100%
Prepayments mainly represent the prepaid land premium pending the land use right.
– 27 –
– II-64 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(6) Inventories
31 December 2015 31 December 2014
Products under development 276,125 174,311 Completed products 42,546 29,903 Others 93 – 318,764 204,214
In 2015, the capitalising amount for the borrowing fees credited to the properties under development was RMB16,847 million (2014: RMB9,163 million) and the capitalising rate for the recognition of the borrowing fees was 10.26% per annum (2014: 9.21%).
(7) Other current assets
31 December 2015 31 December 2014
Prepaid business tax 2,929 1,386 Prepaid income tax 1,854 1,095 Prepaid land appreciation tax 1,806 886 Prepaid city maintenance and construction tax 71 73 Prepaid education surcharge 55 56 Others 20 49 6,735 3,545
(8) Available-for-sale financial assets
31 December 2015 31 December 2014
Measured at fair value – Available-for-sale equity instruments 3 1,118
As at 31 December 2015 and 31 December 2014, the Group’s available-for-sale financial assets measured at costs mainly represent the non-listed equity investments held by the Group, which are not quoted on any active markets. The variation range of reasonable estimation of the fair value fluctuates significantly and the percentage for determining the estimated fair value cannot by determined reasonably. Thus, the fair value cannot be measured reasonably. The Group has no plan to dispose these investments.
– 28 –
– II-65 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(9) Long-term equity investments
31 December 2015 31 December 2014
Joint ventures (a) 8,426 1,033 Associates (b) 1,129 29 9,555 1,062
The Group accounted for the above equity investments by equity method. The Group has not been imposed any material restrictions on realising the long-term equity investments and the above investment interests do not have any contingent liabilities or commitments.
(a) Joint ventures
Percentage Percentage Place of Business Registered of of voting Incorporation Nature Capital shareholding right
北京北恒中慧教育科技有限公司 PRC Cultural RMB10,000,000 55% 55% Beijing Beiheng Zhonghui Education Technology Education Co., Ltd. 王府井恒大商業控股有限公司 PRC Business RMB1,000,000,000 51% 51% Wangfujing Evergrande Commercial Holdings Management Company Limited 內蒙古魯橋置業有限公司 PRC Property RMB200,000,000 50% 50% Inner Mongolia Luqiao Property Co., Ltd. Development 廣州恒大淘寶足球俱樂部有限公司 PRC Cultural RMB375,000,000 60% 60% Guangzhou Evergrande Taobao Football Club Entertainment Co., Ltd. 恒大人壽保險有限公司(“恒大人壽”) PRC Insurance RMB1,000,000,000 50% 50% Evergrande Life Insurance Co., Ltd. (Evergrande Life) 杭州晶立置業有限公司 PRC Property USD370,000,000 49% 49% Hangzhou Jingli Property Co., Ltd. Development
The investments in joint ventures are set out as follows:
Net income or loss adjusted 31 December Increase in by equity 31 December 2014 investment method 2015
Joint ventures 1,033 7,959 (566) 8,426
Key financial information of the significant joint ventures:
31 December 2015 Evergrande Life
Cash and cash equivalents 3,442 Other assets (excluding cash and cash equivalents) 22,348 Total assets 25,790 Financial liabilities (excluding insurance liabilities) 294 Other liabilities (including insurance liabilities) 16,543 Total liabilities 16,837 Net assets 8,953
Share of net assets calculated by shareholding percentage (i) 5,977 Goodwill 879 Book value of investments in joint ventures 6,856
– 29 –
– II-66 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(9) Long-term equity investments (Continued)
(a) Joint ventures (Continued)
From 1 November 2015 to 31 December 2015
Operating income 340 Interest expenses (5) Income tax loan 59 Net loss (175) Other comprehensive income 8 Total comprehensive income (167)
(i) The Group calculated the share of assets by shareholding percentage based on the amount in the joint ventures’ financial statement attributable to the parent companies, which has taken the fair value of identifiable assets and liabilities when the investment was secured and the adjustment effect of the standard accounting policy into account.
On 1 November 2015, the Group acquired 50% of the equity in Great Eastern Life Assurance (China) Co., Ltd. (currently known as Evergrande Life) for RMB3,939 million. On 29 December 2015, the Group injected RMB3,000 million into Evergrande Life. According to the resolution in the general meeting of Evergrande Life, all the shareholders agreed to utilise the capital, solely shared by the Group without shareholders’ interest, for the Company’s business development.
(b) Associates
Place of Business Registered Shareholding Voting Incorporation Nature Capital percentage right
北京觀止文化藝術有限公司 PRC Culture and RMB1,000,000 30% 30% Arts 北京潤業文化藝術有限公司 PRC Culture and RMB1,000,000 25% 25% Arts 濟南西開置業有限公司 PRC Property RMB18,000,000 30% 30% Jinan Xikai Property Company Limited Development 濟南西創置業有限公司 PRC Property RMB18,000,000 30% 30% Jinan Xichuang Property Co., Ltd. Development 濟南西實置業有限公司 PRC Property RMB18,000,000 30% 30% Jinan Xishi Property Co., Ltd. Development 濟南西業置業有限公司 PRC Property RMB18,000,000 30% 30% Jinan Xiye Property Company Limited Development 湖南淺水灣湘雅溫泉花園有限公司 PRC Property RMB30,000,000 18% 18% Development 上海申城影視傳媒有限公司 PRC Culture and RMB40,000,000 25% 25% Shanghai Shencheng Culture Investment Arts Co., Ltd 前海開源資產管理（深圳）有限公司 PRC Assets RMB100,000,000 16% 16% Qianhai Kaiyuan Asset Management management (Shenzhen) Co., Ltd. 東營御景置業有限公司 PRC Property RMB100,000,000 20% 20% Dongying Yujing Property Co., Ltd. Development 恒大地產集團（深圳）有限公司 Property RMB130,000,000 32% 32% development
– 30 –
– II-67 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(9) Long-term equity investments (Continued)
(b) Associates (Continued)
The investments in associates are set out as follows:
Net income or loss adjusted 31 December Increase in Decrease in by equity 31 December 2014 investment investment method 2015
Associates 29 1,010 (185) 275 1,129
The Group has no associates that is individually significant.
(10) Investment properties
Properties Completed under properties construction Total
31 December 2014 34,273 18,786 53,059 Increase in the Year – 18,780 18,780 Transfer during the Year 11,936 (11,936) – Business combinations by entities not under common control (Note 9(2)) 579 – 579 Change in fair value 7,822 2,404 10,226 Disposal in the Year (811) – (811) 31 December 2015 53,799 28,034 81,833
In 2015, the capitalising amount for the borrowing fees credited to the investment properties was RMB2,350 million (2014: RMB2,711 million) and the capitalising rate for the recognition of the borrowing fees was 10.26% per annum (2014: 9.21%).
In 2015, the effect of the change in the fair value for the investment properties on the Group’s profit or loss was RMB10,226 million (2014: RMB8,650 million).
In 2015, the Group generated an income of RMB137 million for the disposal of investment properties with a carrying amount of RMB811 million.
– 31 –
– II-68 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(11) Fixed assets
Housing Machinery and and Office buildings Equipment Vehicles Equipment Total
Original price 31 December 2014 5,275 101 371 2,451 8,198 Construction in process transferred in 1,245 23 – – 1,268 Business combinations by entities not under common control (note 9(2)) 8 – – – 8 Increase in the Year 33 34 68 381 516 Decrease in the Year (33) (11) (31) (59) (134) 31 December 2015 6,528 147 408 2,773 9,856
Accumulated depreciation 31 December 2014 (748) (44) (237) (728) (1,757) Provision for the Year (399) (11) (60) (331) (801) Decrease in the Year 8 4 14 16 42 31 December 2015 (1,139) (51) (283) (1,043) (2,516)
Net value 31 December 2015 5,389 96 125 1,730 7,340
31 December 2014 4,527 57 134 1,723 6,441
Depreciation costs credited to operation costs, management fees and sales costs in 2015 and 2014 are as follows:
2015 2014
Operation costs 363 270 Management fees 343 313 Sales costs 801 693
(12) Construction in process
Transferred to fixed Name of 31 December Increase assets in 31 December construction 2014 in the Year the Year 2015
Hotel construction 3,193 680 (1,268) 2,605 Including: Capitalising amount for borrowing fees 447 48 (164) 331
In, 2015, the capitalising rate for the recognition of the borrowing fees was 10.26% per annum (2014: 9.21%).
– 32 –
– II-69 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(13) Intangible assets
Land use right Others Total
Original price 31 December 2014 1,925 96 2,021 Increase in the Year 22 76 98 31 December 2015 1,947 172 2,119
Accumulated depreciation 31 December 2014 (44) (12) (56) Amortisation for the Year (48) (75) (123) 31 December 2015 (92) (87) (179)
Net value 31 December 2015 1,855 85 1,940
31 December 2014 1,881 84 1,965
(14) Long-term fee to be amortised
31 December 2015 31 December 2014
Rental of fixed assets for operation improvement 39 72
(15) SHORT-TERM BORROWINGS
31 December 2015 31 December 2014
Secured borrowings 4,783 5,445 Secured (a) 7,196 14,457 Pledged (b) 2,492 10,026 Guaranteed (c) 21,953 – Unsecured borrowings 36,424 29,928
– 33 –
– II-70 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(15) SHORT-TERM BORROWINGS (Continued)
(a) As at 31 December 2015, the secured borrowings of RMB4,783 million were secured by the fixed assets with a carrying amount of RMB690 million, the intangible asset, land use right, with a carrying amount of RMB102 million, the investment properties with a carrying amount of RMB438 million and the inventory with a carrying amount of RMB4,061 million (2014: the secured borrowings of RMB5,445 million were secured by the fixed assets with a carrying amount of RMB87 million, the investment properties with a carrying amount of RMB766 million and the inventory with a carrying amount of RMB6,112 million).
(b) As at 31 December 2015, the pledged borrowings of RMB7,196 million were pledged by the time deposit of RMB2,846 million and the equity of the subsidiaries of RMB5,473 million (2014: the pledged borrowings of RMB14,457 million were pledged by the RMB time deposit of RMB9,438 million and the equity of the subsidiaries of RMB5,044 million).
(c) As at 31 December 2015, the guaranteed borrowings of RMB2,492 million (2014: RMB10,026 million) were guaranteed by the Company’s intermediate holding company, Evergrande Real Estate Group Limited.
As at 31 December 2015, the weighted average interest rate for short-term borrowings was 7.21% (2014: 8.13%) per annum.
(16) Notes payable
31 December 2015 31 December 2014
Commercial promissory notes 36,016 21,823 Bank promissory notes 296 830 36,312 22,653
(17) Receipts in advance
31 December 2015 31 December 2014
Receipts in property presales 72,014 41,542 Others 165 145 72,179 41,687
As at 31 December 2015 and 31 December 2014, all the Group’s receipts in advance were matured within one year.
– 34 –
– II-71 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(18) Remuneration payables
31 December 2015 31 December 2014
Short-term wages payables (a) 807 634 Defined contribution scheme (b) 20 1 827 635
(a) Short-term wages
31 December Increase Decrease 31 December 2014 in the Year in the Year 2015
Salaries, bonuses, allowances and subsidies 620 5,212 (5,095) 737 Employee benefit expenses 1 273 (226) 48 Social insurance fees – 220 (210) 10 Including: Medical insurance fees – 185 (177) 8 Work injuries insurance fees – 18 (17) 1 Maternity insurance fees – 17 (16) 1 Housing provident fund 1 209 (199) 11 Operation fees and employee education fees 12 39 (50) 1 634 5,953 (5,780) 807
(b) Defined contribution scheme
2015 2014 Balance at the Amount Balance at the Amount payable end of the Period payable end of the Period
Basic pension insurances 408 19 413 1 Unemployment insurances 27 1 33 – 435 20 446 1
– 35 –
– II-72 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(19) Tax payables
31 December 2015 31 December 2014
Land appreciation tax payable 12,456 8,677 Income tax payable 6,346 5,098 Business tax payable 893 558 City maintenance and construction tax payable 139 44 Tax on Deeds 110 160 Education surcharge payable 107 32 Tax payables on land use 71 64 Value-added tax payable 33 40 Others 222 114 20,377 14,787
(20) Other payables
31 December 2015 31 December 2014
Amounts due to related parties (note 10(4)(d)) 50,037 42,001 Land premium payable 13,025 5,726 Deposits and receipts under custody payable 7,938 4,924 Amounts due to minority shareholders 4,437 5,955 Acquisition of subsidiary payable 3,217 – Acquisition of joint venture payable 2,157 – Others 3,733 2,810 84,544 61,416
(21) Long-term payables
31 December 2015 31 December 2014
Combined structural shares (a) 1,760 5,620 Amounts due to minority shareholders (b) 594 1,299 2,354 6,919
(a) The amount includes the cash advances of approximately RMB1,760 million (2014: RMB5,620 million) from the owners of consolidated investment entities, bears the average interest rate of 9.6% (2014: 8.0%) per annum and is repayable in 2019.
(b) The amount includes the cash advances of approximately RMB527 million (2014: RMB690 million) from the minor shareholders, bears the average interest rate of 12% (2014: 12%) per annum and is subject to the concerned loan agreement.
– 36 –
– II-73 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(22) Long-term borrowings
31 December 2015 31 December 2014
Secured borrowings Secured (a) 106,409 73,509 Pledged (b) 54,588 41,690 Guaranteed (c) 11,093 21,132 Unsecured borrowings 13,850 – 185,940 136,331 Less: Long-term borrowings due within one year Secured borrowings Secured (37,285) (18,783) Pledged (24,508) (7,819) Guaranteed (5,999) (8,655) Unsecured borrowings (6,905) – (74,697) (35,257) 111,243 101,074
(a) As at 31 December 2015, the secured borrowings of RMB106,409 million were secured by the fixed assets with a carrying amount of RMB5,572 million, the investment properties with a carrying amount of RMB2,291 million, the inventory with a carrying amount of RMB113,560 million and the intangible asset, land use right, with a carrying amount of RMB1,002 million (2014: the secured borrowings of RMB73,509 million were secured by the fixed assets with a carrying amount of RMB5,786 million, the investment properties with a carrying amount of RMB3,325 million, the inventory with a carrying amount of RMB90,300 million and the intangible asset, land use right, with a carrying amount of RMB728 million).
(b) As at 31 December 2015, the pledged borrowings of RMB54,588 million were pledged by the time deposit of RMB48,162 million and the equity of the subsidiaries of RMB41,491 million (2014: the pledged borrowings of RMB41,690 million were pledged by the RMB time deposit of RMB5,400 million and the equity of the subsidiaries of RMB13,566 million).
(c) As at 31 December 2015, the guaranteed borrowings of RMB11,093 million (2014: RMB21,132 million) were guaranteed by the Company’s intermediate holding company, Evergrande Real Estate Group Limited.
As at 31 December 2015, the weighted average interest rate for long-term borrowings was 9.51% (31 December 2014: 9.55%) per annum.
– 37 –
– II-74 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(23) Bond payables
31 December 2015
Public issuance of corporate bonds 19,817 Non-public issuance of corporate bonds 19,732 39,549
On 19 June 2015, the Company publicly issued a 5-year corporate bond, with a total amount of RMB5 billion and simple interest rate fixed at 5.38% calculated and paid once every year.
On 7 July 2015, the Company publicly issued a 4-year corporate bond, with a total amount of RMB6.8 billion and simple interest rate fixed at 5.30% calculated and paid once every year.
On 7 July 2015, the Company publicly issued a 7-year corporate bond, with a total amount of RMB8.2 billion and simple interest rate fixed at 6.98% calculated and paid once every year.
On 16 October 2015, the Company non-publicly issued a 5-year corporate bond, with a total amount of RMB17.5 billion and simple interest rate fixed at 7.38% calculated and paid once every year.
On 16 October 2015, the Company non-publicly issued a 5-year corporate bond, with a total amount of RMB2.5 billion and simple interest rate fixed at 7.88% calculated and paid once every year.
Apart from the company bond non-publicly listed on 16 October 2015 with a total amount of RMB2.5 billion, other company bonds include early redemption rights, deemed as attached derivatives unrelated to the main contract. The management of the Company considered the fair value of the said early redemption rights to be insignificant either upon initial recognition or at 31 December 2015 (2014: nil).
– 38 –
– II-75 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(24) Deferred income tax assets and liabilities
Deferred income tax assets and deferred income tax liabilities which are not yet offset are set out below:
(a) Deferred income tax assets
31 December 2015 31 December 2014 Deferred Deductible Deferred Deductible income temporary income temporary tax assets difference tax assets difference
Tax loss 982 3,928 1,532 6,126 Temporary difference of costs recognition 396 1,585 217 868 Business combinations by entities not under common control 45 181 – – Offsetting unrealised internal profit 210 840 89 357 1,633 6,534 1,838 7,351
31 December 2015 31 December 2014
Including: Amount expected to be reversed within one year, inclusive 933 1,096 Amount expected to be reversed after one year 700 742 1,633 1,838
(b) An analysis on the deductible loss of the Group’s unrecognised deferred income tax assets is set out as follows:
31 December 2015 31 December 2014
Deductible loss 3,115 2,915
(c) An ageing analysis of the deductible loss of the Group’s unrecognised deferred income tax assets is set out as follows:
31 December 2015 31 December 2014
2015 – 263 2016 539 539 2017 886 886 2018 951 951 2019 276 276 2020 463 – 3,115 2,915
– 39 –
– II-76 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(24) Deferred income tax assets and liabilities (Continued)
(d) Deferred income tax liabilities
31 December 2015 31 December 2014 Deferred Temporary Deferred Temporary income difference of income difference of tax liabilities tax payables tax liabilities tax payables
Change in the fair value of the investment properties 11,325 31,267 7,660 21,041 Business combinations by entities not under common control 1,052 4,208 350 1,398 12,377 35,475 8,010 22,439
31 December 2015 31 December 2014
Including: Amount expected to be reversed within one year, inclusive 925 994 Amount expected to be reversed after one year 11,452 7,016 12,377 8,010
(25) Capital reserve
Capital reserve was mainly generated by transfer of subsidiaries under common control.
31 December 2014 – Transfer of subsidiaries under common control (a) 1,620 Acquisition of minority interests of some subsidiaries (55) 31 December 2015 1,565
(a) On 31 May 2015, the Group transfer all the equity in the wholly-owned subsidiary 珠海泓粵日用品有限公司 to Hengda Beverage Group Limited, both of which are under common control, for a consideration of RMB nil. As of the date of transfer, the accumulated loss of RMB1,620 million for 珠海泓粵日用品有限公司 was accrued as capital reserve for transfer income under common control.
(26) Surplus reserve
In accordance with the PRC Company Law and the Article of the Company, the Company withdraws 10% of the net profit for statutory surplus reserve, which can be waived once the statutory surplus reserve reaches 50% of the registered capital or above. The statutory surplus reserve can offset loss or increase net capital upon approval. With the resolution by the Board, the Company withdrew RMB409 million of the statutory surplus reserve in 2015 (2014: RMB443 million).
– 40 –
– II-77 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(27) Operating income and operating costs
2015 2014 Operating Operating Operating Operating income costs income costs
Sale of flats 112,512 74,787 94,539 63,197 Construction 1,451 1,383 1,148 1,018 Income from hotels 482 314 338 212 Rental income 126 22 50 22 Sales of good and others 2,944 1,874 2,302 1,453 117,515 78,380 98,377 65,902
(28) Business tax and surcharges
2015 2014
Land Appreciation Tax 5,755 4,913 Business Tax 5,745 4,778 City Construction Tax 412 342 Educational Surcharge 295 242 Others 103 149 12,310 10,424
(29) Financial expenses – net
2015 2014
Interest expenses (1,924) (2,652) Less: Interest income 1,393 272 Service fees (514) (114) Loss on translation difference (21) (1) (1,066) (2,495)
– 41 –
– II-78 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(30) Fees by nature
Operation costs, sales fees and management fees in the profit statement are set out below by nature:
2015 2014
Costs of property sales 74,787 63,197 Advertising expenses 6,049 4,520 Employee remuneration expenses 3,274 3,296 Costs of sales 1,785 1,453 Depreciation and amortisation 957 735 Sales commissions 721 469 Administrative fees 478 441 Tax expenses 419 222 Professional service fees 311 171 Vocational travelling expenses 267 93 Operating lease fees 201 190 Business hospitality fees 56 180 Transportation fees 20 178 Others 2,614 1,695 91,939 76,840
(31) Gain on changes in fair value
2015 2014
Investment properties 10,226 8,650 Financial assets at fair value through profit or loss (3,757) 3,757 6,469 12,407
(32) Investment income
2015 2014
Investment income from financial assets held at fair value through profit or loss 6,238 – Loss on long-term equity investment by equity method (291) (104) Gain on disposal of subsidiaries – 719 Others 228 93 6,175 708
– 42 –
– II-79 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(33) Non-operating income and non-operating expenses
(a) Non-operating income
2015 2014
Government grant 118 11 Income from beaching of agreement 74 15 Income from default 61 50 Income from disposal of fixed assets and intangible assets – 396 Others 87 246 340 718
(b) Non-operating expenses
2015 2014
Overdue fines 192 45 Penalty expenses 149 73 Defaults on delivery of flats 100 124 Donation expenses 84 170 Loss on disposal of fixed assets and intangible assets 30 – Others 237 63 792 475
(34) Income tax expenses
2015 2014
Current income tax 3,966 3,043 Deferred income tax 2,071 1,917 6,037 4,960
Income tax fees were adjusted based on the income tax calculated by gross profit stated in the consolidated profit statement and the applicable tax rate:
2015 2014
Gross profit 24,561 21,976
Income tax calculated by applicable tax rate 6,140 5,494 Non-taxable income (587) (1,179) Non-deductible costs, fees and losses 368 576 Deductible loss on unrecognised deferred income tax assets 116 69 Income tax fees 6,037 4,960
– 43 –
– II-80 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(35) Notes to the statement of cash flows
(a) Operating cash flow adjusted by net profit
2015 2014
Net profit 18,524 17,016 Add: Depreciation of fixed assets 801 693 Long-term fees to be amortised 33 12 Amortisation of intangible assets 123 30 Gain on disposal of fixed assets, intangible assets and investment properties (107) (407) Bad debt allowance written-off (169) – Gain on change in fair value (12,707) (12,407) Financial expenses 2,405 2,380 Investment loss/(gain) 63 (708) Increase in deferred income tax assets (249) (865) Increase in deferred income tax liabilities 3,603 2,834 Increase in inventory (81,878) (54,540) Increase in operating receivables (2,574) (14,510) Increase in operating payables 71,209 29,879 Net cash flow generated from operating activities (923) (30,593)
(b) Investments and fund-raising activities not involving cash in/out
In 2015 and 2014, the Group has no material investments and fund-raising activities which do not involve cash in/out.
(c) Movement in cash and cash equivalents
2015 2014
Balance of cash and cash equivalents at the end of the Year Less: Opening cash and cash equivalents at the beginning of the Year 69,220 25,968 Increase/(decrease) in cash and cash equivalents (25,968) (31,685) 43,252 (5,717)
(d) Cash and cash equivalents
31 December 2015 31 December 2014
Cash and bank balances (note 7(1)) 124,412 54,207 Less: Restricted cash and bank balances (55,192) (28,239) Balance of cash and cash equivalents at the end of the Year 69,220 25,968
– 44 –
– II-81 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(35) Notes to the statement of cash flows (Continued)
(e) Net cash received upon disposal of subsidiaries
Cash received upon disposal of subsidiaries
On 31 May 2015, the Group transferred all the equity 珠海泓粵日用品有限公司 to Hengda Beverage Group Limited. Information on the disposal date is set out below:
Amount
Price of disposal Cash and cash equivalents received on disposal – Less: Disposal of cash and cash equivalents held by珠海泓粵日用品有限公司 – Net cash received on disposal (13) (13)
Net assets of 珠海泓粵日用品有限公司:
Date of disposal 31 December 2014
Current assets 130 501 Non-current assets 507 30 Current liabilities (2,257) (2,587) Total (1,620) 2,056
Incomes, fees and profits of 珠海泓粵日用品有限公司 from 1 January 2015 to the date of disposal are set out as follows:
Amount
Income 60 Less: Costs and fees (177) Total loss (117) Less: Income tax fee – Net loss (117)
(f) Cash paid for/generated from other investment activities
Cash received from other investment activities mainly includes the receipt of capital payment from the connected parties and cash paid for other investment activities mainly includes the capital provided for the connected parties.
(g) Cash paid for/generated from other fund-raising activities
Cash received from other fund-raising activities mainly includes the receipt of capital provided by the connected parties and cash paid for other investment activities mainly includes the capital payment to the connected parties.
– 45 –
– II-82 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
8 SEGMENT INFORMATION
The reporting segments of the Group are the business segments providing different products and services. Since different skills and marketing strategies are needed for different businesses, the Group individually manages the business activities and assesses business results for different segments to precisely allocate resources.
The Group has three reporting segments, namely:
• Property development • Investment properties operation • Other business
Transfer prices between segments were determined with reference to that to third parties.
Assets were allocated based on segment operation and asset location and liabilities were allocated based on segment operation. Fees that indirectly vested to segments were allocated between segments based on income ratio.
– 46 –
– II-83 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
8 SEGMENT INFORMATION (CONTINUED)
(a) Segment information for 2015 is set out as follows:
Investment Property properties Other Inter-segment development operation segments offsetting Total
Transaction income 112,512 1,117 13,207 (9,321) 117,515 Inter-segment transaction income – (43) (9,278) 9,321 – Transactions with outside parties 112,512 1,074 3,929 – 117,515
Gain on investment in associates 275 – – – 275 Gain/(loss) on investment in joint ventures 14 – (580) – (566) Depreciation and amortisation fees 617 – 340 – 957
Segment results 15,056 9,165 (1,303) – 22,918
Profit or loss on change of fair value of financial assets at fair value through profit or loss (3,757) Other investment gains 6,466 Financial fees (1,066)
Gross profit 24,561 Income tax expenses (6,037) Net profit 18,524
Segment assets 542,524 81,833 17,633 – 641,990 Unallocated amount 8,371 Total assets 650,361
Segment liabilities 275,665 – 5,506 – 281,171 Unallocated amount 294,667 Total liabilities 575,838
Increase in other non-current assets (fixed assets, intangible assets, construction in process and capital expenditure of investment properties) 524 19,359 778 – 20,661
– 47 –
– II-84 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
8 SEGMENT INFORMATION (CONTINUED)
(b) Segment information for 2014 is set out as follows:
Investment Property properties Other Inter-segment development operation segments offsetting Total
Transaction income 94,539 150 12,221 (8,533) 98,377 Inter-segment transaction income – (100) (8,433) 8,533 – Transactions with outside parties 94,539 50 3,788 – 98,377
Loss on investment in associates (50) – – – (50) Loss on investment in joint ventures – – (54) – (54) Depreciation and amortisation fees 404 – 331 – 735
Segment results 12,608 8,668 (1,374) – 19,902 Profit or loss on change of fair value of financial assets at fair value through profit or loss 3,757 Other investment gains 812 Financial fees (2,495)
Gross profit 21,976 Income tax expenses (4,960) Net profit 17,016
Segment assets 354,527 53,059 17,703 – 425,289 Unallocated amount 16,333 Total assets 441,622
Segment liabilities 180,349 – 14,240 – 194,589 Unallocated amount 194,677 Total liabilities 389,266
Increase in other non-current assets (fixed assets, intangible assets, construction in process and capital expenditure of investment properties) 1,908 15,506 1,592 – 19,006
As at 31 December 2015 and 31 December 2014, the Group’s non-current assets were in the People’s Republic of China.
Unallocated assets include the financial assets in fair value through profit or loss, other current assets, the available-for- sale financial assets and the deferred income tax assets.
Unallocated liabilities include short-term borrowings, tax payables, non-current liabilities due within one year, long- term borrowings, bond payables and deferred income tax liabilities.
– 48 –
– II-85 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE The basis of acquisition date Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective 8 July 2015 27 July 2015 27 May 2015 25 May 2015 11 June 2015 Acquisition date 29 October 2015 29 October 2015 24 September 2015 18 September 2015 30 September 2015 method Acquisition Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid 60% 67% 100% 100% 100% 100% 100% 100% 100% 100% acquired Equity ratio 30 571 323 225 380 418 758 765 cost 2,086 1,607 7,163 Acquisition – 49 – 8 July 2015 27 July 2015 25 May 2015 11 June 2015 29 October 2015 29 October 2015 Time at which the Time 2015 with a cost of 24 September 2015 18 September 2015 30 September 2015 acquirerobtains control 30% on 29 March 2013 Acquired 70% on 27 May RMB400 million; acquired with a cost of RMB9 million. Real estate development Real estate development Real estate development Real estate development Real estate development Real estate development Real estate development Real estate development Real estate development Real estate development Nature of business 濟南華府置業有限公司 陝西碩華置業有限公司 柳州市兆福地產置業有限公司 廣西梧州市萬國房地產開發有限公司 新鄉市三聯置業有限公司 泉州安盛置業有限公司 佛山市長信宏龍房地產有限公司 中山長信宏展房地產有限公司 商丘世龍房地產開發有限公司 武漢三江航天房地產開發有限公司 HENGDA REAL ESTATE GROUP COMPANY LIMITED COMPANY GROUP REAL ESTATE HENGDA YEAR 2015 FOR STATEMENTS THE FINANCIAL TO NOTES (Expressed in millions of RMB, unless otherwise indicated) THE SCOPE OF CONSOLIDATION INCREASE IN Acquisition of Subsidiaries These companies companies in the PRC with a total consideration of approximately RMB20,566 million. In 2015, the Group acquired controlling interests of certain real estate development that the acquisitions do not constitute Thus, the management is of view were acquired by the Group. substantial operation before they only held parcels of land and did not conduct any These acquisitions resulted in an increase the minority interests of Group amount RMB886 and should be deemed as the acquisition of land use rights. acquisition of businesses, million. Business combinations by entities not under common control combinations by entities not under common control: The subsidiaries acquired from business Acquiree
9 (1) (2) (a)
– II-86 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
9 INCREASE IN THE SCOPE OF BUSINESS CONSOLIDATION (CONTINUED)
(2) Business combinations by entities not under common control (continued)
(b) Details of the combination cost and goodwill recognized are as follows:
Combination Cost - Cash Consideration 6,992 Fair value of the equity interests originally held as at acquisition date 171 Less: Fair value of the identifiable net assets obtained (7,163) Goodwill –
(c) Details of the assets, liabilities and acquisition-related cash flow of the acquiree as at the acquisition date are set out as follows:
Fair value Carrying amounts Acquisition Acquisition 31 December date date 2014
Cash and bank balances 985 985 373 Trade receivables 1,529 1,529 4,128 Prepayments 83 83 349 Inventories 14,941 11,474 10,264 Investment properties 579 419 437 Fixed assets 8 8 9 Other non-current assets 344 344 141 Less: Trade payables (4,587) (4,587) (8,220) Receipts in advance (3,797) (3,797) (1,803) Deferred income tax liabilities (764) – – Long-term borrowings (1,344) (1,344) (2,444) Non-current liabilities due within one year – – (1,837) Net assets 7,977 5,114 1,397 Less: Minority interests (814) (2) (2) Net assets obtained 7,163 5,112 1,395 Cash consideration 6,992 Less: Cash and cash equivalents of the subsidiaries acquired (985) Unpaid consideration (3,217) Net cash paid for the acquisition of subsidiaries 2,790
– 50 –
– II-87 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
9 INCREASE IN THE SCOPE OF BUSINESS CONSOLIDATION (CONTINUED)
(2) Business combinations by entities not under common control (continued)
(d) The revenue, net profit and cash flow of the acquiree from the acquisition date to the period ended 31 December 2015 are set out as follows:
Operating income 3,600 Net profit 403 Cash flows from operating activities 1,717 Net cash flows 1,072
The Group adopts valuation techniques such as the market approach and the income approach to determine the fair value of the assets and liabilities of the acquiree as at the acquisition date.
10 RELATED PARTIES AND RELATED PARTY TRANSACTIONS
(1) Parent company and subsidiaries
The general information and other related information of the subsidiaries are set out in Note 6.
(a) General information of the parent company
Place of registration Nature of business
Guangzhou Kailong Real Estate Company Limited China Real estate development
(b) Registered capital and changes in registered capital of the parent company
31 December 2015 and 2014 Guangzhou Kailong Real Estate Company Limited 600,000,000
(c) The percentages of shareholding and voting rights in the Company held by the parent company:
31 December 2015 and 2014 Percentage of Percentage of shareholding voting rights
Guangzhou Kailong Real Estate Company Limited 100% 100%
– 51 –
– II-88 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
10 RELATED PARTIES AND RELATED PARTY TRANSACTIONS (CONTINUED)
(2) Natures of the principal related parties which do not have a controlling relationship with the Group
Name of the company Relationship with the Group
Chaozhou Hengda Property Company Limited Under the control of the same ultimate holding company 啟東通譽置業有限公司 Under the control of the same ultimate holding company 句容天工置業有限公司 Under the control of the same ultimate holding company 啟東鑫華置業有限公司 Under the control of the same ultimate holding company 成都天府水城房地產開發有限公司 Under the control of the same ultimate holding company 金碧物業有限公司 Under the control of the same ultimate holding company 西安金圖置業有限公司 Under the control of the same ultimate holding company 海南東方明珠地產有限公司 Under the control of the same ultimate holding company 南京恆大富豐置業有限公司 Under the control of the same ultimate holding company 北海南國天堂房地產開發有限公司 Under the control of the same ultimate holding company 揚州宏利泰房地產開發有限公司 Under the control of the same ultimate holding company 東莞市鴻郡置業有限公司 Under the control of the same ultimate holding company 昌江廣億房地產開發有限公司 Under the control of the same ultimate holding company 深圳市厦村房地產開發有限公司 Under the control of the same ultimate holding company 桂森林加房地產有限公司 Under the control of the same ultimate holding company 本溪嘉熙置業有限公司 Under the control of the same ultimate holding company 西安盈裕置業有限公司 Under the control of the same ultimate holding company 寧波御城置業有限公司 Under the control of the same ultimate holding company 葫蘆島嘉汕置業有限公司 Under the control of the same ultimate holding company 盤錦嘉鼎置業有限公司 Under the control of the same ultimate holding company 深圳市吉厦房地產開發有限公司 Under the control of the same ultimate holding company 佛山市南海新中房地產發展有限公司 Under the control of the same ultimate holding company 廣州恆大（增城）房地產開發有限公司 Under the control of the same ultimate holding company 深圳市恆大糧油銷售有限公司 Under the control of the same ultimate holding company 深圳市恆大飲品有限公司 Under the control of the same ultimate holding company 恆大乳業有限公司 Under the control of the same ultimate holding company 廣州市佳穗置業有限公司 Under the control of the same ultimate holding company 恆大長白山礦泉水股份有限公司 Under the control of the same ultimate holding company 珠海泓粵日用品有限公司 Under the control of the same ultimate holding company 上海穗華置業有限公司 Under the control of the same ultimate holding company 寧波三立祥和置業有限公司 Under the control of the same ultimate holding company 廣州市超豐置業有限公司 Under the control of the same ultimate holding company 重慶恒大鑫鼎置業有限公司 Under the control of the same ultimate holding company 鎮江佳祺置業有限公司 Under the control of the same ultimate holding company 恒大糧油集團有限公司 Under the control of the same ultimate holding company
– 52 –
– II-89 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
10 RELATED PARTIES AND RELATED PARTY TRANSACTIONS (CONTINUED)
(2) Natures of the principal related parties which do not have a controlling relationship with the Group (continued)
Name of the company Relationship with the Group
Chengbo (Ningbo) Property Company Limited Under the control of the same ultimate holding company Prime Sun Holding Limited Under the control of the same ultimate holding company 淮安佳鑫置業有限公司 Under the control of the same ultimate holding company 深圳市久初投資有限公司 Under the control of the same ultimate holding company 東莞市澤和實業有限公司 Under the control of the same ultimate holding company 呼和浩特市金碧物業服務有限公司 Under the control of the same ultimate holding company Shengtong (BVI) Limited Under the control of the same ultimate holding company 西安嘉智置業有限公司 Under the control of the same ultimate holding company 恒大飲品集團有限公司 Under the control of the same ultimate holding company 啟東衡美置業有限公司 Under the control of the same ultimate holding company 恒大企業集團有限公司 Under the control of the same ultimate holding company 重慶尖置房地產有限公司 Under the control of the same ultimate holding company 重慶中渝物業發展有限公司 Under the control of the same ultimate holding company Shengyu (BVI) Limited Under the control of the same ultimate holding company 東莞市慶鵬心怡房地產開發有限公司 Under the control of the same ultimate holding company 愛美高房地產（成都）有限公司 Under the control of the same ultimate holding company 深圳市鴻騰投資管理有限公司 Under the control of the same ultimate holding company 愛美高房實業（成都）有限公司 Under the control of the same ultimate holding company 恒大置業（深圳）有限公司 Under the control of the same ultimate holding company 汕頭市恒悅置業有限公司 Under the control of the same ultimate holding company 恒大畜牧業有限公司 Under the control of the same ultimate holding company 深圳市恒大健康產業有限公司 Under the control of the same ultimate holding company 深圳市恒大酒店管理有限公司 Under the control of the same ultimate holding company 恒大人參有限公司 Under the control of the same ultimate holding company 四川愛美高房地產有限公司 Under the control of the same ultimate holding company 啟東譽豪置業有限公司 Under the control of the same ultimate holding company 啟東勤盛置業有限公司 Under the control of the same ultimate holding company 廣州市俊匯房地產開發有限公司 Under the control of the same ultimate holding company 廣州市金碧華府物業有限公司 Under the control of the same ultimate holding company 深圳恒大母嬰用品有限公司 Under the control of the same ultimate holding company 安圖恒大長白山礦泉水有限公司 Under the control of the same ultimate holding company
The details of joint ventures and associates are set out in note 7(9).
– 53 –
– II-90 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
10 RELATED PARTIES AND RELATED PARTY TRANSACTIONS (CONTINUED)
(3) Related party transactions
(a) Pricing policy
The prices of business transactions between the Group and related parties are determined through negotiations by both sides, with reference to the market prices.
(b) Sales of goods
2015 2014
Companies under the control of the same ultimate holding company 973 681 Associates 124 28 Joint ventures 27 – 1,124 709
(c) Rendering of services
2015 2014
Companies under the control of the same ultimate holding company 588 631 Associates 4 – Joint ventures 16 – 608 631
(d) Purchase of goods
2015 2014
Companies under the control of the same ultimate holding company 212 296 Joint ventures 64 51 276 347
(e) Receiving of services
2015 2014
Companies under the control of the same ultimate holding company 1,844 1,329 Joint ventures 18 10 1,862 1,339
– 54 –
– II-91 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
10 RELATED PARTIES AND RELATED PARTY TRANSACTIONS (CONTINUED)
(3) Related party transactions (continued)
(f) Providing and accepting funds
During 2015 and 2014, there were financial transactions between the Group and certain related parties, the transaction amounts of which are included in “cash received from other investing activities” and “cash paid for other investing activities” under investing activities, as well as “cash received from other financing activities” and “cash paid for other financing activities” under financing activities in the cash flow statement. The balance of financial transactions with related parties is set out in Note 10(4).
(g) Remuneration of key management
2015 2014
Remuneration of key management 101 91
(h) Guarantee
The commitments in relation to related parties contracted for but not yet necessary to be stated on the balance sheet by the Group as at the balance sheet date are as follows:
31 December 2015 31 December 2014
– Acceptance of guarantees
EVERGRANDE REAL ESTATE GROUP LIMITED 38,837 45,383
– Provision of guarantees
31 December 2015 31 December 2014
Companies under the control of the same ultimate holding company 24,112 3,386
(4) Balance receivable and payable by the principal related parties
(a) Trade receivables
31 December 2015 31 December 2014
Companies under the control of the same ultimate holding company 218 186
(b) Trade payables
31 December 2015 31 December 2014
Companies under the control of the same ultimate holding company 597 455
– 55 –
– II-92 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
10 RELATED PARTIES AND RELATED PARTY TRANSACTIONS (CONTINUED)
(4) Balance receivable and payable by the principal related parties (continued)
(c) Other receivables
31 December2015 31 December 2014
Companies under the control of the same ultimate holding company 46,584 42,194 Associates 575 1,486 Joint ventures 1,685 1 48,844 43,681
As at 31 December 2015 and 31 December 2014, the abovementioned other receivables were amounts with the related parties that were interest-free, unsecured, unguaranteed and had no fixed terms of repayment.
(d) Other payables
31 December 2015 31 December 2014
Companies under the control of the same ultimate holding company 48,886 40,900 Associates 663 1,101 Joint ventures 488 – 50,037 42,001
As at 31 December 2015 and 31 December 2014, the abovementioned other payables were amounts with the related parties that were interest-free, unsecured, unguaranteed and had no fixed terms of repayment.
11 COMMITMENTS
(1) Operating lease commitments
The future minimum lease payments of the Group due under the signed irrevocable operating leases contracts are summarized as follows:
31 December 2015 31 December 2014
Within 1 year 149 204 1 to 2 years 109 96 2 to 3 years 46 81 Over 3 years 42 42 346 423
– 56 –
– II-93 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
11 COMMITMENTS (CONTINUED)
(2) Capital commitments
31 December 2015 31 December 2014
Construction and installation contracts contracted for which is or going to be performed 69,890 67,037 Land contracts contracted for which is or going to be performed 18,523 15,336 88,413 82,373
12 CONTINGENCIES
31 December 2015 31 December 2014
Mortgage guarantee of property owners (a) 138,667 83,182 Third party financing guarantee (b) 3,185 – 131,852 83,182
(a) The Group provided guarantees in respect of the banking facilities of certain purchasers of the Group’s property units according to relevant regulations. Such guarantees terminate upon the earlier of (i) issuance of the real estate ownership certificate which will generally be available within an average period of two to three years upon the completion of guarantee registration; or (ii) the satisfaction of mortgaged loan by the purchasers of properties. Pursuant to the terms of the guarantees, in case of default in mortgage payments by these purchasers during the period of guarantee, the Group shall repay the outstanding mortgage principals together with accrued interest and penalty owed by the defaulted purchasers to the banks. After payment of the principals, interest and penalty, the Group is entitled to take over the legal title of the related mortgaged properties.
The management of the Group considers that the fair value of these guarantee contracts at the date of inception was minimal and in case of default in mortgage payments by the purchasers, the net realisable value of the related real estates is sufficient to cover the repayment of the outstanding mortgage principals together with the accrued interest and penalty. Therefore, no provision has been made in the financial statements for the guarantees.
(b) The Group provided financing guarantees for certain cooperation parties (primarily sub-contractors) that are independent of the Group, based on their history of performance in contracts. The Group closely monitors the repayment of such financing guarantees. The management of the Group considers that the possibility of the Group’s exposure to compensation risk due to such guarantees is remote, therefore no provision has been made in the financial statements for guarantees.
13 FINANCIAL INSTRUMENT AND RISK
The Group’s operating activities expose it to a variety of financial risks: market risk (primarily currency risk and interest rate risk), credit risk and liquidity risk. The Group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group’s financial performance.
– 57 –
– II-94 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
13 FINANCIAL INSTRUMENT AND RISK (CONTINUED)
(1) Market risk
(a) Foreign exchange risk
The Group’s major operational activities are carried out in Mainland China and a majority of the businesses are settled in RMB. The Group is exposed to foreign exchange risk arising from the assets, liabilities and transactions denominated in foreign currencies, primarily with respect to HK dollars and US dollars. The Group’s finance department is responsible for monitoring the scale of the Company’s transactions and amount of the assets and liabilities denominated in foreign currencies to minimise the foreign exchange risk. During 2015 and 2014, the Group did not enter into any forward exchange contracts or currency swap contracts.
As at 31 December 2015 and 31 December 2014, the amounts in RMB equivalent of the Group’s financial assets and financial liabilities denominated in foreign currencies are set out below:
31 December 2015 USD HKD Total
Financial assets denominated in foreign currency -
Cash and bank balances 23 4 27 Other receivables 4,039 2,138 6,177 4,062 2,142 6,204
Financial liabilities denominated in foreign currency -
Short-term borrowings 5,069 1,358 6,427 Interests payable 18 3 21 5,087 1,361 6,448
31 December 2014 USD HKD Total
Financial assets denominated in foreign currency -
Cash and bank balances 2 1 3
Financial liabilities denominated in foreign currency -
Short-term borrowings 606 6,705 7,311 Long-term liabilities due within one year 2,329 – 2,329 Interests payable 58 188 246 2,993 6,893 9,886
As at 31 December 2015, if the RMB had strengthened/weakened by 5% against foreign currencies while other variables had been held constant, the Group’s net profit for the year would have been approximately RMB9 million higher/lower (31 December 2014: approximately RMB371 million higher/lower) for various financial assets denominated in foreign currencies and financial liabilities denominated in USD. The difference would have no effect on other comprehensive income.
– 58 –
– II-95 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
13 FINANCIAL INSTRUMENT AND RISK (CONTINUED)
(1) Market risk (continued)
(b) Interest rate risk
The Group’s interest rate risk mainly arises from long-term interest-bearing debts. Financial liabilities issued at floating rates expose the Group to cash flow interest rate risk. Financial liabilities issued at fixed rates expose the Group to fair value interest rate risk. The Group determines the relative proportions of its fixed rate and floating rate contracts depending on the prevailing market conditions. As at 31 December 2015 and 31 December 2014, the Group’s long- term interest-bearing debts are mainly floating rate bank borrowings denominated in RMB, amounting to RMB29,961 million and RMB36,738 million respectively.
The Group’s finance department at its headquarters continuously monitors the interest rate position of the Group. Increases in interest rates will increase the cost of new interest-bearing debts and the interest expenses with respect to the Group’s outstanding floating rate debts, and therefore could have a material adverse effect on the Group’s financial results. The management may make timely adjustments with reference to the latest market conditions, which could mean entering into interest rate swap arrangements to mitigate its exposure to interest rate risk. During 2015 and 2014, the Group had no interest rate swap arrangement.
As at 31 December 2015, if interest rates on the floating rate borrowings had strengthened/weakened by 100 basis points while other variables had been held constant, the Group’s net profit would have been approximately RMB20 million lower/higher(31 December 2014: RMB50 million higher or lower).
(2) Credit risk
Credit risk is managed on the grouping basis. Credit risk mainly arises from cash at bank, trade receivables, other receivables and notes receivable, etc.
The Group expects that there is no significant credit risk associated with cash at bank since they are mainly deposited at state-owned banks and other large or medium size listed banks. The Group does not expect that there will be any significant losses from non-performance by these counterparties.
In addition, the Group has policies to limit the credit exposure on trade receivables, other receivables and notes receivable. The Group assesses the credit quality of and sets corresponding credit limits on its customers by taking into account their financial position, the availability of guarantee from third parties, their credit history and other factors such as current market conditions. The credit history of the customers is regularly monitored by the Group. In respect of customers with a poor credit history, the Group will use written payment reminders, or shorten or cancel credit periods, to ensure the overall credit risk of the Group is limited to a controllable extent.
(3) Liquidity risk
The Group performs cash flow forecasting and continuously monitors its short-term and long-term liquidity requirements to ensure that it maintains reasonable cash reserves. Meanwhile, the Group maintains sufficient headroom on its undrawn committed borrowing facilities from major financial institutions so that it does not breach the requirements of borrowing agreements to meet the short-term and long-term liquidity requirements.
– 59 –
– II-96 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
13 FINANCIAL INSTRUMENT AND RISK (CONTINUED)
(3) Liquidity risk (continued)
The financial liabilities of the Group at the balance sheet date are set out by their maturity date below at their undiscounted contractual cash flows:
31 December 2015 Within 1 to 2 2 to 5 Over 1 year years years 5 years Total
Short-term borrowings 37,051 – – – 37,051 Notes payable 36,312 – – – 36,312 Trade payables 79,490 – – – 79,490 Other payables 84,544 – – – 84,544 Interests payable 4,389 – – – 4,389 Dividends payable 919 – – – 919 Non-current liabilities due within one year 80,757 – – – 80,757 Long-term borrowings 4,501 53,186 24,223 39,714 121,624 Bonds payable 2,600 2,690 38,519 8,993 52,892 Long-term payables – 1,458 1,473 – 2,931 330,653 57,334 84,215 48,707 500,909
31 December 2014 Within 1 to 2 2 to 5 Over 1 year years years 5 years Total
Short-term borrowings 32,368 – – – 32,368 Notes payable 22,653 – – – 22,653 Trade payables 59,654 – – – 59,654 Other payables 61,416 – – – 61,416 Interests payable 3,170 – – – 3,170 Dividends payable 4,076 – – – 4,076 Non-current liabilities due within one year 36,863 – – – 36,863 Long-term borrowings 9,653 47,511 10,085 45,591 112,840 Long-term payables – 1,502 6,141 – 7,643 229,853 49,013 16,226 45,591 340,683
– 60 –
– II-97 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
13 FINANCIAL INSTRUMENT AND RISK (CONTINUED)
(3) Liquidity risk (continued)
Prudent liquidity risk management refers to maintaining sufficient cash and availability of funds through different sources of capital, including raise of bank borrowings, issuance of bonds, proceeds from pre-sale of properties and proceeds from shareholders’ contribution. Due to the dynamic nature of the businesses, the Group maintains flexibility of the general working capital through having an adequate amount of cash and cash equivalents as well as different financing sources.
The Group has formulated certain alternative plans to mitigate the potential effects on the anticipated cash flow should there be materially adverse changes in the economic environment. Such plans include adjusting and further slowing down the construction plans for properties under development, implementing cost control measures, accelerating sales with more flexible pricing, seeking joint venture partners to co-develop in quality projects, selling certain land use rights and investment properties at an acceptable price and renegotiating the payment terms of certain land acquisitions with related parties. The Group will implement such plans as and when appropriate based on the evaluation of cost and profit in the future.
14 FAIR VALUE ESTIMATES
Based on the lowest level input that is significant to the fair value measurement in its entirety, the fair value hierarchy has the following levels:
Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3: Unobservable inputs for the asset or liability.
– 61 –
– II-98 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
14 FAIR VALUE ESTIMATES (CONTINUED)
(1) Assets continuously measured at fair value
As at 31 December 2015, the assets continuously measured at fair value by the above three levels are analysed as below:
Level 1 Level 2 Level 3 Total
Non-financial assets Investment properties – – 81,833 81,833
As at 31 December 2014, the assets continuously measured at fair value by the above three levels are analysed as below:
Level 1 Level 2 Level 3 Total
Financial assets Financial assets at fair value through profit or loss - Investments in equity instruments held for trading 10,950 – – 10,950 Non-financial assets Investment properties – – 53,059 53,059 Total assets 10,950 – 53,059 64,009
– 62 –
– II-99 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
14 FAIR VALUE ESTIMATES (CONTINUED)
(1) Assets continuously measured at fair value (continued)
The Group takes the date on which events causing the transfers between the levels take place as the timing for recognising the transfers. There is no transfer between level 1 and level 2 for the year.
The fair value of a financial instrument in an active market is determined at the quoted price in the active market.
Information about fair value measurements in level 3 are as follows:
Fair value as at Inputs 31 December Valuation Range/weighted Relationship Observable/ 2015 technique Name average to fair value unobservable
Investment properties Completed - Commercial building 4,456 Income Ultimate yield 4%-5% Negative Unobservable approach Capitalisation rate 4%-7% Negative Unobservable Expected vacancy rate 0%-10% Negative Unobservable Monthly rental 42-280 Positive Unobservable (RMB/square meter)
21,965 Direct Market price 6,907-77,500 Positive Unobservable comparison (RMB/square meter)
Parking space 27,378 Direct Market price 84,300-381,000 Positive Unobservable comparison (RMB/per parking space)
In progress - Commercial building 14,859 Residual Market price 5,360-26,531 Positive Unobservable method (RMB/square meter) Budgeted cost 100-6,038 Negative Unobservable (RMB/square meter) Developer’s profit 2%-30% Negative Unobservable
Parking space Residual Market price 91,230-288,000 Positive Unobservable method (RMB/parking space) Budgeted cost 100-2,754 Negative Unobservable (RMB/square meter) Developer’s profit 2%-20% Negative Unobservable 81,833
– 63 –
– II-100 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
14 FAIR VALUE ESTIMATES (CONTINUED)
(1) Assets continuously measured at fair value (continued)
Fair value as at Inputs 31 December Valuation Range/weighted Relationship Observable/ 2014 technique Name average to fair value unobservable
Investment properties Completed - Commercial building 1,825 Income Discount rate 4%-5.5% Negative Unobservable approach Capitalisation rate 5%-6% Negative Unobservable Expected vacancy rate 0%-5% Negative Unobservable Monthly rental 46-1,000 Positive Unobservable (RMB/square meter) 12,603 Direct Market price 6,052-76,000 Positive Unobservable comparison (RMB/square meter) Parking space 19,845 Direct Market price 85,850-390,800 Positive Unobservable comparison (RMB/per parking space)
In progress - Commercial building 10,213 Residual Market price 4,625-23,929 Positive Unobservable method (RMB/squre meter) Budgeted cost 186-4,279 Negative Unobservable (RMB/square meter) Developer’s profit 2%-25% Negative Unobservable Parking space 8,573 Residual Market price 90,000-167,000 Positive Unobservable method (RMB/parking space) Budgeted cost 100-2,895 Negative Unobservable (RMB/square meter) Developer’s profit 2%-20% Negative Unobservable 53,059
(2) Assets and liabilities not measured at fair value but disclosed at fair value
The Group’s financial assets and liabilities measured at amortised cost mainly represent receivables, available-for-sale financial assets, short-term borrowings, payables and long-term borrowings.
The carrying amounts of such financial assets and liabilities not measured at fair values approximate their fair values since the impact of discount is insignificant or the long-term borrowings have a floating rate.
(3) The fair value of long-term borrowings is the present value of the contractually determined stream of future cash flows discounted at the rate of interest applied at that time by the market to instruments of comparable credit status and providing substantially the same cash flows on the same terms, which is subject to level 3.
– 64 –
– II-101 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
15 CAPITAL MANAGEMENT
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders, and to maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, refund capital to shareholders, issue new shares or sell assets to reduce debts.
The Group’s total capital is calculated as ‘owners’ equity’ as shown in the consolidated balance sheet. The Group is not subject to external mandatory capital requirements, and monitors capital on the basis of asset-to-liability ratio.
As at 31 December 2015 and 31 December 2014, the Group’s asset-to-liability ratio is set out as below:
31 December 2015 31 December 2014
Asset-to-liability ratio 88.54% 88.14%
16 SIGNIFICANT NOTES TO THE COMPANY’S FINANCIAL STATEMENTS
(1) Trade receivables
31 December 2015 31 December 2014
Amounts due from third parties 3 10
The aging of trade receivables and the corresponding provisions made for bad debts are analysed as below:
31 December 2015 31 December 2014 Percentage of Provision Percentage of Provision Amount total amount for bad debts Amount total amount for bad debts
Within 1 year 3 100% – 10 100% –
As at 31 December 2015 and 31 December 2014, none of the trade receivables was overdue but unimpaired.
– 65 –
– II-102 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
16 SIGNIFICANT NOTES TO THE COMPANY’S FINANCIAL STATEMENTS (CONTINUED)
(2) Other receivables
31 December 2015 31 December 2014
Related parties 75,797 56,216 Third parties 1,685 1,523 77,482 57,739
The aging of other receivables and the corresponding provisions made for bad debts are analysed as below:
31 December 2015 31 December 2014 Percentage of Provisions for Percentage of Provisions for Amount total amount bad debts Amount total amount bad debts
Within 1 year 77,316 100% – 46,654 81% – 1 to 2 years 50 0% – 10,937 19% – Over 2 years 116 0% – 148 0% – 77,482 100% – 57,739 100% –
As at 31 December 2015 and 31 December 2014, none of the other receivables was overdue but unimpaired.
(3) Long-term equity investments
31 December 2015 31 December 2014
Subsidiaries 54,306 37,182 Joint ventures (a) 976 1,033 Associates (b) 151 – 55,433 38,215
There is no significant restriction on the realisation of the long-term equity investments held by the Company. The Company has adopted the cost method to account for the above subsidiaries, and equity method for the above joint ventures and associates.
(a) Joint ventures
Registered Place of Nature of capital Percentage of Percentage of registration business (RMB) shareholding voting rights
北京北恒中慧教育科技有限公司 China Cultural 10,000,000 55% 55% education 王府井恒大商業控股有限公司 China Commercial 50,000,000 51% 51% management Guangzhou Evergrande Taobao Football China Cultural 375,000,000 60% 60% Club Corp., Ltd. entertainment
– 66 –
– II-103 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
16 SIGNIFICANT NOTES TO THE COMPANY’S FINANCIAL STATEMENTS (CONTINUED)
(3) Long-term equity investments (continued)
(a) Joint ventures (continued)
Investments in joint ventures are set out below:
Adjustment of net profit/loss 31 December Increase in using the equity 31 December 2014 investment method 2015
Joint ventures 1,033 408 (465) 976
None of the joint ventures is material to the Company on its own.
(b) Associates
Place of Nature of Registered capital Percentage of Percentage of registration business (RMB) shareholding voting rights
北京觀止文化藝術有限公司 China Culture and arts 1,000,000 30% 30% 北京潤業文化藝術有限公司 China Culture and arts 1,000,000 25% 25% 前海開源資產管理（深圳）有限公司 China Assets management 100,000,000 16% 16% 恒大地產集團（深圳）有限公司 China Real estate development 130,000,000 32% 32%
Adjustment of 31 December Increase in net profit/loss using 31 December 2014 investment the equity method 2015 Associates – 59 92 151
None of the associates is material to the Company on its own.
(4) Operating income and operating costs
2015 2014 Operating Operating Operating Operating income costs income costs
Income from service fees and others 1,280 105 1,233 166
– 67 –
– II-104 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015 (Expressed in millions of RMB, unless otherwise indicated)
16 SIGNIFICANT NOTES TO THE COMPANY’S FINANCIAL STATEMENTS (CONTINUED)
(5) Investment income
31 December 2015 31 December 2014
Income from long-term equity investment accounted for using the cost method 4,908 3,440 Losses from long-term equity investment accounted for using the equity method (373) (54) 4,535 3,386
(6) Notes to the cash flow statement
Reconciliation from net profit to cash flows from operating activities:
2015 2014
Net profit Add: Depreciation of fixed assets 3,567 3,245 Amortisation of intangible assets 71 53 Losses/(gains) arising from changes in fair value 7 1 Interest expenses/(income) 142 (5) Investment income 566 (253) (Increase)/decrease in deferred income tax net liabilities (4,535) (3,386) Increase in inventories (303) 12 Increase in operating receivables (577) (193) Increase in operating payables (623) (2,053) Net cash flows from operating activities 735 1,576 (950) (1,003)
– 68 –
– II-105 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)
Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) Annual Report on Corporate Bonds (2016)
April 2017
1
– II-106 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)
Important Notice
The directors (the “Directors”), the supervisors (the “Supervisors”) and the senior management (the “Senior Management”) of the Company hereby warrant the truthfulness, accuracy and completeness of the contents of the annual report, guarantee that there are no false representations, misleading statements or material omissions, and have a corresponding liability.
PricewaterhouseCoopers Zhong Tian LLP has audited the financial statements of the Company for 2016 and has issued a standard unqualified auditor’s report.
2
– II-107 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)
Material Risk Warnings
I. The risk associated with a higher gearing ratio
The gearing ratio of the Company is relatively high. A higher gearing ratio may be maintained as the business size of the Company gradually expands and the project development expenditure and the proceeds from pre-sales increase accordingly. If the continuous financing capabilities of the Company are restricted or there are material adverse changes in the macroeconomic environment in the future, the debt service obligations of the Company may increase, which may have negative effect on the ordinary course of its business activities.
II. Uncertainty risk associated with sale of inventories
The inventories of the Company are primarily property inventories, which mainly include properties held for sale and properties under development. The macroeconomic situation and the state policy have greater effect on the property development business of the Company. If the supply and demand relationship in the domestic property market changes further in the future, the sales of the property projects of the Company may be affected to a greater extent, and, accordingly, there is uncertainty over the sales or liquidation of the property-related inventories to a certain extent.
III. The risk associated with the greater scale of the restricted assets
The restricted assets of the Company are primarily the assets pledged as collateral for borrowings from financial institutions. They are primarily the property projects developed by, and the cash and bank balances held by the Company and its subsidiaries. In addition, the equity interests of some subsidiaries of the Company are pledged or partly pledged. There is uncertainty over subsequent financing and the normal use of assets to a certain extent as the Company has large-scale restricted assets.
IV. The risk associated with accumulated new borrowings and a higher external guarantee amount
As at the end of 2016, the accumulated new borrowings of the Company amounted to RMB238,151 million, which was higher than the net assets as at the end of 2015 by over 20%. The restated net assets as at the end of 2015 of the Company amounted to RMB97,046 million.
As at the end of 2016, the balance of external guarantee of the Company was RMB98,781 million, which was higher than the net assets as at the end of the last year by over 20%. The restated net assets as at the end of 2015 of the Company amounted to RMB97,046 million.
V. The risk associated with transfer of assets at nil consideration
The Company proposes to realize its listing in the A-share market through a material asset reorganization (the “Reorganization for Listing”). The underlying assets of the
3
– II-108 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)
Reorganization for Listing are primarily the property development business of the Company. During the Reporting Period, Evergrande Group Co., Ltd.* (恒大集團有限公司), a domestic subsidiary indirectly held by China Evergrande as to 100% equity interest, transferred the net book amount of approximately 52% equity interest in Shenzhen Construction Group Corporation Limited* (深圳市建設（集團）有限公司) and approximately 51% equity interest in 恒大地產集團（深圳）有限公司to Hengda Real Estate at nil consideration for the purpose of the Reorganization for Listing.
Meanwhile, the Company had disposed of the businesses not within the scope of the underlying assets of the Reorganization for Listing. During the Reporting Period, the Company transferred, among other things, its equity interests in, Evergrande Tourism Group Company Limited* (恒大旅遊集團有限公司) and Evergrande Real Estate Group (Nanchang) Company Limited* (恒大地產集團（南昌）有限公司) to Evergrande Group Co., Ltd.* (恒 大集團有限公司), which was under control of the same ultimated holding company, at nil consideration (the “Transfer”). The disposed property was higher than the net assets as at the end of 2015 by over 10%. The restated net assets as at the end of 2015 of the Company amounted to RMB97,046 million. After the Transfer, Hengda Real Estate will focus on the property development business.
In accordance with the undertakings of the Company and the agreements with strategic investors, the strategic investors had made capital contribution of RMB30,000 million to the Company as at 1 April 2017.
As at the disclosure date of this report, the risk factors of the corporate bonds do not significantly change as compared with the descriptions in the related chapters such as “Risk Factors” in the prospectuses of each tranche of the bonds.
4
– II-109 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)
Contents
Definitions ...... 6 I Profile of the Company and the Relevant Intermediaries ...... 7 I. Company Information ...... 7 II. Information on Information Disclosure Affairs ...... 7 III. Information on the Controlling Shareholder, the De Facto Controller, Directors, Supervisors and Senior Management of the Company During the Reporting Period ...... 8 I V. Information on the Relevant Intermediaries ...... 9 II Corporate Bonds ...... 10 I. Basic Information of Bonds ...... 10 II. Adjustment in Coupon Rates of Bonds ...... 10 III. Use of Proceeds from the Issuance of Bonds ...... 11 I V. Credit Rating and Ongoing Rating Arrangements ...... 11 V. Implementation of Credit Enhancement Mechanism, Debt Repayment Plan and Other Safeguard Measures ...... 12 III Financial and Asset Conditions ...... 13 I. Major Accounting Data and Financial Indicators ...... 13 II. Audit of the Annual Financial Report of the Company ...... 15 III. Analysis of Changes in Major Assets and Liabilities ...... 15 I V. Restricted Assets ...... 21 V. Other Bonds or Debt Financing Instruments Issued by the Company ...... 22 VI. External Guarantees of the Company ...... 22 VII. Credit and Bank Loan Repayment ...... 23 IV Operations and Corporate Governance ...... 24 I. Operations, Changes in Industry Environment and Management Discussion ...... 24 II. Operation Discussion and Analysis for the Reporting Period ...... 24 III. Future Business Development and Possible Risks ...... 27 I V. Other Information about Operations of the Company ...... 28 V Major Events...... 31 I. Pending Litigation, Arbitration and Administrative Penalty of the Company ...... 31 II. Bankruptcy Reorganization of the Company During the Reporting Period ...... 31 III. Risk Regarding Suspension of Trading or Delisting of Corporate Bonds During the Term ...... 31 I V. The Company, its Controlling Shareholder and De Facto Controller being Investigated by Judicial Authorities for Suspected Violation of Laws, and the Directors, Supervisors and Senior Management of the Company Suspected for Being Subject to Compulsory Measures as Implemented by Judicial Authorities ...... 31 V. Other Major Events ...... 31 VI Financial Report ...... 33 VII Documents available for Inspection ...... 34
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Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)
Definitions
In this annual report, unless the context otherwise requires, the following terms shall have the following meanings:
Company or Hengda Hengda Real Estate Group Company Limited* (恒大 means Real Estate 地產集團有限公司) China Evergrande Group, a Hong Kong listed company registered in the Cayman Islands of the China Evergrande means United Kingdom (stock code: 3333.HK). It wholly owns 100% equity interest of the Company through subsidiaries at multiple levels CSRC means China Securities Regulatory Commission SSE means Shanghai Stock Exchange SZSE means Shenzhen Stock Exchange investors who own the corporate bonds issued by the Bondholders means Company registered in their name as shown in the records of the bond registrar Articles of the Articles of Association of Hengda Real Estate means Association Group Company Limited the board of directors of Hengda Real Estate Group Board means Company Limited the supervisor(s) of Hengda Real Estate Group Supervisor(s) means Company Limited Reporting Period means 1 January 2016 to 31 December 2016 Company Law means Company Law of the People’s Republic of China Securities Law means Securities Law of the People’s Republic of China Administrative Measures for the Issuance and Administrative means Trading of Corporate Bonds (《公司債券發行與交易 Measures 管理辦法》) RMB, RMB000, Renminbi 1 Yuan, Renminbi 1,000 Yuan, Renminbi RMB0,000 and means 10,000 Yuan and Renminbi 100 million Yuan, unless RMB00 million otherwise specified
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Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)
I Profile of the Company and the Relevant Intermediaries
I. Corporate Information
Chinese name: 恒大地產集團有限公司
Legal representative: Zhao Changlong
Registered address: Room 3901, Zhuoyue Houhai Financial Center, No. 126 Haide 3rd Road, Nanshan District, Shenzhen
Office address: Room 3801, No. 78 Huangpu Avenue West, Tianhe District, Guangzhou
Postal code: 510620
Company’s website: www.evergrande.com
II. Information on Information Disclosure Affairs
Person in charge of information disclosure: Fu Fei
Contact address: 37/F, Evergrande Center, No. 78 Huangpu Avenue West, Tianhe District, Guangzhou
Tel: 020-89182321
Fax: 020-89183000
Email: [email protected]
Website where the annual reports are published: www.sse.com.cn
Address where the annual reports are kept: 37/F, Evergrande Center, No. 78 Huangpu Avenue West, Tianhe District, Guangzhou
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Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)
III. Information on the Controlling Shareholder, the De Facto Controller, Directors, Supervisors and the Senior Management of the Company during the Reporting Period
(I) Information on the Controlling Shareholder and the De Facto Controller of the Company
During the Reporting Period, there was no change of the controlling shareholder and the de facto controller of the Company. The information on the controlling shareholder and the de facto controller is consistent with those disclosed in the prospectus.
(II) Information on the Directors, Supervisors and Senior Management of the Company
The information on the directors, supervisors and the senior management of the Company as at 31 December 2016 is set out in the following table:
Name Current position Zhao Changlong Chairman and General Manager He Miaoling Director Lu Baoping Director Ji Xingshun Supervisor Liang Weikang Executive Vice President Lin Manjun Vice President Li Guodong Vice President and Financial Controller
The changes of the directors, supervisors and the senior management of the Company during the Reporting Period are set out below:
Name Position during the term Status Designated to other position of the Xia Haijun President controlling shareholder Designated to other position of the Pan Darong Chief Financial Officer controlling shareholder Designated to other position of the Wu Liqun Vice President controlling shareholder Designated to other position of the Shi Junping Vice President controlling shareholder Designated to other position of the Wei Keliang Vice President controlling shareholder
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Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)
I V. Information on the Relevant Intermediaries
During the Reporting Period, there was no change of the intermediaries engaged by the Company. The basic information on the specific intermediaries is set out below:
(I) Accounting Firm
Information on the institution Name PricewaterhouseCoopers Zhong Tian LLP 6/F, DBS Bank Tower, No. 1318, Lujiazui Ring Road, Pudong New Office address Area, Shanghai Signing accountants Lin Yupeng and Wei Ze
(II) Entrusted Bond Managers
Information on the institution Corporate bonds Name Guotai Junan Securities Co. Ltd. 10/F, Tower 2, Yingtai Center, No. 28 Office address 15恒大01, 15恒大02, Financial Street, Xicheng District, Beijing 15恒大03, 16恒地01 Contact person Wei Jin and 16恒地02 Contact number 010-59312900 Information on the institution Corporate bonds Name CSC Financial Co., Ltd. 2/F, Block B, Kaiheng Center, No. 2 Office address Chaonei Avenue, Dongcheng District, Beijing 15恒大04 and 15恒大05 Guo Chunlei, Yuan Shengwen and Xing Contact person Chao Contact number 010-85130311
(III) Credit Rating Institution
Information on the intermediary Name China Chengxin Securities Rating Co., Ltd. 21/F, Anji Building, No. 760 South Tibet Road, Huangpu District, Office address Shanghai
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Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)
II Corporate Bonds
I. Basic Information on Bonds
2015 Corporate Bonds of Hengda Real Estate Group 2015 Corporate Bonds of Hengda Real Estate Group Name of bond Company Limited (First Company Limited (Second Tranche) Tranche) Abbreviated name of 15 01 15 02 15 03 bond 恒大 恒大 恒大 Bond code 122383 122392 122393 Issuance date 19 June 2015 8 July 2015 8 July 2015 19 June 2020; if the 8 July 2019; if the 8 July 2022; if the Bondholders exercise their Bondholders exercise their Bondholders exercise their rights to sell back the rights to sell back the rights to sell back the Maturity date bonds, then the maturity bonds, then the maturity bonds, then the maturity date of such portion of date of such portion of date of such portion of bonds is 19 June 2018 bonds is 8 July 2017 bonds is 8 July 2020 Balance of bond RMB5 billion RMB6.8 billion RMB8.2 billion Coupon rate 5.38% 5.30% 6.98% The interest is calculated annually, regardless of compound interest, and is paid Method of principal once every year. The principal will be returned upon maturity. The last interest will and interest payment be paid together with the principal. Being listed and traded Shanghai Stock Exchange on Arrangement on Public offering to the qualified investors under the Administrative Measures suitability of investors Interest payment of There was no default in interest payment or risk of due repayment during the corporate bonds during Reporting Period. the Reporting Period No performance of special No performance of special No performance of special Performance of special terms during the Reporting terms during the Reporting terms during the Reporting terms Period Period Period
II. Adjustment in Coupon Rates of Bonds
Pursuant to the relevant agreements under the Resolution on Transfer of Assets of Hengda Real Estate Group Company Limited of the Company considered and approved at the 2016 first bondholders’ meeting of 2015 corporate bonds issued by Hengda Real Estate Group Company Limited (first tranche) and the 2016 first bondholders’ meeting of 2015 corporate bonds issued by Hengda Real Estate Group Company Limited (second tranche) convened on 8 November 2016 (for details, please refer to the relevant announcements of the 2016 first bondholders’ meeting convened by the Company), the Company shall pay interest to the Bondholders for compensation. Pursuant to the Announcement on the Payment of Capital Contribution by the Strategic Investor for Capital Verification and Adjustment in Coupon Rates of Bonds dated 1 April 2017, the adjustments in the interest rates of the bonds are set out below: Upward adjustment in Recovery of interest rate Original Increment interest rate Abbreviated coupon in coupon Starting date name of bond Coupon Coupon rate rate Interest period for interest rate 1 rate 2 calculation 10
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Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)
2017-06-19 to 15恒大01 5.38% 0.10% 5.48% 5.38% 2018-06-19 2018-06-18 2017-07-08 to 15恒大02 5.30% 0.10% 5.40% 5.30% 2018-07-08 2018-07-07 2017-07-08 to 15恒大03 6.98% 0.10% 7.08% 6.98% 2018-07-08 2018-07-07
III. Use of Proceeds from the Issuance of Bonds
The Company entered into a proceeds supervisory agreement with the supervisory bank and the entrusted manager within a month upon the completion of every tranche of corporate bond issuance. The proceeds (net of issuance expenses) were used through the designated account. The use, plan and other commitments of proceeds were consistent with those mentioned in the prospectus.
As at 31 December 2016, the use of proceeds from the relevant issuance of corporate bonds is set out below:
Unit: RMB100 million Balance of unutilized Gross proceeds Bond code Approved use of proceeds proceeds as at the date of this report In aggregate, RMB15 billion was used for 0 15恒大01 50 repayment of loans from financial institutions of the Company and its subsidiaries, and RMB5 15恒大02 150 billion was used for replenishment of working 0 15恒大03 capital of the Company and its subsidiaries.
Note: 15恒大02 and 15恒大03 are two forms of bonds issued in the same tranche, so their use of proceeds are aggregated for disclosure.
I V. Credit Rating and Ongoing Rating Arrangements
On 8 June 2016, China Chengxin Securities Rating Co., Ltd. disclosed the Ongoing Rating Report for 2015 Corporate Bonds of Hengda Real Estate Group Company Limited (First and Second Tranches) (2016), pursuant to which the ongoing credit rating of the Company was maintained at AAA, and the credit rating of the above bonds was AAA. China Chengxin Securities Rating Co., Ltd. expects to issue the regular ongoing rating reports for 15恒大01, 15恒大02 and 15恒大03 within two months after the issue of the annual audit report of the Company. During the term of the bonds, in case of any significant event which may affect the credit rating of the bonds of the Company, the credit rating institution will study and analyze such matters and publish non-scheduled ongoing rating results. Regular and non-scheduled ongoing rating results and other relevant information will be announced on the websites of China Chengxin Securities Rating Co., Ltd. (www.ccxr.com.cn) and the Shanghai Stock Exchange (www.sse.com.cn).
During the Reporting Period, there was no difference between the rating for issuing other bonds and debt financing instruments in China and the rating of the relevant corporate bonds in this report. 11
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Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)
V. Implementation of Credit Enhancement Mechanism, Debt Repayment Plan and Other Safeguard Measures
During the Reporting Period, there was no change in the credit enhancement mechanism, debt repayment plan and other safeguard measures provided by the Company for the issued corporate bonds.
(I) Commitments from China Evergrande
As at the end of the Reporting Period, China Evergrande, as the covenantor, maintained normal operation and sound performance. During the Reporting Period, no event occurred which would require China Evergrande to perform the obligation of buying bonds.
(II) Implementation of Debt Repayment Plan and Debt Repayment Safeguard Measures
During the Reporting Period, the Company paid bond interest to the Bondholders in strict compliance with the arrangements as agreed in the prospectus.
(III) Convening Bondholders’ Meetings
Pursuant to the relevant requirements under the Prospectus and the Rules of Bondholders’ Meeting of the bonds, namely 15恒大01, 15恒大02 and 15恒大03, Guotai Junan Securities Co. Ltd., as the entrusted bond manager, convened the 2016 first bondholders’ meeting for 15恒大01, 15恒大02 and 15恒大03. The notice of meeting was published by way of announcement on 19 October 2016. On 8 November 2016, the 2016 first bondholders’ meeting of the Company was convened at 40/F, Evergrande Center, No. 78 Huangpu Avenue West, Tianhe District, Guangzhou. The Resolution on Transfer of Assets of Hengda Real Estate Group Company Limited was considered and approved at the meeting.
(IV) Performance of Duties of the Entrusted Manager
During the Reporting Period, the entrusted bond manager strictly complied with the Bond Entrusted Management Agreement of the corporate bonds to perform its duties as an entrusted manager and keep tracking the conditions of the Company for better understanding, and convened the 2016 bondholders’ meeting to form valid resolutions. The entrusted manager disclosed the 2015 Entrusted Management Report of 15恒大01, 15恒大02 and 15恒大03 on 29 June 2016 and the Interim Entrusted Management Reports of 15恒大01, 15恒大02 and 15恒大03 on 9 September, 14 October, 15 November, 9 December and 21 December 2016 respectively. For details of the reports, please refer to the website of the Shanghai Stock Exchange (http://www.sse.com.cn). The 2016 Entrusted Management Report is expected to be disclosed on the website of the Shanghai Stock Exchange by 30 June 2017.
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Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)
III Financial and Asset Conditions
The financial and accounting information and the related analysis in this section reflect the financial and asset conditions of the Company in the last two years. PricewaterhouseCoopers Zhong Tian LLP had audited the Company’s financial reports for 2015 and 2016 and issued standard unqualified audit opinions. Unless otherwise specified, the financial and accounting data in this section is extracted from the above financial reports. It should be noted that, the Company completed the combination with Guangzhou Hengda Zengcheng Real Estate Development Co., Ltd.* (廣州恒大增城房地產開發有限公司) and other companies (the “acquired companies”) in 2016. The combination was a business combination under common control as the Company and the acquired companies were under the non-temporary ultimate control of China Evergrande before and after the combination. On the date of combination, the assets and liabilities of the acquired companies were consolidated into the consolidated financial statements of the Company at their carrying amount on the date of combination. The operating results and cash flows of the acquired companies for 2016 were also consolidated into the consolidated financial statements of the Company as if the consolidated reporting entity subsisted in the previous period. In addition, the Company also restated the 2015 comparative data in the consolidated financial statements to incorporate the financial position, operating results and cash flows of the acquired companies.
I. Major Accounting Data and Financial Indicators
(I) Major Accounting Data and Financial Indicators in the Past Two Years
Unit: RMB100 million Major Accounting Data and 2016 2015 Change Financial Indicators Operating income 2,050.97 1,306.86 56.94% Net profit attributable to shareholders of 158.40 196.46 -19.37% the parent company EBITDA 430.71 371.65 15.89% Net cash flows from operating activities -158.34 0.19 -83436.84% Net cash flows from investing activities -1,181.61 -134.76 776.83% Net cash flows from financing activities 2,137.20 760.22 181.13% Major Accounting Data and 31 December 31 December Change Financial Indicators 2016 2015 Balance of cash and cash equivalents as 1,711.85 913.01 87.50% at the end of the period Net assets attributable to shareholders 532.25 815.82 -34.76% of the parent company Total assets 12,401.38 7,475.88 65.89% Current ratio 1.49 1.37 8.76% Quick ratio 0.56 0.52 7.69% Gearing ratio 92.89% 87.02% 6.75% Interest coverage ratio 1.10 1.51 -26.95% Cash interest coverage ratio 1.69 1.13 49.56% EBITDA to total liabilities ratio 0.07 0.11 -36.36% EBITDA interest coverage ratio 1.14 1.56 -26.92%
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Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)
Loan repayment ratio (%) 100 100 0.00% Interest repayment ratio (%) 100 100 0.00%
The indicators are calculated as follows:
1. EBITDA to total liabilities ratio = EBITDA/total liabilities (Note) 2. Interest coverage ratio = EBIT/(interest expenses recognized in finance costs + capitalized interest expenses) 3. Cash Interest coverage ratio = (net cash flows from operating activities + cash interest expenses + income tax paid in cash)/cash interest expenses 4. EBITDA interest coverage ratio = EBITDA/(interest expenses recognized in finance costs + capitalized interest expenses) 5. Loan repayment ratio = actual amount of loan repayment/loan amount repayable 6. Interest repayment ratio = interests actually paid/interests payable
Note: All liabilities refer to all interest-bearing liabilities
(II) Analysis of Changes in Major Accounting Data and Financial Indicators
1. Operating income
Operating income increased by 56.94% as compared to last year, mainly due to the significant increase of sales income from properties carried forward in 2016 as compared to the same period of last year as a result of the continuous substantial growth in contracted sales of the Company in recent years.
2. Net cash flows from operating activities
Net cash flows from operating activities represented a significant year-on-year decrease. As a result of the increased cash expenditures for the expansion in land reserve and scale of operation of the Company, the cash flows from operating activities were negative in 2016.
3. Net cash flows from investing activities
Net cash flows from investing activities represented a year-on-year increase of 776.83%, mainly due to the execution of the acquisition contracts of the second half of 2015 by the Company during the Reporting Period, which expanded the scale of acquisition and increased the demand of making payment for external investment.
4. Net cash flows from financing activities
Net cash flows from financing activities represented a year-on-year increase of 181.13%, mainly due to the new borrowings and bond issuance in meeting capital requirements by the Company as a result of the significant increase in scale of operation in 2016 as compared to last year.
5. Balance of cash and cash equivalents as at the end of the period
Balance of cash and cash equivalents as at the end of the period represented a year-on-year increase of 87.50%, mainly due to the substantial increase in cash and bank balances of the Company as at the end of the Reporting Period as a result of the growth in net cash flows from financing activities.
6. Net assets attributable to shareholders of the parent company 14
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Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)
Net assets attributable to shareholders of the parent company decreased by 34.76% as compared to the end of last year, mainly due to the decrease in net assets attributable to the parent company as a result of the transfer of Evergrande Tourism Group Company Limited* (恒大旅遊集團有限公司), Evergrande Real Estate Group (Nanchang) Company Limited* (恒 大地產集團（南昌）有限公司) and other companies held by the Company to Evergrande Group Co., Ltd.* (恒大集團有限公司), which is a company under the control of the same ultimate holding company, at nil consideration in 2016.
7. Total assets
Total assets increased by 65.89% as compared to the end of last year, mainly due to the increases in inventories, investment properties and cash and bank balances as a result of expansion in scale of operation.
8. Cash interest coverage ratio
Cash interest coverage ratio increased by 49.56% as compared to last year, mainly due to the consistent growth in proceeds from contracted sales and significant amount of bank deposits of the Company.
9. EBITDA to total liabilities ratio
EBITDA to total liabilities ratio decreased by 36.36% as compared to last year, mainly due to the additional liabilities for fulfilling the capital needs of projects as a result of the expansion in scale of operation of the Company.
II. Audit of the Annual Financial Report of the Company
PricewaterhouseCoopers Zhong Tian LLP issued a standard unqualified audit opinion for the annual financial report of the Company. For details, please refer to the 2016 Auditor’s Report on Hengda Real Estate Group Company Limited in the appendix.
During the Reporting Period, there was no change in the accounting policies of the Company.
III. Analysis of Changes in Major Assets and Liabilities
(I) Analysis of Asset Structure
Unit: RMB100 million 31 December 2016 31 December 2015 Item Change Amount Percentage Amount Percentage Cash and bank balances 2,751.91 22.19% 1,510.67 20.21% 82.16% Financial assets at fair value 30.76 0.25% 0.00 0.00% – through profit or loss Notes receivable 0.68 0.01% 0.45 0.01% 51.11%
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Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)
31 December 2016 31 December 2015 Item Change Amount Percentage Amount Percentage Trade receivables 84.47 0.68% 37.12 0.50% 127.56% Prepayments 521.59 4.20% 321.64 4.30% 62.17% Interests receivable 2.81 0.02% 0.22 0.00% 1177.27% Dividends receivable 0.00 0.00% 0.00 0.00% – Other receivables 286.27 2.31% 350.89 4.69% -18.42% Inventories 6,470.97 52.18% 3,788.58 50.68% 70.80% Non-current assets due within 70.19 0.57% 53.03 0.71% 32.36% one year Other current assets 144.66 1.17% 75.34 1.01% 92.01% Total current assets 10,364.31 83.57% 6,137.94 82.10% 68.86% Available-for-sale financial assets 348.40 2.81% 7.87 0.11% 4326.94% Long-term receivables 87.46 0.71% 103.05 1.38% -15.13% Long-term equity investments 7.27 0.06% 85.49 1.14% -91.50% Investment properties 1,301.96 10.50% 963.82 12.89% 35.08% Fixed assets 132.08 1.07% 91.77 1.23% 43.93% Construction in progress 44.78 0.36% 35.75 0.48% 25.26% Intangible assets 51.38 0.41% 32.42 0.43% 58.48% Goodwill 10.03 0.08% 0.00 0.00% – Long-term deferred expenses 2.04 0.02% 1.44 0.02% 41.67% Deferred income tax assets 38.09 0.31% 16.33 0.22% 133.25% Other non-current assets 13.58 0.11% 0.00 0.00% – Total non-current assets 2,037.07 16.43% 1,337.94 17.90% 52.25% Total assets 12,401.38 100.00% 7,475.88 100.00% 65.89%
1. Cash and bank balances
As at the end of 2016, cash and bank balances amounted to RMB275,191 million, representing year-on-year growth of 82.16%. The growth was mainly due to the increase in receipts in advance as a result of the rapid growth in the contracted sales of the Company by virtue of timely adjustment in development pace and sales strategy, adherence to the positioning of ordinary residential products for end users and intensified efforts in marketing and collecting sales proceeds. At the same time, with the expansion in business development, the Company made flexible adjustments in financing structure and increased the amount of additional financing, resulting in a significant increase in the balance of cash and bank balances of the Company as at the end of 2016 as compared to the end of 2015.
2. Financial assets at fair value through profit or loss
As at the end of 2016, the Company had additional financial assets at fair value through profit or loss of RMB3,076 million, mainly due to the additional equity investments in A share-listed companies of the Company in 2016.
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– II-121 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)
3. Notes receivable
As at the end of 2016, notes receivable amounted to RMB68 million, representing year-on-year growth of 51.11%. With the expanding scale of sales in the property business of the Company, the commercial acceptance bills receivable by the Company also increased, resulting in the increased balance as at the end of the Reporting Period.
4. Trade receivables
As at the end of 2016, trade receivables amounted to RMB8,447 million, representing year-on-year growth of 127.56%. With the expanding scale of sales in the property business of the Company, the proceeds from sales of commodity housing receivable by the Company also increased. Most of the trade receivables had aging within 1 year, which was consistent with the sales policy of the Company.
5. Prepayments
As at the end of 2016, prepayments amounted to RMB52,159 million, representing year-on-year growth of 62.17%. During the Reporting Period, the prepayments of the Company mainly comprised the land prepayments to the transferors before the completion of the procedures of land use right transfer.
6. Interests receivable
As at the end of 2016, interest receivable amounted to RMB281 million, representing year-on-year growth of 1,177.27%, mainly due to the increased in the interests receivable of the margin deposits of financial institutions as at the end of the period.
7. Inventories
Inventories are mostly property inventories comprising properties held for sale and properties under development. As at the end of 2016, inventories amounted to RMB647,097 million, representing an increase of 70.80% as compared to the end of 2015, mainly due to the rapid growth of the property development business of the Company with increasing investment in new projects and properties under development.
8. Other current assets
Other current assets mainly comprise prepayments of land appreciation taxes, corporate income taxes and business taxes. As at the end of 2016, other current assets amounted to RMB14,466 million, representing year-on-year growth of 92.01%, mainly due to the increases in prepayments of land appreciation taxes, corporate income taxes and business taxes as a result of the increase in receipt in advance for sales of housing with increased sales of properties of the Company.
9. Available-for-sale financial assets
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Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)
Available-for-sale financial assets mainly comprise the equity investment in A share-listed companies at fair value held by the Company. As at the end of 2016, the available-for-sale financial assets of the Company amounted to RMB34,840 million, representing year-on-year growth of 4,326.94%, mainly due to the increased equity investment in A share-listed companies in China of the Company in 2016.
10. Long-term equity investments
As at the end of 2016, long-term equity investments amounted to RMB727 million, representing a year-on-year decrease of 91.50%, mainly due to transfer out of the joint ventures held by the Company. As at the end of the year, long-term equity investments were investments in joint ventures and associates, among which long-term equity investments in joint ventures and associates amounted to RMB566 million and RMB161 million respectively.
11. Investment properties
Investment properties mainly comprise self-owned commercial properties, including self-owned stores, offices and garages. As at the end of 2016, the investment properties of the Company amounted to RMB130,196 million, representing year-on-year growth of 35.08%, mainly due to the increases in the number of projects acquired and the area of self-owned commercial properties for leasing through combination not under common control year by year as well as the increase in value of the commercial properties held by the Company.
12. Fixed assets
Fixed assets mainly comprise buildings, machinery and equipment, transportation and office equipment. As at the end of 2016, fixed assets amounted to RMB13,208 million, representing year-on-year growth of 43.93%, mainly due to the transfer of some construction in progress and investment properties to fixed assets and additional fixed assets from business combination not under common control in 2016.
13. Intangible assets
Intangible assets mainly comprise land use rights. As at the end of 2016, intangible assets amounted to RMB5,138 million, representing year-on-year growth of 58.48%, mainly due to the increase in land use rights for buildings.
14. Goodwill
As at the end of 2016, the Company had additional goodwill of RMB1,003 million, which was mainly generated from the external acquisition of some projects by the Company in 2016.
15. Long-term deferred expenses
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– II-123 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)
As at the end of 2016, the long-term deferred expenses of the Company amounted to RMB204 million, representing year-on-year growth of 41.67%, mainly due to the increase in renovation costs.
16. Deferred income tax assets
As at the end of 2016, the deferred income tax assets of the Company amounted to RMB3,809 million, representing year-on-year growth of 133.25%.The deferred income tax assets of the Company mainly came from the internal unrealized operating income, deductible losses before tax and the temporary difference from the change in fair value of available-for-sale financial assets. The growth as at the end of 2016 mainly came from the decrease in the fair value of available-for-sale financial assets, resulting in the growth in deferred income tax assets. For the project companies which suffered from loss at the early stage but were expected to be profitable in the future, the Company recognized the loss as deferred income tax assets.
17. Other non-current assets
As at the end of 2016, the Company had additional other non-current assets of RMB1,358 million, which mainly comprised prepayments for the acquisition of fixed assets and intangible assets.
(II) Analysis of Changes in Liabilities
Unit: RMB100 million 31 December 2016 31 December 2015 Item Change Amount Percentage Amount Percentage Short-term borrowings 887.06 7.70% 379.57 5.83% 133.70% Notes payable 436.75 3.79% 420.69 6.47% 3.82% Trade payables 1,324.57 11.50% 877 13.48% 51.03% Receipts in advance 1,834.04 15.92% 816.1 12.54% 124.73% Employee remuneration payable 14.11 0.12% 11.08 0.17% 27.35% Tax payable 349.54 3.03% 245.66 3.78% 42.29% Interests payable 97.58 0.85% 52.01 0.80% 87.62% Dividends payable 41.89 0.36% 23.7 0.36% 76.75% Other payables 1,147.10 9.96% 828.93 12.74% 38.38% Non-current liabilities due within 807.54 7.01% 834.08 12.82% -3.18% one year Total current liabilities 6,940.18 60.24% 4,488.82 69.00% 54.61% Long-term borrowings 3,321.37 28.83% 1,433.57 22.04% 131.69% Bonds payable 470.05 4.08% 395.49 6.08% 18.85% Long-term payables 413.45 3.59% 23.59 0.36% 1652.65% Deferred income tax liabilities 214.43 1.86% 103.45 1.59% 107.28% Other non-current liabilities 160.48 1.39% 60.50 0.93% 165.26%
19
– II-124 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)
31 December 2016 31 December 2015 Item Change Amount Percentage Amount Percentage Total non-current liabilities 4,579.78 39.76% 2,016.60 31.00% 127.10% Total liabilities 11,519.96 100.00% 6,505.42 100.00% 77.08%
1. Short-term borrowings
Short-term borrowings comprise guaranteed borrowings and credit borrowings. As at the end of 2016, short-term borrowings amounted to RMB88,706 million, representing year-on-year growth of 133.70%, mainly due to the increases in mortgage, pledge and guaranteed borrowings of the Company during the Reporting Period.
2. Trade payables
As at the end of 2016, trade payables amounted to RMB132,457 million, representing year-on-year growth of 51.03%, mainly due to the increase in construction payments year by year as a result of the expanding scales of operation of the Company.
3. Receipts in advance
As at the end of 2016, receipts in advance amounted to RMB183,404 million, representing year-on-year growth of 124.73%, mainly due to the increase in sales proceeds received in advance as a result of the strong growth in contracted sales of the Company.
4. Tax payable
As at the end of 2016, tax payable amounted to RMB34,954 million, representing year-on-year growth of 42.29%, mainly due to the increases in land appreciation tax payable and corporate income tax payable with growth consistent with the growth in the scale of operation.
5. Interests payable
As at the end of 2016, interests payable amounted to RMB9,758 million, representing year-on-year growth of 87.62%, mainly due to the increase in new borrowings and bonds payable for the year.
6. Dividends payable
As at the end of 2016, dividends payable amounted to RMB4,189 million, representing year-on-year growth of 76.75%, mainly due to the unpaid dividends payable to the original shareholders of the acquired companies for the business combination under common control in 2016.
7. Other payables
As at the end of 2016, other payables amounted to RMB114,710 million, representing year-on-year growth of 38.38%, mainly due to the increases in land payments payable and real estate projects under combination in 2016. 20
– II-125 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)
8. Long-term borrowings
As at the end of 2016, long-term borrowings amounted to RMB332,137 million, representing year-on-year growth of 131.69%, mainly due to the increases in mortgage, pledge, guaranteed and credit borrowings of the Company during the Reporting Period.
9. Long-term payables
As at the end of 2016, long-term payables amounted to RMB41,345 million, representing year-on-year growth of 1,652.65%, mainly due to the increase in contribution from preference holders of the consolidated investment entities. The investors made cash contribution in advance for certain property development projects under cooperation with the Company.
10. Deferred income tax liabilities
As at the end of 2016, deferred income tax liabilities amounted to RMB21,443 million, representing year-on-year growth of 107.28%, mainly due to the recognition of deferred income tax liabilities for the temporary difference of tax payable of the newly acquired subsidiaries not under common control during the period. Besides, due to the increase in fair value of investment properties during the Reporting Period, the change in fair value of investment properties gave rise to temporary difference, resulting in simultaneous growth in deferred income tax liabilities.
11. Other non-current liabilities
As at the end of 2016, other non-current liabilities amounted to RMB16,048 million, representing year-on-year growth of 165.26%, mainly due to the increase in business combination not under common control.
I V. Restricted Assets
As at 31 December 2016, the restricted assets of the Company amounted to RMB372,864 million, which mainly comprised restricted inventories and restricted cash and bank balances. Details are as follows:
Unit: RMB100 million Types of restricted Percentage to Book value Reason of restriction assets total assets Provide pledge for interest- bearing liabilities and deposits for Cash and bank balances 1,040.06 8.39% construction progress, land bidding and others Provide pledge for interest-bearing Inventories 2,497.30 20.14% liabilities Fixed assets, investment Provide pledge for interest-bearing properties, land use 191.28 1.54% liabilities rights and others Total 3,728.64 30.07% 21
– II-126 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)
V. Other Bonds or Debt Financing Instruments Issued by the Company
In October 2015, the Company issued corporate bonds of RMB20 billion through non-public offering on SSE, among which the first form of bonds (15 恒大04) had an issuance size of RMB17.5 billion with a term of 5 years (where the issuer shall have the right to increase the coupon rate after the end of the third year and the investors shall have the right to sell back the bonds) and an interest rate of 7.38%, and the second form of bonds (15恒大05) had an issuance size of RMB2.5 billion with a term of 5 years and an interest rate of 7.88%.
In January 2016, the Company completed the non-public offering of the first tranche of corporate bonds (16恒地01) of RMB10 billion with a term of 4 years (where the issuer shall have the right to increase the coupon rate after the end of the second year and the investors shall have the right to sell back the bonds) and an interest rate of 6.98%.
In July 2016, the Company completed the non-public offering of the second tranche of corporate bonds (16恒地02) of RMB4.2 billion with a term of 3 years (where the issuer shall have the right to increase the coupon rate after the end of the second year and the investors shall have the right to sell back the bonds) and an interest rate of 6.80%.
During the Reporting Period, the above bonds did not have any default in interest payment or risk of due repayment.
VI. External Guarantees of the Company
(I) External Guarantees of the Company
As at the end of 2016, the balance of external guarantees of the Company amounted to RMB98,781 million, which were mainly the guarantees provided for the strategic partners of the Company and for the financing activities closely related to the business development of the Company. The guaranteed parties included construction parties of construction projects, suppliers of materials and equipment, construction parties of garden decorations and other partners or related parties related to the business of the Company. During the Reporting Period, the guaranteed parties maintained good credit status and made timely repayments of principal or interest as scheduled according to the contracts. There was no event subject to risk in the external guarantees of the Company. The Company provided external guarantees in strict compliance with the laws, regulations and the Articles of Association and performed various decision making procedures and risk evaluation in order to control any possible risk.
(II) Guarantees Provided by the Company for Home Buyers
As the Company is engaged in the real estate industry, the Company has to provide guarantees for the mortgage loans of home buyers according to the relevant requirements of the People’s Bank of China. Recently, the Company provides periodic joint-and-several guarantees for buyers of commodity housing with a term from the date of lending by mortgage banks to the date of completing the procedures of property ownership certificates by mortgage banks for home buyers. If the home buyers do not fulfill their obligations as debtors during
22
– II-127 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)
the abovementioned guarantee period, the Company has the right to repossess the properties sold, so such guarantees do not incur actual losses for the Company. As at 31 December 2016, the Company and its subsidiaries provided guarantees for the mortgage loans of commodity housing for the banks in an amount of RMB247.721 billion.
VII. Credit and Bank Loan Repayment
With a good credit status, the Company has good credit profiles in the large banks and has obtained high credit lines from the large banks. As at the end of 2016, the aggregated credit line of the Company granted by banks amounted to RMB581.9 billion, among which RMB134.9 billion was unutilized.
As at the end of 2016, the bank loans in the interest-bearing liabilities of the Company amounted to RMB204.741 billion, representing an increase of RMB112.555 billion as compared to the end of 2015. During the Reporting Period, the Company made timely repayment of bank loans without any default or loan extension.
23
– II-128 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)
IV Operations and Corporate Governance
I. Operations, Changes in Industry Environment and Management Discussion
The Company is one of the real estate developers with the highest presence, the greatest brand influence and the strongest comprehensive strengths in China. As at the end of 2016, the Company had 551 large-scale real estate projects in 209 major cities. Adhering to its development strategy of “scale + efficiency”, implementing the rolling development and operating efficiently, the Company had developed strong comprehensive competitive edges. In 2016, the Company recorded operating income of RMB205,097 million, representing a year-on-year increase of 56.94%. The operations developed rapidly, and the growth in operating income scale and operations reflected the leading position of the Company in China’s real estate industry.
In 2016, while the supply-side reform was pushed forward, the development of the national economy in China remained steady overall with significant improvement in the quality of growth. The five missions namely “capacity deduction, destocking, deleveraging, cost reduction and weak link improvement” made steady progress. Throughout the year, the real estate market in China continued to boom, and the transactions presented a trend of increasing sales price and volume. The accumulated sales of commodity housing reached 1.57 billion square meters, representing a year-on-year increase of 22.5%. The sales of commodity housing amounted to RMB11.8 trillion, representing a year-on-year increase of 34.8%. At the same time, the adjustment policies on real estate during the year had significant effect. In the first half of 2016, due to the downward pressure on the economy and high inventory level, the macro-economic policy was relatively eased by reduction in bank reserve ratio, interest rates, tax and down payment. With the intensive introduction of favorable measures, the market demand was quickly unleashed. The housing prices in certain popular cities rose significantly. Hence, the local governments gradually implemented new adjustment and tightening policies, resulting in regional divergence: the housing prices were adjusted and tightened for the popular cities with enhanced regulation while the destocking strategy continued for the third- and fourth-tier cities by working on both the demand and supply side to remodel the market environment.
Facing the complicated market environment and the intense industry competition, the management made well-grounded judgments based on its keen insights, forward-thinking and strategic layout and was decisive in capturing market opportunities at the timing of the introduction of favorable policies. As at the end of 2016, the total assets amounted to RMB1,240,138 million, representing a year-on-year increase of 65.89%; the Company recorded operating income of RMB205,097 million, representing a year-on-year increase of 56.94%; profits attributable to owners of the parent company amounted to RMB15,840 million, representing a year-on-year decrease of 19.37%; the total cash of the Company amounted to RMB275,191 million, representing a year-on-year increase of 82.16%.
II. Operation Discussion and Analysis for the Reporting Period
(I) Overall Operation Review for 2016
As a leading enterprise in premium real estate market in China, the Company had
24
– II-129 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)
conducted numerous scientific, efficient projects across China. At the same time, the Company had developed a scale-based, standardized, professional and branded real estate development mode, covering numerous product series such as residential property, commercial property, hotel etc. The Company was a professional real estate developer. Most of its real estate development projects were middle- to high-end residential properties, which were supplemented by the operation of commercial properties and residential ancillary facilities. The developed products included multi-storey garden-view houses, multi-storey residential buildings, mid-rise and high-rise residential buildings, etc.
Unit: RMB100 million 2016 Item Operating Operating Operating Gross profit income costs gross profit margin Residential properties 1,892.11 1,297.97 594.14 31.40% Commercial properties 65.33 47.38 17.95 27.48% Others 93.53 62.16 31.37 33.54% Total 2,050.97 1,407.51 643.46 31.37% 2015 Item Operating Operating Operating Gross profit income costs gross profit margin Residential properties 1,173.40 785.17 388.23 33.09% Commercial properties 81.70 45.31 36.39 44.54% Others 51.76 37.58 14.28 27.59% Total 1,306.86 868.06 438.80 33.58%
Recently, the Company experienced rapid development with operating scale expanding continuously. Operating income for the period increased by RMB74,411 million or 56.94% as compared to the corresponding period of last year, of which operating income from sales of properties accounted for approximately 95.44%. Its principal operations performed outstandingly, while the performance of other segments also improved as compared to the corresponding period of last year. The operating costs for the period increased by RMB53,945 million or 62.14% as compared to the corresponding period of last year, which was slightly higher than the operating income growth. The operating gross profit for the period increased by RMB20,466 million or 46.64%.
The composition and changes in expenses of the Company during the past two years are set out below:
Unit: RMB100 million Item 2016 2015 Change Selling expenses 139.07 102.46 35.73% Administrative expenses 59.16 41.12 43.87% Financial expenses 38.10 12.44 206.27% Total expenses for the period 236.33 156.02 51.47% Selling expenses/operating income 6.78% 7.84% -13.52% Administrative expenses/operating income 2.88% 3.15% -8.57% Financial expenses/operating income 1.86% 0.95% 95.79% Total operating expense ratio for the period 11.52% 11.94% -3.52% 25
– II-130 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)
Since the operating scale of the Company had expanded in 2016, the operating income increased, and the expenses for the period increased accordingly. Among the expenses, the proportion of selling expenses and administrative expenses to operating income declined mainly due to the improved internal management efficiency of the Company, which was beneficial for the Company’s long-term development. The proportion of financial expenses to operating income for the period rose mainly due to the expansion of the operating scale of the Company, an increase in the number of new development projects or newly acquired projects, and a rise of new borrowings during the reporting period, and the interest expense increased accordingly.
The composition and changes in profit during the past two years are set out below:
Unit: RMB100 million Item 2016 2015 Change Investment income 0.06 61.32 -99.90% Gain/loss from changes in fair value 38.53 86.48 -55.45% Asset impairment losses -3.74 0.04 -9450.00% Operating profit 283.74 297.36 -4.58% Non-operating income 6.42 2.90 121.38% Non-operating expenses 25.06 7.42 237.74% Total profit 265.10 292.84 -9.47% Net profit 177.01 214.84 -17.61% Net profit attributable to owners of the parent company 158.40 196.46 -19.37%
In 2016, the gain/loss from changes in fair value of Hengda Real Estate mainly derived from the increase in fair value of its owned commercial buildings, offices and car parking spaces. During the year, the number of new commercial buildings decreased. The growth of gains arising from changes in fair value of investment properties declined.
Non-operating income mainly included the income from forfeited deposit, default penalty, etc. As the operating scale of the Company had expanded in 2016, the income from forfeited deposit and default penalty also increased accordingly.
The increase in non-operating expenses in 2016 was mainly due to the donation of RMB1,469 million made by the Company during the reporting period, reflecting that the Company performed its corporate social responsibility in a better way.
(II) Significant Investing activities
In 2016, the audited net cash flows from investing activities of the Company amounted to RMB-118,161 million mainly due to the expansion in operating scale, the rapid development and the aggressive external merger and acquisition activities.
In 2016, the largest single equity or non-equity investment was not higher than the restated net assets of the Company as at the end of 2015 of RMB97,046 million by over 20%. 26
– II-131 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)
As the Company is a major domestic subsidiary of China Evergrande, the cash outflows of the capital flow between related parties were higher. For details about the outstanding funds between related parties as of 2016, please refer to IV. “(III) Description on Non-operating Funds” under Chapter IV of this report.
III. Future Business Development and Possible Risks
(I) Future Development Outlook
According to the Central Economic Work Conference held in December 2016, the realization of quick economic recovery is emphasized. In respect of the property market, on the one hand, the housing price level has to be maintained at a steady level to meet the significant housing demand from the mobile labor force, thus serving the development of the real economy. On the other hand, the development of the real economy should create favorable conditions for mitigating risk exposures in the proper market. This indicates that the central government is going to focus on establishing a long-term mechanism for the stable and healthy development of the property market under the active fiscal policy and steady monetary policy in 2017.
Looking forward to 2017, the management is of the opinion that the major focus of the overall economy will continue to be stable and make progress while maintaining stability while revitalizing the real economy. The supply side reform will be further implemented. “Destocking” will be a crucial task and the consistent healthy growth of the real estate industry will continue to facilitate the robust economic development in China. Moreover, the macro-control policies on the real estate industry will become divergent, and specific policy formulated based on the actual condition of cities will be implemented. The competition in the real estate industry will be intensified.
Based on the comprehensive judgment on the “new normal” of China’s economy and the real estate industry, the management will exploit potentialities of and adapt to market changes and focus on its own development based on the domestic and foreign economic conditions. It will further optimize the system for sales and collection of sales proceeds, enlarge its land bank and maintain strict cost control while optimizing debt structure and improving profit management. It will also improve the quality of its products and services, thus steadily facilitate the development of the Company.
(II) Possible Risk Exposures
1. Cyclical Economic Risk
The real estate market, where the principal businesses of the Company operate, is closely related to the macroeconomic condition, and the industry development has a stronger correlation with the domestic economy sentiment. Hence, macroeconomic factors, such as the investment scale of fixed assets and the progress of urbanization, will have greater impact on the real estate market. In recent years, the total investment in fixed assets in China has maintained rapid growth, and, accordingly, the investment in urban real estate development
27
– II-132 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)
has also maintained a high growth rate, which created favorable external conditions for the development of the Company’s operations. However, there are numerous uncertainties in domestic economic condition at present. In the event that there is any slowdown in the domestic economy or cyclical macroeconomic fluctuation, and the Company fails to predicate such situation and adjust its operations correspondingly, the overall performance and profitability of the Company will be adversely affected.
2. Cross-Regional Real Estate Operating Risk
The real estate business of the Company covered 209 cities across China. The resources allocation has been optimizing with the use of the brand influence of “Evergrande” brand. The Company has to understand and fulfill the market demands in different regions, and allocate resources to different regions by fully utilizing its available resources. Although the Company has already established a strict, efficient internal control system, it is more difficult to manage and control with the increasing complexity in fund allocation, construction quality, safety production and contract performance as a result expansion in operation regions. In the event that the Company fails to adjust the operating strategies in different regions based on actual condition, or its internal control has been weakened, the Company may be exposed to cross-regional operating and management risk, thus adversely affecting the overall operation of the Company.
3. Greater Risk Exposure in relation to Capital Expenditure for Land Acquisition and Project Development
The real estate development business is a capital intensive operation with long construction phase. The timing of preliminary land acquisition, construction safety investment and collection of sales proceeds will experience mismatch to a certain extent. The Company has to maintain sufficient land reserve in order to ensure continuous and steady operation. The land reserves of the Company are located across China with a large scale. The total land reserves balance as at the end of 2016 was 192 million square meters. The real estate development business of the Company experienced rapid growth. The expenses for project development and land acquisition increased with larger cash outflows for operating activities.
I V. Other Information about Operations of the Company
(I) Default Events
There was no significant default event in the course of business with major clients during the Reporting Period.
(II) Independence
The issuer conducts its operations strictly in accordance with relevant laws and regulations including the Company Law and the Securities Law, as well as the requirments under the Articles of Association. It has an independent and comprehensive system for asset and business, and is capable to operate independently in the market.
(III) Description on Non-operating Current Capital
As at the end of 2016, other receivables of the Company amounted to RMB28,627 million, which were primarily comprised of other operating receivables of RMB26,183 million 28
– II-133 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)
in aggregate. Non-operating receivables in related party transactions amounted to RMB2,619 million. The breakdown of other receivables as at the end of 2016 is set out below:
Unit: RMB00 million Item End of 2016 Other non-operating receivables 26.19 Including: Other non-operating receivables arising from related party transactions 26.19 Other operating receivables 261.83 Including: Deposit receivables 79.81 Amount due from minority interest 42.35 Receivables from disposal of subsidiaries 67.76 Others 71.91 Provision for bad debts 1.75 Total 286.27
Other operating receivables primarily include necessary deposits in day-to-day operations such as construction deposit and land deposits, as well as relevant operating receivables for the daily operation of cooperative development projects. Other receivables of the Company primarily include operating receivables included in other receivables such as property maintenance fund. Non-operating capital flows primarily derive from related party transactions. As the Company is a major domestic subsidiary of China Evergrande, there are numerous related parties within China and overseas market. Hence, the Company has certain related party transactions with other subsidiaries of China Evergrande in relation to daily payment and collection clearance amount, capital transfer and other aspects, generating receivables in related party transactions under other receivables. The breakdown of non-operating other receivables in related party transactions as at the end of 2016 is set out below: Unit: RMB00 million Name of related party Balance Inner Mongolia Luqiao Property Co., Ltd.* (內蒙古魯橋置業有限公司) 1.72 Jinan Evergrande Chengxi Property Co., Ltd.* (濟南恒大城西置業有限公司) 9.26 Guangzhou Evergrande Football Club Corp. Ltd.* (廣州恒大足球俱樂部有限公司) 0.24 Evergrande Life Insurance Co., Ltd.* (恒大人壽保險有限公司) 4.56 Jinan Xishi Property Co., Ltd.* (濟南西實置業有限公司) 3.80 Chongqing Verakin Wenhao Real Estate Company Limited* (重慶同景文浩置業有限 0.41 公司) Chongqing Verakin Wenhong Real Estate Company Limited* (重慶同景文宏置地有 0.08 限公司) Jinan Xichuang Property Co., Ltd.* (濟南西創置業有限公司) 0.04 ANJI 5.73
Evergrande Internet Financial Services (Shenzhen) Co., Ltd.* (恒大互聯網金融服務 0.10 （深圳）有限公司) Cultural Industry Group* (文化產業集團) 0.16 Xinhend (Danzhou) Real Estate Development Company Limited* (儋州信恒房地產開 0.05 發有限公司) Qidong Evergrande Hotel Co., Ltd.* (啟東恒大酒店有限公司) 0.02 Evergrande 0.01 Qidong Xinhua Property Co., Ltd.* (啟東鑫華置業有限公司) 0.01 29
– II-134 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)
Total 26.19
The Company has generated higher other payables with related parties under capital transfer within the Group in its daily operations. The balance of amount due to related parties under other payables as at the end of 2016 amounted to RMB29.017 billion. Taking into account of other receivables and capital flows with related parties under other payables, net capital flows with related parties generated from non-operating activities of the Company as at the end of the reporting period amounted to RMB26.398 billion. Although the proportion of net capital flows with related parties to total assets is relatively low, the normal operations of the Company will not be significantly affected.
During the term of the bonds, new non-operating activities are conducted strictly in accordance to internal control system such as the Administrative Measures for Headquarters of Evergrande Real Estate Group (《恒大地產集團總部管理辦法》) and the Administrative Measures for Regional Company of Evergrande Real Estate Group (《恒大地產集團地區公 司管理辦法》). The capital demand side shall apply for capital utilization approval. Such approval will be submitted to the accounting and financial managers of the capital supply side, and the capital allocation is subject to final approval by different approval officers based on the credit line.
The Company has guaranteed that it will disclose the specific details about the transactions, fund collection arrangements and other information in its regular financial reports during the term of the bonds. When preparing the regular financial report, the Company will review the proportion of capital flows in new non-operating activities or capital borrowing. If the balance of the accumulated capital flows in new non-operating activities exceeds 20% of the net assets as at the end of the previous year, the Company will immediately inform the custodian, and submit and disclose the announcement in respect of major event to the stock exchange, which set out the reasons, status of the event and its impacts, in accordance with the rules under laws, regulations and relevant rules. The bond custodian shall perform its obligations strictly in accordance with the requirements under the Professional Code of Conduct for Custodians and the agreements made under the Bond Custodian Agreement. It shall review the capital flows in non-operating activities and actual fund collection during the term of the bonds on regular basis. If there is any transaction which might affect its solvency or it is expected that such transaction will be occurred, the bond custodian shall immediately disclose relevant information.
(IV) Provision of Guarantee for its Controlling Shareholder, De Facto Controller and their Related Parties in Violation of Laws
During the reporting period, the Company did not provide any guarantee for its controlling shareholder, de facto controller or their related parties in violation of laws.
(V) Compliance of Corporate Governance
During the reporting period, the Company did not violate the Company Law and the Articles of Association in respect of corporate governance, internal control and other aspects. The Company has strictly complied with and performed relevant agreements and commitments made under the prospectus. There was no event that would have a material adverse impact on the interests of bond investors. 30
– II-135 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)
V Major Events
I. Pending Litigation, Arbitration and Administrative Penalty of the Company
During the Reporting Period, the Company was not subject to any pending litigation, arbitration and administrative penalty which may have a material adverse impact on the normal operation, financial position and solvency of the Company.
II. Bankruptcy Reorganization of the Company During the Reporting Period
During the Reporting Period, the Company did not undergo any bankruptcy reorganization.
III. Risk Regarding Suspension of Trading or Delisting of Corporate Bonds During the Term
During the reporting period, the corporate bonds were not exposed to any risk regarding suspension of trading or delisting during the term.
I V. The Company, its Controlling Shareholder and De Facto Controller being Investigated by Judicial Authorities for Suspected Violation of Laws, and the Directors, Supervisors and Senior Management of the Company Suspected for Being Subject to Compulsory Measures as Implemented by Judicial Authorities
During the Reporting Period, neither the Company, its controlling shareholder nor de facto controller, directors, supervisors nor senior management were subject to any pending litigation, arbitration and administrative penalty which may have a greater impact on the financial position, operating results, reputation, business activities and outlook of the Company.
V. Other Major Events
Happened Updates and No. Major event or not? impacts Material changes in operating directions, 1 operating scope or external operating and product No conditions of the issuer; 2 Changes in credit rating of the issuer; No Major assets of the issuer being sealed up, 3 No impounded or frozen; The issuer fails to repay debts due, causing a 4 No default; Accumulated new borrowings or external Please refer to guarantees provided by the issuer for the current “Material Risk 5 Yes year exceeds 20% of net assets as at the end of Warnings” of this the last year; report Please refer to Creditor’s rights or properties forfeited by the “Material Risk 6 issuer exceed 10% of net assets as at the end of Yes Warnings” of this the last year; report The issuer incurs material loss which exceeds 7 No 10% of net assets as at the end of the last year; The issuer decides to conduct capital reduction, 8 merger, separation, dissolution and apply for No bankruptcy; 31
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Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)
Happened Updates and No. Major event or not? impacts The issuer is subject to material litigation, 9 No arbitration or significant administrative penalty; Material changes in guarantor, collateral or other 10 No remedial measures; Material changes in the issuer which might result 11 in no longer being in compliance with the listing No requirements for the corporate bonds; The issuer being investigated by judicial authorities for suspected violation of laws, and the issuer’s directors, supervisors and senior 12 No management being subject to compulsory measures as implemented by judicial authorities for suspected violation of laws;
32
– II-137 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)
VI Financial Report
Please refer to the appendix for the 2016 audited financial report of the Company.
33
– II-138 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)
VII Documents Available for Inspection
(I) The 2016 financial statements and auditor’s report of the Company signed and sealed by the responsible officer of the Company, the head of the accounting department and the responsible officer of the accounting firm (the head of accounting department);
(II) The original copies of all of the documents and announcements of the Company disclosed in the designated newspaper as approved by China Securities Regulatory Commission during the Reporting Period; and
(III) The annual report, the summary of annual report and the annual financial information disclosed publicly on the website of the Shanghai Stock Exchange.
* for identification purpose only
34
– II-139 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)
(This page contains no text and shall be sealed by the Company for the Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公 司) (2016).)
Hengda Real Estate Group Company Limited
28 April 2017
35
– II-140 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)
Appendix:
2016 audited financial report
36
– II-141 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
FINANCIAL STATEMENTS AND AUDITOR’S REPORT FOR YEAR 2016
[English translation for reference only. Should there be any inconsistency between the Chinese and English versions, the Chinese version shall prevail.]
– II-142 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
Hengda Real Estate Group Company Limited
Financial Statements and Auditor’s Report For Year 2016 [English translation for reference only]
Content Page
Auditor’s Report 1 - 2
Financial statements for year 2016
Consolidated and the company’s balance sheet 1 - 2
Consolidated and the company’s income statement 3
Consolidated and the company’s statement of cash flows 4
Consolidated statement of changes in owners’ equity 5 - 6
Company statement of changes in owners’ equity 7
Notes to the financial statements 8 - 90
– II-143 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
[English Translation for Reference Only]
Auditor’s Report
PwC ZT Shen Zi (2017) No.26243 (Page 1/2)
To the Board of Directors of Hengda Real Estate Group Company Limited,
We have audited the accompanying financial statements of Hengda Real Estate Group Company Limited (hereinafter “the Company”), which comprise the consolidated and company balance sheets as at 31 December 2016, and the consolidated and company income statements, the consolidated and company statements of changes in owners’ equity and the consolidated and company cash flow statements for the year then ended, and the notes to the financial statements.
Management’s Responsibility for the Financial Statements
Management of the Company is responsible for the preparation and fair presentation of these financial statements in accordance with the requirements of Accounting Standards for Business Enterprises, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with China Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
普華永道中天會計師事務所（特殊普通合夥） PricewaterhouseCoopers Zhong Tian LLP, 11/F PricewaterhouseCoopers Center 2 Corporate Avenue, 202 Hu Bin Road, Huangpu District, Shanghai 200021, PRC T: +86 (21) 2323 8888, F: +86 (21) 2323 8800, www.pwccn.com
– II-144 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
PwC ZT Shen Zi (2017) No.26243 (Page 2/2)
Opinion
In our opinion, the accompanying financial statements present fairly, in all material respects, the consolidated and company’s financial position of the Company as at 31 December 2016, and their financial performance and cash flows for the year then ended in accordance with the requirements of Accounting Standards for Business Enterprises.
PricewaterhouseCoopers Zhong Tian LLP Certified Public Accountant 林宇鵬
Shanghai, the People’s Republic of China Certified Public Accountant 28 April 2017 魏澤
– 2 –
– II-145 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
CONSOLIDATED AND THE COMPANY BALANCE SHEET AS AT 31 DECEMBER 2016 (Expressed in millions of RMB, unless otherwise indicated)
Consolidated The Company 31 December 31 December 31 December 31 December Assets Notes 2016 2015 2016 2015 (Restated)
Current assets Cash and bank balances 7(1) 275,191 151,067 76,962 28,435 Financial assets at fair value through profit or loss 7(2) 3,076 – – – Notes receivable 7(3) 68 45 – – 7(4)(a), Trade receivables 18(1) 8,447 3,712 185 3 Prepayment 7(5) 52,159 32,164 288 1,960 Interests receivable 281 22 301 – Dividends receivable – – 11,545 38 7(4)(c), Other receivables 18(2) 28,627 35,089 107,743 77,482 Inventories 7(6) 647,097 378,858 2,264 2,699 Non-current assets due within one year 7(4)(b) 7,019 5,303 – – Other current assets 7(7) 14,466 7,534 24 12 Total current assets 1,036,431 613,794 199,312 110,629
Non-current assets Available-for-sale financial assets 7(8) 38,840 787 1,781 – Long-term receivables 7(4)(b) 8,746 10,305 – 39 Long-term equity investments 7(9), 18(3) 727 8,549 60,654 55,433 Investment properties 7(10) 130,196 96,382 2,414 2,151 Fixed assets 7(11) 13,208 9,177 833 664 Construction in progress 7(12) 4,478 3,575 – – Intangible assets 7(13) 5,138 3,242 82 53 Goodwill 1,003 – – – Long-term deferred expenses 7(14) 204 144 2 2 Deferred income tax assets 7(25)(a) 3,809 1,633 – – Other non-current assets 1,358 – – – Total non-current assets 203,707 133,794 65,766 58,342
TOTAL ASSETS 1,240,138 747,588 265,078 168,971
– 1 –
– II-146 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
CONSOLIDATED AND THE COMPANY BALANCE SHEET AS AT 31 DECEMBER 2016 (CONTINUED) (Expressed in millions of RMB, unless otherwise indicated)
Consolidated The Company 31 December 31 December 31 December 31 December Liabilities and owners’ equity Notes 2016 2015 2016 2015 (Restated)
Current liabilities Short-term borrowings 7(15) 88,706 37,957 1,100 – Notes payable 7(16) 43,675 42,069 54 168 Trade payables 132,457 87,700 429 119 Receipts in advance 7(17) 183,404 81,610 356 141 Employee remuneration payable 7(18) 1,411 1,108 74 103 Tax payable 7(19) 34,954 24,566 46 100 Interests payable 9,758 5,201 1,711 979 Dividends payable 4,189 2,370 – 1,076 Other payables 7(20) 114,710 82,893 183,709 113,205 Non-current liabilities due within one year 7(21) 80,754 83,408 7,106 2,200 Total current liabilities 694,018 448,882 194,585 118,091
Non-current liabilities Long-term borrowings 7(23) 332,137 143,357 19,715 1,480 Bonds payable 7(24) 47,005 39,549 47,005 39,549 Long-term payables 7(22) 41,345 2,359 – – Deferred income tax liabilities 7(25)(d) 21,443 10,345 100 201 Other non-current liabilities 7(26) 16,048 6,050 – – Total non-current liabilities 457,978 201,660 66,820 41,230
Total liabilities 1,151,996 650,542 261,405 159,321
Owners’ equity Paid-up capital 2,500 2,500 2,500 2,500 Capital reserve 14 5,872 14 518 Other comprehensive (loss)/income 7(38) (3,089) 56 199 – Surplus reserve 7(27) 42 1,250 42 1,250 Exchange differences arising from translation of financial statements 769 – – – Retained profits 7(28) 52,989 71,904 918 5,382 Total equity attributable to owners of the parent company 53,225 81,582 3,673 9,650 Minority interests 34,917 15,464 – – Total owners’ equity 88,142 97,046 3,673 9,650
Total liabilities and owners’ equity 1,240,138 747,588 265,078 168,971
The accompanying notes form an integral part of these financial statements.
Person-in-charge of the Company: Person-in-charge of accounting: Head of accounting department: Zhao Changlong Pan Hanling 王小鵬
– 2 –
– II-147 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
CONSOLIDATED AND THE COMPANY INCOME STATEMENT FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
Consolidated The Company 2016 2015 2016 2015 Items Notes (Restated)
7(29), 1. Operating income 18(4) 205,097 130,686 2,371 1,280 7(29), Less: Operating costs 18(4) 140,751 86,806 155 105 Operating taxes and surcharges 7(30) 15,824 13,326 306 190 Selling expenses 7(32) 13,907 10,246 1,392 885 Administrative expenses 7(32) 5,916 4,112 1,383 1,013 Financial expenses – net 7(31) 3,810 1,244 1,107 228 Asset impairment loss/(reversal) 7(33) 374 (4) 28 – Investment gains 7(34) 3,853 8,648 (623) (142) Add: Gain/(loss) from changes in 7(35), fair value 18(5) 6 6,132 23,423 4,535 Including: Share of (loss)/profit of associates and joint ventures 7(9) (647) (421) (506) (373)
2. Operating profit 28,374 29,736 20,800 3,252 Add: Non-operating income 7(36)(a) 642 290 7 17 Including: Gains on disposal of non-current assets 53 – – – Less: Non-operating expenses 7(36)(b) 2,506 742 64 5 Including: Losses on disposal of non-current assets 10 3 – –
3. Total profit 26,510 29,284 20,743 3,264 Less: Income tax expenses/(credit) 7(37) 8,809 7,800 (91) (303)
4. Net profit 17,701 21,484 20,834 3,567 Including: Net profit of the acquired entities under common control before the incorporation 1,512 1,673 – – Net profit attributable to owners of the parent company 15,840 19,646 20,834 3,567 Profit and loss attributable to minority interests 1,861 1,838 – –
5. Net amount of other comprehensive(loss)/ income after tax Other comprehensive (loss)/income attributable to owners of the parent company, net of tax (2,573) 56 199 – Other comprehensive (loss)/income reclassified to profit or loss in subsequent periods (2,573) 56 199 – Shares of other comprehensive income that will be reclassified to profit or loss of investee under equity method (197) – – – Changes in fair value of available-for-sale financial assets (3,145) 56 199 – Exchange differences arising from translation of financial statements 769 – – –
6. Total comprehensive income 15,128 21,540 21,033 3,567
Total comprehensive income attributable to owners of the parent company 13,267 19,702 21,033 3,567 Total comprehensive income attributable to minority interests 1,861 1,838 – –
The accompanying notes form an integral part of these financial statements.
Person-in-charge of the Company: Person-in-charge of accounting: Head of accounting department: Zhao Changlong Pan Hanling 王小鵬
– 3 –
– II-148 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
CONSOLIDATED AND THE COMPANY CASH FLOWS STATEMENT FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
Consolidated The Company 2016 2015 2016 2015 Items Notes (Restated)
1. Cash flows generated from operating activities Cash received from the sale of goods and provision of labour services 273,372 148,550 2,373 1,324 Cash received from other operating activities 3,123 1,944 1,356 544 Sub-total of cash inflows from operating activities 276,495 150,494 3,729 1,868 Cash paid for the purchase of goods and engagement of labour services (237,159) (114,790) (285) (650) Cash paid to/for employees (11,551) (8,616) (802) (564) Tax charges paid (22,817) (14,999) (473) (119) Cash paid for other operating activities 7(39)(f) (20,802) (12,070) (3,509) (1,485) Sub-total of cash outflows from operating activities (292,329) (150,475) (5,069) (2,818) Net cash flows generated from 7(39)(a), operating activities 18(6) (15,834) 19 (1,340) (950)
2. Cash flows generated from investing activities Cash received from disposal of investments 4,577 18,049 2,808 – Cash received from investment gains 107 24 12,867 5,071 Net cash received from disposal of fixed assets, investment properties, intangible assets and other long-term assets 2,912 1,191 473 695 Net cash received from disposal of subsidiaries and other operational units 7(39)(e) 1,899 – 23 – Cash received from other investing activities 19,169 7,855 16 – Sub-total of cash inflows from investing activities 28,664 27,119 16,187 5,766 Cash paid for acquisition of fixed assets, investment properties, intangible assets and other long-term assets (16,897) (18,429) (307) (191) Cash paid for investments (45,954) (4,726) (37,102) (18,599) Cash paid to acquire subsidiaries and other business units 9(2)(c)(v) (44,120) (4,866) – – Cash paid for other investing activities (39,854) (12,574) (29,365) (20,429) Sub-total of cash outflows from investing activities (146,825) (40,595) (66,774) (39,219) Net cash flows generated from investing activities (118,161) (13,476) (50,587) 33,453
3. Cash flows generated from financing activities Cash received from investors 16,874 624 – – Cash received from borrowings 411,748 192,790 30,712 1,480 Cash received from bond issuance 14,111 39,522 14,111 39,522 Cash received from other financing activities 90,736 15,392 70,540 10,460 Sub-total of cash inflows from financing activities 533,469 248,328 115,363 51,462 Cash paid for repayment of debts (211,403) (116,259) (13,227) (600) Cash paid for distribution of dividends, profits or repayment of interests (33,876) (25,424) (1,710) (3,132) Cash paid for other financing activities (74,470) (30,623) (9,638) (6,701) Sub-total of cash outflows from financing activities (319,749) (172,306) (24,575) (10,433) Net cash flows generated from financing activities 213,720 76,022 90,788 41,029
4. Effects of changes in foreign exchange rate on cash and cash equivalents 159 112 – –
5. Net change in cash and cash equivalents 79,884 62,677 38,861 6,626 Add: Balance of cash and cash equivalents at the beginning of the year 7(39)(c) 91,301 28,624 7,142 516
6. Balance of cash and cash equivalents at the end of the year 7(39)(d) 171,185 91,301 46,003 7,142
The accompanying notes form an integral part of these financial statements.
Person-in-charge of the Company: Person-in-charge of accounting: Head of accounting department: Zhao Changlong Pan Hanling 王小鵬
– 4 –
– II-149 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE – 56 80 63 624 (141) (221) 1,649 2,905 1,620 equity 21,484 21,540 97,046 52,356 16,571 68,927 Total owners’ owners’ Total – – – – – (85) 624 (221) 1,838 1,838 6,309 1,649 2,445 2,905 8,754 15,464 interests Minority – – – – – – – – – (409) 9,961 profits 71,904 19,646 19,646 42,706 52,667 Retained – – – – – – – – – – – – – – – – Exchange statements translation differences differences of financial of financial arising from – – – – – – – – – – – – 841 841 409 1,250 reserve Surplus – – – – – – – – – – – – – 56 56 56 Other income – 5 – comprehensive comprehensive – – – – – – – – – 80 63 (56) 5,872 4,165 4,165 1,620 reserve Capital Equity attributable to the owners of the parent company to the owners Equity attributable – – – – – – – – – – – – – 2,500 2,500 2,500 capital Paid-up Paid-up Items Net profit by owners Capital contributed Other comprehensive income Other comprehensive Increase in minority interests through the acquisition of Increase in minority interests through the acquisition of Disposal of subsidiaries Others Profit distribution to owners distribution Profit Total comprehensive income comprehensive Total Acquisition of minority interests some subsidiaries Amounts of share-based payment recognized in Appropriation of surplus reserve HENGDA REAL ESTATE GROUP COMPANY LIMITED COMPANY GROUP REAL ESTATE HENGDA YEAR 2016 FOR EQUITY OF CHANGES IN OWNERS’ STATEMENT CONSOLIDATED (Expressed in millions of RMB, unless otherwise indicated) Changes for the year 2015 income Subtotal of comprehensive by owners and withdrawn Capital contributed Closing balance at 31 December 2015 (Restated)
Closing balance at 31 December 2014 assets Business combinations under common control businesses Opening balance at 1 January 2015 (Restated) Opening balance at 1 January
equity owners’
Profit distribution Profit
– II-150 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE – 55 48 1,172 6,707 equity (7,490) (2,573) (9,454) (3,789) 15,128 16,874 88,142 97,046 17,701 (28,155) Total owners’ owners’ Total – – – – – (173) (219) 1,861 1,172 1,861 6,707 (6,769) 16,874 34,917 15,464 interests Minority – – – – – – – (42) (6,839) profits (3,570) 15,840 52,989 71,904 15,840 (24,304) Retained – – – – – – – – – – – – 769 769 769 Exchange statements translation differences differences of financial of financial arising from – – – – – – – – – – – 42 42 1,250 (1,250) reserve Surplus Head of accounting department: 王小鵬 – – – – – – – – – – 56 197 Other (3,342) (3,089) (3,342) income – 6 – comprehensive comprehensive – – – – – – – – 14 55 48 (721) 5,872 (2,615) (2,625) reserve Capital Equity attributable to the owners of the parent company to the owners Equity attributable – – – – – – – – – – – – – 2,500 2,500 capital Paid-up Paid-up Person-in-charge of accounting: Pan Hanling of accounting: Pan Person-in-charge Items Capital contributed by owners Capital contributed Increase in minority interests through the acquisition of Net profit Increase in minority interests through the acquisition of Other comprehensive income Other comprehensive Business combinations under common control Disposal of subsidiaries Others Profit distribution to owners distribution Profit Total comprehensive income comprehensive Total Acquisition of minority interests some subsidiaries Amounts of share-based payment recognized in Appropriation of surplus reserve HENGDA REAL ESTATE GROUP COMPANY LIMITED COMPANY GROUP REAL ESTATE HENGDA YEAR 2016 FOR EQUITY OF CHANGES IN OWNERS’ STATEMENT CONSOLIDATED (Expressed in millions of RMB, unless otherwise indicated) by owners and withdrawn Capital contributed Closing balance at 31 December 2016 statements. part of these financial notes form an integral The accompanying Zhao Changlong of the Company: Person-in-charge
Opening balance at 1 January 2016 (Restated) Opening balance at 1 January assets Changes for the year 2016 income Subtotal of comprehensive businesses
equity owners’
Profit distribution Profit
– II-151 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
THE COMPANY STATEMENT OF CHANGES IN OWNERS’ EQUITY FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
Other Total Paid-up Capital comprehensive Surplus Retained owners’ Items capital reserve income reserve profits equity
Opening balance at 1 January 2015 2,500 518 – 841 2,224 6,083 Changes for the year 2015 Net profit – – – – 3,567 3,567 Appropriation of surplus reserve – – – 409 (409) – Closing balance at 31 December 2015 2,500 518 – 1,250 5,382 9,650
Opening balance at 1 January 2016 2,500 518 – 1,250 5,382 9,650
Changes for the year 2016 Net profit – – – – 20,834 20,834 Other comprehensive income – – 199 – – 199 Business combinations under common control – 2,141 – – – 2,141 Disposal of subsidiaries – (2,659) – (1,250) (25,256) (29,165) Others – 14 – – – 14 Appropriation of surplus reserve – – – 42 (42) – Closing balance at 31 December 2016 2,500 14 199 42 918 3,673
The accompanying notes form an integral part of these financial statements.
Person-in-charge of the Company: Person-in-charge of accounting: Head of accounting department: Zhao Changlong Pan Hanling 王小鵬
– 7 –
– II-152 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
1 GENERAL INFORMATION OF THE COMPANY
Hengda Real Estate Group Company Limited (“the Company”) is a limited liability company incorporated by Guangzhou Kailong Real Estate Company Limited on 24 June 1996 in the People’s Republic of China with long approved operating period. Its registered and paid-up capital is RMB2.5 billion.
The Company’s parent company is Guangzhou Kailong Real Estate Company Limited. Its intermediate holding company is China Evergrande Group, the shares of which are listed on the Stock Exchange of Hong Kong Limited. Its ultimate holding company is Xin Xin (BVI) Limited, the beneficial controller of which is Dr. Hui Ka Yan.
The approved operating scope of the Company and its subsidiaries (hereinafter collectively referred to as “the Group”) include property development, property investment, construction general contracting, building materials, property management and hotel operation. During 2016, the actual principal business of the Group falls under the approved operating scope mentioned above.
These financial statements are approved and authorised for issue by the Company’s legal representative on 28 April 2017.
2 BASIS OF PREPARATION FOR THE FINANCIAL STATEMENTS
The Group has prepared the financial statements in accordance with the Accounting Standard for Business Enterprises – Basic Standards, and the specific accounting standards and other relevant regulations issued by the Ministry of Finance on 15 February 2006 (hereinafter collectively referred to as the “Accounting Standards for Business Enterprises” or “CAS”).
The financial statements are prepared on a going concern basis.
In 2016, the Group merged with Guangzhou Hengda (Zengcheng) Real Estate Development Company Limited, Guangzhou Junhui Real Estate Development Company Limited, Nanjing Hengda Fufeng Property Company Limited, Hengda Xinlong (Shenyang) Real Estate Company Limited, 寶豐集團有限公司, 昇褀集團有限公司, Shui Wah Investment Limited, 盛通(BVI)有限公司, 盛譽有限公司, 盛口企業有限公司, 昌興控股有限公司, 瑞宇企業有限公司, 上豐有限公司, Marvel First Developments Limited, 雅立集團有限公司, Instant Choice development Ltd. and Hengda (Shenzhen) Real Estate Group Property Company Limited (the “Acquired Entities”), all of which under the control of China Evergrande Group. Such transactions are considered to have involved business combinations by entities under common control and will be accounted in accordance with the relevant provisions of business combinations by entities under common control under Accounting Standard for Business Enterprises No. 20 – “Business combinations”. Therefore, the consolidated balance sheet as at 31 December 2015, the consolidated statement of income, the consolidated statement of changes in owners’ equity and the consolidated statement of cash flow for the year then ended have been restated to include the assets, liabilities and profits calculated from the date on which the Acquired Entities came under common control. Please refer to Note 9(3) for more disclosure on business combinations by entities under the same control.
3 STATEMENT OF COMPLIANCE WITH THE ACCOUNTING STANDARDS FOR BUSINESS ENTERPRISES
The financial statements of the Company for year 2016 are in compliance with the Accounting Standards for Business Enterprises, and truly and completely present information including the consolidated and the company’s financial position as at 31 December 2016 and the consolidated and the company’s operating results and cash flow for year 2016.
4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES
(1) Accounting year
The Company’s accounting year starts on 1 January and ends on 31 December.
– 8 –
– II-153 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
(2) Recording currency
The recording currency is Renminbi (RMB).
(3) Foreign currency translation
(a) Foreign currency transaction
Foreign currency transactions are translated into RMB using the spot exchange rates prevailing at the dates of the transactions.
At the balance sheet date, monetary items denominated in foreign currencies are translated into RMB using the spot exchange rates on the balance sheet date. Exchange differences arising from these translations are recognised in profit or loss for the current period, except for those attributable to foreign currency borrowings that have been taken out specifically for the acquisition or construction of qualifying assets, which are capitalised as part of the cost of those assets. Non-monetary items denominated in foreign currencies that are measured at historical costs are translated at the balance sheet date using the spot exchange rates at the date of the transactions. The effect of exchange rate changes on cash is presented separately in the cash flow statement.
(b) Translation of foreign currency financial statements
The asset and liability items in the balance sheets for overseas operations are translated at the spot exchange rates on the balance sheet date. Among the owners’ equity items, the items other than “retained profits” are translated at the spot exchange rates of the transaction dates. The income and expense items in the income statements of overseas operations are translated at the spot exchange rates of the transaction dates. The differences arising from the above translation are presented in other comprehensive income. The cash flows of overseas operations are translated at the spot exchange rates on the dates of the cash flows. The effect of exchange rate changes on cash is presented separately in the cash flow statement.
(4) Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, deposits that can be readily drawn on demand, and short-term and highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
(5) Financial assets
Financial assets are classified into the following categories at initial recognition: financial assets at fair value through profit or loss, held-to-maturity investments, receivables, and available-for-sale financial assets. The classification of financial assets depends on the Group’s intention and ability to hold the financial assets. During the reporting period, the financial assets of the Group merely included financial assets at fair value through profit or loss, receivables and available-for-sale financial assets.
(a) Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for the purpose of selling in the short term.
(b) Receivables
Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market, including trade and other receivables (note 4(7)).
– 9 –
– II-154 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
(5) Financial assets (Continued)
(c) Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial assets that are either designated in this category or not classified in any of the other categories at initial recognition. Available-for-sale financial assets are included in other current assets on the balance sheet if management intends to dispose of them within 12 months after the balance sheet date.
(d) Recognition and measurement
Financial assets are recognised at fair value on the balance sheet when the Group becomes a party to the contractual provisions of the financial instrument. In the case of financial assets at fair value through profit or loss, the related transaction costs incurred at the time of acquisition are recognised in profit or loss for the current period. For other financial assets, transaction costs that are attributable to the acquisition of the financial assets are included in their initially recognised amounts. Financial assets are derecognized when the contractual rights for collecting the cash flow of the said financial assets expire or substantially all risks and rewards related to the said financial assets have been transferred.
Financial assets at fair value through profit or loss and available-for-sale financial assets are subsequently measured at fair value. Investments in equity instruments are measured at cost when they do not have a quoted market price in an active market and whose fair value cannot be reliably measured. Receivables are measured at amortised cost using the effective interest method.
Gains or losses arising from change in the fair value of financial assets at fair value through profit or loss are recognised in profit or loss. Interests and cash dividends received during the period in which such financial assets are held, as well as the gains or losses arising from disposal of these assets are recognised in profit or loss for the current period.
Gains or losses arising from change in fair value of available-for-sale financial assets are recognised directly in equity, except for impairment losses and foreign exchange gains and losses arising from translation of monetary financial assets. When such financial assets are derecognised, the cumulative gains or losses previously recognised directly into equity are recycled into profit or loss for the current period. Interests on available-for-sale investments in debt instruments calculated using the effective interest method during the period in which such investments are held and cash dividends declared by the investee on available-for-sale investments in equity instruments are recognised as investment income, which is recognised in profit or loss for the period.
(e) Impairment of financial assets
The Group assesses the carrying amounts of financial assets other than those at fair value through profit or loss at each balance sheet date. If there is objective evidence that a financial asset is impaired, an impairment loss is provided for.
If an impairment loss on a financial asset carried at amortised cost incurs, the amount of loss is provided for at the difference between the asset’s carrying amount and the present value of its estimated future cash flows (excluding future credit losses that have not been incurred). If there is objective evidence that the value of the financial asset recovered and the recovery is related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed and the amount of reversal is recognised in profit or loss.
If there is objective evidence indicating an impairment loss on available-for-sale financial assets measured at fair value incurs, the cumulative losses arising from the decline in fair value that has been recognised directly in equity are transferred out from equity and into impairment loss. For an investment in debt instrument classified as available- for-sale on which impairment losses have been recognised, if, in a subsequent period, its fair value increases and the increase can be objectively related to an event occurring after the impairment loss was recognised in profit or loss, the previously recognised impairment loss is reversed into profit or loss for the current period. For an investment in an equity instrument classified as available-for-sale on which impairment losses have been recognised, the increase in its fair value in a subsequent period is recognised directly in equity.
If an impairment loss on an available-for-sale financial asset measured at cost incurs, the amount of loss is measured at the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the current market rate of return for a similar financial asset and recognised in profit or loss for the current period. The previously recognised impairment loss will not be reversed in subsequent periods.
– 10 –
– II-155 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
(5) Financial assets (Continued)
(f) Derecognition of financial assets
A financial asset is derecognised when any of the below criteria is met: (1) the contractual rights to receive the cash flows from the financial asset expire; (2) the financial asset has been transferred and the Group transfers substantially all the risks and rewards of ownership of the financial asset to the transferee; or (3) the financial asset has been transferred and the Group has not retained control of the financial asset, although the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset.
On derecognition of a financial asset, the difference between the carrying amount and the sum of the consideration received and the cumulative changes in fair value that had been recognised directly in equity, is recognised in profit or loss.
(6) Financial liabilities
Financial liabilities are classified into the following categories at initial recognition: financial liabilities at fair value through profit or loss and other financial liabilities. The financial liabilities of the Group mainly comprise other financial liabilities, including payables, borrowings and bonds payable.
Payables, including trade and other payables, are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.
Borrowings and bonds payable are recognised initially at fair value, net of transaction costs incurred, and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities with maturities no more than one year (inclusive) are classified as current liabilities. Other financial liabilities with maturities over one year but are due within one year (inclusive) at the balance sheet date are classified as the Non-current liabilities due within one year. Others are classified as non-current liabilities.
A financial liability is derecognised or partly derecognised when the current obligation is discharged or partly discharged. The difference between the carrying amount of the financial liability or the derecognised part of the financial liability and the consideration paid is recognised in profit or loss for the current period.
Financial assets and financial liabilities are separately presented in the statement of financial position without any offsetting, except when:
(a) the Company has a legally enforceable right to offset the recognized amounts;
(b) the Company has intention to settle on a net basis, or realize the asset and settle the liability simultaneously.
– 11 –
– II-156 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
(7) Receivables
Receivables comprise trade and other receivables. Trade receivables arising from sales of goods or rendering of services are initially recognised at fair value of the contractual payments from the buyers or service recipients.
(a) Receivables with amounts that are individually significant and subject to separate assessment for provision for bad debts
Receivables with amounts that are individually significant are subject to separate assessment for impairment. If there exists objective evidence that the Group will not be able to collect the amount under the original terms, a provision for impairment of that receivable is made.
Receivables with individual amounts greater than RMB10 million and other receivables with individual amounts greater than RMB30 million are considered significant.
Provision for bad debts for those individually significant amounts is determined at the excess amount of its carry amount over the present value of the future cash flow expected to be derived from the receivable.
(b) Receivables that are subject to provision for bad debts on grouping basis by credit risk characteristics
Receivables with amounts that are not individually significant and those receivables that have been individually assessed for impairment and have not been found impaired are classified into certain groupings based on their credit risk characteristics. The provision for bad debts is determined based on the historical loss experience for the groupings of receivables with similar credit risk characteristics, taking into consideration of the current circumstances.
The basis of grouping credit risk characteristics:
Items Methods of determining provision
Portfolio of receivable from sale of properties No provision for bad debts
Portfolio of related parties current account No provision for bad debts Portfolio of minorities shareholders current account No provision for bad debts Portfolio of margin and reserve No provision for bad debts Others Provision for bad debts based on aging analysis approach
The provision ratios used under the ageing analysis method for the above groupings are as follows:
Provision ratios used Provision ratios used for Trade receivables for other receivables
Within one year 1% 1% Over one year but within two years 2% 2% Over two years 5% 5%
– 12 –
– II-157 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
(7) Receivables (Continued)
(c) Receivables with amounts that are not individually significant but subject to separate assessment for provision for bad debts
The reason for making separate assessment for provision for bad debts is that there exists objective evidence that the Group will not be able to collect the amount under the original terms of the receivable.
The provision for bad debts is determined at the excess amount of its carry amount over the present value of the future cash flow expected to be derived from the receivable.
(d) When the Group transfers the Trade receivables to the financial institutions without recourse, the difference between the proceeds received from the transaction and their carrying amounts and the related taxes is recognised in profit or loss for the current period.
(8) Inventories
Inventories are categorized by real estate properties and non-real estate properties. Real estate properties include completed properties and properties under development. Non-real estate properties refer to inventory goods and others.
A completed property refers to the property that has completed construction and is held for sale. A property under development refers to a property that has not completed construction and is held for sale.
Inventories are initially measured at cost. At the balance sheet date, inventories are measured at the lower of cost and net realisable value.
Costs of real estate properties include land costs, construction costs, and other direct and indirect development costs. Borrowing costs that are eligible for capitalization are also included in the costs of real estate properties.
Provision for impairment of inventories is determined at the excess amount of the carrying amounts of the inventories over their net realisable value. Net realisable value is determined based on the estimated selling price in the ordinary course of business, less the estimated costs to completion and estimated costs necessary to make the sale and related taxes.
(9) Long-term equity investments
Long-term equity investments comprise the Company’s long-term equity investments in its subsidiaries, and the Group’s long-term equity investments in its joint ventures and associates.
Subsidiaries are the investees over which the Company is able to exercise control. A joint venture is a joint arrangement which is structured through a separate vehicle over which the Group has joint control together with other parties and only has rights to the net assets of the arrangement based on legal forms, contractual terms and other facts and circumstances. An associate is the investee that the Group has significant influence on its financial and operating policies.
Investments in subsidiaries are presented in the Company’s financial statements using the cost method, and are adjusted to the equity method when preparing the consolidated financial statements. Investments in joint ventures and associates are accounted for using the equity method.
– 13 –
– II-158 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
(9) Long-term equity investments (Continued)
(a) Determination of investment cost
For long-term equity investments acquired through a business combination: for long-term equity investments acquired through a business combination involving entities under common control, the investment cost shall be the acquirer’s share of the carrying amount of owners’ equity of the party being acquired at the combination date; for long-term equity investments acquired through a business combination involving entities not under common control, the investment cost shall be the combination cost.
For long-term equity investments acquired not through a business combination: for long-term equity investments acquired by payment in cash, the initial investment cost shall be the purchase price actually paid; for long-term equity investments acquired by issuing equity securities, the initial investment cost shall be the fair value of the equity securities issued.
(b) Subsequent measurement and recognition of related profit and loss
Long-term equity investments accounted for using the cost method are measured at the initial investment cost. Cash dividends or profit distributions declared by the investees are recognised as investment income in profit or loss.
For long-term equity investments accounted for using the equity method, where the initial investment cost exceeds the Group’s share of the fair value of the investee’s identifiable net assets at the time of acquisition, the long-term equity investment is measured at the initial investment cost; where the initial investment cost is less than the Group’s share of the fair value of the investee’s identifiable net assets at the time of acquisition, the difference is included in profit or loss for the current period and the cost of the long-term equity investment is adjusted upwards accordingly.
For long-term equity investments accounted for using the equity method, the Group recognises the investment income according to its share of net profit or loss of the investee. The Group discontinues recognising its share of the net losses of an investee after the carrying amounts of the long-term equity investment together with any long-term interests that in substance form part of the investor’s net investment in the investee are reduced to zero. However, if the Group has obligations for additional losses and the criteria with respect to recognition of provisions under the accounting standards on contingencies are satisfied, the Group continues recognising the investment losses and the provisions. The changes of the Group’s share of the investee’s owners’ equity other than those arising from the net profit or loss, other comprehensive income and profit distribution, are recognised in Capital reserve with a corresponding adjustment to the carrying amounts of the long-term equity investment. The carrying amount of the investment is reduced by the Group’s share of the profit distribution or cash dividends declared by an investee. The unrealised profits or losses arising from the transactions between the Group and its investees are eliminated in proportion to the Group’s equity interest in the investees, based on which the investment gains or losses are recognised. Any losses resulting from transactions between the Group and its investees attributable to asset impairment losses are not eliminated.
(c) Basis for determining existence of control, joint control or significant influence over investees
Control is the power to govern an investee, so as to obtain variable returns from its involvement with the investee, and has the ability to use its power over the investee to affect the amount of the investor’s returns.
Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control.
Significant influence is the power to participate in the financial and operating policy decisions of the investee, but is not control or joint control over those policies.
– 14 –
– II-159 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
(9) Long-term equity investments
(d) Impairment of long-term equity investments
The carrying amounts of long-term equity investments in subsidiaries, joint ventures and associates are reduced to the recoverable amounts when the recoverable amounts are below their carrying amounts (Note 4(16)).
(10) Investment properties
Investment properties, including land use rights that have already been leased out, buildings that are held for the purpose of leasing and buildings that are being constructed or developed for future use for leasing, are measured initially at cost. Subsequent expenditures incurred in relation to an investment property are included in the cost of the investment property when it is probable that the associated economic benefits will flow to the Group and their costs can be reliably measured; otherwise, the expenditures are recognised in profit or loss in the period in which they are incurred.
The Group adopts the fair value model to subsequent measurement of investment properties and does not provide depreciation or amortisation. The carrying amount of investment properties is adjusted based on their fair value at the balance sheet day and the difference between the fair value and the original carrying amount is recognised in profit or loss for the current period.
When investment properties are transferred to owner-occupied property, they are reclassified to fixed assets or intangible assets with the carrying amount determined at the fair value of the investment properties at the date of transfer and the difference between the fair value and the original carrying amount of the investment properties is recognized in profit or loss for the current period. When an owner-occupied property is transferred out for earning rentals or for capital appreciation, the fixed assets or intangible assets is transferred to investment properties with the carrying amount determined at the fair value at the date of transfer. If the fair value at the date of transfer is less than the original carrying amount of the fixed asset or the intangible asset, the difference is recognised in profit or loss for the current period, otherwise, it is included in other comprehensive income.
An investment property is derecognised on disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from its disposal. The net amount of proceeds from sale, transfer, retirement or damage of an investment property after its carrying amount and related taxes and expenses is recognised in profit or loss for the current period.
(11) Fixed assets
(a) Recognition and initial measurement of fixed assets
Fixed assets comprise buildings, machinery and equipment, transportation tools and office equipment. Fixed assets purchased or constructed by the Group are initially measured at cost at the time of acquisition.
Subsequent expenditures incurred for a fixed asset are included in the cost of the fixed asset when it is probable that the associated economic benefits will flow to the Group and the related cost can be reliably measured. The carrying amount of the replaced part is derecognised. All the other subsequent expenditures are recognised in profit or loss in the period in which they are incurred.
Fixed assets are depreciated using the straight-line method to allocate the cost of the assets to their estimated residual values over their estimated useful lives. For the fixed assets that have been provided for impairment loss, the related depreciation charge is prospectively determined based upon the adjusted carrying amounts over their remaining useful lives.
– 15 –
– II-160 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
(11) Fixed assets (Continued)
(b) Depreciation methods of fixed assets
Fixed assets are depreciated using the straight-line method to allocate the cost of the assets to their estimated residual values over their estimated useful lives. For the fixed assets that have been provided for impairment loss, the related depreciation charge is prospectively determined based upon the adjusted carrying amounts over their remaining useful lives.
The estimated useful lives, the estimated residual values expressed as a percentage of cost and the annual depreciation rates of fixed assets are as follows:
Estimated Annual Estimated useful lives net residual values depreciation rates
Buildings 15 to 30 years 5% 3% to 6% Machinery and equipment 5 to 10 years 3% 10% to 19% Transportation tools 5 to 10 years 5% 10% to 19% Office equipment 5 to 10 years 5% 10% to 19%
The estimated useful life and the estimated net residual value of a fixed asset and the depreciation method applied to the asset are reviewed, and adjusted as appropriate at each year-end.
(c) The carrying amount of a fixed asset is reduced to the recoverable amount when the recoverable amount is below the carrying amount (Note 4(16)).
(d) Disposal of fixed assets
A fixed asset is derecognised on disposal or when no future economic benefits are expected from its use or disposal. The amount of proceeds from disposals on sale, transfer, retirement or damage of a fixed asset net of its carrying amount and related taxes and expenses is recognised in profit or loss for the current period.
(12) Construction in progress
Construction in progress is measured at actual cost. Actual cost comprises construction costs, installation costs, borrowing costs that are eligible for capitalisation and other costs necessary to bring the fixed assets ready for their intended use. Construction in progress is transferred to fixed assets when the assets are ready for their intended use, and depreciation begins from the following month. The carrying amount of construction in progress is reduced to the recoverable amount when the recoverable amount is below the carrying amount (Note 4(16)).
– 16 –
– II-161 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
(13) Intangible assets
Intangible assets comprise land use rights, software licenses and others. Intangible assets are measured at cost and amortized evenly over their estimated useful lives.
(a) Land use rights
Land use rights are amortised evenly over their useful lives of 40 to 70 years. If the acquisition costs of the land use rights and the buildings located thereon cannot be reasonably allocated between the land use rights and the buildings, all of the acquisition costs are recognised as fixed assets.
(b) Software licenses
The software licenses purchased by the Group are measured at actual cost and amortised evenly over their useful lives.
(c) Periodical review of useful life and amortisation method
For an intangible asset with a finite useful life, review of its useful life and amortisation method is performed at each year-end, with adjustment made as appropriate.
The estimated useful lives, estimated net residual values and annual depreciation rates of intangible assets are as follows:
Estimated Annual Estimated useful lives net residual values depreciation rates
Land use rights 40 to 70 0% 1.43% to 2.50% Others 3 to 20 0% 5% to 33.33%
(14) Goodwill
For business combinations involving entities not under common control, where the cost of the combination exceeds the acquirer’s interest in the fair value of the acquiree’s identifiable net assets, the difference is recognised as goodwill.
(15) Long-term deferred expenses
Long-term deferred expenses refer to the expenditure for improvements to fixed assets held under operating leases. Long-term deferred expenses are amortised evenly over the expected beneficial period and are presented at actual expenditure net of accumulated amortisation.
– 17 –
– II-162 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
(16) Impairment of long-term assets
Fixed assets, construction in progress, intangible assets with a finite useful life, Long-term deferred expenses and long- term equity investments in subsidiaries, joint ventures and associates are tested for impairment if there is any indication that an asset may be impaired at the balance date. If the result of the impairment test indicates that the recoverable amount of an asset is less than its carrying amount, a provision for impairment and an impairment loss are recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less disposal costs and the present value of the future cash flows expected to be derived from the asset. Provision for asset impairment is determined and recognised on the individual asset basis. If it is not possible to estimate the recoverable amount of an individual asset, the recoverable amount of a group of assets to which the asset belongs is determined. A group of assets is the smallest group of assets that is able to generate independent cash inflows.
Goodwill that is separately presented in the financial statements is tested at least annually for impairment, irrespective of whether there is any indication that it may be impaired. In conducting the test, the carrying value of goodwill is allocated to the related asset groups or a combination of asset groups which are expected to benefit from the synergies of the business combinations. If the result of the test indicates that the recoverable amount of an asset group or a combination of asset groups, including the allocated goodwill, is lower than its carrying amount, the corresponding impairment loss is recognised. The impairment loss is first deducted from the carrying amount of goodwill that is allocated to the asset group or the combination of asset groups, and then deducted from the carrying amounts of other assets within the asset groups or the combination of asset groups in proportion to the carrying amounts of assets other than goodwill.
Once the above asset impairment loss is recognised, it will not be reversed for the value recovered in the subsequent periods.
(17) Borrowing costs
The borrowing costs that are directly attributable to the acquisition and construction of a fixed asset that needs a substantially long period of time for its intended use commence to be capitalised and recorded as part of the cost of the asset when expenditures for the asset and borrowing costs have been incurred, and the activities relating to the acquisition and construction that are necessary to prepare the asset for its intended use have commenced. The capitalisation of borrowing costs ceases when the asset under acquisition or construction becomes ready for its intended use and the borrowing costs incurred thereafter are recognised in profit or loss for the current period. Capitalisation of borrowing costs is suspended during periods in which the acquisition or construction of an asset is interrupted abnormally and the interruption lasts for more than 3 months, until the acquisition or construction is resumed.
For the specific borrowings obtained for the acquisition or construction of an asset qualifying for capitalisation, the amount of borrowing costs eligible for capitalisation is determined by deducting any interest income earned from depositing the unused specific borrowings in the banks or any investment income arising on the temporary investment of those borrowings during the capitalisation period.
For the general borrowings obtained for the acquisition or construction of an asset qualifying for capitalisation, the amount of borrowing costs eligible for capitalisation is determined by applying the weighted average effective interest rate of general borrowings, to the weighted average of the excess amount of cumulative expenditures on the asset over the amount of specific borrowings. The effective interest rate is the rate at which the estimated future cash flows during the period of expected duration of the borrowings or applicable shorter period are discounted to the initial amount of the borrowings.
(18) Borrowings
Borrowings are recognised initially at fair value, net of transaction costs incurred, and subsequently measured at amortised cost using the effective interest method. Borrowings due within one year (inclusive) are classified as short- term borrowings, and the others are classified as long-term borrowings.
– 18 –
– II-163 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
(19) Employee benefits
Employee benefits refer to all forms of consideration compensation given by the Group in exchange for service rendered by employees or for the termination of employment relationship, which include short-term employee benefits, post- employment benefits and wages or salaries bore by China Evergrande Group for some of the staffs under the Group.
(a) Short-term employee benefits
Short-term employee benefits include employee wages or salaries, bonus, allowances and subsidies, staff welfare, premiums or contributions on medical insurance, work injury insurance and maternity insurance, housing funds, labour union funds and employee education costs and etc. The short-term employee benefits actually occurred are recognised in the accounting period in which the service is rendered by the employees, with a corresponding charge to the profit or loss for the current period or the cost of relevant assets. Employee benefits which are non-monetary benefits are measured at fair value.
(b) Post-employment benefits
The Group classifies post-employment benefit plans as either defined contribution plans or defined benefit plans. Defined contribution plans are post-employment benefit plans under which the Group pays fixed contributions into a separate fund and will have no obligation to pay further contributions; and defined benefit plans are post-employment benefit plans other than defined contribution plans. During the reporting period, the Group’s post-employment benefits mainly include basic pensions and unemployment insurance, both of which belong to the defined contribution plans.
(c) Basic pensions
The Group’s employees participate in the basic pension plan set up and administered by local authorities of Ministry of Human Resource and Social Security. Monthly payments of premiums on the basic pensions are calculated according to prescribed bases and percentage by the relevant local authorities. When employees retire, the relevant local authorities are obliged to pay the basic pensions to them. The amounts based on the above calculations are recognised as liabilities in the accounting period in which the service has been rendered by the employees, with a corresponding charge to the profit or loss for the current period or the cost of relevant assets.
(d) Termination benefits
The Group provides compensation for terminating the employment relationship with employees before the end of the employment contracts or as an offer to encourage employees to accept voluntary redundancy before the end of the employment contracts. The Group recognises a liability arising from compensation for termination of the employment relationship with employees, with a corresponding charge to profit or loss at the earlier of the following dates: when the Group cannot unilaterally withdraw an employment termination plan or a curtailment proposal; and when the Group recognises costs or expenses related to the restructuring that involves the payment of termination benefits.
The termination benefits expected to be paid within one year since the balance sheet date are classified as current liabilities.
– 19 –
– II-164 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
(20) Construction contracts
If the outcome of a construction contract can be estimated reliably, contract revenue and cost should be recognised by reference to the percentage of completion method at the balance sheet date. The term “the outcome of a construction contract can be estimated reliably” refers to the fact where the total income of the contract can be estimated reliably, the economic benefits associated with the contract will flow to the Company, the progress of completion and the cost necessary to complete the contract can be determined reliably at the balance sheet date, and the actual contract cost incurred for the completion of the contract can be differentiated clearly and measured reliably to compare the actual contract cost with the previous estimated costs.
The stage of completion is measured by the proportion of completed works to the estimated total works of the contracts or the surveying progress of the completed works, or the proportion of contract costs actually incurred to the estimated total costs of contracts, based on the nature of construction.
For construction contract completed in the current period, the balance of total income of the actual contract is recognized as income for the period after deducting the accumulated income recognized in the previous year. Meanwhile, the balance of total accumulated cost of the actual contract is recognized as cost for the period after deducting the accumulated cost recognized in the previous year.
When the outcome of a construction contract cannot be estimated reliably, if contract costs can be recovered, contract revenue shall be recognised only to the extent that the contract costs incurred are expected to be recovered, with the contract costs recognised as expenses in the period in which they are incurred. When contract costs cannot be recovered, these costs shall be recognised as expenses promptly when incurred and no contract revenue may be recognised.
In the case where the estimated total costs of contract exceed the estimated total revenue, the estimated losses of the contract shall be included into profit or loss for the current period.
(21) Deferred income tax assets and Deferred income tax liabilities
Deferred income tax assets and Deferred income tax liabilities are calculated and recognised based on the differences arising between the tax bases of assets and liabilities and their carrying amounts (temporary differences). Deferred tax asset is recognised for the deductible losses that can be carried forward to subsequent years for deduction of the taxable profit in accordance with the tax laws. No deferred tax liability is recognised for a temporary difference arising from the initial recognition of goodwill. No deferred tax asset or deferred tax liability is recognised for the temporary differences resulting from the initial recognition of assets or liabilities due to a transaction other than a business combination, which affects neither accounting profit nor taxable profit (or deductible loss). At the balance sheet date, Deferred income tax assets and Deferred income tax liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled.
Deferred income tax assets are only recognised for deductible temporary differences, deductible losses and tax credits to the extent that it is probable that taxable profit will be available in the future against which the deductible temporary differences, deductible losses and tax credits can be utilised.
Deferred income tax liabilities are recognised for temporary differences arising from investments in subsidiaries, associates and joint ventures, except where the Group is able to control the timing of reversal of the temporary difference, and it is probable that the temporary difference will not be reversed in the foreseeable future. When it is probable that the temporary differences arising from investments in subsidiaries, associates and joint ventures will be reversed in the foreseeable future and that the taxable profit will be available in the future against which the temporary differences can be utilised, the corresponding Deferred income tax assets are recognised.
Deferred income tax assets and Deferred income tax liabilities are offset when:
• the deferred taxes assets and Deferred income tax liabilities are related to the same tax payer within the Group and the same taxation authority; and, • that tax payer within the Group has a legally enforceable right to offset current tax assets against current tax liabilities in net value.
– 20 –
– II-165 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
(22) Revenue recognition
The amount of revenue is determined in accordance with the fair value of the consideration received or receivable for the sales of goods and services in the ordinary course of the Group’s activities. Revenue is shown net of discounts, rebates and returns.
Revenue is recognised when the economic benefits associated with the transaction will flow to the Group, the related revenue can be reliably measured, and the specific revenue recognition criteria have been met for each type of the Group’s activities as described below:
(a) Sales of properties
Revenue from sales of properties is recognised when the Group has transferred the risks and rewards incidental to the property to the buyer, that is, the completion of construction for the relevant property and the property has been delivered to the buyer, and when it is reasonably recognized that the relevant receivables are recoverable. If the Group is required to carry out other works on the property which has been delivered to the buyer, the relevant expenses must be recognized at the same time.
Property income received but has yet to reach revenue recognition is included in receipts in advance by the Group, and will be recognized as revenue upon satisfaction of the aforementioned conditions for revenue recognition.
(b) Sales of goods
The Group sells building materials and mineral water. The sales income of the goods is confirmed when the product is delivered to the customer.
(c) Rendering of services
The income generated from property management is recognized on straight line basis during the accounting period in which the service is rendered as the contract requires.
(d) Hotel operation
Hotel income from guest room rentals, catering sales and other ancillary services is confirmed upon delivery of goods or services.
(e) Income from construction contracts
For the accounting policies in relation to the income from construction contracts, please refer to Note 4(20).
(23) Government grants
Government grants refer to the monetary or non-monetary assets obtained by the Group from the government, including tax rebates, financial subsidies and others.
Government grants are recognised when the Group can comply with all attached conditions and the government grant can be received. If a government grant is a monetary asset, it will be measured at the amount received or receivable. If a government grant is a non-monetary asset, it will be measured at fair value; if it is unable to obtain its fair value reliably, it will be measured at nominal amount.
Government grants related to assets refer to government grants which are obtained by the Group for the purpose of purchase, construction or acquisition of the long-term assets. Government grants related to income refer to government grants other than those related to assets.
– 21 –
– II-166 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
(23) Government grants (Continued)
Government grants related to assets are recognised as deferred income, and evenly amortised to profit or loss over the useful life of the related assets. Government grants measured at nominal amount are directly recorded into profit or loss for the current period.
Government grants related to income are recorded as deferred income and recognised in profit or loss in the period in which the related expenses are recognised if the grants are intended to compensate for future expenses or loss and otherwise recognised in profit or loss for the current period in which the grants are used to compensate for expenses or losses that have been incurred.
(24) Leases
A lease that transfers substantially all the risks and rewards incidental to ownership of an asset is a finance lease. An operating lease is a lease other than a finance lease.
(a) Finance leases
As the lessor, at the beginning of the lease, the Group upon reorganisation shall take the sum of minimum lease receivables and initial direct costs as the book value of the finance lease receivable and record the unguaranteed residual amount. The difference between the sum of minimum lease receivables, initial direct costs and the unguaranteed residual amount and its present value is recognized as unrealized finance income. Unrealized finance income is calculated at the effective interest rate during the term of lease to recognise the current finance income.
(b) Operating leases
Lease payments under an operating lease are recognised on a straight-line basis over the period of the lease, and are either capitalised as part of the cost of related assets, or charged as profit or loss for the current period.
Rental income from an operating lease is recognised on a straight-line basis over the period of the lease.
(25) Financial guarantee contract
Financial guarantee contracts are classified as financial liabilities and are initially recorded at the fair value plus the direct attributable transaction costs of the acquisition or issuance of the financial guarantee contract. After the initial recognition, the Group will calculate the financial guarantee contract with the higher of the estimated present value of the expenses required to repay the current debt, and the initially recognized amount minus accumulated amortization.
Financial guarantee liabilities are derecognised from the balance sheet when, and only when, the obligation specified in the contract is discharged or cancelled or expired.
(26) Profit Distribution
The profits to be distributed are recognized as liabilities in the current period approved by the Board of Directors.
– 22 –
– II-167 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
(27) Business combinations
(a) Business combinations involving entities under common control
The consideration paid and net assets obtained by the acquirer in a business combination are measured at the carrying amount. The difference between the carrying amount of the net assets obtained from the combination and the carrying amount of the consideration paid for the combination is treated as an adjustment to Capital reserve (share premium). If the Capital reserve (share premium) is not sufficient to absorb the difference, the remaining balance is adjusted against retained earnings. Costs directly attributable to the business combinations are included in profit or loss in the period in which they are incurred. Transaction costs associated with the issue of equity or debt securities for the business combinations are included in the initially recognised amounts of the equity or debt securities.
(b) Business combinations involving entities not under common control
The cost of combination and identifiable net assets obtained by the acquirer in business combinations are measured at fair value at the acquisition date. Where the cost of the combination exceeds the acquirer’s interest in the fair value of the acquiree’s identifiable net assets, the difference is recognised as goodwill; where the cost of combination is lower than the acquirer’s interest in the fair value of the acquiree’s identifiable net assets, the difference is recognised in profit or loss for the current period. Costs directly attributable to the combination are included in profit or loss in the period in which they are incurred. Transaction costs associated with the issue of equity or debt securities for the business combinations are included in the initially recognised amounts of the equity or debt securities.
(28) Preparation of consolidated financial statements
The consolidated financial statements comprise the financial statements of the Company and all of its subsidiaries and the structured entities controlled by the Group.
A subsidiary is an entity that is controlled by the Group. Control refers to the right over the investee, to participate in the relevant activities of the investee and enjoy a variable return, and the ability to exercise its power over the investee to influence the amount of return. The Group has more than half of the voting rights in the investee directly or indirectly through the subsidiaries, indicating that the Group is able to control the investee and shall recognize the investee as a subsidiary and incorporate it in the consolidated scope of the consolidated financial statements. Subsidiaries are consolidated from the date on which the Group obtains control and are de-consolidated from the date that such control ceases. For a subsidiary that is acquired in business combinations involving entities under common control, it is included in the consolidated financial statements from the date when it, together with the Company, comes under the control of the same ultimate holding company. The portion of the net profits realised before the combination date is presented separately in the consolidated income statement.
Structured entity is to the decisive factors (such as where voting rights merely related to administrative affairs) when the voting right or similar rights are not taken as the designed structure of the entity when judging the controlling party of the entity, and the relevant activity of the entity is subject to the contract or corresponding arrangements.
When the Group initiates the establishment of a special asset management plan as the original equity owner and subordinated equity owner, the Group will assess whether the Group is exercising decision-making power as the principal responsible person for the structured entity. If the other parties (other investors of the structured entity) exercise the decision-making power, the Group does not control the structured entity. However, if the Group is judged to exercise the decision-making power, it is the principal responsible person and thus controls the structured entity.
Subsidiaries are consolidated from the date on which the Group obtains control and are de-consolidated from the date that such control ceases. For a subsidiary that is acquired in business combinations involving entities under common control, it is included in the consolidated financial statements from the date when it, together with the Company, comes under the control of the same ultimate holding company. The portion of the net profits realised before the combination date is presented separately in the consolidated income statement.
In preparing the consolidated financial statements, where the accounting policies and the accounting periods of the Company and subsidiaries are inconsistent, the financial statements of the subsidiaries are adjusted in accordance with the accounting policies and the accounting period of the Company. For subsidiaries acquired from business combinations involving entities not under common control, the individual financial statements of the subsidiaries are adjusted based on the fair value of the identifiable net assets at the acquisition date.
– 23 –
– II-168 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
(28) Preparation of consolidated financial statements (Continued)
All significant intra-group balances, transactions and unrealised profits are eliminated in the consolidated financial statements. The portion of subsidiaries’ owners’ equity and the portion of subsidiaries’ net profits and losses and comprehensive income for the period not attributable to the Company are recognised as minority interests, net profit attributed to minority interests and total comprehensive income attributed to minority interests and presented separately in the consolidated financial statements under owners’ equity, net profits and total comprehensive income respectively. If the subsidiaries’ loss for the current period attributed to the minority shareholders exceed the minority interests brought down, the amount will be deducted from the minority interests. Unrealised profits and losses resulting from the sale of assets by the Company to its subsidiaries are fully eliminated against net profit attributable to shareholders of the parent company. Unrealised profits and losses resulting from the sale of assets by a subsidiary to the Company are eliminated and allocated between net profit attributable to shareholders of the parent company and minority interests in accordance with the allocation proportion of the parent company in the subsidiary. Unrealised profits and losses resulting from the sale of assets by one subsidiary to another are eliminated and allocated between net profit attributable to shareholders of the parent company and minority interests in accordance with the allocation proportion of the parent company in the seller subsidiary.
If the accounting treatment of a transaction which considers the Group as an accounting entity is different from that considers the Company or its subsidiaries as an accounting entity, it is adjusted from the perspective of the Group.
(29) Segment information
The Group identifies operating segments based on the internal organisation structure, management requirements and internal reporting system, and discloses segment information of reportable segments which is determined on the basis of operating segments.
An operating segment is a component of the Group that satisfies all of the following conditions: (1) the component is able to earn revenue and incur expenses from its ordinary activities; (2) whose operating results are regularly reviewed by the Group’s management to make decisions about resources to be allocated to the segment and to assess its performance, and (3) for which the information on financial position, operating results and cash flows is available to the Group. If two or more operating segments have similar economic characteristics and satisfy certain conditions, they are aggregated into one single operating segment.
(30) Critical accounting estimates and judgements
The Group continually evaluates the critical accounting estimates and key judgements applied based on historical experience and other factors, including expectations of future events that are believed to be reasonable.
The critical accounting estimates and key assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next accounting year are outlined below:
(a) Income taxes
There are some transactions and events for which the ultimate tax determination is uncertain during the ordinary course of business. Significant judgement is required from the Group in determining the provision for income taxes and recognition of deferred tax in each of these jurisdictions. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made.
(b) Land value-added tax
In accordance with the relevant PRC tax law, the Group shall pay the land value-added tax. The local tax authorities have not yet issued the “Approval Letter” for the taxable amount of land value-added tax for some development projects. The Group calculates the taxable amount based on the Provisional Rules on Land Value-Added Tax and its Implementing Rules. If the local tax authorities confirm the taxable amount and the original book amount is inconsistent, the difference will be included in the period the land value-added tax clearing is completed.
– 24 –
– II-169 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)
(30) Critical accounting estimates and judgements (Continued)
(c) Fair value assessment of investment properties
The best evidence of fair value is the current price of the properties with similar leases and other contracts on the active market. In the absence of relevant information, the Group will set the amount to be within the estimated range of reasonable fair value. When making a judgment, the Group will take into consideration information from multiple sources, including: (i) the current prices of properties of different natures, conditions or locations or of properties subject to different leases or other contracts on the active markets and shall be adjusted to reflect the differences; (ii) the recent prices of similar properties on the inactive market and are adjusted to reflect any changes in the economic condition from the date on which transaction is made at such price; and (iii) discounted cash flows made on the reliable estimate of future cash flows. The estimate is derived from the terms of any existing leases and other contracts and, if possible, from external evidences such as the prevailing market rents of similar properties in the same location and condition, using the discount rate of existing market assessments that reflect the amount of cash flow and the time uncertainty. The Group assesses the fair value of its investment properties based on the valuation determined by the independent professional qualified valuer.
(d) Provision for impairment of inventories
At the balance sheet date, the Group calculates the value of the inventories at the lower of the cost and the net realizable value. Assumptions and estimates are required for the calculation of net realizable value. If the management’s revision of estimated selling price and the cost and expenses to be incurred at the time of completion will affect the estimation of the net realizable value of the inventories, the difference will post an impact on the provision for impairment of inventories.
(e) Estimate total cost of the property
The Group estimates the total cost of property construction when recognising the cost of property sales. The estimate is based on management’s detailed budgetary information on the development of the property and is regularly assessed during the construction. If the relevant estimate does not match the cost actually incurred, the difference will affect the correctness of the recognized cost of sales.
– 25 –
– II-170 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
5. TAXATION
Taxes applicable to the Group are listed below with their rates:
Tax Basis of Assessment Rate
Value-added Tax Assessable value-added amount (calculated by 3%, 5%, 6%, 11% or 17% assessable sales multiplied by applicable rate, net of deductible input tax of the period) Business Tax (a) Rental or sales income and property management 5% income of property Construction income 3% Land Appreciation Tax The value-added amount in transferring the property 30% – 60% of the progressive tax Property Tax Original costs of the property or rental income 1.2% of the original costs or 12% of the rent Income Tax Assessable income amount 25%
(a) In accordance with the Provisions on Matters Concerning the Pilot Collection of Value-Added Tax in Lieu of Business Tax (《營業稅改征增值稅試點有關事項的規定》) set out in the Notice of the Ministry of Finance and the State Administration of Taxation on the Full Implementation of the Pilot Program of Levying Value-added Tax in Lieu of Business Tax (《財政部國家稅務局關於全面推開營業稅改征增值稅試點的通知》) (Caishui [2016] No. 36) issued by the Ministry of Finance and the State Administration and the relevant regulations, from 1 May 2016, the property sales, the construction, the property management and the hotel operations of the Group are applicable to value-added tax, with a rate of 11% for property sales income and Construction income, 6% for property management income, and 5% and 3% for property sales and Construction charged by simple rates respectively.
6. SUBSIDIARIES
(1) First tier subsidiaries of the company
Principal place of business and Shareholding Name of subsidiary incorporation Business nature percentage Acquired by
廣州市俊匯房地產開發有限公司Guangzhou Junhui Real Estate Development Co., Ltd. Guangzhou City Property Development 100% Establishment 廣州通瑞達房地產實業有限公司Guangzhou Tongruida Real Estate Industrial Co., Ltd. Guangzhou City Property Development 100% Establishment 廣州市俊鴻房地產開發有限公司Guangzhou Junhong Real Estate Development Co., Ltd. Guangzhou City Property Development 100% Establishment 恒大地產集團武漢有限公司Hengda Real Estate Group (Wuhan) Company Limited Wuhan City Property Development 100% Establishment 恒大地產集團重慶有限公司Hengda Real Estate Group(Chongqing) Company Limited Chongqing City Property Development 100% Establishment 恒大地產集團成都有限公司Hengda (Chengdu) Real Estate Group Company Limited Chengdu City Property Development 100% Establishment 南京恒大富豐置業有限公司Nanjing Hengda Fufeng Real Estate Company Limited Nanjing City Property Development 100% Establishment 武漢鑫金觀光產業園有限公司Wuhan Xinjin Tourist Park Company Limited Wuhan City Property Development 100% Establishment 彭山縣鑫鑫觀光產業園有限公司Pengshan Xinxin Tourist Park Company Limited Meishan City Property Development 100% Establishment 安寧市淦鑫觀光產業園有限公司Anning Ganxin Tourist Park Company Limited Anning City Property Development 100% Establishment 恒大（清新）生態示範園有限公司Hengda (Qingxin) Designated Eco-park Company Limited Qingxin City Property Development 100% Establishment 恒大（佛岡）湯塘農場有限公司Hengda (Fogang) Tangtang Farm Company Limited Qingyuan City Property Development 100% Establishment 廣州恒大生態農業開發基地有限公司Guangzhou Hengda Eco-agricultural Development Base Company Limited Guangzhou City Property Development 100% Establishment 恒大地產集團天津薊縣有限公司Hengda (Tianjin) Jixian Real Estate Group Company Limited Tianjin City Property Development 100% Establishment 鄂州鑫金生態觀光產業園有限公司E’zhou Xinjin Ecology Sightseeing Park Company Limited Xinjin City Property Development 100% Establishment 重慶市鑫恒觀光農業有限公司Chongqing Xinheng Sightseeing Industry Park Company Limited Chongqing City Property Development 100% Establishment 恒大鑫隆（瀋陽）置業有限公司Hengda Xinlong (Shengyang) Real Estate Company Limited Shengyang City Property Development 100% Establishment 鶴山市鑫鑫觀光產業園有限公司Heshan Xinxin Tourist Park Company Limited Heshan City Property Development 100% Establishment 恒大盛宇（清新）置業有限公司Hengda Shengyu (Qingxin) Company Limited Qingyuan City Property Development 100% Establishment 恒大地產集團鄭州有限公司Hengda (Zhengzhou) Real Estate Group Company Limited Zhengzhou City Property Development 100% Establishment
– 26 –
– II-171 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
6. SUBSIDIARIES (CONTINUED)
(1) First tier subsidiaries of the company (Continued)
Principal place of business and Shareholding Name of subsidiary incorporation Business nature percentage Acquired by
廣州市金碧房地產代理有限公司Guangzhou Jinbi Real Estate Agency Company Limited Guangzhou City Property Management 100% Establishment 廣州市金碧世家物業服務有限公司Guangzhou Jinbi Shijia Property Service Company Limited Guangzhou City Property Management 100% Establishment 廣州市金碧恒盈物業服務有限公司Guangzhou Jinbi Hengying Property Service Company Limited Guangzhou City Property Management 100% Establishment 恒大地產集團西安有限公司Hengda (Xi’an) Real Estate Group Company Limited Xi’an City Property Development 100% Establishment 恒大地產集團洛陽有限公司Hengda (Luoyang) Real Estate Group Company Limited Luoyang City Property Development 100% Establishment 恒大地產集團太原有限公司Hengda (Taiyuan) Real Estate Group Company Limited Taiyuan City Property Development 100% Establishment 西安曲江投資建設有限公司Xi’an Qujiang Investment Construction Company Limited Xi’an City Property Development 100% Acquisition 西安祺雲置業有限公司Xi’an Qiyun Land Company Limited Xi’an City Property Development 100% Acquisition 恒大地產集團南寧有限公司Hengda Nanning Real Estate Group Company Limited Nanning City Property Development 100% Establishment 恒大地產集團貴陽置業有限公司Hengda Real Estate Group Guiyang Property Company Limited Guiyang City Property Development 100% Acquisition 南京漢典房地產開發有限公司Nanjing Handian Property Development Company Limited Nanjing City Property Development 100% Acquisition 湖南雄震投資有限公司Hunan Xiongzhen Investment Company Limited Changsha City Property Development 100% Acquisition 恒大地產集團合肥有限公司Hengda Hefei Real Estate Group Company Limited Hefei City Property Development 100% Establishment 恒大地產集團長沙置業有限公司Hengda Changsha Property Company Limited Changsha City Property Development 100% Establishment 廣州恒暉建築工程有限公司Guangzhou Henghui Construction Company Limited Guangzhou City Construction 100% Establishment 廣州市恒合工程監理有限公司 Guangzhou City Construction 100% Establishment 恒大園林集團有限公司Hengda Landscaping Group Company Limited Guangzhou City Construction 100% Establishment 廣州恒大裝飾工程有限公司 Guangzhou City Construction 100% Establishment 佛山市恒大金屬建築材料有限公司Foshan Hengda Metallic Construction Material Company Limited Foshan City Construction 100% Establishment 廣州市恒大廣告有限公司Guangzhou Hengda Advertising Company Limited Guangzhou City Advertisement Design 100% Establishment 荊州市晴川建築設計院有限公司Jingzhou Architecture Design Institute Company Limited Jingzhou City Advertisement Design 100% Establishment 廣州市恒大材料設備有限公司Hengda (Guangzhou) Material and Equipment Company Limited Guangzhou City Construction 100% Establishment 佛山市南海俊誠房地產開發有限公司Foshan Nanhai Jun Cheng Property Development Company Limited Foshan City Property Development 100% Acquisition 恒大地產集團廣東房地產開發有限公司Hengda Real Estate Group Guangdong Property Development Company Limited Guangzhou City Property Development 100% Acquisition 恒大地產集團包頭有限公司Hengda (Baotou) Real Estate Group Company Limited Baotou City Property Development 100% Establishment 廣東恒大排球俱樂部有限公司 Guangzhou City Culture and Sport 100% Establishment 江西宏吉投資有限公司Jiangxi Hongji Investment Company Limited Nanchang City Property Development 100% Acquisition 恒大地產集團石家莊有限公司Hengda (Shijiazhuang) Real Estate Group Company Limited Shijiazhuang City Property Development 100% Establishment 恒大地產集團濟南置業有限公司Hengda (Jinan) Real Estate Group Company Limited Jinan City Property Development 100% Establishment 恒大地產集團天津有限公司Hengda (Tianjin) Real Estate Group Company Limited Tianjin City Property Development 100% Establishment 恒大地產集團佛岡有限公司Hengda (Fogang) Real Estate Group Company Limited Qingyuan City Property Development 100% Establishment 恒大地產集團上海盛建置業有限公司 Shanghai City Property Development 100% Establishment 深圳市中心港房地產開發有限公司Shenzhen Central Port Real Estate Development Company Limited Shenzhen City Property Development 100% Establishment 太原名都房地產開發有限公司Taiyuan Real Estate Development Co., Ltd. Taiyuan City Property Development 100% Acquisition 恒大地產集團海南有限公司Hengda (Hainan) Real Estate Group Company Limited Haikou City Property Development 100% Establishment 太原俊景房地產開發有限公司Taiyuan Junjing Real Estate Development Co., Ltd. Taiyuan City Property Development 100% Establishment 重慶恒大君鑫房地產開發有限公司Chongqing Hengda Junxin Property Development Co., Ltd. Chongqing City Property Development 100% Establishment 淮安恒大富豐房地產開發有限公司Huai’an Evergrande Fufeng Property Development Co., Ltd. Huai’an City Property Development 100% Establishment 恒大地產集團蘭州置業有限公司Hengda Real Estate Group Lan Zhou Property Co., Ltd. Lan Zhou City Property Development 100% Acquisition 恒大地產集團長春有限公司Hengda (Changchun) Real Estate Group Company Limited Changchun City Property Development 100% Establishment 恒大地產（沈陽）投資有限公司 Mukden City Property Development 100% Establishment 恒大地產集團（中山）有限公司Hengda (Zhongshan) Real Estate Group Company Limited Zhongshan City Property Development 100% Acquisition 恒大地產集團鹿泉有限公司Hengda Real Estate Group Luquan Co., Ltd. Shijiazhuang City Property Development 100% Establishment 儋州恒大濱海投資有限公司Danzhou Hengda Binhai Investment Co., Ltd. Danzhou City Property Development 100% Establishment 恒大地產集團景德鎮置業有限公司Hengda Real Estate Group Jingdezhen Property Development Co., Ltd. Jingdezhen City Property Development 100% Establishment 恒大地產集團昆明有限公司Hengda Real Estate Group Kunming Co., Ltd. Kunming City Property Development 100% Establishment 恒大地產集團呼和浩特有限公司Hengda Real Estate Group Hohhot Co., Ltd. Hohhot City Property Development 100% Establishment
– 27 –
– II-172 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
6. SUBSIDIARIES (CONTINUED)
(1) First tier subsidiaries of the company (Continued)
Principal place of business and Shareholding Name of subsidiary incorporation Business nature percentage Acquired by
丹陽恒大置業有限公司Danyang Evergrande Property Co., Ltd. Danyang City Property Development 100% Establishment 恒大地產集團石嘴山有限公司Hengda Real Estate Group Shizuishan Co., Ltd. Shizuishan City Property Development 100% Establishment 運城市金恒房地產開發有限公司Yuncheng Jinheng Real Estate Development Co., Ltd. Yuncheng City Property Development 100% Establishment 銅陵恒大置業有限公司Tongling Hengda Property Co., Ltd. Tongling City Property Development 100% Establishment 淮北粵通置業有限公司Huaibei Yuetong Property Co., Ltd. Huaibei City Property Development 100% Establishment 恒大地產集團自貢有限公司Hengda Real Estate Group (Zigong) Co., Ltd. Zigong City Property Development 100% Establishment 恒大地產集團雲浮有限公司Hengda Real Estate Group Yunfu Co., Ltd. Yunfu City Property Development 100% Establishment 臨汾市紫旌房地產開發有限公司Linfen Zijin Real Estate Development Company Limited Linfen City Property Development 100% Acquisition 恒大地產集團銀川有限公司Hengda Real Estate Group Yinchuan Co., Ltd. Yinchuan City Property Development 100% Establishment 恒大地產集團銀川有限公司Hengda Real Estate Group Harbin Co., Ltd. Harbin City Property Development 100% Establishment 廣州市金碧大世界飲食娛樂有限公司Guangzhou Jinbi Dashijie Catering and Entertainment Company Limited Guangzhou City Hotel Business 100% Acquisition 北京潤業文化藝術有限公司 Beijing City Property Development 100% Acquisition 廣州恒大民族歌舞團有限公司 Guangzhou City Culture and Sport 100% Establishment 佛山市南海盈裕房地產發展有限公司 Foshan City Property Development 100% Establishment 恒大地產南京置業有限公司 Nanjing City Property Development 100% Establishment 宿遷恒大華府置業有限公司Suqian Hengda Huafu Property Company Limited Suqian City Property Development 100% Establishment 連雲港恒大城置業有限公司 Lianyungang City Property Development 100% Establishment 岳陽金碧置業有限公司 Yueyang City Property Development 100% Establishment 恒大地產集團韶關有限公司Hengda Real (Shaoguan) Estate Group Company Limited Shaoguan City Property Development 100% Establishment 太原俊濠房地產開發有限公司 Taiyuan City Property Development 100% Establishment 深圳市建設（集團）有限公司Shenzhen Construction (Group) Corporation Limited Shenzhen City Construction 100% Acquisition 大同俊景房地產開發有限公司Datong Junjing Real Estate Company Limited Datong City Property Development 100% Establishment 恒大地產集團烏魯木齊有限公司Hengda Real (Urumqi) Estate Group Company Limited Urumqi City Property Development 100% Establishment 恒大地產集團鹽城有限公司Hengda (Yancheng) Real Estate Group Company Limited Yancheng City Property Development 100% Establishment 恒大世紀城（清遠）酒店有限公司 Qingyuan City Property Development 100% Establishment 呂梁市俊匯房地產開發有限公司 Luliang City Property Development 100% Establishment 嘉興恒大置業有限公司 Jiaxing City Property Development 100% Establishment 運城經濟開發區壹加壹房地產開發有限公司 Yuncheng City Property Development 100% Acquisition 運城市鑫萬瑞房地產開發有限公司 Yuncheng City Property Development 100% Acquisition 東莞市城邦房地產開發有限公司 Dongguan City Property Development 100% Acquisition 恒大地產集團（深圳）有限公司Hengda (Shenzhen) Real Estate Group Company Limited Shenzhen City Property Development 100% Establishment 重慶恒大酒店有限公司 Chongqing City Hotel Business 100% Establishment 南昌中電投高新置業有限公司 Nanchang City Property Development 100% Acquisition 恒大足球學校Evergrande Football School Guangzhou City Culture and Sport 100% Establishment 恒大商業有限公司 Guangzhou City Hotel Business 100% Establishment 海鹽盛建置業有限公司 Haiyan City Property Development 100% Establishment 恒大地產集團恩平有限公司Hengda (Enping) Real Estate Group Company Limited Enping City Property Development 100% Establishment 恒大地產集團白洋淀溫泉城有限公司 Baoding City Property Development 100% Establishment 廣州市品宴餐飲企業管理有限公司 Guangzhou City Hotel Business 100% Establishment 恒大地產集團陽江有限公司Hengda (Yeungkong) Real Estate Group Company Limited Yeungkong City Property Development 100% Establishment 北京觀止文化藝術有限公司 Beijing City Culture and Sport 100% Acquisition 平湖恒大名都置業有限公司 Pinghu City Property Development 100% Establishment 烏海市俊景房地產開發有限公司 Wuhai City Property Development 100% Establishment 廣州市恒大酒店有限公司 Guangzhou City Hotel Business 100% Establishment 無錫恒大房產開發有限公司 Wuxi City Hotel Business 100% Establishment 恒大地產集團天津薊縣有限公司Hengda Real Estate Group Tianjin Ji County Co., Ltd. Tianjin City Hotel Business 100% Establishment 恒大地產集團防城港有限公司Hengda Real Estate Group Fangchenggang Co., Ltd. Fangchenggang CityProperty Development 100% Establishment
– 28 –
– II-173 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
6. SUBSIDIARIES (CONTINUED)
(1) First tier subsidiaries of the company (Continued)
Principal place of business and Shareholding Name of subsidiary incorporation Business nature percentage Acquired by
彭山恒大酒店有限公司 Meishan City Hotel Business 100% Establishment 成都金堂恒大酒店有限公司 Chengdu City Hotel Business 100% Establishment 陽泉市燎原房地產開發有限公司 Yangquan City Property Development 100% Acquisition 恒大地產集團九江有限公司Hengda Real Estate Group Jiujiang Co., Ltd. Jiujiang City Property Development 100% Establishment 衛州恒大盛建置業有限公司 Weizhou City Property Development 100% Establishment 恒大地產集團湛江御景置業有限公司 Chankiang City Property Development 100% Establishment 廣州市恒大永昌置業有限公司 Guangzhou City Property Development 100% Establishment 廣州市恒大卓越置業有限公司 Guangzhou City Property Development 100% Establishment 恒大地產集團河源有限公司Hengda Real Estate Group Heyuan Co., Ltd. Heyuan City Property Development 100% Establishment 恒大健康產業有限公司Evergrande Health Limited Guangzhou City Culture and Sport 100% Establishment 恒大地產集團吉安有限公司Hengda Real Estate Group Jian Co., Ltd. Jian City Property Development 100% Establishment 北京天力興業投資有限公司 Beijing City Property Development 100% Acquisition 北京沙澗恒大置業有限公司 Beijing City Property Development 100% Establishment 恒大地產集團天津世博國際會議中心 Tianjin City Hotel Business 100% Establishment 恒大地產集團大連有限公司Hengda Real Estate Group Dalian Co., Ltd. Dalian City Property Development 100% Establishment 合肥粵誠置業有限公司 Hefei City Property Development 100% Establishment 合肥粵祺置業有限公司 Hefei City Property Development 100% Establishment 合肥粵褀商業運營有限公司 Hefei City Property Development 100% Establishment 合肥粵泰置業有限公司 Hefei City Property Development 100% Establishment 合肥粵泰商業營運管理有限公司 Hefei City Property Development 100% Establishment 合肥粵豐置業有限公司 Hefei City Property Development 100% Establishment 恒大地產集團北京有限公司Hengda Real Estate Group Beijing Co., Ltd. Beijing City Property Development 100% Establishment 寧夏昊天房地產開發有限公司 Yinchuan City Property Development 100% Establishment 北京恒粵置業有限公司 Beijing City Property Development 100% Establishment 林芝華錦日用品有限公司 Nyingchi City Hotel Business 100% Establishment 恒大地產集團福州有限公司Hengda Real Estate Group Fuzhou Co., Ltd. Fuzhou City Property Development 100% Establishment 廣州市鑫源投資有限公司 Guangzhou City Hotel Business 100% Establishment 太原市俊恒房地產開發有限公司 Taiyuan City Property Development 100% Establishment 武漢恒大酒店有限公司 Wuhan City Hotel Business 100% Establishment 雙鴨山恒大酒店有限公司 Shuangyashan City Hotel Business 100% Establishment 太原盛世君泰房地產開發有限公司 Taiyuan City Property Development 100% Acquisition 太原金世恒房地產開發有限公司 Taiyuan City Property Development 100% Establishment 北京恒世投資有限公司 Beijing City Property Development 100% Establishment 太原萬恒房地產開發有限公司 Taiyuan City Property Development 100% Establishment 南寧金碧恒大置業有限公司 Nanjing City Property Development 100% Establishment 江西星宇置業發展有限公司 Jiangxi City Property Development 100% Acquisition 合肥粵恒置業有限公司 Hefei City Property Development 100% Establishment 山西嘉盛房地產開發有限公司 Taiyuan City Property Development 100% Acquisition 廣州市恒大裝修設計院有限公司 Guangzhou City Advertisement Design 100% Establishment 恒大地產集團粵東有限公司Hengda Real Estate Group Yuet Tung Co., Ltd. Zhuhai City Property Development 100% Establishment 恒大地產集團珠三角房地產開發有限公司 Guangzhou City Property Development 100% Establishment 太原恒澤房地產開發有限公司 Taiyuan City Property Development 100% Establishment 天基控股有限公司Tianji Holding Limited Hong Kong Property Development 100% Establishment 天鼎控股有限公司Tianding Holding Limited Hong Kong Property Development 100% Establishment 恒大大方扶貧管理有限公司 Guizhou City Property Development 100% Establishment 山西蘭花康宇房地產開發有限公司 Taiyuan City Property Development 100% Acquisition 太原恒隆房地產開發有限公司 Taiyuan City Property Development 100% Acquisition
– 29 –
– II-174 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
6. SUBSIDIARIES (CONTINUED)
(2) Key subsidiaries deconsolidated in 2016
Reason for Name of Key Subsidiaries Deconsolidation
Evergrande Culture Industry Group Co., Ltd. and its subsidiaries (“Evergrande Culture”) Disposal Evergrande Tourism Group Ltd. and its subsidiaries (“Evergrande Tourism”) Disposal 儋州恒大香檳島投資開發有限公司and its subsidiaries (“恒大香檳島”) Disposal Hengda Real Estate Group Nanchang Co., Ltd. (“Hengda Nanchang”) Disposal
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT
(1) Cash and bank balances
31 December 2016 31 December 2015
Treasury cash 50 45 Bank deposits 171,135 91,256 Other cash and bank balances 104,006 59,766 275,191 151,067
Less: Restricted cash and bank balances (104,006) (56,766) Cash and cash equivalents 171,185 91,301
Other cash and bank balances, which is restricted, represents the deposits for housing mortgage, the deposits for clearance compensation, and the pledged guarantee for bank borrowings deposited to the designated bank account by the Group (note 7(39)(d)).
(2) Financial assets at fair value through profit or loss
31 December 2016 31 December 2015
Investment in equity instruments held for trading 3,076 –
As at 31 December 2016, the financial assets at fair value through profit or loss are the investment in equity instruments in the market of China’s A share with publicly available quotations in the active market.
As at 31 December 2015, the Group did not have any financial assets at fair value through profit or loss.
The fair value of the equity instruments held for trading is recognised based on the last trading day of Shanghai Stock Exchange in 2016.
– 30 –
– II-175 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(3) Notes receivable
31 December 2016 31 December 2015
Commercial promissory note 68 35 Bank promissory note – 10 68 45
(4) Trade and other receivables
(a) Trade receivables
31 December 31 December 2015 2016
Due from related parties (note 10(4)(a)) 90 197 Due from third parties 3,640 8,267 3,730 8,464 Increase Decrease in the Year in the Year Less: Allowance for bad debt (18) (6) 7 (17) 3,712 8,447
An ageing analysis of trade receivables is as follows:
31 December 2016 31 December 2015 Total Allowance Total Allowance Amount percentage for bad debt Amount percentage for bad debt
Within one year 6,929 81.87% – 3,402 91.21% – Over one year but within two years 938 11.08% – 179 4.80% – Over two years 597 7.05% (17) 149 3.99% (18) 8,464 100.00% (17) 3,730 100.00% (18)
As at 31 December 2016 and 31 December 2015, the Group has no trade receivables that were past due.
– 31 –
– II-176 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(4) Trade and other receivables (Continued)
(b) Long-term receivables
31 December 2016 31 December 2015
Loan instalment receivables 15,358 15,608 Financial lease receivables 407 – 15,765 15,608
Less: Non-current assets due within one year (7,019) (5,303) 8,746 10,305
As at 31 December 2016, long-term receivables of RMB601,000,000 (31 December 2015: RMB663,000,000) became past due but no impairment was recognised since the Group considered the amount to be recoverable based on the analysis on defaulter’s financial position and its credit report, and no impairment was individually accrued.
31 December 2016 31 December 2015
Within one year 374 580 One to two years 167 83 Over two years 60 – 601 663
(c) Other receivables
31 December 31 December 2015 2016
Amounts due from related parties (note 10(4)(c)) 25,988 2,619 Deposits receivable 4,970 7,981 Amounts due from minority shareholders 1,284 4,235 Amounts due from disposal of subsidiaries – 6,776 Others 2,930 7,191 35,172 28,802 Increase Decrease in the Year in the Year Less: Allowance for bad debt (83) (95) 3 (175) 35,089 28,627
– 32 –
– II-177 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(4) Trade and other receivables (Continued)
(c) Other receivables (Continued)
An analysis of other receivables and allowance for bad debt is as follows:
31 December 2016 31 December 2015 Total Allowance Total Allowance Amount percentage for bad debt Amount percentage for bad debt
Within one year 23,270 80.79% (115) 31,245 88.83% – Over one year but within two years 2,392 8.30% (17) 1,776 5.05% – Over two years 3,140 10.91% (43) 2,151 6.12% (83) 28,802 100.00% (175) 35,172 100.00% (83)
As at 31 December 2016 and 31 December 2015, there were no other receivables that were past due but not impaired.
(5) Prepayments
31 December 2016 31 December 2015 Total Total Amount percentage Amount percentage
Within one year 41,787 80.11% 20,521 63.80% Over one year but within two years 4,088 7.84% 5,446 16.93% Over two years 6,284 12.05% 6,197 19.27% 52,159 100.00% 32,164 100.00%
Prepayments mainly represent the prepaid land premium pending the land use right. Prepayments due more than one year with significant amounts mainly represent the prepaid amount for land clearance or the land certificate in portions.
– 33 –
– II-178 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(6) Inventories
31 December 2016 31 December 2015
Properties under development 567,171 326,390 Completed properties 80,597 52,935 Others 157 95 647,925 379,420
Less: Provision for inventory impairment (828) (562) 647,097 378,858
An analysis of provision for inventory impairment is as follows:
31 December Provision Resale 31 December 2015 in the Year in the Year 2016
Inventories (562) (283) 17 (828)
In 2016, the capitalising amount for the borrowing fees credited to the properties under development was RMB30,747,000,000 (2015: RMB21,048,000,000) and the capitalising rate for the recognition of the borrowing fees was 9.39% per annum (2015: 10.41%).
Details of the Group’s inventory pledged for the bank borrowings as at 31 December 2016 and 31 December 2015 are set out in note 7(15)(a) and note 7(23)(a).
(7) Other current assets
31 December 2016 31 December 2015
Prepaid business tax 2,855 3,293 Prepaid income tax 3,097 2,113 Prepaid land appreciation tax 4,438 1,973 Available-for-sale financial assets 1,672 – Prepaid value-added tax 1,561 17 Prepaid construction tax 348 75 Prepaid education surcharge 253 59 Input tax to be deducted 218 – Others 24 4 14,466 7,534
– 34 –
– II-179 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(8) Available-for-sale financial assets
31 December 2016 31 December 2015
Measured at fair value － Available-for-sale equity instruments 34,840 787
As at 31 December 2016 and 31 December 2015, the Group’s available-for-sale financial assets were denominated in RMB and no impairment allowance was made for the available-for-sale financial assets.
Available-for-sale financial assets s mainly include the investment in equity instruments in the market of China’s A share with publicly available quotations in the active market.
The fair value of the available-for-sale financial assets is recognised based on the closing price on the last trading day of Shanghai Stock Exchange and Shenzhen Stock Exchange during the relevant period.
(9) Long-term investments
31 December 2016 31 December 2015
Joint ventures (a) 566 8,396 Associates (b) 161 153 727 8,549
The Group accounted for the above equity investments by equity method. The Group has not been imposed any material restrictions on realising the long-term investments and the above investment interests do not have any contingent liabilities or promises.
(a) Joint ventures
Shareholding and voting right Place of Business Registered Incorporation Nature Capital 2016 2015
北京北恒中慧教育科技有限公司 PRC Cultural RMB10,000,000 55% 55% Beijing Beiheng Zhonghui Education Technology Education Co., Ltd. 王府井恒大商業控股有限公司 PRC Business RMB1,000,000,000 51% 51% Wangfujing Evergrande Commercial Holdings Management Company Limited 內蒙古魯橋置業有限公司 PRC Property RMB200,000,000 50% 50% Inner Mongolia Luqiao Property Co., Ltd. Development 廣州恒大淘寳足球俱樂部有限公司 PRC Cultural RMB375,000,000 60% 60% Guangzhou Evergrande Taobao Football Club Co., Ltd. Entertainment 恒大人壽保險有限公司 PRC Insurance RMB1,000,000,000 N.A. 50% Evergrande Life Insurance Co., Ltd. 杭州晶立置業有限公司 PRC Property USD370,000,000 N.A. 49% Hangzhou Jingli Property Co., Ltd. Development 濟南恒大城西置業有限公司 PRC Property RMB10,000,000 49% N.A. Jinan Evergrande Chengxi Property Co., Ltd. Development
– 35 –
– II-180 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(9) Long-term investments (Continued)
(a) Joint ventures (Continued)
The investments in joint ventures are set out as follows:
Other Other consolidated capital income reserve Net profit or adjusted by adjusted by loss adjusted 31 December Increase in Decrease in equity equity by equity 31 December 2015 investment investment method method method 2016
Joint ventures 8,396 6,044 (13,046) (197) 14 (645) 566
The Group has no joint venture that is individually significant.
(b) Associates
Shareholding and voting right Place of Business Registered Incorporation Nature Capital 2016 2015
重慶同景文浩置業有限公司 PRC Property RMB100,000,000 49% 49% Chongqing Verakin Wenhao Real Estate Company Development Limited 濟南西創置業有限公司 PRC Property RMB18,000,000 30% 30% Jinan Xichuang Property Co., Ltd. Development 濟南西實置業有限公司 PRC Property RMB18,000,000 30% 30% Jinan Xishi Property Co., Ltd. Development 湖南淺水灣湘雅溫泉花園有限公司 PRC Property RMB30,000,000 18% 18% Hunan Repulse Bay Xiangya Hot Spring Garden Co., Development Ltd. 濟南西業置業有限公司 PRC Property RMB18,000,000 N.A. 30% Jinan Xiye Property Co., Ltd. Development 濟南西開置業有限公司 PRC Property RMB18,000,000 N.A. 30% Jinan Xikai Property Co., Ltd. Development 上海申城影視傳媒有限公司 PRC Culture RMB40,000,000 N.A. 25% Shanghai Shencheng Culture Investment Co., Ltd. and Art 前海開源資產管理（深圳）有限公司 PRC Assets RMB100,000,000 N.A. 16% Qianhai Kaiyuan Asset Management (Shenzhen) Co., Management Ltd. 東營御景置業有限公司 PRC Property RMB100,000,000 N.A. 20% Dongying Yujing Property Co., Ltd. Development
The investments in associates are set out as follows:
Other capital Net income reserves or loss adjusted by adjusted by 31 December Increase in Decrease in equity equity 31 December 2015 investment investment method method 2016
Associates 153 53 (47) 4 (2) 161
The Group has no associates that is individually significant.
– 36 –
– II-181 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(9) Long-term investments (Continued)
(c) Summary of minor joint ventures and associates
2016 2015
Joint ventures:
Total carrying amount for investment 1,639 9,046 Total amount of the followings calculated by shareholding percentage Net loss (i) (645) (595) Other consolidated income (i) (197) – Total consolidated income (842) (595)
Associates:
Total carrying amount for investment 177 134 Total amount of the followings calculated by shareholding percentage Net (loss)/gain (i) (2) 174 Other consolidated incomes (i) – – Total consolidated income (2) 174
(i) Net profit and other consolidated incomes have taken the fair value of the identifiable assets and liabilities when the investment was secured and the adjustment effect of the standard accounting policy into account.
(10) Investment properties
Housing and buildings
31 December 2015 96,382 Increase in the Year 14,810 Business combinations by entities not under common control (note 9(2)) 16,734 Fixed assets transferred in (1,310) Change in fair value 4,925 Exchange differences arising from translation of financial statements 847 Disposal of subsidiaries in the Year (185) Decrease in the Year (2,007) 31 December 2016 130,196
In 2016, the capitalising amount for the borrowing fees credited to the investment properties was RMB2,366,000,000 (2015: RMB1,710,000,000) and the capitalising rate for the recognition of the borrowing fees was 9.39% per annum (2015: 10.41%).
In 2016, the effect of the change in the fair value for the investment properties on the Group’s profit or loss was RMB4,925,000,000 (2015: RMB12,746,000,000).
– 37 –
– II-182 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(10) Investment properties (Continued)
In 2016, the Group’s disposal income of investment properties was RMB94,000,000 (2015: RMB185,000,000).
Details of the Group’s investment properties pledged for bank borrowings as at 31 December 2016 and 31 December 2015 are set out in note 7(15)(a) and 7(23)(a).
(11) Fixed assets
Housing Machinery and and Office buildings Equipment Vehicles Equipment Total
Original price 31 December 2015 7,625 288 500 4,067 12,480 Construction in process transferred in 1,299 22 – 374 1,695 investment properties transferred in 1,310 – – – 1,310 business combinations by entities not under common control (note 9(2)) 1,443 26 24 80 1,573 Purchase in the Year 799 205 92 479 1,575 Decrease in the Year (683) (362) (46) (98) (1,189) 31 December 2016 11,793 179 570 4,902 17,444
Accumulated depreciation 31 December 2015 (1,284) (82) (362) (1,575) (3,303) Provision for the Year (671) (49) (81) (509) (1,310) Decrease in the Year 201 67 40 (69) 377 31 December 2016 (1,754) (64) (403) (2,015) (4,236)
Net value 31 December 2016 10,039 115 167 2,887 13,208
31 December 2015 6,341 206 138 2,492 9,177
Depreciation costs credited to operation costs, management fees and sales costs in 2016 and 2015 are as follows:
2016 2015
Operation costs 402 463 Management fees 617 476 Sales costs 291 151 1,310 1,090
Details of the Group’s fixed assets for the pledging for bank borrowings as at 31 December 2016 and 31 December 2015 are set out in note 7(15)(a) and 7(23)(a).
– 38 –
– II-183 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(12) Construction in process
Transferred 31 December Increase to fixed assets 31 December Name of construction 2015 in the Year in the Year 2016
Hotel construction 3,575 2,598 (1,695) 4,478 Including: Capitalising amount for borrowing fees 526 442 (249) 719
In, 2016, the capitalising rate for the recognition of the borrowing fees was 9.39% per annum (2015: 10.41%).
(13) Intangible assets
Land use right Other Total
Original price 31 December 2015 3,326 142 3,468 Increase in the Year 1,896 46 1,942 Business combinations by entities not under common control (note 9(2)) 59 102 161 Decrease in the Year (43) (64) (107) 31 December 2016 5,238 226 5,464
Accumulated depreciation 31 December 2015 (180) (46) (226) Amortisation for the Year (119) (18) (137) Decrease in the Year 5 32 37 31 December 2016 (294) (32) (326)
Net value 31 December 2016 4,944 194 5,138
31 December 2015 3,146 96 3,242
(14) Long-term fee to be amortised
31 December 2016 31 December 2015
Renovation fees 143 88 Other 61 56 204 144
– 39 –
– II-184 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(15) SHORT-TERM BORROWINGS
31 December 2016 31 December 2015
Secured borrowings Secured (a) 24,793 5,370 Pledged (b) 33,901 7,805 Guaranteed (c) 26,271 5,083 Unsecured borrowings 3,741 19,699 88,706 37,957
(a) As at 31 December 2016, the secured borrowings of RMB24,793,000,000 were secured by the fixed assets with a carrying amount of RMB1,517,000,000, the investment properties with a carrying amount of RMB10,598,000,000 and the inventory with a carrying amount of RMB33,991,000,000 (2015: the secured borrowings of RMB5,370,000,000 were secured by the fixed assets with a carrying amount of RMB217,000,000, the investment properties with a carrying amount of RMB733,000,000, the intangible asset, land use right, with a carrying amount of RMB21,000,000 and the inventory with a carrying amount of RMB4,342,000,000).
(b) As at 31 December 2016, the pledged borrowings of RMB33,901,000,000 were pledged by the time deposit of RMB15,415,000,000 and the equity of the subsidiaries of RMB15,856,000,000 (2015: the pledged borrowings of RMB7,805,000,000 were pledged by the RMB time deposit of RMB2,901,000,000 and the equity of the subsidiaries of RMB5,749,000,000).
(c) As at 31 December 2016, the guaranteed borrowings of RMB278,000,000 (2015: RMB5,083,000,000) were guaranteed by China Evergrande Group while RMB25,993,000,000 (2015: nil) were guaranteed by the Company and its subsidiaries.
As at 31 December 2016, short-term borrowings include the borrowing of RMB2,700,000,000 provided by the joint venture of the Company’s ultimate holding company to the Group and the borrowing of RMB799,000,000 provided by the joint venture of the Company’s ultimate holding company to the Group.
As at 31 December 2016, the rate of short-term borrowings ranges between 1.32% and 10.50% (2015: 1.09% and 13.00%).
(16) Notes payable
31 December 2016 31 December 2015
Commercial promissory notes 43,058 39,156 Bank promissory notes 617 2,913 43,675 42,069
– 40 –
– II-185 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(17) Receipts in advance
31 December 2016 31 December 2015
Receipts in property presales 181,775 79,517 Others 1,629 2,093 183,404 81,610
As at 31 December 2016 and 31 December 2015, the Group’s receipts in advance mainly represent the receipt of housing price, which is not yet settled.
(18) Remuneration payables
31 December 2016 31 December 2015
Short-term wages payables (a) 1,355 1,079 Defined contribution scheme (b) 56 29 1,411 1,108
(a) Short-term wages
31 December Increase Decrease 31 December 2015 in the Year in the Year 2016
Salaries, bonuses, allowances and subsidies 999 9,985 (9,755) 1,229 Employee benefit expenses 19 523 (507) 35 Social insurance fees 16 465 (453) 28 Including: Medical insurance fees 13 401 (390) 24 Work injuries insurance fees 2 30 (30) 2 Maternity insurance fees 1 34 (33) 2 Housing provident fund 15 378 (372) 21 Operation fees and employee education fees 30 78 (66) 42 1,079 11,429 (11,153) 1,355
– 41 –
– II-186 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(18) Remuneration payables (Continued)
(b) Defined contribution scheme
2016 2015 Balance at the Balance at the Amount payable end of the Period Amount payable end of the Period
Basic pension insurances 897 54 667 28 Unemployment insurances 44 2 62 1 941 56 729 29
(19) Tax payables
31 December 2016 31 December 2015
Land Appreciation Tax payable 19,071 13,510 Income Tax payable 15,039 9,349 Value-added Tax due 297 33 Personal Income Tax payable 105 86 Tax payables on land use 87 76 Business Tax payable 82 1,082 Stamp Tax payable 76 148 City Maintenance and Construction Tax payable 54 92 Educational Surcharge Tax payable 43 68 Land Lease Tax payable 3 – Others 97 122 34,954 24,566
(20) Other payables
31 December 2016 31 December 2015
Amounts due to related parties (note 10(4)(e)) 29,017 34,587 Land premium payable 35,537 13,638 Amounts payable for acquisition of subsidiaries 18,766 16,267 Deposits and receipts under custody payable 13,000 – Amounts due to minority shareholders 4,239 4,180 Provisional collection of investor contributions 3,513 4,317 Acquisition of joint venture payable – 2,157 Other 10,638 7,747 114,710 82,893
– 42 –
– II-187 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(21) Non-current liabilities due within one year
31 December 2016 31 December 2015
Long-term borrowings due within one year (note 7(23)) 67,312 82,902 Bond payables due within one year (note 7(24)) 6,756 – Long-term payables due within one year (note 7(22)) 6,686 506 80,754 83,408
(22) Long-term payables
31 December 2016 31 December 2015
Payable for acquisition of subsidiaries 9,925 – Combined structural shares (a) 5,093 1,760 Amounts due to minority shareholders (b) 33,011 1,099 Others 2 6 48,031 2,865
Less: Long-term payables due within one year (6,686) (506) 41,345 2,359
(a) As at 31 December 2016, the amount includes the cash advances from certain investment entity holders of approximately RMB5,093,000,000, of which cash advances of RMB1,760,000,000 bear an average interest rate of 9.60% per annum and shall be repaid according to the related loan agreement; cash advances of RMB3,333,000,000 bear an average interest rate of 6.65% per annum and have to be repaid according to the related loan agreement. As at 31 December 2015, the amount includes the cash advances from certain investment entity holders of approximately RMB1,760,000,000, bearing an average interest rate of 9.60% and subject to the related loan agreement.
(b) As at 31 December 2016, the amount includes cash advances from certain minority shareholders of approximately RMB339,000,000 (2015: RMB527,000,000), bearing an average interest rate of 12% (2015: 12%) and subject to the related loan agreement.
– 43 –
– II-188 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(23) Long-term borrowings
31 December 2016 31 December 2015
Secured borrowings (a) 194,919 143,271 Pledged borrowings (b) 128,983 56,596 Guaranteed borrowings (c) 58,307 26,130 Unsecured borrowings 17,240 262 399,449 226,259 Less: Long-term borrowings due within one year Secured borrowings (a) (37,931) (43,630) Pledged borrowings (b) (15,522) (25,626) Guaranteed borrowings (c) (10,882) (13,610) Unsecured borrowings (2,977) (36) (67,312) (82,902) 332,137 143,357
(a) As at 31 December 2016, the secured borrowings of RMB194,919,000,000 were secured by the fixed assets with a carrying amount of RMB5,868,000,000, the investment properties with a carrying amount of RMB464,000,000, the inventory with a carrying amount of RMB215,739,000,000 and the intangible asset, land use right, with a carrying amount of RMB681,000,000 (2015: the secured borrowings of RMB143,271,000,000 were secured by the fixed assets with a carrying amount of RMB5,327,000,000, the investment properties with a carrying amount of RMB3,978,000,000, the inventory with a carrying amount of RMB125,302,000,000 and the intangible asset, land use right, with a carrying amount of RMB1,883,000,000).
(b) As at 31 December 2016, the pledged borrowings of RMB128,983,000,000 were pledged by the time deposit of RMB3,111,000,000 and the equity of the subsidiaries of RMB70,739,000,000 (2015: the pledged borrowings of RMB56,596,000,000 were pledged by the RMB time deposit of RMB6,671,000,000 and the equity of the subsidiaries of RMB41,661,000,000).
(c) As at 31 December 2016, the guaranteed borrowings of RMB2,042,000,000 (2015: RMB26,130,000,000) were guaranteed by China Evergrande Group while RMB56,265,000,000 (2015: nil) were guaranteed by the Company and its subsidiaries.
As at 31 December 2016, long-term borrowings include the borrowing of RMB2,816,000,000 provided by the joint venture of the Company’s ultimate holding company to the Group.
As at 31 December 2016, the rate of short-term borrowings ranges between 2.14% and 14.00% (31 December 2015: 2.08% and 14.00%).
– 44 –
– II-189 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(24) Bond payables
31 December 2016 31 December 2015
Public issuance of corporate bonds 19,853 19,817 Non-public issuance of corporate bonds 33,908 19,732 53,761 39,549
Less: Bond payables due within one year (6,756) – Balance of bond payables 47,005 39,549
On 19 June 2015, the Company publicly issued a 5-year corporate bond, with a total amount of RMB5 billion and simple interest rate fixed at 5.38% calculated and paid once every year.
On 7 July 2015, the Company publicly issued a 4-year corporate bond, with a total amount of RMB6.8 billion and simple interest rate fixed at 5.30% calculated and paid once every year.
On 7 July 2015, the Company publicly issued a 7-year corporate bond, with a total amount of RMB8.2 billion and simple interest rate fixed at 6.98% calculated and paid once every year.
On 16 October 2015, the Company non-publicly issued a 5-year corporate bond, with a total amount of RMB17.5 billion and simple interest rate fixed at 7.38% calculated and paid once every year.
On 16 October 2015, the Company non-publicly issued a 5-year corporate bond, with a total amount of RMB2.5 billion and simple interest rate fixed at 7.88% calculated and paid once every year.
On 11 January 2016, the Company non-publicly issued a 4-year corporate bond, with a total amount of RMB10 billion and simple interest rate fixed at 6.98% calculated and paid once every year.
On 29 July 2016, the Company non-publicly issued a 3-year corporate bond, with a total amount of RMB4.2 billion and simple interest rate fixed at 6.80% calculated and paid once every year.
– 45 –
– II-190 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(25) Deferred income tax assets and liabilities
Deferred income tax assets and deferred income tax liabilities which are not yet offset are set out below:
(a) Deferred income tax assets
31 December 2016 31 December 2015 Deferred Deductible Deferred Deductible income temporary income tax temporary tax assets difference assets difference
Offsetting internally unrealised profit 587 2,348 535 2,140 Deductible pre-tax loss 1,670 6,724 924 3,696 Temporary difference of costs recognition 575 2,300 403 1,612 Change in fair value of available-for-sale financial assets 1,252 5,008 – – Valuation of business assets acquired falling below its tax basis 70 236 45 180 Provision for assets impairment 255 1,020 164 656 4,409 17,636 2,071 8,284
31 December 2016 31 December 2015
Including: Amount expected to be reversed within one year, inclusive 3,374 1,238 Amount expected to be reversed after one year 1,035 833 4,409 2,071
(b) An analysis on the deductible loss of the Group’s unrecognised deferred income tax assets is set out as follows:
31 December 2016 31 December 2015
Deductible loss 4,512 4,698
– 46 –
– II-191 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(25) Deferred income tax assets and liabilities (Continued)
(c) An ageing analysis of the deductible loss of the Group’s unrecognised deferred income tax assets is set out as follows:
31 December 2016 31 December 2015
2016 – 600 2017 883 974 2018 926 1,089 2019 1,073 1,589 2020 214 446 2021 1,416 – 4,512 4,698
(d) Deferred income tax liabilities
31 December 2016 31 December 2015 Temporary Temporary Deferred income difference Deferred income difference tax liabilities of tax payables tax liabilities of tax payables
Deferred income tax Change in the fair value of the investment properties 9,305 37,274 8,519 34,076 Valuation of business assets acquired falling above its tax basis 12,515 50,060 2,245 8,980 Change in the fair value of available-for- sale financial assets 223 891 19 76 22,043 88,225 10,783 43,132
31 December 2016 31 December 2015
Including: Amount expected to be reversed within one year, inclusive 2,233 806 Amount expected to be reversed after one year 19,810 9,977 22,043 10,783
(e) Net amounts of the deferred income tax assets and the deferred income tax liabilities after offsetting are set out as follows:
31 December 2016 31 December 2015
Deferred income tax assets 3,809 1,633 Deferred income tax liabilities 21,443 10,345
– 47 –
– II-192 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(26) Other non-current liabilities
31 December 2016 31 December 2015
Deferred income tax liabilities Change in the fair value of investment properties 5,615 4,880 Valuation of business inventory acquired falling above its tax basis 10,433 1,170 16,048 6,050
Other non-current liabilities are the change in the fair value of the Group’s investment properties and the deferred land value-added tax for the valuation of business inventory acquired.
(27) Surplus reserve
In accordance with the PRC Company Law and the Article of the Company, the Company withdraws 10% of the net profit for statutory surplus reserve, which can be waived once the statutory surplus reserve reaches 50% of the registered capital or above. The statutory surplus reserve can offset loss or increase net capital upon approval. With the resolution by the Board, the Company withdrew RMB42,000,000 of the statutory surplus reserve in 2016 (2015: RMB409,000,000).
(28) Unallocated profit
As stated in note 2, the Group merged certain subsidiaries controlled by China Evergrande Group during 2016. Before the date of merger, the subsidiaries decided to allocate the profit as of 30 June 2016 for the original shareholders amounting RMB3,570,000,000.
(29) Operation income and operation costs
2016 2015
Income from principal business 202,269 129,715 Income from other business 2,828 971 205,097 130,686
2016 2015
Costs of principal business 139,495 86,409 Costs of other businesses 1,256 397 140,751 86,806
– 48 –
– II-193 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(29) Operation income and operation costs (Continued)
(a) Income from principal business and costs of principal business
2016 2015 Costs of Costs of Income from principal Income from principal principal business business principal business business
Sale of flats 195,744 134,535 125,510 83,048 Construction 2,189 2,026 1,286 1,272 Income from property management 1,973 1,579 1,355 1,005 Income from hotels 811 565 562 397 Rental income 641 – 241 – Other 911 790 761 687 202,269 139,495 129,715 86,409
(b) Other business incomes and other business costs
2016 2015 Other business Other business Other business Other business incomes costs incomes costs
Disposal of investment properties 2,101 1,015 780 254 Service fees and others 727 241 191 143 2,828 1,256 971 397
(30) Tax and surcharges
2016 2015
Land Appreciation Tax 8,400 5,867 Business Tax 5,693 6,606 City Construction Tax 737 472 Educational Surcharge 605 337 Other 389 44 15,824 13,326
(31) Financial expenses – net
2016 2015
Financial expenses 4,079 895 Less: Interest income (3,370) (1,474) Service fees 1,066 593 Loss on translation difference 2,035 1,230 3,810 1,244
– 49 –
– II-194 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(32) Fees by nature
Operation costs, sales fees and management fees in the profit statement are set out below by nature:
2016 2015
Costs of property sales 134,535 83,048 Employee remuneration expenses 8,120 5,795 Advertising and marketing expenses 7,568 5,524 Costs of construction 2,026 1,272 Disposal of investment properties 1,015 254 Depreciation and amortisation 1,622 1,263 Others 5,688 4,008 160,574 101,164
(33) Impairment loss of assets
2016 2015
Loss on bad debt 91 (110) Loss on inventory impairment 283 106 374 (4)
(34) Gain from changes in fair value
2016 2015
Investment properties measured at fair value 4,925 12,747 Profit or loss on transfer out change of fair value upon disposal of investment properties (992) (341) Financial assets at fair value through profit or loss (80) (3,758) 3,853 8,648
– 50 –
– II-195 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(35) Investment income
2016 2015
Investment income from financial assets held at fair value through profit or loss – 6,238 Loss on long-term equity investment by equity method (647) (421) Gain on disposal of subsidiaries 220 – Gain on disposal of joint ventures and associates 300 – Gain on disposal of available-for-sale financial assets 26 323 Investment gain on held available-for-sale financial assets 107 24 Others – (32) 6 6,132
(36) Non-operating income and non-operating expenses
(a) Non-operating income
2016 2015
Income from seizure of deposit 153 80 Income from default 154 87 Income from disposal of fixed assets and intangible assets 53 – Government grant 32 3 Others 250 120 642 290
(b) Non-operating expenses
2016 2015
Donation expenses 1,469 114 Penalty expenses 273 158 Overdue fines 268 219 Defaults on delivery of flats 171 109 Loss on disposal of fixed assets and intangible assets 10 3 Others 315 139 2,506 742
– 51 –
– II-196 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(37) Income tax expenses
2016 2015
Current income tax 10,017 5,566 Deferred income tax (1,208) 2,234 8,809 7,800
2016 2015
Gross profit 26,510 29,284
Income tax calculated by applicable tax rate (25%) 6,628 7,321 Non-taxable income (22) (473) Non-deductible costs, fees and losses 1,849 836 Deductible loss on unrecognised deferred income tax assets 354 116 Income tax fees 8,809 7,800
– 52 –
– II-197 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE – – – – – after tax after tax shareholders shareholders Vested in minority Vested Vested in minority Vested 56 769 (197) (2,573) (3,145) Vested in parent Vested Vested in parent Vested company after tax company company after tax company – 66 (19) 1,114 1,048 expenses expenses Less: Income tax Less: Income tax 75 769 (263) (3,887) (4,193) Other comprehensive incomes in the statement of income 2016 Other comprehensive Other comprehensive incomes in the statement of income 2015 Other comprehensive for the Year for the Year Pre-tax amount Pre-tax amount – 56 769 2015 2015 (2,320) (3,089) 31 December 31 December – 53 – – 56 769 (2,376) (3,145) Vested in parent Vested Vested in parent Vested company after tax company company after tax company – – – 56 56 2014 2015 Other comprehensive incomes in the balance sheet Other comprehensive Other comprehensive incomes in the balance sheet Other comprehensive 31 December 31 December NOTES TO CONSOLIDATED FINANCIAL STATEMENT (C ONTINUED ) STATEMENT FINANCIAL CONSOLIDATED TO NOTES incomes Other comprehensive as profit or loss as profit of value or loss on change in fair Profit as profit or loss as profit as incomes to be reclassified Other comprehensive Profit or loss on change in fair value of value or loss on change in fair Profit HENGDA REAL ESTATE GROUP COMPANY LIMITED COMPANY GROUP REAL ESTATE HENGDA YEAR 2016 FOR EQUITY OF CHANGES IN OWNERS’ STATEMENT CONSOLIDATED (Expressed in millions of RMB, unless otherwise indicated) 7. (38) Other comprehensive incomes to be reclassified incomes to be reclassified Other comprehensive assets financial available-for-sale Other comprehensive incomes to be reclassified incomes to be reclassified Other comprehensive entities to the investee or loss attributable profit under equity method assets financial available-for-sale Translation difference on foreign currencies difference Translation
– II-198 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(39) Notes to the statement of cash flows
(a) Reconciliation of net profit to cash flows from operating activities
2016 2015
Net profit 17,701 21,484 Add: Depreciation of fixed assets 1,310 1,090 Amortisation of fees 175 85 Amortisation of intangible assets 137 88 Gain on disposal of fixed assets, intangible assets and investment properties (1,129) (523) Provision for/(reversal of) asset impairments 374 (4) Gain on change in fair value (3,853) (8,648) Financial expenses 3,694 546 Investment (gain)/loss (6) (6,132) Increase in deferred income tax assets (1,446) (133) (Increase)/decrease in deferred income tax liabilities (56) 4,140 Increase in inventory (99,683) (76,030) (Increase)/decrease in operating receivables (38,457) 6,243 Increase in restricted operating capital (28,927) (8,531) Increase in operating payables 134,247 66,201 Employee share option scheme and other 85 143 Net cash flow generated from operating activities (15,834) 19
– 54 –
– II-199 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(39) Notes to the statement of cash flows (Continued)
(b) Investments and fund-raising activities not involving cash in/out
In 2016 and 2015, the Group has no material investments and fund-raising activities which do not involve cash in/out.
(c) Movement in cash and cash equivalents
2016 2015
Balance of cash and cash equivalents at the end of the Year 171,185 91,301 Less: Opening cash and cash equivalents at the beginning of the Year (91,301) (28,624) Increase in cash and cash equivalents 79,884 62,677
(d) Cash and cash equivalents
31 December 2016 31 December 2015
Cash and bank balances (note 7(1)) 275,191 151,067 Less: Restricted cash and bank balances (104,006) (59,766) Balance of cash and cash equivalents at the end of the Year 171,185 91,301
(e) Net cash received upon disposal of subsidiaries
(i) Cash received upon disposal of subsidiaries
In 2016, the Company transferred all the shareholdings in Evergrande Culture, Evergrande Tourism, 恒大香檳島and Evergrande Nanchang to Hengda Group Limited, controlled by the same ultimate holding company China Evergrande Group, at nil consideration. Net asset value of the companies transferred out was RMB28,179,000,000, the loss of which equals the allocation to the owners minus capital reserve, surplus reserve and unallocated profit.
Information on the disposal date is set out below:
Amount
Price of disposal of subsidiaries –
Cash and cash equivalents received on disposal – Less: Disposal of cash and cash equivalents held by subsidiaries (9,633) Net cash outflow on disposal (9,633)
The difference between the cash received in the above price and the cash and cash equivalents held by the disposing subsidiaries is negative and will be reflected in the item of “cash paid for other investing activities”.
– 55 –
– II-200 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(39) Notes to the statement of cash flows (Continued)
(e) Net cash received upon disposal of subsidiaries (Continued)
In 2016, the Company transferred all the shareholdings in Qingdao Calxon Real Estate Development Company Limited (青島嘉凱城房地產開發有限公司), Guangjuyuan (Chengdu) Investment Company Limited (成都廣聚源投資有限公司) and 51% of the shareholdings in Jinan Evergrande Chengxi Property Co., Ltd. (濟南恒大城西置業有限公司) to third parties.
Information on the disposal date is set out below:
Amount
Price of disposal of subsidiaries 4,111
Cash and cash equivalents received on disposal 1,933 Less: Disposal of cash and cash equivalents held by subsidiaries (34) Net cash outflow on disposal (1,899)
(ii) Net assets of subsidiaries disposed
Date of disposal 31 December 2015
Current assets 34,400 38,570 Non-current assets 24,760 16,079 Current liabilities (17,287) (18,284) Non-current liabilities (9,784) (5,120) Total 32,089 31,245
(iii) Income, fees and profits of the disposed subsidiaries from 1 January 2016 to the date of disposal:
Amount
Income 535 Less: Costs and fees (1,997) Total loss (1,462) Less: Income tax fee 294 Net loss (1,168)
– 56 –
– II-201 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)
(39) Notes to the statement of cash flows (Continued)
(f) Cash paid for other operating activities
Cash paid for other operating activities under the statement of cash flows mainly includes:
2016 2015
Advertising and marketing expenses 8,325 6,026 Sales commissions paid 1,764 721 Office and travel expenses paid 970 860 Professional services paid 351 210 Donation expenses 1,469 114 Bank fees 1,066 593 Business-related assurance paid 4,185 2,576 Others 2,672 970 20,802 12,070
8 SEGMENT INFORMATION
The reporting segments of the Group are the business segments providing different products and services. Since different skills and marketing strategies are needed for different businesses, the Group individually manages the business activities and assesses business results for different segments to precisely allocate resources.
The Group has four reporting segments, namely:
• Property development • Property investment • Property management • Other business
Transfer prices between segments were determined with reference to that to third parties.
Assets were allocated based on segment operation and asset location and liabilities were allocated based on segment operation. Fees that indirectly vested to segments were allocated between segments based on income ratio.
– 57 –
– II-202 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
8 SEGMENT INFORMATION (CONTINUED)
(a) Segment information for 2016 is set out as follows:
Property Property Property Other Inter-segment development investment management segments offsetting Total
Transaction income 195,744 2,848 3,698 18,488 (15,681) 205,097 Inter-segment transaction income – (105) (1,725) (13,850) 15,681 – Transactions with outside parties 195,744 2,742 1,973 4,638 – 205,097
Loss on investment in associates (2) – – – – (2) Loss on investment in joint ventures (39) – – (606) – (645)
Segment results 25,294 4,922 368 (837) – 29,747
Profit or loss on change of fair value of financial assets at fair value through profit or loss (80) Other investment gains 653 Financial fees (3,810)
Gross profit 26,510 Income tax expenses (8,809) Net profit 17,701
Of which, segment results include: Depreciation and amortisation fees 1,003 – 6 613 – 1,622
Segment assets 1,026,236 130,196 2,303 25,212 – 1,183,947 Unallocated amount 56,191 Total assets 1,240,138
Segment liabilities 506,901 10,720 2,006 11,322 – 530,949 Unallocated amount 621,047 Total liabilities 1,151,996
Increase in other non-current assets (fixed assets, intangible assets, construction in process and capital expenditure of investment properties) 3,314 31,544 16 2,769 – 37,643
– 58 –
– II-203 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
8 SEGMENT INFORMATION (CONTINUED)
(b) Segment information for 2015 is set out as follows:
Property Property Property Other Inter-segment development investment management segments offsetting Total
Transaction income 125,510 1,135 3,256 13,593 (12,808) 130,686 Inter-segment transaction income – (114) (1,901) (10,793) 12,808 – Transactions with outside parties 125,510 1,021 1,355 2,800 – 130,686
Loss on investment in associates 173 – – 1 – 174 Loss on investment in joint ventures (16) – – (579) – (595)
Segment results 14,761 13,399 60 (487) – 27,733 Profit or loss on change of fair value of financial assets at fair value through profit or loss (3,758) Other investment gains 6,553 Financial fees (1,244)
Gross profit 29,284 Income tax expenses (7,800) Net profit 21,484
Of which, segment results include: Depreciation and amortisation fees 619 – 8 636 – 1,263
Segment assets 635,098 96,382 1,186 4,968 – 737,634 Unallocated amount 9,954 Total assets 747,588
Segment liabilities 293,513 5,858 969 4,970 – 305,310 Unallocated amount 345,232 Total liabilities 650,542
Increase in other non-current assets (fixed assets, intangible assets, construction in process and capital expenditure of investment properties) 1,752 23,063 8 1,461 – 26,274
Asat 31 December 2016 and 31 December 2015, the Group’s non-current assets were mainly located in the People’s Republic of China.
Unallocated assets include the financial assets in fair value through profit or loss, other current assets, the available-for-sale financial assets and the deferred income tax assets.
Unallocated liabilities include short-term borrowings, tax payables, non-current liabilities due within one year, long-term borrowings, bond payables, deferred income tax liabilities and other non-current liabilities.
– 59 –
– II-204 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE The basis for acquisition date Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective May 2016 March 2016 March 2016 January 2016 January 2016 January 2016 January 2016 January 2016 February 2016 Acquisition date method Acquisition Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid 60% 60% 90% 90% 100% 100% 100% 100% 100% acquired Equity ratio 3,635 1,070 8,205 5,300 2,000 7,000 2,000 1,800 1,700 – Acquisition cost 60 – Time at which the acquirer Time obtains control January 2016 January 2016 January 2016 February 2016 May 2016 January 2016 January 2016 March 2016 March 2016 CONSOLIDATION OF SCOPE THE IN Dragon Fortune Limited and White Heron Limited Limited and Dragon Fortune 佳裕投資有限公司 勝雄國際有限公司 振鷹環球有限公司 麗來富華集團有限公司 NCREASE HENGDA REAL ESTATE GROUP COMPANY LIMITED COMPANY GROUP REAL ESTATE HENGDA YEAR 2016 FOR STATEMENTS THE FINANCIAL TO NOTES (Expressed in millions of RMB, unless otherwise indicated) I Acquisition of Subsidiaries substantial These companies only held parcels of land and did not conduct any companies in the PRC. In 2016, the Group acquired controlling interests of certain real estate development and should be deemed as the that the acquisitions do not constitute acquisition of businesses, Thus, the management is of view were acquired by the Group. operation before they These acquisitions resulted in an increase the minority interests of Group amount RMB1,172 million (2015: RMB1,649 million). acquisition of land use rights. Business combinations by entities not under common control combinations by entities not under common control: The subsidiaries acquired from business Acquiree Subsidiaries of New World Development (China) Limited Development World Subsidiaries of New Limited – Hinto Developments – Superb Capital Enterprises Limited, – – – Subsidiaries of Chow Tai Fook Enterprises Limited Fook Tai Subsidiaries of Chow – – Qingdao Jinwan Property Company Limited Property Company – Qingdao Jinwan – Charisma City limited – Ace Score Holding Limited –
9 (2) (a) (1)
– II-205 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE The basis for acquisition date Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective July 2016 July 2016 July 2016 July 2016 June 2016 April 2016 April 2016 March 2016 March 2016 March 2016 March 2016 March 2016 August 2016 January 2016 January 2016 January 2016 January 2016 February 2016 February 2016 February 2016 February 2016 Acquisition date method Acquisition Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid 73% 65% 60% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% acquired Equity ratio 899 850 810 770 694 663 576 480 400 359 350 340 314 277 250 230 8,700 1,559 1,360 1,266 1,227 – Acquisition cost 61 – Time at which the acquirer Time obtains control January 2016 March 2016 February 2016 July 2016 January 2016 January 2016 February 2016 July 2016 February 2016 January 2016 August 2016 July 2016 March 2016 March 2016 March 2016 February 2016 April 2016 July 2016 June 2016 April 2016 March 2016 CONTINUED ) 大連東方盛都買地 ( CONSOLIDATION OF SCOPE THE IN 有限公司 and 大連東方亞都置業 Win Harbor Investments Limited Harbor Investments Win NCREASE HENGDA REAL ESTATE GROUP COMPANY LIMITED COMPANY GROUP REAL ESTATE HENGDA YEAR 2016 FOR STATEMENTS THE FINANCIAL TO NOTES (Expressed in millions of RMB, unless otherwise indicated) I Business combinations by entities not under common control (continued) Business combinations by entities not under common control combinations by entities not under common control (continued): The subsidiaries acquired from business Acquiree Pioneer Time Investment Limited Investment Time Pioneer Full Jolly Investments Limited and Full Jolly Investments 杭州品立置業有限公司 大連盛都怡和房地產開發有限公司 , 貴州集成房地產開發有限公司 元基投資顧問有限公司 深圳市心怡房地產有限公司 Jinan Yuanhao Property Company Limited Property Company Yuanhao Jinan Ever Shiny International Limited Shiny Ever 佛山市南海區歐泰置業有限公司 福建省磐石房地產開發有限公司 湖南亦成投資有限公司 哈爾濱盛和置業有限公司 Harbin Gaodeng Property Company Limited Harbin Gaodeng Property Company 甘肅恒源房地產開發有限公司 東營御景置業有限公司 泉州市鑽石投資發展有限公司 無錫雲廈置業有限公司 梅州大百匯品牌產業園有限公司 哈爾濱盛茂置業有限公司 廣東江門船廠有限公司
9 (2) (a)
– II-206 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE The basis for acquisition date Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective Obtaining effective control Obtaining effective July 2016 July 2016 June 2016 April 2016 April 2016 August 2016 August 2016 December 2016 December 2016 December 2016 December 2016 December 2016 December 2016 December 2016 December 2016 November 2016 November November 2016 November November 2016 November November 2016 November September 2016 Acquisition date method Acquisition Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid Paid in cash Paid 65% 70% 60% 51% 70% 65% 53% 90% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% acquired Equity ratio 93 20 26 53 73 700 113 114 185 167 115 103 102 700 292 982 289 153 3,000 1,065 – Acquisition cost 62 – December 2016 December 2016 December 2016 Time at which the acquirer Time obtains control April 2016 August 2016 July 2016 September 2016 August 2016 July 2016 April 2016 June 2016 November 2016 November November 2016 November November 2016 November November 2016 November December 2016 December 2016 December 2016 December 2016 December 2016 CONTINUED ) 重慶睿陽 ( CONSOLIDATION 重慶開陽房地產開發 OF SCOPE THE IN 重慶合陽房地產開發有限公司 and 西安中渝置地有限公司 有限公司 , 房地產開發有限公司 NCREASE 湖南大東皇置業有限公司 浙江金湖置業有限公司 HENGDA REAL ESTATE GROUP COMPANY LIMITED COMPANY GROUP REAL ESTATE HENGDA YEAR 2016 FOR STATEMENTS THE FINANCIAL TO NOTES (Expressed in millions of RMB, unless otherwise indicated) I Business combinations by entities not under common control (continued) Business combinations by entities not under common control combinations by entities not under common control (continued): The subsidiaries acquired from business Acquiree 鄭州中楷置業有限公司 Jinan Xikai Property Company Limited Jinan Xikai Property Company 哈爾濱眾誠置業房地產開發有限公司 創見控股有限公司 Jinan Xiye Property Company Limited Jinan Xiye Property Company 淶水利華房地產開發有限公司 三亞哈達農副產品交易有限公司 China Calxon Group Co., Ltd. 重慶和生裕房地產開發有限公司 重慶愷成房地產開發有限公司 漢斯（大連）公寓開發有限公司 吉林省中報房地產開發有限公司 Healthy Time International Limited Time Healthy 海南金萃房地產開發有限公司 重慶貝蒙世暉置地有限公司 Win Peak Group Limited Win Billion Sino Investments Limited and Billion Sino Investments 重慶恒陽房地產開發有限公司 ,
9 (2) (a)
– II-207 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE 817 Total 1,003 62,622 63,439 (62,436) 817 1,003 Others 21,212 22,029 (21,026) – – 8,700 8,700 (8,700) Pioneer Time Pioneer Time Investment Limited Investment – – 12,500 12,500 (12,500) Chow Tai Fook Tai Chow Enterprises Limited – – – 20,210 20,210 (20,210) 63 – New World World New Development Development (China) Limited CONTINUED ) ( CONSOLIDATION BUSINESS OF SCOPE THE IN Fair value of the equity interests originally held as at acquisition date value Fair Cash Consideration Total combination costs Total NCREASE
net assets obtained of the identifiable value Less: Fair HENGDA REAL ESTATE GROUP COMPANY LIMITED COMPANY GROUP REAL ESTATE HENGDA YEAR 2016 FOR STATEMENTS THE FINANCIAL TO NOTES (Expressed in millions of RMB, unless otherwise indicated) I (continued) Business combinations by entities not under common control Details of the combination cost and goodwill recognized are as follows: Combination Cost – Goodwill rise to in Mainland China, at a cash consideration of RMB3,000 million, giving In 2016, the Group acquired 52.78% of equity interests in China Calxon Co., Ltd., a listed company goodwill of RMB1,003 million. of the non-cash assets transferred and that liabilities incurred or undertaken. values techniques to determine the fair The Group adopts valuation
9 (2) (b)
– II-208 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
9 INCREASE IN THE SCOPE OF BUSINESS CONSOLIDATION (CONTINUED)
(2) Business combinations by entities not under common control (continued)
(c) Details of the assets, liabilities and acquisition-related cash flow of the acquiree as at the acquisition date are set out as follows:
(i) The subsidiaries of New World Development (China) Limited
Fair value Carrying amounts Acquisition date Acquisition date 31 December 2015
Cash and bank balances 1,117 1,117 1,117 Trade and other receivables 2,120 2,120 2,120 Prepayments 683 683 683 Inventories 30,767 14,550 14,550 Investment properties 1,731 1,730 1,730 Fixed assets 1,049 1,049 1,049 Intangible assets 24 24 24 Deferred income tax assets 6 6 6 Less: Trade and other payables (4,877) (4,877) (9,283) Receipts in advance (3,605) (3,605) (3,605) Borrowings (1,264) (1,264) (1,955) Deferred income tax liabilities (3,630) (17) (17) Other non-current liabilities (679) – – Net assets 23,442 11,516 6,419 Less: Minority interests (3,232) (848) (848) Net assets obtained 20,210 10,668 5,571
– 64 –
– II-209 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
9 INCREASE IN THE SCOPE OF BUSINESS CONSOLIDATION (CONTINUED)
(2) Business combinations by entities not under common control (continued)
(c) Details of the assets, liabilities and acquisition-related cash flow of the acquiree as at the acquisition date are set out as follows:
(ii) The subsidiaries of Chow Tai Fook Enterprises Limited
Fair value Carrying amounts Acquisition date Acquisition date 31 December 2015
Cash and bank balances 517 517 517 Trade and other receivables 1,533 1,533 1,533 Prepayments 88 88 88 Inventories 19,758 7,925 7,925 Fixed assets 3 3 3 Deferred income tax assets 19 19 19 Less: Trade and other payables (1,748) (1,748) (3,831) Receipts in advance (883) (883) (883) Deferred income tax liabilities (1,798) – – Other non-current liabilities (4,843) – – Net assets 12,646 7,454 5,371 Less: Minority interests (146) – – Net assets obtained 12,500 7,454 5,371
(c) Details of the assets, liabilities and acquisition-related cash flow of the acquiree as at the acquisition date are set out below:
(iii) Pioneer Time Investment Limited
Fair value Carrying amounts Acquisition date Acquisition date 31 December 2015
Prepayments 5 5 2 Investment properties 9,651 9,184 9,184 Less: Trade and other payables (886) (886) (930) Receipts in advance (54) (54) (8) Deferred income tax liabilities (14) (14) (14) Other current liabilities (2) (2) – Net assets 8,700 8,233 8,234 Less: Minority interests – – – Net assets obtained 8,700 8,233 8,234
– 65 –
– II-210 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
9 INCREASE IN THE SCOPE OF BUSINESS CONSOLIDATION (CONTINUED)
(2) Business combinations by entities not under common control (continued)
(c) Details of the assets, liabilities and acquisition-related cash flow of the acquiree as at the acquisition date are set out as follows:
(iv) Other merger parties in 2016 Fair value Carrying amounts Acquisition date Acquisition date 31 December 2015
Cash and bank balances 3,397 3,397 4,517 Trade and other receivables 7,031 7,031 23,804 Prepayments 1,382 1,382 4,092 Inventories 94,514 70,795 78,980 Investment properties 5,352 3,650 517 Fixed assets 521 360 511 Construction in progress – – 3 Intangible assets 137 67 150 Deferred income tax assets 10 51 51 Other assets 811 919 1,807 Less: Trade and other payables (25,613) (25,613) (43,439) Advances (18,527) (18,527) (27,948) Borrowings (33,098) (33,098) (28,402) Tax payable (1,526) (1,526) (1,609) Deferred income tax liabilities (6,072) – – Other non-current liabilities (3,964) – – Net assets 24,355 8,888 13,034 Less: Minority interests (3,329) (1,205) (1,293) Net assets obtained 21,026 7,683 11,741
(v) Cash consideration paid for the acquisition of subsidiaries
Cash consideration 62,622 Less: Cash and cash equivalents of the subsidiaries acquired (5,031) Acquisition consideration prepaid in the previous year (1,047) Unpaid acquisition consideration (20,879) Net cash paid for the acquisition of subsidiaries 35,665 Payment of the previous year’s acquisition consideration in the year 8,455 Cash outflow for the acquisition of subsidiaries 44,120
– 66 –
– II-211 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
9 INCREASE IN THE SCOPE OF BUSINESS CONSOLIDATION (CONTINUED)
(2) Business combinations by entities not under common control (continued)
(d) The revenue, net profit and cash flow of the acquiree from the acquisition date to the period ended 31 December 2016 are set out as follows:
Operating income 10,328 Net losses (735)
The Group adopts valuation techniques such as the market approach and the income approach to determine the fair value of the assets and liabilities of the acquiree as at the acquisition date.
(3) Business combinations by entities under common control
As described in Note 2, in 2016, the Group combined certain subsidiaries which are under the control of China Evergrande Group, thus constituting business combinations by entities under common control. The combination cost and the carrying amount of the net assets obtained are set out as follows:
Combination cost- Cash paid 9,454 Less: Carrying amount of the net assets obtained (11,936) Adjustment to capital reserve (2,482)
– 67 –
– II-212 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
9 INCREASE IN THE SCOPE OF BUSINESS CONSOLIDATION (CONTINUED)
(3) Business combinations by entities under common control (continued)
The carrying amounts of the assets and liabilities as at the combination date are set out as follows: Carrying amounts Combination date 31 December 2015
Cash and bank balances 19,472 26,655 Notes receivable 61 10 Trade receivables 1,522 969 Prepayments 12,920 15,296 Dividends receivable 26 447 Other receivables 143,345 71,661 Inventories 133,457 58,803 Other current assets 2,808 433 Available-for-sale financial assets 519 784 Long-term equity investments 1,801 – Investment properties 18,756 14,552 Fixed assets 4,765 2,556 Construction in progress 1,555 1,089 Intangible assets 2,945 1,445 Deferred income tax assets 273 76 Other non-current assets 159 94 Less: Borrowings (81,749) (42,542) Notes payable (7,196) (5,998) Trade payables (19,064) (15,151) Receipts in advance (27,239) (9,840) Employee remuneration payable (263) (272) Tax payable (6,489) (6,255) Interests payable (3,088) (80) Dividends payable (5,011) (1,918) Other payables (146,421) (89,577) Deferred income tax liabilities (9,080) (1,187) Other non-current liabilities (8,892) (2,526) Other liabilities (9,347) – Net assets 20,545 19,524 Less: Minority interests (8,609) (5,807) Net assets obtained 11,936 13,717
– 68 –
– II-213 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
9 INCREASE IN THE SCOPE OF BUSINESS CONSOLIDATION (CONTINUED)
(3) Business combinations by entities under common control (continued)
The revenue, net profit and cash flow for 2015 and from the period between 1 January 2016 and the combination date are set out as follows:
The period between 1 January 2016 and the combination date 2015
Revenue 20,432 17,422 Net profit 1,512 1,673
10 RELATED PARTIES AND RELATED PARTY TRANSACTIONS
(1) Parent company and subsidiaries
The general information and other related information of the subsidiaries are set out in Note 6.
(a) General information of the parent company
Place of registration Nature of business
Real estate Guangzhou Kailong Real Estate Company Limited China development
(b) Registered capital and changes in registered capital of the parent company
31 December 2016 and 2015
Guangzhou Kailong Real Estate Company Limited 600,000,000
(c) The percentages of shareholding and voting rights in the Company held by the parent company:
31 December 2016 and 2015 Percentage of Percentage of shareholding voting rights
Guangzhou Kailong Real Estate Company Limited 100% 100%
– 69 –
– II-214 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
10 RELATED PARTIES AND RELATED PARTY TRANSACTIONS (CONTINUED)
(2) Natures of the principal related parties which do not have a controlling relationship with the Group
Name of the company Relationship with the Group
China Evergrande Group Intermediate holding company of the Company 廣州市超豐置業有限公司 Intermediate holding company of the Company ANJI (BVI) Limited Intermediate holding company of the Company ShengJian (BVI) Limited Under the control of the same ultimate holding company Billion Mark Limited Under the control of the same ultimate holding company Able Key Development Limited Under the control of the same ultimate holding company Excel Come Limited Under the control of the same ultimate holding company 嘉建(BVI)有限公司 Under the control of the same ultimate holding company 恒大集團有限公司 Under the control of the same ultimate holding company 恒大旅遊集團有限公司 Under the control of the same ultimate holding company 儋州恒大香檳島投資開發有限公司 Under the control of the same ultimate holding company 儋州信恒房地產開發有限公司 Under the control of the same ultimate holding company 儋州中潤房地產開發有限公司 Under the control of the same ultimate holding company 儋州興合投資有限公司 Under the control of the same ultimate holding company 儋州祥雷投資有限公司 Under the control of the same ultimate holding company 儋州嘉元房地產開發有限公司 Under the control of the same ultimate holding company 儋州保軍投資有限公司 Under the control of the same ultimate holding company 儋州輝望投資有限公司 Under the control of the same ultimate holding company 儋州諾亞投資有限公司 Under the control of the same ultimate holding company 啟東寶豐置業有限公司 Under the control of the same ultimate holding company 啟東鑫華置業有限公司 Under the control of the same ultimate holding company 啟東衡美置業有限公司 Under the control of the same ultimate holding company 啟東譽豪置業有限公司 Under the control of the same ultimate holding company 啟東市立群健身俱樂部有限公司 Under the control of the same ultimate holding company 啟東市萬仁動感影視城有限公司 Under the control of the same ultimate holding company 啟東市金色海岸大酒店有限公司 Under the control of the same ultimate holding company 啟東市怡然康復保健有限公司 Under the control of the same ultimate holding company 啟東市惠口褔飲食廣場有限公司 Under the control of the same ultimate holding company 啟東市童心游樂有限公司 Under the control of the same ultimate holding company 啟東市欣晴娛樂有限公司 Under the control of the same ultimate holding company 啟東通譽健身俱樂部有限公司 Under the control of the same ultimate holding company 啟東寶豐康復保健有限公司 Under the control of the same ultimate holding company 啟東衡美影視城有限公司 Under the control of the same ultimate holding company 啟東歡樂大酒店有限公司 Under the control of the same ultimate holding company 啟東譽豪飲食廣場有限公司 Under the control of the same ultimate holding company 啟東勤盛游樂有限公司 Under the control of the same ultimate holding company 啟東恒大酒店有限公司 Under the control of the same ultimate holding company 恒大地產集團（南昌）有限公司 Under the control of the same ultimate holding company 恒大互聯網集團有限公司 Under the control of the same ultimate holding company 廣東乾永投資有限公司 Under the control of the same ultimate holding company 恒大金融資產管理（深圳）有限公司 Under the control of the same ultimate holding company 廣州市瑞愷投資有限公司 Under the control of the same ultimate holding company 深圳市恒大酒店管理有限公司 Under the control of the same ultimate holding company 恒大文化產業集團有限公司and its subsidiaries Under the control of the same ultimate holding company
– 70 –
– II-215 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
10 RELATED PARTIES AND RELATED PARTY TRANSACTIONS (CONTINUED)
(2) Natures of the principal related parties which do not have a controlling relationship with the Group (continued)
Name of the company Relationship with the Group
恒大長白山礦泉水股份有限公司Note Under the control of the same ultimate holding company 恒大糧油集團有限公司Note Under the control of the same ultimate holding company 安圖恒大長白山礦泉水有限公司Note Under the control of the same ultimate holding company 恒大乳業有限公司Note Under the control of the same ultimate holding company 深圳市恒大糧油銷售有限公司Note Under the control of the same ultimate holding company 深圳市恒大飲品有限公司Note Under the control of the same ultimate holding company 珠海泓粵日用品有限公司Note Under the control of the same ultimate holding company 深圳恒大母嬰用品有限公司Note Under the control of the same ultimate holding company 恒大糧油有限公司Note Under the control of the same ultimate holding company 深圳市久初投資有限公司Note Under the control of the same ultimate holding company 恒大飲品集團有限公司Note Under the control of the same ultimate holding company 恒大畜牧業有限公司Note Under the control of the same ultimate holding company 深圳市恒大健康產業有限公司Note Under the control of the same ultimate holding company 恒大人參有限公司Note Under the control of the same ultimate holding company 恒大長白山礦泉水有限公司Note Under the control of the same ultimate holding company 綏化恒大非轉基恩壓榨大豆油有限公司Note Under the control of the same ultimate holding company 長春恒大人參產業有限公司Note Under the control of the same ultimate holding company 泰來恒大綠色米業有限公司Note Under the control of the same ultimate holding company 興安恒大糧油有限公司Note Under the control of the same ultimate holding company 內蒙古新谷園生態農業有限公司Note Under the control of the same ultimate holding company 黑河孫吳恒大非轉基恩壓榨大豆油有限公司Note Under the control of the same ultimate holding company 泰米恒大米業有限公司Note Under the control of the same ultimate holding company Evergrande Life Insurance Co., Ltd. Joint venture of the Company’s ultimate holding company Shengjing Bank Co., Ltd. Associate of the Company’s ultimate holding company
Note: China Evergrande Group ceased to have control over these subsidiaries during the fourth quarter of 2016.
– 71 –
– II-216 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
10 RELATED PARTIES AND RELATED PARTY TRANSACTIONS (CONTINUED)
(3) Related party transactions
(a) Pricing policy
The prices of business transactions between the Group and related parties are determined through negotiations by both sides, with reference to the market prices.
(b) Sales of goods
2016 2015
Companies under the control of the same ultimate holding company 307 284 Associates 101 77 Joint ventures 39 – 447 361
(c) Rendering of services
2016 2015
Companies under the control of the same ultimate holding company 280 96 Associates 16 – Joint ventures 35 23 Joint venture of the Company’s ultimate holding company 1 – 332 119
(d) Purchase of goods
2016 2015
Companies under the control of the same ultimate holding company 293 273 Joint ventures 10 77 303 350
(e) Receiving of services
2016 2015
Companies under the control of the same ultimate holding company 33 234 Joint ventures 267 29 300 263
– 72 –
– II-217 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
10 RELATED PARTIES AND RELATED PARTY TRANSACTIONS (CONTINUED)
(3) Related party transactions (continued)
(f) Leases
The Group as the lessor
2016 2015
Companies under the control of the same ultimate holding company 11 – Associates 1 – Joint ventures 5 4 17 4
(g) Interest income from provision of finance leases
2016 2015
Companies under the control of the same ultimate holding company 9 –
(h) Interest cost from acceptance of borrowings
2016 2015
Associate of the Company’s ultimate holding company 222 – Joint venture of the Company’s ultimate holding company 10 – 232 –
(i) Lease payments
2016 2015
Joint venture of the Company’s ultimate holding company 24 –
(j) Providing and accepting funds
During 2016 and 2015, there were financial transactions between the Group and certain related parties, the transaction amounts of which are included in “cash received from other investing activities” and “cash paid for other investing activities” under investing activities, as well as “cash received from other financing activities” and “cash paid for other financing activities” under financing activities in the cash flow statement. The balance of financial transactions with related parties is set out in Note 10(4).
(k) Remuneration of key management
2016 2015
Remuneration of key management 184 225
– 73 –
– II-218 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
10 RELATED PARTIES AND RELATED PARTY TRANSACTIONS (CONTINUED)
(3) Related party transactions (continued)
(l) Establishment of joint ventures
In 2016, the Group and certain enterprises controlled by the joint venture of the ultimate holding company entered into certain cooperation agreements in relation to the establishment of joint ventures. These newly set-up companies became the subsidiaries of the Group on 31 December 2016, and the capital contribution of the enterprises controlled by the joint venture of the ultimate holding company was approximately RMB14,248 million in total.
(m) Others
The Group transferred the fixed assets held by the Group to the joint venture of the Company’s ultimate holding company at a consideration of RMB800 million.
(4) Balance receivable and payable by the principal related parties
(a) Trade receivables
31 December 2016 31 December 2015
Companies under the control of the same ultimate holding company 197 90
(b) Trade payables
31 December 2016 31 December 2015
Companies under the control of the same ultimate holding company – 339
(c) Other receivables
31 December2016 31 December 2015
Companies under the control of the same ultimate holding company 609 24,178 Associates 433 575 Joint ventures 1,121 1,235 Joint venture of the Company’s ultimate holding company 456 – 2,619 25,988
As at 31 December 2016 and 31 December 2015, the abovementioned other receivables were amounts with the related parties that were interest-free, unsecured, unguaranteed and had no fixed terms of repayment.
– 74 –
– II-219 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
10 RELATED PARTIES AND RELATED PARTY TRANSACTIONS (CONTINUED)
(4) Balance receivable and payable by the principal related parties (continued)
(d) Long-term receivables
31 December 2016 31 December 2015
Companies under the control of the same ultimate holding company 407 –
(e) Other payables
31 December 2016 31 December 2015
Companies under the control of the same ultimate holding company 28,242 33,288 Associates 450 701 Joint ventures 325 598 29,017 34,587
As at 31 December 2016 and 31 December 2015, the abovementioned other payables were amounts with the related parties that were interest-free, unsecured, unguaranteed and had no fixed terms of repayment.
(f) Prepayments
31 December 2016 31 December 2015
Joint venture of the Company’s ultimate holding company 24 –
(g) Receipts in advance
31 December 2016 31 December 2015
Joint venture of the Company’s ultimate holding company 84 –
(h) Borrowings
31 December 2016 31 December 2015
Joint venture of the Company’s ultimate holding company 5,516 – Associate of the Company’s ultimate holding company 799 – 6,315 –
The above borrowings were secured borrowings provided to the Group by the joint venture and associate of the Company’s ultimate holding company. The weighted average interest rates of these borrowings were 10.20% and 7.35% per annum respectively.
– 75 –
– II-220 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
10 RELATED PARTIES AND RELATED PARTY TRANSACTIONS (CONTINUED)
(4) Balance receivable and payable by the principal related parties (continued)
(i) Dividends payable
31 December 2016 31 December 2015
Guangzhou Kailong Real Estate Company Limited – 1,076 Companies under the control of the same ultimate holding company 4,049 1,294 4,049 2,370
(j) Interests payable
31 December 2016 31 December 2015
Joint venture of the Company’s ultimate holding company 223 –
– 76 –
– II-221 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
11 SHARE-BASED PAYMENT
Share-based payment refers to the granting of share option scheme by China Evergrande to China Evergrande employees (including employees of the Group), which is settled in its own shares as issued by China Evergrande. The Group is an enterprise receiving service and has no settlement obligation. Such share-based payment transaction will be treated as an equity-settled share-based payment.
As at 14 October 2009, China Evergrande granted 146,000,000 share options to employees of the Group (“Pre-IPO share options”), the exercise price of which was HK$3.5 per share. All share options were exercisable within three years from the date of grant.
As at 18 May 2010, China Evergrande granted 490,000,000 share options to employees of the Group (“2010 share options”), the exercise price of which was HK$2.4 per share. All share options were exercisable within five years from the date of grant.
As at 9 October 2014, China Evergrande granted 387,000,000 share options to employees of the Group (“2014 share options”), the exercise price of which was HK$3.05 per share. All share options were exercisable within five years from the date of grant.
Movements in the share options are set out as follows:
Number of share options (’000)
1 January 2015 670,312 Exercised during the year (238,644) Lapsed during the year (56,430) 31 December 2015 375,238
1 January 2016 375,238 Exercised during the year (16,923) Lapsed during the year (11,800) 31 December 2016 346,515
Details of the share options as at 31 December 2016 are set out as follows:
Exercise price/ Number of share Date of grant Vesting period Exercise period (HK$ per share) options/(’000)
2010 share options 31 December 2010 to 18 May 2010 7 months-55 months 31 December 2019 2.40 41,760
2014 share options 9 October 2015 to 9 October 2014 1 year-5 years 8 October 2024 3.05 304,755
The weighted average fair value of share options was determined by reference to the valuation prepared by an independent valuer, Real Actuarial Consulting Limited, using the Binomial Model. The significant inputs into the model were share price at the date of grant, annual risk-free rate, expected volatility, life of the option and expected dividend yield, which are based on the best estimate of China Evergrande’s directors. The value of an option varies with different variables of certain subjective assumption.
As of 2016, the Group has recognised a fee of approximately RMB55,000,000 (2015: RMB80,000,000) under the share option scheme.
– 77 –
– II-222 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
12 COMMITMENTS
(1) Operating lease commitments
The future minimum lease payments of the Group due under the signed irrevocable operating leases contracts are summarized as follows:
31 December 2016 31 December 2015
Within 1 year 408 96 1 to 2 years 330 238 2 to 3 years 287 79 Over 3 years 423 39 1,448 452
(2) Capital commitments
Capital expenditures contracted for by the Group at the balance sheet date but are not yet necessary to be stated in the balance sheet are as follows:
31 December 2016 31 December 2015
Construction and installation contracts contracted for which is or going to be performed 150,075 78,771 Land contracts contracted for which is or going to be performed 59,151 20,897 209,226 99,668
(3) External investment commitments
External investment contracted for by the Group at the balance sheet date but are not yet necessary to be stated in the balance sheet are as follows:
31 December 2016 31 December 2015
Acquisition of subsidiaries – 41,525
– 78 –
– II-223 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
13 CONTINGENCIES
31 December 2016 31 December 2015
Mortgage guarantee of property owners (a) 247,721 141,388 Third party financing guarantee (b) 23,349 3,185 271,070 144,573
(a) The Group provided guarantees in respect of the banking facilities of certain purchasers of the Group’s property units according to relevant regulations. Such guarantees terminate upon the earlier of (i) issuance of the real estate ownership certificate which will generally be available within an average period of two to three years upon the completion of guarantee registration; or (ii) the satisfaction of mortgaged loan by the purchasers of properties. Pursuant to the terms of the guarantees, in case of default in mortgage payments by these purchasers during the period of guarantee, the Group shall repay the outstanding mortgage principals together with accrued interest and penalty owed by the defaulted purchasers to the banks. After payment of the principals, interest and penalty, the Group is entitled to take over the legal title of the related mortgaged properties.
The management of the Group considers that the fair value of these guarantee contracts at the date of inception was minimal and in case of default in mortgage payments by the purchasers, the net realisable value of the related real estates is sufficient to cover the repayment of the outstanding mortgage principals together with the accrued interest and penalty. Therefore, no provision has been made in the financial statements for the guarantees.
(b) The Group provided financing guarantees for certain cooperation parties (primarily sub-contractors) that are independent of the Group, based on their history of performance in contracts. The Group closely monitors the repayment of such financing guarantees. The management of the Group considers that the possibility of the Group’s exposure to compensation risk due to such guarantees is remote, therefore no provision has been made in the financial statements for guarantees.
14 EvENTS AFTER THE BALANCE SHEET DATE
On 31 March 2017, the Company lodged an application to increase its registered capital by RMB378,787,879 in accordance with the Company’s shareholder resolution and the amended Articles of Association. Such contributions were made by 中信聚恒（深圳）投資控股中心（有限合夥), 廣田投資有限公司, 深圳市華建控股有限公司, 深圳市美 投步陽投資合夥企業（有限合夥), 深圳市中融鼎興投資合夥企業（有限合夥), 廣東唯美明珠投資有限公司, 蘇州工業 園區睿燦投資企業（有限合夥), 山東高速投資控股有限公司 and 山東鐵路發展基金有限公司 (hereafter abbreviated as “nine additional investors”)in cash. The registered capital reached RMB2,878,787,879 after the injection. As of 31 March 2017, the Company has received the additional contribution paid by nine additional investors in the total amount of RMB30,000,000,000, among which RMB378,787,879 was registered and paid-up capital while RMB29,621,212,121 was capital reserves.
– 79 –
– II-224 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
15 FINANCIAL INSTRUMENT AND RISK
The Group’s operating activities expose it to a variety of financial risks: market risk (primarily currency risk and interest rate risk), credit risk and liquidity risk. The Group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group’s financial performance.
(1) Market risk
(a) Foreign exchange risk
The Group’s major operational activities are carried out in Mainland China and a majority of the businesses are settled in RMB. The Group is exposed to foreign exchange risk arising from the assets, liabilities and transactions denominated in foreign currencies, primarily with respect to HK dollars and US dollars. The Group’s finance department is responsible for monitoring the scale of the Company’s transactions and amount of the assets and liabilities denominated in foreign currencies to minimise the foreign exchange risk. During 2016 and 2015, the Group did not enter into any forward exchange contracts or currency swap contracts.
As at 31 December 2016 and 31 December 2015, the amounts in RMB equivalent of the Group’s financial assets and financial liabilities denominated in foreign currencies are set out below:
31 December 2016 USD HKD Others Total
Financial assets denominated in foreign currency - Cash and bank balances 521 418 – 939 Other receivables 2 4 – 6 523 422 – 945
Financial liabilities denominated in foreign currency - Short-term borrowings 11,673 330 5,103 17,106 Other payables – 7,943 – 7,943 Long-term borrowings – 3,131 1,001 4,132 11,673 11,404 6,104 29,181
31 December 2015 USD HKD Others Total
Financial assets denominated in foreign currency - Cash and bank balances 36 3,701 – 3,737 Other receivables 810 3,012 – 3,822 846 6,713 – 7,559
Financial liabilities denominated in foreign currency - Short-term borrowings 2,474 855 – 3,329 Other payables 3,873 16,248 – 20,121 Long-term borrowings 2,076 – – 2,076 8,423 17,103 – 25,526
– 80 –
– II-225 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
15 FINANCIAL INSTRUMENT AND RISK (CONTINUED)
(1) Market risk (continued)
(a) Foreign exchange risk (continued)
As at 31 December 2016, if the RMB had strengthened/weakened by 5% against foreign currencies while other variables had been held constant, the Group’s net profit for the year would have been approximately RMB1,059,000,000 higher/lower (31 December 2015: approximately RMB674,000,000 higher/lower) for various financial assets denominated in foreign currencies and financial liabilities denominated in USD. The difference would have no effect on other comprehensive income.
(b) Interest rate risk
The Group’s interest rate risk mainly arises from long-term interest-bearing debts. Financial liabilities issued at floating rates expose the Group to cash flow interest rate risk. Financial liabilities issued at fixed rates expose the Group to fair value interest rate risk. The Group determines the relative proportions of its fixed rate and floating rate contracts depending on the prevailing market conditions. As at 31 December 2016 and 31 December 2015, the Group’s long-term interest-bearing debts are mainly floating rate bank borrowings denominated in RMB, amounting to RMB63,079,000,000 and RMB43,354,000,000 respectively.
The Group’s finance department at its headquarters continuously monitors the interest rate position of the Group. Increases in interest rates will increase the cost of new interest-bearing debts and the interest expenses with respect to the Group’s outstanding floating rate debts, and therefore could have a material adverse effect on the Group’s financial results. The management may make timely adjustments with reference to the latest market conditions, which could mean entering into interest rate swap arrangements to mitigate its exposure to interest rate risk. During 2016 and 2015, the Group had no interest rate swap arrangement.
As at 31 December 2016, if interest rates on the floating rate borrowings had strengthened/weakened by 100 basis points while other variables had been held constant, the Group’s net profit would have been approximately RMB473,000,000 (31 December 2015: RMB325,000,000) lower/higher.
(2) Credit risk
Credit risk is managed on the grouping basis. Credit risk mainly arises from cash at bank, trade receivables, other receivables and notes receivable, etc.
The Group expects that there is no significant credit risk associated with cash at bank since they are mainly deposited at state-owned banks and other large or medium size listed banks. The Group does not expect that there will be any significant losses from non-performance by these counterparties.
In addition, the Group has policies to limit the credit exposure on trade receivables, other receivables and notes receivable. The Group assesses the credit quality of and sets corresponding credit limits on its customers by taking into account their financial position, the availability of guarantee from third parties, their credit history and other factors such as current market conditions. The credit history of the customers is regularly monitored by the Group. In respect of customers with a poor credit history, the Group will use written payment reminders, or shorten or cancel credit periods, to ensure the overall credit risk of the Group is limited to a controllable extent.
– 81 –
– II-226 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
15 FINANCIAL INSTRUMENT AND RISK (CONTINUED)
(3) Liquidity risk
The Group performs cash flow forecasting and continuously monitors its short-term and long-term liquidity requirements to ensure that it maintains reasonable cash reserves. Meanwhile, the Group maintains sufficient headroom on its undrawn committed borrowing facilities from major financial institutions so that it does not breach the requirements of borrowing agreements to meet the short-term and long-term liquidity requirements.
The financial liabilities of the Group at the balance sheet date are set out by their maturity date below at their undiscounted contractual cash flows:
31 December 2016 Within 1 to 2 2 to 5 Over 1 year years years 5 years Total
Short-term borrowings 92,181 – – – 92,181 Notes payable 43,675 – – – 43,675 Trade payables 132,457 – – – 132,457 Other payables 114,710 – – – 114,710 Interests payable 9,758 – – – 9,758 Dividends payable 4,189 – – – 4,189 Non-current liabilities due within one year 84,974 – – – 84,974 Long-term borrowings 29,208 169,158 137,476 102,859 438,701 Bonds payable 3,313 3,313 53,819 – 60,445 Long-term payables – 36,907 4,167 730 41,804 514,465 209,378 195,462 103,589 1,022,894
31 December 2015 Within 1 to 2 2 to 5 Over 1 year years years 5 years Total
Short-term borrowings 38,665 – – – 38,665 Notes payable 42,069 – – – 42,069 Trade payables 87,700 – – – 87,700 Other payables 82,893 – – – 82,893 Interests payable 5,201 – – – 5,201 Dividends payable 2,370 – – – 2,370 Non-current liabilities due within one year 86,956 – – – 86,956 Long-term borrowings 7,106 58,875 27,435 63,936 157,352 Bonds payable 2,690 2,690 38,519 8,993 52,892 Long-term payables – 439 2,402 – 2,841 355,650 62,004 68,356 72,929 558,939
– 82 –
– II-227 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
15 FINANCIAL INSTRUMENT AND RISK (CONTINUED)
(3) Liquidity risk (continued)
Prudent liquidity risk management refers to maintaining sufficient cash and availability of funds through different sources of capital, including raise of bank borrowings, issuance of bonds, proceeds from pre-sale of properties and proceeds from shareholders’ contribution. Due to the dynamic nature of the businesses, the Group maintains flexibility of the general working capital through having an adequate amount of cash and cash equivalents as well as different financing sources.
The Group has formulated certain alternative plans to mitigate the potential effects on the anticipated cash flow should there be materially adverse changes in the economic environment. Such plans include adjusting and further slowing down the construction plans for properties under development, implementing cost control measures, accelerating sales with more flexible pricing, seeking joint venture partners to co-develop in quality projects, selling certain land use rights and investment properties at an acceptable price and renegotiating the payment terms of certain land acquisitions with related parties. The Group will implement such plans as and when appropriate based on the evaluation of cost and profit in the future.
16 FAIR vALUE ESTIMATES
Based on the lowest level input that is significant to the fair value measurement in its entirety, the fair value hierarchy has the following levels:
Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3: Unobservable inputs for the asset or liability.
(1) Assets continuously measured at fair value
As at 31 December 2016, the assets continuously measured at fair value by the above three levels are analysed as below:
Level 1 Level 2 Level 3 Total
Financial assets Financial assets at fair value through profit or loss – Investments in equity instrument held for trading 3,076 – – 3,076 Available-for-sale financial assets – Available-for-sale equity instruments 34,538 274 28 34,840
Non-financial assets Investment properties – – 130,196 130,196 Total assets 37,614 274 130,224 168,112
– 83 –
– II-228 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
16 FAIR vALUE ESTIMATES (CONTINUED)
(1) Assets continuously measured at fair value (continued)
As at 31 December 2015, the assets continuously measured at fair value by the above three levels are analysed as below:
Level 1 Level 2 Level 3 Total
Financial assets Available-for-sale financial assets – Available-for-sale equity instruments 287 305 195 787
Non-financial assets Investment properties – – 96,382 96,382
Total assets 287 305 96,577 97,169
The Group takes the date on which events causing the transfers between the levels take place as the timing for recognising the transfers. There is no transfer between level 1 and level 2 for the year.
The fair value of a financial instrument in an active market is determined at the quoted price in the active market.
– 84 –
– II-229 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
16 FAIR vALUE ESTIMATES (CONTINUED)
(1) Assets continuously measured at fair value (continued)
Information about fair value measurements in level 3 are as follows:
Fair value as at Inputs 31 December Valuation Range/weighted Relationship Observable/ 2016 technique Name average to fair value unobservable
Investment properties Completed – 106,296 Commercial building 61,631 Income Ultimate yield 4%-6.5% Negative Unobservable approach Capitalisation rate 4%-7% Negative Unobservable Expected vacancy rate 0%-15% Negative Unobservable Monthly rental 21-660 Positive Unobservable (RMB/square meter) Direct Market price 3,356-144,633 Positive Unobservable comparison (RMB/square meter) Parking space 44,665 Direct Market price 65,000-530,000 Positive Unobservable comparison (RMB/per parking space)
In progress – 23,900 Commercial building 14,887 Residual Market price 5,500-40,500 Positive Unobservable method (RMB/square meter) Budgeted cost 1,233-7,610 Negative Unobservable (RMB/square meter) Developer’s profit 5%-25% Negative Unobservable
Parking space 9,013 Residual Market price 99,000-363,100 Positive Unobservable method (RMB/parking space) Budgeted cost 510-2,562 Negative Unobservable (RMB/square meter) Developer’s profit 2%-15% Negative Unobservable 130,196
– 85 –
– II-230 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
16 FAIR vALUE ESTIMATES (CONTINUED)
(1) Assets continuously measured at fair value (continued)
Fair value as at Inputs 31 December Valuation Range/weighted Relationship Observable/ 2015 technique Name average to fair value unobservable
Investment properties Completed – 63,635 Commercial building 32,104 Income Discount rate 4%-5.5% Negative Unobservable approach Capitalisation rate 4%-7% Negative Unobservable Expected vacancy rate 0%-10% Negative Unobservable Monthly rental 42-660 Positive Unobservable (RMB/square meter) Direct Market price 6,970- Positive Unobservable comparison (RMB/square meter) 77,500 Parking space 31,531 Direct Market price 84,300- Positive Unobservable comparison (RMB/per parking space) 391,000
In progress – 32,747 Commercial building 18,002 Residual Market price 5,360- Positive Unobservable method (RMB/squre meter) 26,532 Budgeted cost 100-6,038 Negative Unobservable (RMB/square meter) Developer’s profit 2%-30% Negative Unobservable
Parking space 14,745 Residual Market price 91,230- Positive Unobservable method (RMB/parking space) 288,000 Budgeted cost 100-2,754 Negative Unobservable (RMB/square meter) Developer’s profit 2%-20% Negative Unobservable 96,382
(2) Assets and liabilities not measured at fair value but disclosed at fair value
The Group’s financial assets and liabilities measured at amortised cost mainly represent receivables, short-term borrowings, payables and long-term borrowings.
The carrying amounts of such financial assets and liabilities not measured at fair values approximate of their fair values since the impact of discount is insignificant or the long-term borrowings have a floating rate.
(3) The fair value of bonds payable in an active market is determined at the quoted price in the active market, which is subject to level 1. The fair value of long-term borrowings, long-term payables and bonds payable not quoted in an active market is the present value of the contractually determined stream of future cash flows discounted at the rate of interest applied at that time by the market to instruments of comparable credit status and providing substantially the same cash flows on the same terms, which is subject to level 3.
– 86 –
– II-231 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
17 CAPITAL MANAGEMENT
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders, and to maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, refund capital to shareholders, issue new shares or sell assets to reduce debts.
The Group’s total capital is calculated as ‘owners’ equity’ as shown in the consolidated balance sheet. The Group is not subject to external mandatory capital requirements, and monitors capital on the basis of asset-to-liability ratio.
As at 31 December 2016 and 31 December 2015, the Group’s asset-to-liability ratio is set out as below:
31 December 2016 31 December 2015
Asset-to-liability ratio 93% 87%
18 SIGNIFICANT NOTES TO THE COMPANY’S FINANCIAL STATEMENTS
(1) Trade receivables
31 December 2016 31 December 2015
Due from related parties 183 – Due from third parties 2 3 185 3
The aging of trade receivables and the corresponding provisions made for bad debts are analysed as below:
31 December 2016 31 December 2015 Percentage of Provisions for Percentage of Provisions for Amount total amount bad debts Amount total amount bad debts
Within 1 year 185 100% – 3 100% –
As at 31 December 2016 and 31 December 2015, none of the trade receivables was overdue but unimpaired.
– 87 –
– II-232 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
18 SIGNIFICANT NOTES TO THE COMPANY’S FINANCIAL STATEMENTS (CONTINUED)
(2) Other receivables
31 December 2016 31 December 2015
Related parties 106,865 75,797 Third parties 906 1,685 107,771 77,482
Less: provisions for bad debts (28) – 107,743 77,482
The aging of other receivables and the corresponding provisions made for bad debts are analysed as below:
31 December 2016 31 December 2015 Percentage of Provisions for Percentage of Provisions for Amount total amount bad debts Amount total amount bad debts
Within 1 year 107,561 99.81% – 77,316 99.79% – 1 to 2 years 81 0.07% – 50 0.06% – Over 2 years 129 0.12% (28) 116 0.15% – 107,771 100.00% (28) 77,482 100.00% –
As at 31 December 2016 and 31 December 2015, none of the other receivables was overdue but unimpaired.
(3) Long-term equity investments
31 December 2016 31 December 2015
Subsidiaries 60,184 54,306 Joint ventures (a) 469 976 Associates (b) 1 151 60,654 55,433
There is no significant restriction on the realisation of the long-term equity investments held by the Company. The Company has adopted the cost method to account for the above subsidiaries, and equity method for the above joint ventures and associates.
– 88 –
– II-233 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
18 SIGNIFICANT NOTES TO THE COMPANY’S FINANCIAL STATEMENTS (CONTINUED)
(3) Long-term equity investments (continued)
(a) Joint ventures
Place of Nature of Registered Percentage of shareholding registration business capital(RMB) and voting rights 2016 2015
北京北恒中慧教育科技有限公司 China Cultural education 10,000,000 55% 55% 王府井恒大商業控股有限公司 China Commercial management 1,000,000,000 51% 51% Guangzhou Evergrande Taobao China Cultural entertainment 375,000,000 60% 60% Football Club Corp., Ltd.
Investments in joint ventures are set out below:
Adjustment of net profit/ 31 December Increase in Decrease in loss using the Other changes 31 December 2015 investment investment equity method in equity 2016
Joint ventures 976 – – (521) 14 469
None of the joint ventures is material to the Company on its own.
(b) Associates
Place of Registered capital Percentage of Shareholding registration Nature of business (RMB) and voting rights 2016 2015
北京觀止文化藝術有限公司 China Culture and arts 1,000,000 30% 30% 北京潤業文化藝術有限公司 China Culture and arts 1,000,000 25% 25% 前海開源資產管理（深圳）有限公司 China Assets management 100,000,000 N/A 16% 恒大地產集團（深圳）有限公司 China Real estate development 130,000,000 N/A 32%
Adjustment of net profit/ 31 December Increase in Decrease in loss using the Other changes 31 December 2015 investment investment equity method in equity 2016 Associates 151 – (165) 15 – 1
None of the associates is material to the Company on its own.
(4) Operating income and operating costs
2016 2015 Operating Operating Operating Operating income costs income costs
Income from service fees and others 2,371 155 1,280 105
– 89 –
– II-234 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016 (Expressed in millions of RMB, unless otherwise indicated)
18 SIGNIFICANT NOTES TO THE COMPANY’S FINANCIAL STATEMENTS (CONTINUED)
(5) Investment income
31 December 2016 31 December 2015 Income from long-term equity investment accounted for using the cost method 23,922 4,908 Losses from long-term equity investment accounted for using the equity method (506) (373) Income from disposal of associates 7 – 23,423 4,535
The Company was not subject to significant restrictions in remitting its investment income.
(6) Notes to the cash flow statement
Reconciliation from net profit to cash flows from operating activities:
2016 2015
Net profit 20,277 3,567 Add: Provision for asset impairment 28 – Depreciation of fixed assets 95 71 Amortisation of intangible assets 7 7 Losses arising from changes in fair value 623 142 Interest expenses 1,344 566 Investment income (22,866) (4,535) Increase in deferred income tax net liabilities (167) (302) Decrease/(increase) in inventories 439 (577) Increase in operating receivables (113) (623) (Decrease)/increase in operating payables (1,007) 734 Net cash flows from operating activities (1,340) (950)
– 90 –
– II-235 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
UNAUDITED CONSOLIDATED AND THE COMPANY BALANCE SHEET AS AT 30 JUNE 2017 (Expressed in millions of RMB, unless otherwise indicated)
Consolidated The Company 30 June 31 December 30 June 31 December Assets Notes 2017 2016 2017 2016
Current assets Cash and bank balances 2 230,687 275,191 65,022 76,962 Financial assets at fair value through profit or loss 2,840 3,076 – – Note receivables 21 68 – – Trade receivables 17,487 8,447 21 185 Prepayments 77,245 52,159 359 288 Interest receivables 142 281 127 301 Dividend receivables – – 5,735 11,545 Other receivables 3 32,983 28,627 168,824 107,743 Inventories 4 754,656 647,097 2,337 2,264 Non-current assets due within one year 7,368 7,019 – – Other current assets 19,563 14,466 2,024 24
Total current assets 1,142,992 1,036,431 244,449 199,312
Non-current assets Available-for-sale financial assets 1,962 34,840 943 1,781 Long-term receivables 6,568 8,746 – – Long-term equity investments 573 727 66,581 60,654 Investment properties 5 135,658 130,196 2,419 2,414 Fixed assets 6 14,576 13,208 801 833 Construction in progress 5,075 4,478 6 – Intangible assets 5,234 5,138 78 82 Goodwill – 1,003 – – Long-term deferred expenses 124 204 13 2 Deferred income tax assets 2,597 3,809 123 – Other non-current assets 1,022 1,358 – –
Total non-current assets 173,389 203,707 70,964 65,766
Total assets 1,316,381 1,240,138 315,413 265,078
– II-236 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED UNAUDITED CONSOLIDATED AND THE COMPANY BALANCE SHEET AS AT 30 JUNE 2017 (CONTINUED) (Expressed in millions of RMB, unless otherwise indicated)
Consolidated The Company Liabilities and owners’ 30 June 31 December 30 June 31 December equity Notes 2017 2016 2017 2016 Current liabilities Short-term borrowings 7 139,188 88,706 900 1,100 Notes payables 19,652 43,675 2 54 Trade payables 154,362 132,457 309 429 Receipts in advance 178,887 183,404 448 356 Employee remuneration payables 1,249 1,411 39 74 Tax payables 49,572 34,954 353 46 Interest payables 3,615 9,758 2,566 1,711 Dividend payables 2,662 4,189 – – Other payables 8 93,412 114,710 168,769 183,709 Other current liabilities 4,169 – – – Non-current liabilities due within one year 130,417 80,754 14,929 7,106
Total current liabilities 777,185 694,018 188,315 194,585
Non-current liabilities Long-term borrowings 9 262,183 332,137 13,495 19,715 Bond payables 10 38,887 47,005 38,887 47,005 Long-term payables 12,002 41,345 – – Deferred income tax liabilities 23,954 21,443 – 100 Other non-current liabilities 19,396 16,048 – – Total non-current liabilities 356,422 457,978 52,382 66,820
Total liabilities 1,133,607 1,151,996 240,697 261,405
Owners’ equity Paid-up capital 3,384 2,500 3,384 2,500 Capital reserve 58,036 14 69,130 14 Other comprehensive (loss)/income (517) (3,089) (429) 199 Surplus reserve 192 42 192 42 Exchange reserve 559 769 – – Retained profits 77,428 52,989 2,439 918 Total equity attributable to owners of the parent company 139,082 53,225 74,716 3,673
Minority interests 43,692 34,917 – – Total owners’ equity 182,774 88,142 74,716 3,673
Total liabilities and owners’ equity 1,316,381 1,240,138 315,413 265,078
Person-in-charge of the Company: Person-in-charge of Prepared by: Zhao Changlong accounting: Hu Lijie Pan Hanling
– II-237 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
UNAUDITED CONSOLIDATED AND THE COMPANY INCOME STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2017 (Expressed in millions of RMB, unless otherwise indicated)
Consolidated The Company For the For the For the For the six months six months six months six months ended ended ended ended 30 June 30 June 30 June 30 June Items Notes 2017 2016 2017 2016
I. Operating income 11 181,915 86,908 895 855 Less: Operating costs 11 (116,309) (59,209) (12) (69) Operating taxes and surcharges (13,153) (7,639) (71) (3) Selling expenses 12 (7,178) (6,868) (477) (327) Administrative expenses 13 (3,199) (2,582) (491) (653) Financial expenses – net 14 (2,585) 181 (614) (2,330) Asset impairment loss/(reversal) (202) (157) – – Add: Gain/(loss) from changes in fair value 5,680 2,757 5 (47) Investment (loss)/income (3,751) (95) 2,834 17,787
II. Operating profit 41,218 13,296 2,069 15,213 Add: Non-operating income 255 665 – 2 Less: Non-operating expenses (1,972) (1,558) (74) (73)
III. Total profit 39,501 12,403 1,995 15,142 Less: Income tax expenses (13,905) (3,658) (324) (107)
IV. Net profit 25,596 8,745 1,671 15,035
Net profit attributable to owners of the parent company 24,589 7,855 1,671 15,035 Profit and loss attributable to minority interests 1,007 890 – –
V. Net amount of other comprehensive income after tax 2,362 (253) (628) –
VI. Total comprehensive income 27,958 8,492 1,043 15,035 Total comprehensive income attributable to owners of the parent company 26,951 7,602 1,043 15,035 Total comprehensive income attributable to minority interests 1,007 890 – –
Person-in-charge of the Company: Person-in-charge of Prepared by: Zhao Changlong accounting: Hu Lijie Pan Hanling
– II-238 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED UNAUDITED CONSOLIDATED AND THE COMPANY CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2017 (Expressed in millions of RMB, unless otherwise indicated) Consolidated The Company For the For the For the For the six months six months six months six months ended ended ended ended 30 June 30 June 30 June 30 June Items 2017 2016 2017 2016 I. Cash flows generated from operating activities Cash received from the sale of goods and provision of labour services 185,066 110,529 1,152 1,043 Cash received from other operating activities 7,245 1,276 1,084 780 Sub-total of cash inflows from operating activities 192,311 111,805 2,236 1,823 Cash paid for the purchase of goods and engagement of labour services (206,081) (75,989) (276) (52) Cash paid to/for employees (6,668) (5,430) (360) (415) Tax charges paid (17,995) (12,449) (101) (99) Cash paid for other operating activities (14,131) (16,758) (5,913) (1,573) Sub-total of cash outflows from operating activities (244,875) (110,626) (6,650) (2,139) Net cash flows generated from operating activities (52,564) 1,179 (4,414) (316) II. Cash flows generated from investing activities Cash received from disposals of investments 29,189 184 15 – Cash received from investment gains 14 40 5,810 7,235 Cash received from disposal of fixed assets, investment properties and intangible assets 808 1,542 10 – Cash received from disposal of subsidiaries and other operational units 4,005 – 6,581 – Cash received from other investing activities 1,115 – – 20,223 Sub-total of cash inflows from investing activities 35,131 1,766 12,416 27,458 Cash paid for investments (2,223) (24,707) (2,000) (28,874) Cash paid for acquisition of fixed assets, investment properties and intangible assets (8,104) (13,883) (43) (82) Net cash paid for acquisition of subsidiaries and other operational units (21,627) (25,992) (125) – Cash paid for other investing activities (4,621) (11,621) (63,909) – Sub-total of cash used in investing activities (36,575) (76,203) (66,077) (28,956) Net cash flows generated from investing activities (1,444) (74,437) (53,661) (1,498) III. Cash flows generated from financing activities Cash received from investors 57,805 967 57,000 – Cash received from borrowings 200,353 174,039 – 10,000 Cash received from bond issuance – 9,940 – 9,940 Cash received from other financing activities 8,340 43,350 – – Sub-total of cash inflows from financing activities 266,498 228,296 57,000 19,940 Cash paid for repayment of debts (179,416) (98,423) (6,769) – Cash paid for distribution of dividends, profits or repayment of interests (28,892) (13,202) (1,733) (1,991) Cash paid for other financing activities (44,373) (26,430) (12,400) (3,842) Sub-total of cash outflows from financing activities (252,681) (138,055) (20,902) (5,833) Net cash flows generated from financing activities 13,817 90,241 36,098 14,107 IV. Effects of changes in foreign exchange rate on cash and cash equivalents (110) 81 – – V. Net change in cash and cash equivalents (40,301) 17,064 (21,977) 12,293 Add: Balance of cash and cash equivalents at the beginning of the period 171,185 91,301 46,003 7,141 VI. Balance of cash and cash equivalents at the end of the period 130,884 108,365 24,026 19,434
Person-in-charge of the Company: Person-in-charge of Prepared by: Zhao Changlong accounting: Pan Hanling Hu Lijie
– II-239 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN OWNERS’ EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2017 (Expressed in millions of RMB, unless otherwise indicated) Total Minority owners’ Equity attributable to the owners of the parent company interests equity Other comprehensive Paid-up Capital (loss)/ Surplus Exchange Retained Items capital reserve income reserve reserve profits Opening balance at 1 January 2017 2,500 14 (3,089) 42 769 52,989 34,917 88,142 Changes for the six months ended 30 June 2017 Total comprehensive income Net profit – – – – – 24,589 1,007 25,596 Other comprehensive income – – 2,572 – (210) – – 2,362 Total comprehensive income – – 2,572 – (210) 24,589 1,007 27,958 Capital contributed and withdrawn by owners Capital contributed by owners 884 69,116 ––––11,622 81,622 Amounts of share-based payment recognized in owners’ equity – 29 –––––29 Increase in minority interests through the acquisition of assets – – ––––202202 Increase in minority interests through the acquisition of businesses – – ––––591591 Disposal of subsidiaries – – ––––(2,261) (2,261) Acquisition of minority interests of some subsidiaries – (11,123) ––––(2,250) (13,373) Profit distribution Appropriation to surplus reserves – – – 150 – (150) – – Profit distribution to owners – – ––––(136) (136) Closing balance at 30 June 2017 3,384 58,036 (517) 192 559 77,428 43,692 182,774 Opening balance at 1 January 2016 2,500 5,872 56 1,250 – 71,904 15,464 97,046 Changes for the six months ended 30 June 2016 Net profit – – – – – 7,855 890 8,745 Other comprehensive income – – (253) ––––(253) Total comprehensive income – – (253) – – 7,855 890 8,492 Capital contributed and withdrawn by owners Capital contributed by owners – – ––––967967 Amounts of share-based payment recognized in owners’ equity – 38 –––––38 Increase in minority interests through the acquisition of assets – – ––––125125 Increase in minority interests through the acquisition of businesses – – ––––3,378 3,378 Disposal of subsidiaries – (306) ––––(97) (403) Acquisition of minority interests of some subsidiaries – (503) ––––(1,727) (2,230) Business combinations under common control – (691) –––––(691) Profit distribution Profit distribution to owners – – ––––(442) (442) Closing balance at 30 June 2016 2,500 4,410 (197) 1,250 – 79,759 18,558 106,280
Person-in-charge of the Company: Person-in-charge of Prepared by: Zhao Changlong accounting: Pan Hanling Hu Lijie
– II-240 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
UNAUDITED COMPANY STATEMENT OF CHANGES IN OWNERS’ EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2017 (Expressed in millions of RMB, unless otherwise indicated)
Other comprehensive Total Paid-up Capital (loss)/ Surplus Retained owners’ Items capital reserve income reserve profits equity
Opening balance at 1 January 2017 2,500 14 199 42 918 3,673
Changes for the six months ended 30 June 2017 Total comprehensive income Net profit – – – – 1,671 1,671 Other comprehensive income – – (628) – – (628)
Total comprehensive income – – (628) – 1,671 1,043
Capital contributed and withdrawn by owners Capital contributed by owners 884 69,116 – – – 70,000 Profit distribution Appropriation to surplus reserves – – – 150 (150) –
Closing balance at 30 June 2017 3,384 69,130 (429) 192 2,439 74,716
Opening balance at 1 January 2016 2,500 518 – 1,250 5,382 9,650
Changes for the six months ended 30 June 2016 Net profit – – – – 15,035 15,035
Capital contributed and withdrawn by owners Disposal of subsidiaries – (45) – – – (45) Business combinations under common control – 339 – – – 339
Closing balance at 30 June 2016 2,500 812 – 1,250 20,417 24,979
Person-in-charge of the Company: Person-in-charge of Prepared by: Zhao Changlong accounting: Pan Hanling Hu Lijie
– II-241 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
HENGDA REAL ESTATE GROUP COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2017 (Expressed in millions of RMB, unless otherwise indicated)
1 BASIS OF PREPARATION FOR THE FINANCIAL STATEMENTS
The Group has prepared the financial statements in accordance with the Accounting Standard for Business Enterprises – Basic Standards, and the specific accounting standards and other relevant regulations issued by the Ministry of Finance on 15 February 2006 (hereinafter collectively referred to as the “Accounting Standards for Business Enterprises” or “CAS”).
The financial statements are prepared on a going concern basis.
2 CASH AND CASH BALANCES
30 June 2017 31 December 2016
Cash on hand 29 50 Cash at bank 130,855 171,135 Other cash and cash balances 99,803 104,006
230,687 275,191
Restricted cash and cash balances (99,803) (104,006)
Cash and cash equivalents 130,884 171,185
3 OTHER RECEIVABLES
31 December 2016 30 June 2017
Deposits receivable 7,981 15,031 Amounts due from related parties 2,619 2,443 Amounts due from minority 4,235 7,918 shareholders Amounts due from disposal of 6,776 468 subsidiaries Others 7,191 7,328
28,802 Increase during the 33,188 period
Less: Allowance for bad debt (175) (30) (205)
28,627 32,983
An analysis of other receivables and allowance for bad debt is as follows:
30 June 2017 31 December 2016 Allowance Allowance Total for bad Total for bad Amount percentage debt Amount percentage debt
Within one year 27,935 84.17% (138) 23,270 80.79% (115) Over one year but within two years 2,377 7.16% (20) 2,392 8.30% (17) Over two years 2,876 8.67% (47) 3,140 10.91% (43)
33,188 100.00% (205) 28,802 100.00% (175)
As at 30 June 2017 and 31 December 2016, there were no other receivables that were past due but not impaired.
– II-242 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
4 INVENTORIES
30 June 2017 31 December 2016
Properties under development 665,079 566,502 Completed properties held for sale 89,540 80,438 Others 37 157
754,656 647,097
5 INVESTMENT PROPERTIES
Housing and buildings
31 December 2016 130,196 Increase during the period 6,142 Decrease during the period (6,444) Changes in fair value 5,974 Exchange differences arising from translation of financial statements of foreign currency (210)
30 June 2017 135,658
6 FIXED ASSETS
Housing Machinery and and Office buildings equipment Vehicles equipment Total
Cost 31 December 2016 11,793 179 570 4,902 17,444 Increase during the period 2,087 124 52 515 2,778 Decrease during the period (666) (33) (30) (64) (793)
30 June 2017 13,214 270 592 5,353 19,429
Accumulated depreciation 31 December 2016 (1,754) (64) (403) (2,015) (4,236) Provided for during the period (435) (27) (41) (215) (718) Decrease during the period 54 12 17 18 101
30 June 2017 (2,135) (79) (427) (2,212) (4,853)
Net value 30 June 2017 11,079 191 165 3,141 14,576
31 December 2016 10,039 115 167 2,887 13,208
7 SHORT-TERM BORROWINGS
30 June 2017 31 December 2016
Secured borrowings Secured 24,956 24,793 Pledged 87,327 33,901 Guaranteed 25,949 26,271 Unsecured borrowings 956 3,741
139,188 88,706
– II-243 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
8 OTHER PAYABLES
31 December 30 June 2017 2016
Amounts due to related parties 849 29,017 Land premium payables 48,919 35,537 Amounts payable for acquisition of subsidiaries 13,951 18,766 Deposits and receipts under custody payables 5,245 3,513 Amounts due to minority shareholders 14,194 4,239 Provisional collection of investor contributions – 13,000 Others 10,254 10,638
93,412 114,710
9 LONG-TERM BORROWINGS
31 December 30 June 2017 2016
Secured borrowings 201,167 194,919 Pledged borrowings 103,939 128,983 Guaranteed borrowings 58,338 58,307 Unsecured borrowings 2,592 17,240
366,036 399,449
Less: Long-term borrowings due within one year Secured borrowings (53,756) (37,931) Pledged borrowings (34,344) (15,522) Guaranteed borrowings (15,203) (10,882) Unsecured borrowings (550) (2,977)
(103,853) (67,312)
262,183 332,137
10 BOND PAYABLES
31 December 30 June 2017 2016
Public issuance of corporate bonds 19,870 19,853 Non-public issuance of corporate bonds 33,947 33,908
53,816 53,761 Less: Bond payables due within one year (14,929) (6,756)
Balance of bond payables 38,887 47,005
– II-244 – APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE
11 OPERATING INCOME AND OPERATING COSTS
For the six months ended For the six months ended 30 June 2017 30 June 2016 Operating Operating Operating Operating income costs income costs
Sale of properties 178,281 113,536 83,090 55,715 Others 3,634 2,773 3,818 3,494
181,915 116,309 86,908 59,209
12 SELLING EXPENSES
For the six For the six months ended months ended 30 June 30 June 2017 2016
Advertising and marketing expenses 4,530 4,333 Employee remuneration expenses 1,352 1,117 Depreciation and amortisation expenses 187 330 Others 1,109 1,088
7,178 6,868
13 ADMINISTRATIVE EXPENSES
For the six For the six months ended months ended 30 June 30 June 2017 2016
Employee remuneration expenses 1,616 1,181 Depreciation and amortisation expenses 460 471 Others 1,123 930
3,199 2,582
14 FINANCIAL EXPENSES/(INCOME) – NET
For the six For the six months ended months ended 30 June 30 June 2017 2016
Interest paid 2,791 202 Less: Interest income (1,680) (1,662) Fees 360 478 Exchange losses 1,114 801
2,585 (181)
– II-245 – APPENDIX III UNAUDITED PRO FORMA FINANCIAL INFORMATION OF THE GROUP FOLLOWING THE CAPITAL CONTRIBUTION
A. UNAUDITED PRO FORMA FINANCIAL INFORMATION OF THE GROUP FOLLOWING THE CAPITAL CONTRIBUTION
1. Introduction
The following is the unaudited pro forma consolidated statement of assets and liabilities of the Group as at 31 December 2016 (the “Unaudited Pro Forma Financial Information”), as if the Capital Contribution had been completed on 31 December 2016. Details of the Capital Contribution are set out in the section headed “Letter from the Board” contained in this circular.
The Unaudited Pro Forma Financial Information of the Group has been prepared by the directors of the Company in accordance with paragraph 4.29 of the Listing Rules for the purpose of illustrating the effect of the Capital Contribution pursuant to the terms of the Investment Agreement. Because of its hypothetical nature, the Unaudited Pro Forma Financial Information may not give a true picture of the financial position of the Group had the Capital Contribution been completed as of 31 December 2016 or any future date.
The Unaudited Pro Forma Financial Information is based upon the consolidated statement of financial position of the Group as at 31 December 2016, which have been extracted from the Company’s 2016 annual report, and adjusted on a pro forma basis to reflect the effect of the Capital Contribution.
The Unaudited Pro Forma Financial Information of the Group should be read in conjunction with the historical financial information of the Group as set out in the published annual report of the Company for the year ended 31 December 2016 and other financial information included elsewhere in this circular.
– III-1 – APPENDIX III UNAUDITED PRO FORMA FINANCIAL INFORMATION OF THE GROUP FOLLOWING THE CAPITAL CONTRIBUTION
2. Unaudited pro forma consolidated statement of assets and liabilities of the Group
Unaudited pro forma consolidated The Group statement of as at assets and 31 December Pro forma liabilities of 2016 adjustments the Group HKD’000 HKD’000 HKD’000 Note(i) Note(ii) Non-current assets Property, plant and equipment 3,844,311 – 3,844,311 Prepaid land lease payments 36,083 – 36,083 Goodwill 322,240 – 322,240 Investment properties 22,807,211 – 22,807,211 Interests in associates 3,994,821 – 3,994,821 Interests in joint ventures 3,300,931 – 3,300,931 Other financial assets 112,985 6,337,100 6,450,085 Other long term assets 3,188,483 – 3,188,483 Deferred tax assets 1,954,441 – 1,954,441
Total non-current assets 39,561,506 6,337,100 45,898,606 ------Current assets Trading biological assets 8,136 – 8,136 Completed properties held for sale 7,514,657 – 7,514,657 Properties under development 35,292,229 – 35,292,229 Inventories 93,354 – 93,354 Trade receivables 322,506 – 322,506 Prepayments, deposits and other receivables 1,684,928 – 1,684,928 Equity investments at fair value through profit or loss 4,566 – 4,566 Restricted cash 2,204,157 – 2,204,157 Cash and cash equivalents 9,859,526 (6,337,100) 3,522,426
Total current assets 56,984,059 (6,337,100) 50,646,959 ------Current liabilities Interest-bearing bank and other borrowings 5,288,454 – 5,288,454 Trade payables 1,116,432 – 1,116,432 Other payables and accruals 17,023,915 – 17,023,915 Due to the immediate holding company 1,270,755 – 1,270,755 Due to the ultimate holding company 2,850,880 – 2,850,880 Tax payable 8,755,178 – 8,755,178
Total current liabilities 36,305,614 – 36,305,614 ------Net current assets 20,678,445 (6,337,100) 14,341,345 ------Total assets less current liabilities 60,239,951 – 60,239,951 ------Total non-current liabilities Interest-bearing bank and other borrowings 14,468,791 – 14,468,791 Deferred income 27,375 – 27,375 Due to the immediate holding company 752,362 – 752,362 Deferred tax liabilities 8,770,489 – 8,770,489
Total non-current liabilities 24,019,017 – 24,019,017 ------
– III-2 – APPENDIX III UNAUDITED PRO FORMA FINANCIAL INFORMATION OF THE GROUP FOLLOWING THE CAPITAL CONTRIBUTION
Unaudited pro forma consolidated The Group statement of as at assets and 31 December Pro forma liabilities of 2016 adjustments the Group HKD’000 HKD’000 HKD’000 Note(i) Note(ii) NET ASSETS 36,220,934 – 36,220,934
3. Notes to the Unaudited Pro Forma Financial Information of the Group
(i) The amounts are extracted from the consolidated statement of financial position of the Group for the year ended 31 December 2016, as set out in the published 2016 annual report of the Company.
(ii) On 31 May 2017, 28 June 2017 and 6 November 2017, the Subsidiary entered into Investment Agreement with Kailong Real Estate, Hengda Real Estate (both are subsidiaries of China Evergrande), and Mr. Hui, pursuant to which the Subsidiary has agreed to contribute an amount of RMB5.5 billion (equivalent to HK$6,337,100,000) to the capital of Hengda Real Estate in return for approximately 2.0522% of the enlarged equity interest of Hengda Real Estate (which will subsequently be diluted to approximately 1.7626% of the enlarged equity interest of Hengda Real Estate after the capital contributions to Hengda Real Estate pursuant to the Third Round Investment Agreements are made). The payment of the consideration for the Capital Contribution is to be satisfied in cash.
Hengda Real Estate is undergoing a Proposed Reorganisation such that Kailong Real Estate will become the controlling shareholder of Shenzhen Real Estate after the Proposed Reorganisation. If the Proposed Reorganisation as contemplated under the Reorganisation Agreement is not completed by 31 January 2020 and the failure to complete is not caused by reasons attributable to the Subsidiary, the Subsidiary may within two months of the expiry of such deadline to demand Kailong Real Estate to either:
(a) buy back the entire equity interest in Hengda Real Estate held by the Subsidiary at the original amount of capital contributed by it, provided that Kailong Real Estate may choose not to buy back such equity interest from the Subsidiary, in which case, the Subsidiary will have the right to request Mr. Hui to buy back the entire equity interest held by the Subsidiary at the original amount of capital contributed by it; or
(b) transfer additional shares, which are equivalent to 50% of the equity interest held by the Subsidiary in Hengda Real Estate on the signing of the compensation agreement (excluding any additional equity interest acquired by the Subsidiary after the date of the Principal Investment Agreements), to the Subsidiary at nil consideration.
In addition, under the terms of the Investment Agreement, Kailong Real Estate and Hengda Real Estate have undertaken to the Subsidiary that the Performance Undertaking Amounts of Hengda Real Estate for the financial years of 2017, 2018 and 2019 will not be less than RMB24.3 billion, RMB50 billion and RMB55 billion, respectively. The Performance Undertaking Amounts of Hengda Real Estate for the financial years ending 31 December 2018 and 2019, however, are to be finally determined with reference to the valuation report issued by a valuer with securities and futures industry qualifications and approved by the relevant authorized State-owned assets supervision and administration commission, in relation to the valuation of the equity interests of all shareholders of Hengda Real Estate as at 30 June 2017 but in any event will not be less than RMB30.8 billion and RMB33.7 billion, respectively. As at the Latest Practicable Date, such valuation report has been issued, and the Performance Undertaking Amounts of Hengda Real Estate for the financial years ending 31 December 2018 and 2019 were finally determined to be RMB50 billion and RMB55 billion respectively. Hengda Real Estate will distribute at least 68% of its net profit for each of the financial years under the Performance Undertaking Period to its shareholders in accordance with their respective percentage of equity interest in it as cash dividends. If the net profit of Hengda Real Estate for any financial year in the Performance Undertaking Period (as
– III-3 – APPENDIX III UNAUDITED PRO FORMA FINANCIAL INFORMATION OF THE GROUP FOLLOWING THE CAPITAL CONTRIBUTION
audited and confirmed by auditors with relevant securities and futures industry qualifications to be employed by Hengda Real Estate) is less than the Performance Undertaking Amount for that financial year, the proportional dividend to be paid by Hengda Real Estate to the Subsidiary will be adjusted upward in accordance with the formulae specified in the Investment Agreement.
The financial assets arising from the Investment Agreement are recognised as “other financial assets” in the Group’s unaudited pro forma consolidated statement of assets and liabilities.
(iii) No adjustment has been made to the Unaudited Pro Forma Financial Information for acquisition-related costs (including fees to legal advisers, financial adviser, reporting accountants, valuer, printer and other expenses) as the directors determined that such costs are insignificant.
(iv) No adjustment has been made to the Unaudited Pro Forma Financial Information to reflect any trading results or other transactions of the Group entered into subsequent to 31 December 2016.
– III-4 – APPENDIX III UNAUDITED PRO FORMA FINANCIAL INFORMATION OF THE GROUP FOLLOWING THE CAPITAL CONTRIBUTION
The following is the text of a report dated 24 November 2017 received from the reporting accountants, KPMG, Certified Public Accountants, Hong Kong, in respect of the Group’s pro forma financial information for the purpose in this circular.
B. INDEPENDENT REPORTING ACCOUNTANTS’ ASSURANCE REPORT ON THE COMPILATION OF PRO FORMA FINANCIAL INFORMATION
To the Directors of Shenzhen Investment Limited
We have completed our assurance engagement to report on the compilation of pro forma financial information of Shenzhen Investment Limited (the “Company”) and its subsidiaries (collectively the “Group”) by the directors of the Company (the “Directors”) for illustrative purposes only. The pro forma financial information consists of the unaudited pro forma consolidated statement of assets and liabilities as at 31 December 2016 and related notes as set out in Part A of Appendix III to the circular dated 24 November 2017 (the “Circular”) issued by the Company. The applicable criteria on the basis of which the Directors have compiled the pro forma financial information are described in Part A of Appendix III to the Circular.
The pro forma financial information has been compiled by the Directors to illustrate the impact of the capital contribution to Hengda Real Estate Group Company Limited (the “Transaction”) on the Group’s financial position as at 31 December 2016 as if the Transaction had taken place at 31 December 2016. As part of this process, information about the Group’s financial position as at 31 December 2016 has been extracted by the Directors from the consolidated financial statements of the Company for the year then ended, on which an audit report has been published.
Directors’ Responsibilities for the Pro Forma Financial Information
The Directors are responsible for compiling the pro forma financial information in accordance with paragraph 4.29 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”) and with reference to Accounting Guideline 7 “Preparation of Pro Forma Financial Information for Inclusion in Investment Circulars” (“AG 7”) issued by the Hong Kong Institute of Certified Public Accountants (“HKICPA”).
Our Independence and Quality Control
We have complied with the independence and other ethical requirements of the Code of Ethics for Professional Accountants issued by the HKICPA, which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behavior.
– III-5 – APPENDIX III UNAUDITED PRO FORMA FINANCIAL INFORMATION OF THE GROUP FOLLOWING THE CAPITAL CONTRIBUTION
The firm applies Hong Kong Standard on Quality Control 1 “Quality Control for Firms That Perform Audits and Reviews of Financial Statements, and Other Assurance and Related Services Engagements” issued by the HKICPA and accordingly maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.
Reporting Accountants’ Responsibilities
Our responsibility is to express an opinion, as required by paragraph 4.29(7) of the Listing Rules, on the pro forma financial information and to report our opinion to you. We do not accept any responsibility for any reports previously given by us on any financial information used in the compilation of the pro forma financial information beyond that owed to those to whom those reports were addressed by us at the dates of their issue.
We conducted our engagement in accordance with Hong Kong Standard on Assurance Engagements (“HKSAE”) 3420 “Assurance Engagements to Report on the Compilation of Pro Forma Financial Information Included in a Prospectus” issued by the HKICPA. This standard requires that the reporting accountants plan and perform procedures to obtain reasonable assurance about whether the Directors have compiled the pro forma financial information in accordance with paragraph 4.29 of the Listing Rules, and with reference to AG 7 issued by the HKICPA.
For purpose of this engagement, we are not responsible for updating or reissuing any reports or opinions on any historical financial information used in compiling the pro forma financial information, nor have we, in the course of this engagement, performed an audit or review of the financial information used in compiling the pro forma financial information.
The purpose of pro forma financial information included in an investment circular is solely to illustrate the impact of a significant event or transaction on the unadjusted financial information of the Group as if the event had occurred or the transaction had been undertaken at an earlier date selected for purposes of the illustration. Accordingly, we do not provide any assurance that the actual outcome of the events or transactions at 31 December 2016 would have been as presented.
A reasonable assurance engagement to report on whether the pro forma financial information has been properly compiled on the basis of the applicable criteria involves performing procedures to assess whether the applicable criteria used by the Directors in the compilation of the pro forma financial information provide a reasonable basis for presenting the significant effects directly attributable to the event or transaction, and to obtain sufficient appropriate evidence about whether:
• the related pro forma adjustments give appropriate effect to those criteria; and
– III-6 – APPENDIX III UNAUDITED PRO FORMA FINANCIAL INFORMATION OF THE GROUP FOLLOWING THE CAPITAL CONTRIBUTION
• the pro forma financial information reflects the proper application of those adjustments to the unadjusted financial information.
The procedures selected depend on the reporting accountants’ judgement, having regard to the reporting accountants’ understanding of the nature of the Group, the event or transaction in respect of which the pro forma financial information has been compiled, and other relevant engagement circumstances.
The engagement also involves evaluating the overall presentation of the pro forma financial information.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Opinion
In our opinion:
(a) the pro forma financial information has been properly compiled on the basis stated;
(b) such basis is consistent with the accounting policies of the Group, and
(c) the adjustments are appropriate for the purposes of the pro forma financial information as disclosed pursuant to paragraph 4.29(1) of the Listing Rules.
KPMG Certified Public Accountants
Hong Kong 24 November 2017
– III-7 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP
The following is a reproduction of the text of a letter dated 12 June 2017 enclosing a summary of market values of certain properties in which the Hengda Real Estate Group had interests in in the PRC and Hong Kong as of 31 March 2017 (the “Property Valuation Report”) which was prepared by CBRE on commission by China Evergrande for the sole purpose of incorporation in the circular of China Evergrande dated 13 June 2017 (the “China Evergrande Circular”). The Property Valuation Report was set out in Appendix II to the China Evergrande Circular.
For the avoidance of doubt, references in the Property Valuation Report in this Appendix IV (i) to “the Company” are to China Evergrande and not to the Company; and (ii) to “the Group” are to China Evergrande and its subsidiaries and not to the Company and its subsidiaries.
The Property Valuation Report is reproduced in this circular independent of and unrelated to the China Evergrande Circular for the Shareholders’ reference only but not for any other purposes. The Property Valuation Report shall be used only in its entirety and no part shall be used without making reference to the whole report. Possession of the Property Valuation Report or any copy thereof does not carry with it the right of copying. Neither the whole nor any part of the Property Valuation Report nor any reference to CBRE, its valuation and its report may be included in any document, circular or statement nor published without the prior written consent of CBRE in the form and context in which they may appear.
To the maximum extent permitted by law, none of CBRE or any of its parent or associated company or affiliates, or any of its directors, officers, employees or agent is responsible for any claim, loss, damage, liability, cost or expense suffered or incurred by any person (including but not limited to the Company or Shareholders) arising from or in connection with any such person’s use or reliance of the Property Valuation Report or any information therein.
The contents of the Property Valuation Report had also not been independently verified by the Group or any of its affiliates, advisers, agents, directors, employees, officers or representatives. Neither the Group nor any of its affiliates, advisers, agents, directors, employees, officers or representatives make any representation as to the accuracy, completeness or fairness of the contents of the Property Valuation Report, nor shall take or assume any responsibility for the contents of the Property Valuation Report.
– IV-1 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT
The following is the text of a letter with the summary of values received from CBRE Limited, prepared for the purpose of incorporation in the circular, in connection with their valuation as of 31 March 2017 of certain properties of the Group.
Suites 1204–06, 12/F, 3/F & 4/F Three Exchange Square 8 Connaught Place Central, Hong Kong T 852 2820 2800 F 852 2810 0830 香港中環康樂廣場八號交易廣場第三期 十二樓1204–06室，三樓及四樓 電話 852 2820 2800 傳真 852 2810 0830 www.cbre.com.hk 地產代理（公司）牌照號碼 Estate Agent’s Licence No: C-004065
12 June 2017
China Evergrande Group Suite 1501–1507, One Pacific Place, 88 Queensway, Hong Kong
Dear Sirs,
In accordance with instructions from China Evergrande Group (the ‘‘Company) to value the certain properties in which Hengda Real Estate Group and its subsidiaries (collectively referred to as ‘‘the Group’’) have interests in the People’s Republic of China (the ‘‘PRC’’) and Hong Kong, we confirm that we have carried out inspections, made relevant enquiries, and obtained such further information as we consider necessary for the purpose of providing you with our opinion of the market value of such properties as of 31 March 2017 (the ‘‘Valuation Date’’).
Valuation Basis, Assumptions and Methodology
Our valuation is prepared in accordance with ‘‘The HKIS Valuation Standards (2012 Edition)’’ (‘‘the Standards’’) published by The Hong Kong Institute of Surveyors (‘‘the HKIS’’), the RICS Valuation — Professional Standards of Royal Institution of Chartered Surveyors and is complied with International Valuation Standards (IVS).
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– IV-2 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT
Our valuation is made on the basis of market value which is defined by the International Valuation Standards and followed by the HKIS as ‘‘the estimated amount for which an asset or liability should exchange on the Valuation Date between a willing buyer and a willing seller in an arm’s-length transaction after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.’’
We have also complied with all the requirements contained in the Companies Ordinance, Chapter 5, Practice Note 12 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the ‘‘Listing Rules’’).
Our valuation has been made on the assumption that the owner sells the property on the open market without the benefit or burden of a deferred term contract, leaseback, joint venture, management agreement or any similar arrangement, which would serve to affect the values of the properties.
No allowance has been made in our valuation for any charges, mortgages or amounts owing neither on the property nor for any expenses or taxation which may be incurred in effecting sale. Unless otherwise stated, it is assumed that the properties were free from encumbrances, restrictions and outgoings of an onerous nature which could affect their values.
We have valued the properties in Group I which are held by the Group for sale, properties in Group II which are held by the Group for owner occupation, and properties in Group V which are held by the Group for future development by the Direct Comparison Approach on the assumption that each property can be sold in their existing state. Comparison is based on prices realized on actual transactions and/or asking prices of comparable properties. Comparable properties with similar sizes, characteristics and locations are analyzed, and carefully weighed against all respective advantages and disadvantages of each property in order to arrive at a fair comparison of value.
We have valued portions of the properties in Group II which are held and operated by the Group as hotel, by Discounted Cash Flow Approach and analysed the long term return that is likely to be derived from a property with a combination of both income and capital growth over an assumed investment horizon. In undertaking this analysis, a wide range of assumptions are made including a target or pre-selected internal rate of return, net property income, income growth, potential capital expenditure, costs associated with the initial purchase of the property and also its disposal at the end of the investment period.
For the completed properties in Group III and Group VII which are held by the Group for investment, all the properties are valued by Direct Comparison Approach assuming sale of each of these properties in its existing state by making references to comparable sale transactions and/or asking prices of comparable properties in the relevant markets. Where appropriate, we have also valued the properties using the Income Capitalization Approach by capitalization of the net rental income derived from the existing tenancies with due allowance for the reversionary income potential of the property.
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– IV-3 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT
In valuing the portion of the properties in Group III and properties in Group IV which are under development, we have assumed that they will be developed and completed in accordance with the latest development proposal provided to us by the Group. In arriving at our opinion of value, we have adopted the comparison approach by making reference to comparable sales evidence as available in the relevant market and have also taken into account the accrued construction cost and professional fees relevant to the stage of construction as at the valuation date and the remainder of the cost and fees that are expected to be incurred for completing the development. We have relied on the accrued construction cost and professional fees information provided by the Group according to the different stages of construction of the subject properties as at the valuation date and we did not find any material inconsistency from those of other similar developments.
For the properties in Group VI which are contracted to be held by the Group, as for which the Group has entered into agreements with relevant owner of the property or government authority or entered into share transfer agreements, but for which the Group has not yet obtained the State- owned Land Use Rights Certificates and/or the payment of the land premium has not yet been fully settled as of the Valuation Date, we have attributed no commercial value to such properties.
Source of Information
We have relied on information provided by the Group, in particular, but not limited to the sales records, planning approvals, statutory notices, easements, development scheme, construction costs, development time schedules, site area and floor area, tenancy schedules, interests attributable to the Group and other relevant information. No on-site measurement has been taken. Dimensions, measurements and areas included in the property summaries are only approximations. We have taken every reasonable care both during reviewing the information provided to us and in making relevant enquiries. We have no reason to doubt the truth and accuracy of the information provided to us by the Group, which is material to the valuation. We were also advised by the Group that no material facts have been omitted from the information provided to us.
In the course of our valuation for the properties in the PRC, we have relied on the legal opinion provided by the Group’s PRC legal advisor, King & Wood Mallesons (the ‘‘PRC Legal Opinion’’). We have been provided with extracts from title documents relating to such properties. We have not, however, inspected the original documents to verify ownership or any amendment which did not appear on the copies handed to us. All documents have been used for reference only. Unless otherwise stated, in valuing the Properties, we have prepared our valuation on the basis that the owners have proper title to the properties and have free and uninterrupted rights to use, occupy or assign the properties for the whole of the unexpired terms as granted.
We have had no reason to doubt the truth and accuracy of the information provided to us by the Group. We have also sought confirmation from the Group that no material factors have been omitted from the information supplied. We consider that we have been provided with sufficient information to arrive an informed view, and we have no reason to suspect that any material information has been withheld.
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– IV-4 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT
Property Inspection
We made inspection of the properties for this valuation. In the course of our inspection, we did not notice any serious defects. However, we have not carried out any structural survey nor any tests were made on the building services. Therefore, we are not able to report whether the properties are free of rot, infestation, or any other structural defects. During our inspection, we have not carried our investigations on the site to determine the suitability of the ground conditions and the services for any future development.
We have not carried out site measurements to verify the correctness of the areas of the properties. We have assumed that the areas shown on the documents and official site plan are correct. Our valuation is on the basis that these aspects are satisfactory. All documents and contracts have been used as reference only and all dimensions, measurements and areas are approximations.
Inspection of the properties was carried out in the period between July 2016 and June 2017 2016 by our technical staff including Ms. Jennifer Ip, Mr. Edmond Wong, Ms. Joey Gong, Mr. Kaiser Lo, Mr. Bill Zhang, Mr. Denis Fung, Mr. Timothy Yim, Ms. Coco Zhu, Ms. Clara Shi, Mr. Jimmy Wu, Ms. Jessica Chen, Ms. Mao Yan, etc. They are Chartered Surveyors/China Real Estate Appraisers and/or have more than 2 to 5 years’ experience in the valuation of properties in the PRC and possess academic background in subjects relating to real estate valuation.
Currency
Unless otherwise stated, all monetary figures stated in this report are in Renminbi (RMB) or in Hong Kong Dollars (HKD), the official currency of the PRC and Hong Kong in relation to the properties in the PRC and Hong Kong respectively.
Summary Disclosure
In accordance with the requirements in rule 5.02B of Chapter 5 of the Rules Governing the Listing of Securities issued by The Stock Exchange of Hong Kong Limited, as the values of the property interests as at the valuation date are less than 5% of the total property interests, we present the property information and valuation in the format of summary disclosure.
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– IV-5 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT
We enclose herewith our summary of values.
Yours faithfully, For and on behalf of CBRE Limited Daniel Mohr MRICS Executive Director Valuation & Advisory Services
Note: Mr. Daniel Mohr is a member of Royal Institution of Chartered Surveyors. He has over 15 years of valuation experience in the PRC and Hong Kong, as well as relevant experience in the Asia-Pacific region.
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– IV-6 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT
Market Value Market Value in existing Attributable to Property Group No. of state As at the Group as at (Group I – Group V) Properties Valuation Date Valuation Date (RMB million) (RMB million)
Group I — Properties held by the Group for Sale in the PRC 340 102,400.30 96,519.14 Group II — Properties held by the Group for Occupation/ Operation in the PRC 101 12,000.40 11,776.16 Group III-A — Properties held by the Group for Investment in the PRC (Completed) 308 97,545.70 93,747.05 Group III-B — Properties held by the Group for Investment in the PRC (Under Development) 89 19,020.30 17,266.95 Group IV — Properties held by the Group Under Development in the PRC 583 550,076.20 495,351.86 Group V — Properties held by the Group for Future Development in the PRC 113 73,645.40 59,752.56
Sub-Total 1,534 854,688.30 774,413.72
Market Value Attributable to Property Group No. of the Group as at (Group VI) Properties Valuation Date (RMB million)
Group VI — Properties contracted to be acquired by the Group No Commercial in the PRC 35 Value
Market Value Market Value in existing Attributable to Property Group No. of state As at the Group as at (Group VII) Properties Valuation Date Valuation Date (HKD million) (HKD million)
Group VII — Properties held by the Group for Investments in Hong Kong 2 11,009.80 11,009.80
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– IV-7 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 1.89 8.80 5.20 Date as at 67.90 11.13 59.30 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group in 8.80 100.0% 2.90 65.0% 5.20 100.0% (2) 67.90 100.0% 15.90 70.0% 59.30 100.0% Market Value Existing State 2.56 2.87 2.87 67.86 15.91 34.94 317.25 350.90 100.0% 350.90 377.48 385.80 100.0% 385.80 117.43 131.60 100.0% 131.60 160.51 160.50 100.0% 160.50 Pre-Sale (RMB million) (RMB million) Consideration — — — — — — — — — 806 CPS Pre-Sale (1) — GFA (sq.m.) Pre-Sale Date 2016 64,137 2016 70,469 2016 21,555 2016 13,737 2016 587 2016 33,825 2016 2,118 2016 540 2016 616 Completion — — — — — — — — — of CPS Number (1) 931 616 1,471 2,118 Total 65,417 77,077 13,737 23,676 33,825 (sq.m.) GFA (Excl. CPS) Residential Residential, Commercial Residential Residential, Commercial Residential Residential, Commercial Residential Residential Land Use Rights Expiry Date Type of Property 30 May 2053 to 30 Nov 2083 14 Sep 2051 to 14 Sep 2081 29 Sep 2050 to 29 Sep 2080 27 Dec 2084 29 Jun 2052 to 29 Jun 2082 14 Sep 2083 to 14 Sep 2083 12 Jan 2056 to 12 Jan 2086 20 May 2083 Residential 20 Aug 2055 to 20 Aug 2085 Land Use Commercial Commercial Residential, Public Facility Residential, Residential 27 Dec 2054 to Residential, Commercial Commercial Residential, Residential, Commercial Commercial Commercial Residential 16 Aug 2074 Residential, Carpark 2,256 806 2016 Residential, Anqing Chaohu Bengbu Bozhou Chuzhou Residential, Bengbu Fuyang Hefei Feidong Chuzhou Residential, Holding Entity City Anqing Hengyuan Property Company Limited Anhui Lilong Property Company Limited Bengbu Hengyuan Property Company Limited Bozhou Hengda Property Company Limited Chuzhou Yuetong Property Company Limited Bengbu Hengtong Property Company Limited Fuyang Yuetong Property Company Limited Anhui Sanlin Property Company Limited Yueheng (Hefei) Property Company Limited Chuzhou Hengda Property Company Limited Properties held by the Group for Sale in the PRC — Anqing View Garden Chaohu Emerald Court Bengbu Bozhou Chuzhou Scenic Bay Bengbu Fuyang Hefei Feidong Metropolis Chuzhou PROPERTIES IN THE PRC Group I Property No. Property Name I-1 Portion of Evergrande Oasis I-5 Portion of Evergrande Royal I-2 Portion of Evergrande I-4 Portion of Evergrande City I-6 Portion of Evergrande Oasis I-3 Portion of Evergrande Royal I-9 Portion of Evergrande Oasis I-10 Portion of Evergrande City I-8 Portion of Evergrande Oasis I-7 Portion of Evergrande
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– IV-8 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 2.50 Date as at 13.40 33.90 89.70 59.88 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group in 2.50 100.0% (2) 13.40 100.0% 33.90 100.0% 89.70 100.0% 99.80 60.0% Market Value Existing State 0.81 5.11 187.50 60.0% 112.50 26.08 89.65 99.81 246.46 437.00152.65 100.0% 152.60 437.00 100.0% 152.60 148.87 148.90 100.0% 148.90 170.32 329.90246.17 100.0% 303.60 329.90 100.0% 303.60 213.30 261.70 65.0% 170.11 Pre-Sale (RMB million) (RMB million) Consideration — — — — — — — — — — — CPS Pre-Sale (1) —— — GFA (sq.m.) Pre-Sale Date 2016 4,555 2016 137 2011 2016 22,368 2016 30,827 2016 39,568 2016 955 2016 20,928 2016 38,287 2016 34,715 2016 40,953 2016 21,895 Completion — — — — — — — — — — — — of CPS Number (1) 252 609 5,424 Total 33,914 30,827 39,568 21,895 26,145 20,928 62,472 40,364 50,627 (sq.m.) GFA (Excl. CPS) Residential Residential Residential Residential Residential Residential Residential Residential Residential Residential Residential Land Use Rights Expiry Date Type of Property 24 Aug 2051 to 24 Aug 2081 15 Oct 2053 to 15 Oct 2083 2080 10 Sep 2053 to 10 Sep 2083 08 Oct 2050 to 08 Oct 2080 21 Oct 2051 to 21 Oct 2081 03 May 2081 28 Dec 2051 to 28 Dec 2081 20 Dec 2050 to 20 Dec 2080 20 May 2081 Jul 2054 to Jul 2084 Land Use Residential, Commercial Residential, Commercial Residential Jun 2079 to Jan Residential, Commercial Residential, Commercial Residential, Commercial Residential 02 May 2081 to Residential, Commercial Commercial Residential, Commercial Residential 19 May 2081 to anshan Residential 11 Jun 2082 Residential an ’ ’ Hefei Hefei Hefei Hefei Huaibei Huaibei Lu Huainan Wuhu Suzhou Tongling Residential, Ma anshan Hengda an Yue Tong ’ ’ Holding Entity City Yuetong (Hefei) Property Company Limited Yuetai (Hefei) Property Company Limited Qijia (Hefei) Property Company Limited Yuecheng (Hefei) Property Company Limited Huaibei Yuetong Property Company Limited Huaibei Hengtong Property Company Limited Lu Property Company Limited Huainan Hengda Tianheng Property Company Limited Wuhu Hengda Property Company Limited Suzhou Heng Ding Property Company Limited Tongling Hengda Property Company Limited Ma Anliang Property Company Limited anshan an ’ ’ View Garden Hefei International Center Hefei Hefei Hefei Metropolis Huaibei Atrium Huaibei Scenic Bay Lu Scenic Bay Ma Huainan Wuhu Metropolis Suzhou Tongling Property No. Property Name I-11 Portion of Evergrande Royal I-13 Portion of Evergrande I-12 Portion of Evergrande Palace I-14 Portion of Evergrande Plaza I-15 Portion of Evergrande I-16 Portion of Evergrande I-18 Portion of Evergrande Royal I-19 Portion of Evergrande Royal I-17 Portion of Evergrande Oasis I-21 Portion of Evergrande Palace I-22 Portion of Evergrande I-20 Portion of Evergrande Oasis
– II-8 –
– IV-9 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 5.00 5.20 Date as at 75.96 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group in 5.00 100.0% 5.20 100.0% (2) 84.40 90.0% Market Value Existing State 4.98 3.93 23.10 386.30 70.0% 270.41 82.26 163.74 218.60153.98 100.0% 561.80 218.60 100.0% 561.80 299.17 299.20 100.0% 299.20 214.36 530.10 100.0% 530.10 Pre-Sale (RMB million) (RMB million) Consideration — — — — — — — — CPS Pre-Sale (1) GFA (sq.m.) Pre-Sale Date 2016 27,618 2016 21,271 2016 69,174 2016 365 2015 613 2016 3,894 2016 10,343 2016 28,042 Completion — — — — — — — — of CPS Number (1) 777 365 Total 37,770 81,250 69,174 62,102 75,118 760 2017 56,906 760 1,992.47 2,393.10 100.0% 2,393.10 10,582 65,188 (sq.m.) GFA (Excl. CPS) Residential Residential Residential Other Residential, Commercial, Other, Carpark Residential Residential Residential, Commercial Land Use Rights Expiry Date Type of Property Nov 2053 to Oct 2085 21 May 2048 to 27 Sep 2078 27 Feb 2051 to 28 Feb 2081 23 Jul 2053 to 23 Jul 2083 29 Sep 2053 to 28 Sep 2083 03 Sep 2052 to 03 Sep 2082 15 May 2053 to 29 Sep 2084 14 Mar 2081 Land Use Residential, Commercial Residential, Commercial Residential, Commercial Commercial, Underground Carpark, Composite, Underground Storage Residential, Office 14 Mar 2051 to Commercial, Office, Underground Carpark, Composite, Underground Storage Commercial Commercial Residential, Residential 15 Jul 2083 Residential Residential, Suzhou Baotou Baotou Beijing Cangzhou Residential, Beijing Hengshui Residential, Handan Hohhot Holding Entity City Suzhou Hengda Property Company Limited Hengda (Baotou) Real Estate Group Company Limited Hengda (Baotou) Real Estate Group Company Limited Shahe Hengda (Beijing) Property Company Limited Hebei Longwei Real Estate Development Company Limited Hengda (Beijing) Real Estate Group Company Limited Hengshui Shengyu Real Estate Development Company Limited Handan Daye Real Estate Development Company Limited Hengda (Huhehaote) Real Estate Group Company Limited Scenic Bay Suzhou Baotou Metropolis Baotou Beijing Cangzhou Scenic Bay Beijing Hengshui Metropolis Handan Hohhot Property No. Property Name I-23 Portion of Evergrande Royal I-24 Portion of Evergrande Palace I-25 Portion of Evergrande I-26 Portion of Evergrande City I-28 Portion of Evergrande City I-27 Portion of Evergrande Royal I-29 Portion of Evergrande City I-30 Portion of Evergrande I-31 Portion of Evergrande Palace
– II-9 –
– IV-10 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 6.66 3.80 Date as at 48.40 58.30 28.20 28.40 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group in 7.40 90.0% 3.80 100.0% (2) 48.40 100.0% 58.30 100.0% 28.20 100.0% 28.40 100.0% Market Value Existing State 7.40 3.79 18.49 37.74 175.60 100.0% 175.60 28.20 33.37 28.41 157.30 399.30 74.0% 295.48 261.37 647.60 100.0% 647.60 Pre-Sale (RMB million) (RMB million) Consideration — — — — — — 65 CPS Pre-Sale (1) — GFA (sq.m.) Pre-Sale Date 2016 31,329 2016 2,504 2016 4,974 2013 2,661 2016 47,940 2015 1,324 Completion — — — — — — 65 2014 of CPS Number (1) — 6,043 4,927 1742,661 2016 1,467 174 1,233 419 2012 1,233 419 1,324 Total 64,976 19,610 75,316 256 2015 75,316 256 648.76 648.80 70.0% 454.16 (sq.m.) GFA 104,733 (Excl. CPS) Residential Residential, Commercial Residential, Commercial, Carpark Residential Residential, Commercial Carpark Carpark Residential, Commercial, Carpark Land Use Rights Expiry Date Type of Property 15 Mar 2051 to 15 Mar 2081 12 Oct 2053 to 12 Oct 2083 07 Oct 2053 to 07 Oct 2083 01 Jun 2051 to 01 Jun 2081 26 Nov 2050 to 14 Aug 2085 24 Nov 2051 to 24 Nov 2081 05 Sep 2052 to 16 Aug 2085 Land Use Commercial, Office Commercial Residential, Residential 24 Jul 2083 Residential Commercial Residential, Accommodation and Catering Commercial Commercial Commercial, Office Hohhot Langfang Residential, Hohhot Langfang Residential, Luquan Qinhuangdao Residential, Shijiazhuang Residential 19 Mar 2079 Commercial, Shijiazhuang Residential, Shijiazhuang Residential 19 May 2081 Other Shijiazhuang Residential, Holding Entity City Inner Mongolia Changshengtai Real Estate Company Limited Langfang Feicui Huating Real Estate Development Company Limited Hengda (Huhehaote) Real Estate Group Company Limited Hengda Langfang Real Estate Development Company Limited Hengda (Luquan) Real Estate Group Company Limited Hengda Real Estate Group Qinhuangdao Hengda Cheng Real Estate Development Company Limited Shijiazhuang Shengyu Real Estate Development Company Limited Hebei Longhai Real Estate Development Company Limited Hebei Gaojie Shi Real Estate Development Company Limited Shijiazhuang Diyijia Real Estate Development Company Limited Atrium Hohhot Emerald Court Langfang Metropolis Hohhot Metropolis Langfang Splendor Luquan Qinhuangdao Shijiazhuang Metropolis Shijiazhuang Atrium Shijiazhuang Scenic Peninsula Shijiazhuang I-33 Portion of Evergrande I-34 Portion of Evergrande Property No. Property Name I-32 Portion of Evergrande I-35 Portion of Evergrande I-36 Portion of Evergrande I-37 Portion of Evergrande City I-38 Portion of Evergrande Oasis I-39 Portion of Evergrande I-40 Portion of Evergrande I-41 Portion of Evergrande Royal
– II-10 –
– IV-11 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 3.00 5.90 Date as at 27.36 66.30 58.80 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group in 3.00 100.0% 5.90 100.0% (2) 38.00 72.0% 66.30 100.0% 58.80 100.0% Market Value Existing State 3.02 3.16 5.87 89.84 260.90 60.0% 156.54 66.27 53.67 602.34 602.30124.41 100.0% 278.10 602.30 100.0% 278.10 210.07 1,249.70 100.0% 1,249.70 Pre-Sale (RMB million) (RMB million) Consideration — — — — — — — — 32 CPS Pre-Sale (1) — GFA (sq.m.) Pre-Sale Date 2016 13,741 2013 436 2016 18,477 2016 6,446 2016 497 2015 101,592 2016 14,295 2016 17,336 Completion — — — — — — — — 32 2016 of CPS Number (1) — 436 6,834 6,114 Total 37,701 18,477 29,289 96,203 290 2016 19,977 290 165.48 715.60 72.0% 515.23 75,094 (sq.m.) GFA 101,592 (Excl. CPS) Residential, Commercial Residential Residential Residential, Commercial, Carpark Residential Residential Carpark Land Use Rights Expiry Date Type of Property 25 Mar 2053 to 22 Oct 2083 12 Feb 2077 to 23 Sep 2079 23 Mar 2050 to 07 Jun 2080 16 Oct 2052 to 16 Oct 2082 16 Oct 2052 to 16 Oct 2082 10 Jun 2081 23 Mar 2050 to 07 Jun 2080 Land Use Commercial Commercial Residential, Commercial Residential, Commercial Residential, Commercial Residential, Residential 13 Jun 2082 Residential Commercial Residential 07 Jun 2081 to Residential, Residential 09 May 2081 Residential Residential 28 Nov 2077 Residential Tangshan Residential, Tianjin Tianjin Wuhai Xingtai Tianjin Xingtai Tianjin Tianjin Tianjin Holding Entity City Tangshan Zhaorui Investment Company Limited Hengda (Tianjin Jixian) Real Estate Group Company Limited Tianjin Jin Li Hu Investment Company Limited Company Limited Xingtai Shuangda Real Estate Development Company Limited Tianjin Yujing Bandao Investment Company Limited Wuhai Junjing Real Estate Development Xingtai Chengjia Real Estate Development Company Limited Tianjin Yilian Chuangzhan Property Company Limited Tianjin Shanshui Cheng Investment Company Limited Tianjin Binqiao Investment Company Limited Tangshan Splendor Tianjin Tianjin Xingtai Scenic Peninsula Tianjin Wuhai View Garden Xingtai Tianjin Garden Tianjin Metropolis Tianjin Property No. Property Name I-42 Portion of Evergrande Palace I-43 Portion of Evergrande I-44 Portion of Evergrande Oasis I-50 Portion of Evergrande City I-48 Portion of Evergrande Royal I-49 Portion of Evergrande Oasis I-51 Portion of Evergrande Royal I-45 Portion of Evergrande Oasis I-47 Portion of Evergrande Scenic I-46 Portion of Evergrande
– II-11 –
– IV-12 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 5.80 Date as at 30.40 74.20 77.60 12.60 38.60 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group in 5.80 100.0% (2) 30.40 100.0% 74.20 100.0% 77.60 100.0% 12.60 100.0% 38.60 100.0% 141.40 100.0% 141.40 Market Value Existing State 0.88 5.79 74.16 40.02 81.20 296.10 100.0% 296.10 38.57 292.64 298.00 51.0% 151.98 121.21 248.70 100.0% 248.70 115.35 115.30 100.0% 115.30 Pre-Sale (RMB million) (RMB million) Consideration — — — — — — — — — CPS Pre-Sale (1) —— — —— — GFA (sq.m.) Pre-Sale Date 2017 19,648 2015 2016 161 2017 7,538 2016 24,700 2016 7,669 2015 780 2016 5,666 2015 26,819 2016 2016 9,942 Completion — — — — — — — — — — — of CPS Number (1) 780 5,256 7,538 7,669 1,821 9,942 Total 20,076 17,669 40,641 10,142 69,963 (sq.m.) GFA (Excl. CPS) Residential Residential Residential Residential Residential Residential Residential Residential Land Use Rights Expiry Date Type of Property 08 Sep 2055 to 07 Sep 2085 19 Jan 2054 to 19 Jan 2084 08 Mar 2055 to 08 Mar 2085 16 Feb 2054 to 16 Feb 2084 24 Sep 2054 to 24 Sep 2084 02 Jul 2046 to 02 Jul 2076 13 Feb 2051 to 13 Feb 2081 27 Sep 2050 to 27 Sep 2080 29 Dec 2080 Residential Land Use Residential 20 Jul 2082 Residential Commercial Commercial Commercial Commercial Commercial Residential, Commercial Residential, Commercial Commercial Commercial Putian Quanzhou Residential, Xingtai Quanzhou Residential, Shishi Zhangzhou Residential, Lanzhou Residential, Lanzhou Residential, Shizuishan Residential, Lanzhou Residential, Wuzhong Residential 14 Aug 2079 Residential Holding Entity City Putian Jinbi Property Company Limited Quanzhou Ansheng Property Company Limited Xingtai Xiangheng Real Estate Development Company Limited Jinjiang Jinbi Property Company Limited Shishi Jinbi Property Company Limited Zhangzhou Xincheng Real Estate Development Company Limited Gansu Yusheng Real Estate Development Company Limited Hengda Real Estate Group Lanzhou Property Company Limited Hengda (Shizuishan) Real Estate Group Company Limited Lanzhou Shenjun Property Company Limited Ningxia Jinhai Property Company Limited Scenic Peninsula Putien Emerald Court Quanzhou Metropolis Xingtai Scenic Bay Quanzhou Metropolis Shishi Scenic Peninsula Zhangzhou Metropolis Lanzhou Lanzhou Shizuishan Garden Lanzhou Metropolis Wuzhong I-53 Portion of Evergrande Royal I-54 Portion of Evergrande Property No. Property Name I-52 Portion of Evergrande I-55 Portion of Evergrande Royal I-56 Portion of Evergrande I-57 Portion of Evergrande Royal I-59 Portion of Evergrande I-58 Portion of Evergrande Oasis I-61 Portion of Evergrande Oasis I-60 Portion of Evergrande Scenic I-62 Portion of Evergrande
– II-12 –
– IV-13 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) Date as at 45.60 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group in (2) 45.60 100.0% 182.60 100.0% 182.60 Market Value Existing State 90.79 230.10 100.0%42.14 230.10 151.10 100.0% 151.10 31.05 145.60 100.0% 145.60 67.45 240.20 57.0% 136.91 29.94 109.85 109.80 100.0% 109.80 218.55 506.30 100.0% 506.30 133.31 158.50 90.0% 142.65 188.03 215.70 100.0% 215.70 1,823.24 3,824.10 100.0% 3,824.10 Pre-Sale (RMB million) (RMB million) Consideration — — — — — — — — — — CPS Pre-Sale (1) —— — GFA (sq.m.) Pre-Sale Date 2016 16,785 2016 7,716 2016 5,425 2017 18,686 2015 33,045 2016 4,920 2016 10,136 2015 104,019 2000 2016 21,050 2016 37,310 Completion — — — — — — — — — — — of CPS Number (1) 6,033 9,169 Total 41,219 27,171 22,775 18,686 74,152 35,173 24,088 42,853 (sq.m.) GFA 183,417 (Excl. CPS) Residential Residential Residential Commercial, Composite Commercial Residential Residential, Commercial Residential Residential Residential Land Use Rights Expiry Date Type of Property 01 Sep 2081 29 Nov 2083 24 Mar 2051 to 24 Mar 2081 11 Aug 2082 Residential, 10 Jan 2055 to 11 Jan 2085 22 Jul 2037 to 20 Apr 2049 11 Aug 2064 17 May 2052 to 17 May 2082 13 Mar 2052 to 13 Mar 2082 Land Use Commercial Residential, Facility, Green Space Residential 25 Jul 2082 Residential Commercial, Accommodation and Catering Public Facility Residential 31 Jul 2062 to Commercial Residential, Commercial, Accommodation and Catering Residential, Yinchuan Residential 07 Apr 2081 to Xining Yinchuan Residential 29 Nov 2053 to Wuwei Chaozhou Residential, Public Chaozhou Residential, Foshan Guangzhou Commercial, Dongguan ResidentialEnping 21 Sep 2081 Residential, Foshan Holding Entity City Hengda (Yinchuan) Real Estate Group Company Limited Xining Hengda Real Estate Development Company Limited Ningxia Haotian Real Estate Development Company Limited Wuwei Hengda Real Estate Development Company Limited Chaozhou Hengda Property Company Limited Chaozhou Hengxin Real Estate Development Company Limited Foshan Nanhai Juncheng Real Estate Development Limited Hengda Real Estate Group Company Limited Dongguan Shenjian Real Estate Company Limited Hengda (Enping) Real Estate Group Company Limited Foshan Nanhai Outai Property Company Limited Metropolis Yinchuan Metropolis Xining Scenic Yinchuan Wuwei Chaozhou Garden Chaozhou City Foshan Garden Guangzhou View Garden Dongguan City Enping Emerald Court Foshan I-65 Portion of Evergrande I-64 Portion of Evergrande I-66 Portion of Evergrande Royal Property No. Property Name I-63 Portion of Evergrande Oasis I-67 Portion of Evergrande City I-68 Portion of Evergrande Scenic I-73 Portion of Evergrande Cruise I-69 Portion of The First Jinbi I-70 Portion of Evergrande Royal I-71 Portion of Evergrande Spring I-72 Portion of Evergrande
– II-13 –
– IV-14 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 8.20 Date as at 33.10 84.00 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group in 8.20 100.0% (2) 84.00 100.0% 33.10 100.0% 294.00 100.0% 294.00 263.40 100.0% 263.40 Market Value Existing State 2.97 83.96 371.57 397.80580.60 100.0% 638.90 397.80 100.0% 638.90 197.24 4,526.10 100.0% 4,526.10 395.26 939.20 100.0% 939.20 170.39 610.00 100.0% 610.00 Pre-Sale (RMB million) (RMB million) Consideration 1 — — — — — — CPS Pre-Sale (1) —— — —— — —— — GFA 12,058 (sq.m.) Pre-Sale Date 2016 10,197 2016 8,234 2016 101,329 2016 50,247 2016 63,588 2016 Completion — — — — — — — — of CPS Number (1) 601 8,739 2,191 1,081 2008 Total 10,197 44,651 37,176 (sq.m.) GFA 111,920 815,375 137,088 (Excl. CPS) Residential Residential Composite, Carpark Residential Residential Residential Residential Land Use Rights Expiry Date Type of Property 12 Sep 2058 Residential, Carpark 1,271 1 2012 209 22 Aug 2083 01 Jul 2053 to 01 Jul 2083 10 Jan 2056 Office 06 May 2053 Commercial, 24 Feb 2081 18 Oct 2080 16 Jul 2054 to 15 Sep 2086 19 Feb 2053 to 11 Jan 2075 Land Use Commercial, Public Facility, Carpark Residential, Office 22 Aug 2053 to Residential, Commercial Carpark Composite, Carpark Commercial Commercial Residential, Guangzhou Residential, Foshan Guangzhou Residential 17 Dec 2083 Residential Heyuan Guangzhou Commercial, Guangzhou Commercial, Qingyuan Residential, Office 08 Jan 2057 to Qingyuan Residential 17 Sep 2080 to Shaoguan Residential, Foshan Holding Entity City Hengda Real Estate Group Company Limited Foshan Changxin Honglong Real Estate Company Limited Guangzhou Xincheng Property Company Limited Hengda (Heyuan) Real Estate Group Company Limited Guangzhou Junhong Real Estate Development Company Limited Hengda Real Estate Group Company Limited Hengda Shengyu (Qingxin) Property Company Limited Qingyuan Yinhucheng Investment Company Limited Hengda (Shaoguan) Real Estate Group Company Limited Foshan Shunde District Shunya Fangzhou Real Estate Company Limited Guangzhou Scenic Foshan Palace Guangzhou Metropolis Heyuan Garden Guangzhou Guangzhou Splendor Qingyuan Silverlake City Qingyuan Shaoguan View Garden Shunde Property No. Property Name I-75 Portion of Evergrande Oasis I-74 Portion of Evergrande Royal I-76 Portion of Evergrande Royal I-77 Portion of Evergrande I-78 Portion of Jinbi Junhong I-79 Portion of Jinbi New City I-80 Portion of Evergrande I-81 Portion of Evergrande I-82 Portion of Evergrande City I-83 Portion of Evergrande Royal
– II-14 –
– IV-15 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) Date as at 14.70 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group in (2) 14.70 100.0% Market Value Existing State 0.67 289.40 100.0% 289.40 81.01 217.30 100.0% 217.30 70.15 572.9062.14 100.0% 259.90 572.90 51.0% 132.55 155.80 155.80102.73 100.0% 136.90 155.80 100.0% 136.90 393.75 593.00 100.0% 593.00 363.26 726.90 100.0% 726.90 149.55 357.30 100.0% 357.30 Pre-Sale (RMB million) (RMB million) Consideration — — — — — — — — — CPS Pre-Sale (1) —— — GFA (sq.m.) Pre-Sale Date 2016 22,233 2016 65,702 2016 68,476 2016 20,246 2016 16,121 2016 109 2017 10,691 2004 2016 15,059 2016 33,768 Completion — — — — — — — — — — of CPS Number (1) 916 Total 27,737 91,925 35,598 24,517 79,022 52,377 20,246 67,828 (sq.m.) GFA 115,090 (Excl. CPS) Residential Residential Residential Residential Residential Residential Residential Land Use Rights Expiry Date Type of Property 06 Jun 2053 to 06 Jun 2083 12 Jan 2044 to 17 Aug 2083 01 Jan 2046 to 20 Dec 2084 16 Jul 2053 to 16 Jul 2083 19 Dec 2066 04 Feb 2055 to 04 Feb 2085 28 Dec 2052 to 28 Dec 2082 Land Use Commercial Accommodation and Catering, Cultural and Sport Commercial, Accommodation and Catering, Park and Green Space Commercial Commercial Commercial Residential, Residential, Residential, Beihai Yangjiang Residential, Beihai Zhongshan Residential 21 Oct 2083 Residential Zhanjiang Residential, Zhongshan Residential 19 Dec 2063 to Yangjiang Residential, Yunfu Guangzhou Residential 08 Jun 2066 Residential Fangchenggang Residential 01 Aug 2082 Residential Holding Entity City Estate Development Company Limited Yangjiang Yifeng Property Company Limited Beihai Jiajing Real Beihai Nanguo Tiantang Real Estate Development Company Limited Zhongshan Changxin Hongzhan Real Estate Company Limited Hengda Real Estate Group Zhanjiang Yujing Property Company Limited Hengda (Zhongshan) Real Estate Group Company Limited Hengda (Yangjiang) Real Estate Group Company Limited Hengda (Yunfu) Real Estate Group Company Limited Guangzhou Hengda (Zengcheng) Real Estate Development Company Limited Hengda (Fangchenggang) Real Estate Group Company Limited Hawaii on the sea Yangjiang Metropolis Beihai Scenic Peninsula Beihai Metropolis Zhongshan Zhanjiang Zhongshan Metropolis Yangjiang Yunfu Garden Guangzhou Zengcheng Scenic Bay Fangchenggang Property No. Property Name I-84 Portion of Evergrande I-91 Portion of Evergrande I-92 Portion of Evergrande Royal I-90 Portion of Evergrande I-88 Portion of Evergrande Oasis I-89 Portion of Evergrande Oasis I-85 Portion of Evergrande I-86 Portion of Evergrande City I-87 Portion of Evergrande Scenic I-93 Portion of Evergrande Royal
– II-15 –
– IV-16 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) Date as at 26.00 51.60 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group in (2) 26.00 100.0% 51.60 100.0% Market Value Existing State 13.55 65.86 446.00 51.0% 227.46 57.09 150.20 100.0% 150.20 24.96 100.80 100.0% 100.80 36.80 233.48 337.00213.23 51.0% 438.00 171.87 100.0% 438.00 194.42 368.80 100.0% 368.80 105.72 402.00 100.0% 402.00 501.88 501.90 100.0% 501.90 Pre-Sale (RMB million) (RMB million) Consideration — — — — — — — — — — CPS Pre-Sale (1) GFA (sq.m.) Pre-Sale Date 2016 68,709 2016 29,956 2016 1,802 2016 5,864 2016 6,647 2016 25,652 2016 12,081 2016 2,652 2017 61,321 2015 7,712 Completion — — — — — — — — — — of CPS Number (1) 2,942 Total 84,095 63,011 44,090 18,742 50,212 45,494 11,275 61,321 10,858 (sq.m.) GFA (Excl. CPS) Residential Residential Residential Residential Residential Residential Residential Residential Residential Residential Land Use Rights Expiry Date Type of Property 28 Sep 2048 to 29 Nov 2049 03 Apr 2055 to 03 Apr 2085 15 Jan 2054 to 15 Jan 2084 22 Jan 2054 to 25 Sep 2085 19 May 2055 to 19 May 2085 29 Apr 2054 to 29 Apr 2084 14 Oct 2047 to 14 Oct 2077 29 Jun 2055 to 29 Jun 2085 15 Apr 2056 to 15 Apr 2086 09 Feb 2050 to 09 Feb 2080 Land Use Commercial, Composite Commercial Commercial Residential, Residential, Commercial Residential, Commercial Commercial Commercial Commercial Commercial Commercial Guilin Liuzhou Liuzhou Liuzhou Nanning Residential, Nanning Residential, Nanning Residential, Nanning Residential, Nanning Residential, Qinzhou Residential, Holding Entity City Guilin Guijia Real Estate Company Limited Liuzhou Hengda Real Estate Development Company Limited Liuzhou Hengda Jinbi Property Company Limited Liuzhou Zhaofu Property Company Limited Nanning Jinbi Hengda Property Company Limited Guangxi Honghao Huihuang Real Estate Development Company Limited Nanning Yinxiang Real Estate Development Company Limited Nanning Shengshi Hengda Real Estate Development Company Limited Nanning Jinhua Yufu Real Estate Development Company Limited Qinzhou Qinlian Hengda Property Investment Company Limited Guilin Liuzhou Emerald Court Liuzhou Liuzhou Nanning View Garden Nanning Nanning Metropolis Nanning View Garden Nanning Qinzhou Property No. Property Name I-94 Portion of Evergrande Plaza I-95 Portion of Evergrande City I-96 Portion of Evergrande I-97 Portion of Evergrande Palace I-98 Portion of Evergrande City I-99 Portion of Evergrande Royal I-100 Portion of Evergrande Oasis I-101 Portion of Evergrande I-102 Portion of Evergrande Scenic I-103 Portion of Evergrande Oasis
– II-16 –
– IV-17 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) Date as at 71.60 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group in (2) 71.60 100.0% Market Value Existing State 22.91 103.30 175.20614.09 100.0% 1,011.20 175.20 100.0% 1,011.20 170.68 458.60136.69 60.0% 265.00 275.16 384.10 100.0% 514.30 265.00 100.0% 514.30 443.12 450.30 100.0% 450.30 124.34 124.30 100.0% 124.30 Pre-Sale (RMB million) (RMB million) Consideration — — — — — — — — 95 239.78 356.60 100.0% 356.60 41 149.86 153.10 100.0% 153.10 CPS Pre-Sale (1) GFA (sq.m.) Pre-Sale Date 2016 27,631 2016 32,732 2016 71,686 2016 15,459 2016 19,476 2015 84,034 2016 3,842 2017 15,402 Completion — — — — — — — — of CPS Number (1) 9,777 Total 76,417 42,029 20,447 33,905 85,217 15,402 78,772 184 2016 60,479 (sq.m.) GFA 110,545 (Excl. CPS) Residential Residential Residential, Commercial, Carpark Residential Residential Residential Residential, Commercial Residential, Carpark 31,454 65 2016 31,454 Land Use Rights Expiry Date Type of Property 09 Dec 2053 to 09 Dec 2083 27 Jun 2048 to 27 Jun 2078 16 May 2051 to 15 May 2082 27 Jun 2053 to 27 Jun 2083 02 Aug 2053 to 02 Aug 2083 22 Jul 2053 to 15 Aug 2053 09 Jul 2055 to 09 Jul 2085 26 Feb 2052 to 26 Feb 2083 Land Use Commercial 09 Nov 2063 Residential Commercial Accommodation and Catering Commercial Commercial Commercial, Public Facility Residential, Office, Accommodation and Catering Residential, Commercial, Public Facility Residential, Residential, Commercial Residential, Residential, Residential, Haikou Harbin Harbin Changjiang Residential, Haikou Chengmai Residential 30 Dec 2068 Residential Wuzhou Harbin Haikou Harbin Holding Entity City Hainan Dongfangmingzhu Real Estate Company Limited Harbin Hengda Xingye Real Estate Development Company Limited Harbin Mingye Real Estate Development Company Limited Changjiang Guangyi Real Estate Development Company Limited Haikou Waitan Cheng Real Estate Company Limited Hainan Minghao Property Company Limited Guangxi Wuzhou Wanguo Real Estate Development Company Limited Harbin Chiye Real Estate Development Company Limited Hengda (Hainan) Real Estate Group Company Limited Harbin Hengda Weiye Real Estate Development Company Limited Culture Tourist City Haikou Harbin View Garden Harbin Bay Changjiang Gulf Pearl Haikou Scenic Bay Hainan Garden Wuzhou Emerald Court Harbin Haikou Harbin Property No. Property Name I-109 Portion of Evergrande I-110 Portion of Evergrande City I-105 Portion of Evergrande Qizi I-106 Portion of Evergrande Bund I-107 Portion of Evergrande Royal I-104 Portion of Evergrande Scenic I-112 Portion of Evergrande I-108 Portion of Evergrande Bay I-111 Portion of Evergrande Royal I-113 Portion of Evergrande Oasis
– II-17 –
– IV-18 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) Date as at 84.20 74.80 97.60 83.20 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group in (2) 84.20 100.0% 97.60 100.0% 74.80 100.0% 83.20 100.0% Market Value Existing State 79.16 79.77 93.96 103.60 100.0% 103.60 81.16 215.90 67.1% 144.83 61.91 12.39 144.80 100.0% 144.80 83.21 268.06 348.80 100.0% 348.80 Pre-Sale (RMB million) (RMB million) Consideration — — — — — 73 332.46 536.20 100.0% 536.20 54 89 20 CPS Pre-Sale (1) GFA (sq.m.) Pre-Sale Date 2013 12,826 2017 14,041 2016 17,186 2016 70,635 2016 2,166 Completion — — — — — of CPS Number (1) Total 85,548 531 2015 69,600 13,432 16,621 32,131 85,317 17,333 (sq.m.) GFA (Excl. CPS) Residential, Commercial, Carpark Residential, Commercial Residential, Carpark 17,635 165 2016 17,635 Residential, Carpark 23,360Residential 134 2016 23,360 Residential, Carpark 14,973Residential 20 2016 14,973 Residential Residential Land Use Rights Expiry Date Type of Property 28 May 2052 to 27 May 2083 01 May 2083 09 May 2052 to 09 May 2082 18 Jul 2052 to 08 Oct 2082 28 Jun 2052 to 28 Jun 2082 29 Jul 2082 24 Mar 2050 to 26 Dec 2081 29 Aug 2080 28 Apr 2047 to 29 Apr 2077 Land Use Commercial, Public Facility Commercial Residential, Commercial Commercial, Office Commercial Residential 01 May 2053 to Residential, Office 20 Mar 2047 to Residential, Office 28 Jun 2052 to Residential, Commercial Residential, Residential, Harbin Harbin Mudanjiang Residential, Mudanjiang Residential, Qiqihar Qiqihar Ezhou Ezhou Wuhan Holding Entity City Harbin Hengda Weiye Real Estate Development Company Limited Harbin Chengye Real Estate Development Company Limited Mudanjiang Hengda Changjian Real Estate Development Company Limited Mudanjiang Hengda Yongtai Real Estate Development Company Limited Hengda Yongxing (Qiqihaer) Real Estate Company Limited Hengda Yongxing (Qiqihaer) Real Estate Company Limited Company Limited Hubei Sanjiang Hangtian Commercial Management Company Limited Ezhou Hengda Real Estate Development Hubei Yiqing Yazhu Real Estate Development Company Limited Metropolis Harbin Scenic Bay Harbin Emerald Court Mudanjiang Mudanjiang Emerald Court Tsitsihar Metropolis Tsitsihar Capital Ezhou Splendor Ezhou Wuhan Property No. Property Name I-114 Portion of Evergrande I-115 Portion of Evergrande Royal I-116 Portion of Evergrande I-117 Portion of Evergrande Oasis I-118 Portion of Evergrande I-119 Portion of Evergrande I-120 Portion of Evergrande Sky I-121 Portion of Evergrande I-122 Portion of Evergrande City
– II-18 –
– IV-19 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) Date as at 78.50 41.06 59.64 18.42 65.90 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group in (2) 78.50 100.0% 61.50 66.8% 99.40 60.0% 30.70 60.0% 65.90 100.0% 470.40 67.1% 315.54 255.70 100.0% 255.70 Market 1,165.80 67.1% 782.02 Value Existing State 83.89 20.02 21.78 441.96 741.00 67.1% 497.06 Pre-Sale (RMB million) (RMB million) Consideration — — — — CPS Pre-Sale (1) —— — —— — —— — —— — —— — GFA (sq.m.) Pre-Sale Date 2016 60,138 2014 2016 2016 2016 2016 7,136 2011 2016 2,081 2016 3,566 Completion — — — — — — — — — of CPS Number (1) 9,679 8,365 3,061 9,966 Total 4,186 95,315 28,171 29,911 (sq.m.) GFA 133,996 (Excl. CPS) Residential Residential Residential Residential Residential Residential Commercial Residential Residential Land Use Rights Expiry Date Type of Property 26 Dec 2046 to 26 Dec 2076 29 Oct 2047 to 29 Oct 2077 09 Aug 2050 to 09 Aug 2080 30 May 2047 to 26 Jan 2078 12 May 2080 19 Oct 2065 to 19 Oct 2085 15 Nov 2047 to 15 Nov 2077 27 Mar 2054 to 24 Sep 2084 23 Mar 2051 to 23 Mar 2081 Land Use Commercial Commercial Commercial Commercial Residential, Residential, Residential, and Green Space Residential, Residential 30 Apr 2077 to Commercial, Education Commercial Residential, Residential, Park Accommodation and Catering, Education Residential, Wuhan Wuhan Wuhan Wuhan Wuhan Wuhan Wuhan Wuhan Xiangyang Residential, Holding Entity City Wuhan Sanjiang Hangtian Jiayuan Real Estate Development Company Limited Wuhan Sanjiang Hangtian Panlongcheng Real Estate Development Company Limited Wuhan Sanjiang Hangtian Investment Development Company Limited Wuhan Jinbi Luzhou Real Estate Development Company Limited Wuhan Huali Property Company Limited Company Limited Wuhan Sanjiang Dongli Investment Development Company Limited Wuhan Hengda Dushi Real Estate Development Wuhan Hengda Chutian Real Estate Development Company Limited Xiangyang Hengda Real Estate Development Company Limited Rainbow Town Wuhan Dragon City Wuhan Capital Wuhan Wuhan Metropolis Wuhan Shuang City Wuhan Palace Wuhan Scenic Bay Wuhan Metropolis Xiangyang Property No. Property Name I-123 Portion of Evergrande I-124 Portion of Evergrande I-125 Portion of Evergrande I-126 Portion of Evergrande Oasis I-127 Portion of Evergrande I-128 Portion of Evergrande I-129 Portion of Evergrande Royal I-130 Portion of Evergrande Royal I-131 Portion of Evergrande
– II-19 –
– IV-20 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) Date as at 54.72 21.06 27.90 62.82 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group in (2) 91.20 60.0% 32.40 65.0% 27.90 100.0% Market Value Existing State 1.00 467.60 100.0% 467.60 1.82 91.19 36.13 399.90 100.0% 399.90 32.37 70.50 104.70 60.0% 21.59 159.50 69.5% 110.85 133.90 311.40108.54 100.0% 688.10 311.40 60.0% 412.86 144.08 188.70 60.0% 113.22 190.31 520.20 64.0% 332.93 Pre-Sale (RMB million) (RMB million) Consideration — — — — — — — — — — — CPS Pre-Sale (1) GFA (sq.m.) Pre-Sale Date 2015 13,770 2015 23,665 2016 15,598 2016 6,849 2016 6,036 2016 26,962 2016 27,859 2016 3,986 2013 217 2016 15,135 2016 321 Completion — — — — — — — — — — — of CPS Number (1) 6,036 4,825 Total 13,770 54,260 71,805 30,311 31,422 68,888 91,715 21,470 (sq.m.) GFA 102,105 (Excl. CPS) Residential Residential Residential Residential Residential Residential, Commercial Residential, Commercial Residential Residential Residential Residential Land Use Rights Expiry Date Type of Property 30 Jun 2054 to 30 Jun 2084 28 Dec 2048 to 28 Dec 2078 03 Aug 2053 to 03 Aug 2083 24 Feb 2053 to 24 Feb 2083 31 Mar 2053 to 31 Mar 2083 31 Dec 2054 to 31 Dec 2085 30 Dec 2057 to 30 Dec 2087 25 Oct 2050 to 16 Oct 2081 31 Dec 2051 to 31 Dec 2081 04 Aug 2050 to 11 Jun 2081 25 Jan 2050 to 25 Jan 2080 Land Use Residential, Residential, Commercial Commercial, Accommodation and Catering Commercial Commercial Commercial Commercial Residential, Commercial Residential, Commercial Commercial Commercial Residential, Commercial Yichang Yichang Changde Residential, Chenzhou Residential, Yiyang Xiangtan Residential, Yueyang Residential, Chenzhou Residential, Hengyang Residential, Liuyang Huaihua Holding Entity City Yichang Chutian Hengda Real Estate Development Company Limited Yichang Meiziya Market Construction Kaifa Company Limited Changde Xinze Property Company Limited Chenzhou City Wanxiangyuan Real Estate Development Company Limited Yiyang Hengrui Property Company Limited Hunan Zongheng Property Company Limited Yueyang Jinrui Property Company Limited Chenzhou Jinbi Property Company Limited Hengyang Baorui Property Company Limited Liuyang Jinbi Property Company Limited Huaihua Junda Real Estate Development Company Limited View Garden Yichang Yichang Changde View Garden Chenzhou Yiyang Emerald Court Xiangtan Peninsula Yueyang Chenzhou Hengyang Liuyang View Garden Huaihua Property No. Property Name I-132 Portion of Evergrande Royal I-133 Portion of Evergrande Oasis I-134 Portion of Evergrande Palace I-135 Portion of Evergrande Royal I-141 Portion of Evergrande Oasis I-140 Portion of Evergrande I-142 Portion of Evergrande Nanhu I-136 Portion of Evergrande Palace I-137 Portion of Evergrande Oasis I-139 Portion of Evergrande Palace I-138 Portion of Evergrande Royal
– II-20 –
– IV-21 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 4.44 0.40 5.70 Date as at 23.40 60.60 15.70 55.84 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group in 7.40 60.0% 0.40 100.0% 5.70 100.0% (2) 23.40 100.0% 60.60 100.0% 15.70 100.0% 59.40 94.0% Market Value Existing State 2.32 8.57 252.00 100.0% 252.00 1.39 1.19 45.19 51.32 279.00 279.00 100.0% 279.00 449.16 826.20 100.0% 826.20 Pre-Sale (RMB million) (RMB million) Consideration — — —— — — — — — — CPS Pre-Sale 0 (1) —— — GFA (sq.m.) Pre-Sale Date 2015 8,662 2013 428 2016 2016 54,278 2013 1,391 2016 47,709 2016 2015 254 2015 139 2016 13,797 Completion — — — — — — — — — — of CPS Number (1) 43 808 949 3,403 7,125 1,675 2016 7,125 1,6751,779 256.79 256.80 100.0% 256.80 Total 10,837 87,060 30,033 47,709 14,710 (sq.m.) GFA (Excl. CPS) Residential Residential Residential Residential, Commercial, Composite, Carpark Residential Residential Residential Residential Residential Residential Residential Land Use Rights Expiry Date Type of Property 04 Oct 2074 to 30 Oct 2076 06 Feb 2052 to 06 Feb 2082 31 Aug 2044 to 31 Aug 2074 24 Mar 2045 to 24 Mar 2075 03 Sep 2050 to 03 Sep 2080 29 Jan 2047 to 29 Jan 2077 16 Apr 2053 to 16 Apr 2083 25 May 2052 to 25 May 2082 26 Jul 2052 to 26 Jul 2082 01 Apr 2051 to 01 Apr 2081 30 Dec 2050 to 30 Dec 2080 Land Use Education Commercial Commercial Commercial Commercial Commercial Commercial Commercial Commercial Commercial Commercial Changsha Residential, Changsha Residential, Changsha Residential, Changsha Residential, Changsha Residential, Changsha Residential, Changsha Residential, Changsha Residential, Changsha Residential, Zhuzhou Residential, Changzhou Residential, Holding Entity City Changsha Xinlin Property Company Limited Changsha Hengxi Property Company Limited Hunan Xiongzhen Investment Company Limited Changsha Baorui Real Estate Development Company Limited Changsha Jinxia Development Construction Company Limited Changsha Tianxi Property Company Limited Hunan Xiangtian Real Estate Development Company Limited Zhangsha Xinfu Property Company Limited Changsha Ruixi Property Company Limited Zhuzhou Jinbi Property Company Limited Changzhou Hanjia Property Company Limited Changsha Emerald Court Changsha Changsha Atrium Changsha Scenic Peninsula Changsha Changsha Centuried Financial Square Changsha Scenic Bay Changsha Metropolis Zhuzhou Emerald Court Changzhou Property No. Property Name I-143 Portion of Evergrande City I-144 Portion of Evergrande I-145 Portion of Evergrande Palace I-149 Portion of Evergrande I-150 Portion of Evergrande Royal I-148 Portion of Evergrande Oasis I-147 Portion of Evergrande I-146 Portion of Evergrande Bay I-151 Portion of Evergrande Royal I-152 Portion of Evergrande I-153 Portion of Evergrande
– II-21 –
– IV-22 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 5.40 Date as at 37.60 18.80 38.00 86.10 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group in 5.40 100.0% (2) 37.60 100.0% 18.80 100.0% 38.00 100.0% 86.10 100.0% Market Value Existing State 5.38 37.57 17.72 17.09 18.29 140.80 389.50 100.0% 389.50 388.33 707.90 100.0% 707.90 405.42 460.20 100.0% 460.20 106.56 356.70 51.0% 181.92 608.73 887.50 100.0% 887.50 1,286.53 1,398.40 100.0% 1,398.40 Pre-Sale (RMB million) (RMB million) Consideration — — — — — — — — — — — CPS Pre-Sale (1) GFA (sq.m.) Pre-Sale Date 2015 40,084 2016 77,016 2016 72,824 2016 6,398 2016 753 2016 79,632 2015 1,112 2016 13,733 2016 3,877 2016 1,008 2016 69,946 Completion — — — — — — — — — — — of CPS Number (1) 803 6,398 1,112 6,257 Total 3,014 85,305 78,475 87,814 33,539 (sq.m.) GFA 121,406 109,775 (Excl. CPS) Residential Residential Residential Residential Residential Residential Residential Residential Residential Land Use Rights Expiry Date Type of Property 12 Nov 2052 to 12 Nov 2082 25 Sep 2081 14 Feb 2053 to 14 Feb 2083 17 Nov 2054 to 17 Nov 2084 14 Aug 2084 01 Feb 2052 to 01 Feb 2082 22 Aug 2053 to 22 Aug 2083 26 Oct 2051 to 26 Oct 2081 30 May 2047 to 30 May 2077 Land Use Commercial Residential 20 Jul 2080 to Commercial Commercial, Education Residential, Commercial Commercial Residential, Commercial Residential 05 May 2085Accommodation Residential and Catering Residential, Danyang Residential, Danyang Residential 01 Apr 2081 to Hangzhou Residential 14 Feb 2084 Residential Pinghu Hangzhou Residential, Jiaxing Huaian Jiangyin Residential, Lianyungang Residential, Nanjing Nanjing an Hengda ’ Holding Entity City Danyang Mingyuan Real Estate Development Company Limited Danyang Hengda Property Company Limited Hangzhou Suihua Property Company Limited Pinghu Hengda Mingdu Property Company Limited Hangzhou Jingli Property Company Limited Jiaxing Hengda Property Company Limited Huai Fufeng Real Estate Development Company Limited Jiangyin Shengjian Property Company Limited Lianyungang Hengda Mingdu Property Company Limited Nanjing Xutai Real Estate Company Limited Nanjing Hengda Fufeng Property Company Limited an ’ Danyang Metropolis Danyang View Garden Hangzhou Metropolis Pinghu Crystal International Plaza Hangzhou Metropolis Huai Jiaxing Scenic Jiangyin Metropolis Lianyungang Nanjing Splendor Nanjing Property No. Property Name I-154 Portion of Evergrande City I-155 Portion of Evergrande I-156 Portion of Evergrande Royal I-157 Portion of Evergrande I-158 Portion of Evergrande I-159 Portion of Evergrande I-160 Portion of Evergrande Oasis I-161 Portion of Evergrande Royal I-162 Portion of Evergrande I-163 Portion of Evergrande Palace I-164 Portion of Evergrande
– II-22 –
– IV-23 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) Date as at 84.80 70.50 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group in (2) 84.80 100.0% 70.50 100.0% Market Value Existing State 25.63 251.70 100.0%97.60 251.70 523.80 100.0% 523.80 80.78 906.7084.84 100.0% 906.70 58.27 364.00 100.0% 364.00 25.81 394.69 423.40 100.0% 423.40 362.22 861.40 100.0% 861.40 225.28 236.30 100.0% 236.30 151.68 151.70 100.0%293.08 151.70 644.20 100.0% 644.20 Pre-Sale (RMB million) (RMB million) Consideration — — — — — — — — — — 54 CPS Pre-Sale (1) GFA (sq.m.) Pre-Sale Date 2016 35,087 2016 7,282 2016 11,724 2016 11,959 2016 10,307 2016 1,204 2016 34,736 2016 26,760 2016 6,375 2016 1,782 Completion — — — — — — — — — — of CPS Number (1) 6,375 2,347 Total 24,235 38,551 36,673 10,307 10,518 35,752 51,836 (sq.m.) GFA 113,931 (Excl. CPS) Residential, Carpark 9,791 54 2016 1,335 Residential Residential Residential Residential Residential Residential, Commercial Residential Land Use Rights Expiry Date Type of Property 22 Jan 2078 05 Mar 2050 to 06 Feb 2083 23 Dec 2050 to 23 Dec 2080 15 Oct 2052 to 02 Apr 2084 09 Sep 2053 to 09 Sep 2053 24 Feb 2084 10 Mar 2051 to 10 Mar 2081 05 Oct 2052 to 05 Mar 2083 Land Use Commercial Residential, Residential 20 Dec 2076 to Office, Cultural and Entertainment Commercial Commercial Commercial, Office, Education Residential, Residential, Residential, Residential, Commercial Residential, Nanjing Nanjing Ningbo Ningbo Shanghai Residential 17 Jan 2084 Residential Quzhou Shanghai Residential 24 Feb 2084 to Wuxi Shanghai ResidentialShanghai 17 Jan 2084 Residential Residential 24 May 2084 Residential Wuxi an Holding Entity City Nanjin Handian Real Estate Company Limited Jurong Tiangong Property Company Limited Chengbo (Ningbo) Property Company Limited Ningbo Yucheng Property Company Limited Shanghai Songyu Property Company Limited Quzhou Hengda Shengjian Property Company Limited Shanghai Yue’ Property Company Limited Wuxi Shengdong Real Estate Development Company Limited Shanghai Rongshan Property Company Limited Shanghai Jinbi Property Company Limited Wuxi Hengda Real Estate Development Company Limited Nanjing Atrium Nanjing Jurong Lights Ningbo Garden Ningbo View Garden Shanghai Scenic Peninsula Quzhou Metropolis Shanghai Wuxi Palace Sheshan Shanghai Scenic Bay Shanghai Wuxi Property No. Property Name I-165 Portion of Evergrande Oasis I-166 Portion of Evergrande I-167 Portion of Evergrande City I-168 Portion of Evergrande Scenic I-170 Portion of Evergrande Royal I-169 Portion of Evergrande Royal I-171 Portion of Evergrande I-175 Portion of Evergrande Oasis I-172 Portion of Evergrande First I-173 Portion of Evergrande Royal I-174 Portion of Evergrande City
– II-23 –
– IV-24 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 2.60 0.40 Date as at Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group in 2.60 100.0% 0.40 100.0% (2) 106.10 100.0% 106.10 Market Value Existing State 2.64 0.37 99.46 100.00 100.0% 100.00 59.83 224.90 100.0% 224.90 163.60 580.70 100.0% 580.70 808.81 808.80 100.0% 808.80 112.76 316.70 90.0% 285.03 146.27 162.00 100.0% 162.00 173.31 301.70 100.0% 301.70 Pre-Sale (RMB million) (RMB million) Consideration — — — — — — — — 66 CPS Pre-Sale (1) —— — 91 GFA (sq.m.) Pre-Sale Date 2016 33,099 2016 184,753 2016 872 2001 13,907 2015 2016 47,751 2016 15,246 2016 2016 29,885 Completion — — — — — — — — — of CPS Number (1) 92 872 Total 85,237 39,087 16,056 50,656 42,218 47,712 (sq.m.) GFA 184,753 (Excl. CPS) Commercial Residential Residential, Carpark 15,143 66 2016 15,072 Residential Residential Residential Residential Residential Residential Land Use Rights Expiry Date Type of Property 30 May 2052 to 30 May 2082 10 Jul 2082 24 Sep 2055 to 07 Sep 2086 21 Dec 2051 to 21 Dec 2081 25 Oct 2052 to 28 Jan 2084 27 Jan 2051 to 27 Jan 2081 11 Nov 2050 to 11 Nov 2080 02 Nov 2050 to 02 Nov 2080 Land Use Commercial Commercial Commercial, Office, Public Facility Residential 20 Jun 2081 Residential, Residential 26 Jun 2081 Residential Commercial Commercial Commercial Residential, Commercial Yangzhou Residential, Office 10 Jul 2052 to Suqian Yancheng Residential, Suqian Zhangjiagang Residential, Zhenjiang Residential, Songyuan Residential, Changchun Residential, Jilin Changchun Residential, Holding Entity City Yangzhou Honglitai Real Estate Development Company Limited Suqian Hengda Huafu Property Company Limited Hengda Real Estate Group Yancheng Company Limited Suqian Hengda Lvzhou Real Estate Development Company Limited Zhangjiagang Shengjian Property Company Limited Zhenjiang Jia Qi Property Company Limited Jilin Wancheng Real Estate Development Company Limited Jilin Hengda Yongsheng Real Estate Development Company Limited Songyuan Hengda Yusheng Real Estate Development Company Limited Shengji (Changchun) Real Estate Company Limited Scenic Yangzhou Suqian Metropolis Yancheng Suqian Greenview Villa Zhangjiagang Zhengjiang Emerald Court Changchun Jilin Scenic Bay Songyuan Changchun Property No. Property Name I-179 Portion of Evergrande Royal I-176 Portion of Evergrande Palace I-178 Portion of Evergrande I-177 Portion of Evergrande Oasis I-180 Portion of Evergrande I-181 Portion of Evergrande Oasis I-182 Portion of Evergrande I-184 Portion of Evergrande Palace I-183 Portion of Evergrande Royal I-185 Portion of Evergrande City
– II-24 –
– IV-25 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) Date as at 12.50 28.76 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group in (2) 12.50 100.0% 56.40 51.0% 132.10 100.0% 132.10 303.30 100.0% 303.30 Market Value Existing State 1.62 29.31 385.60 100.0% 385.60 51.05 102.60 100.0% 102.60 46.88 186.30 100.0% 186.30 28.98 100.00 100.0% 100.00 132.43 344.80 100.0% 344.80 148.70 526.90 100.0% 526.90 178.00 192.80 100.0% 192.80 Pre-Sale (RMB million) (RMB million) Consideration — — — — — — — — CPS Pre-Sale (1) —— — —— — —— — GFA (sq.m.) Pre-Sale Date 2016 22,769 2017 4,548 2016 26,301 2016 9,260 2016 30,772 2016 224 2016 6,672 2016 2016 2016 2016 4,850 Completion — — — — — — — — — — — of CPS Number (1) 1,455 7,319 Total 67,796 52,691 55,392 15,704 32,560 22,168 13,765 46,655 17,767 (sq.m.) GFA (Excl. CPS) Residential Residential Residential Residential Residential Residential Residential Residential Residential Residential Land Use Rights Expiry Date Type of Property 12 Jun 2054 to 12 Jun 2084 12 Feb 2055 to 12 Feb 2085 12 May 2051 to 12 May 2081 07 Dec 2051 to 07 Dec 2081 13 Mar 2053 to 13 Mar 2083 11 Dec 2053 to 11 Dec 2083 13 Jan 2051 to 13 Jan 2081 07 Jun 2085 22 May 2048 to 22 May 2078 20 Oct 2085 Land Use Commercial Commercial Commercial Commercial Commercial Commercial Commercial Commercial Residential 27 Jun 2083 Residential Changchun Residential, Changchun Residential, Changchun Residential, Changchun Residential, Changchun Residential, Changchun Residential, Changchun Residential, Ganzhou Residential 07 Jun 2055 to Ganzhou Residential, Jian Jingdezhen Residential, Office 20 Oct 2055 to an) Real ’ Holding Entity City Zetao (Changchun) Real Estate Company Limited Jinggao (Changchun) Real Estate Company Limited Jitao (Changchun) Real Estate Company Limited Xinji (Changchun) Real Estate Company Limited Yongji (Changchun) Real Estate Company Limited Taiji (Changchun) Real Estate Company Limited Taiji (Changchun) Real Estate Company Limited Ganzhou Hengda Real Estate Company Limited Jiangxi Xingyu Property Development Company Limited Hengda (Ji Estate Group Company Limited Hengda (Jingdezhen) Real Estate Group Company Limited an ’ View Garden Changchun Atrium Changchun Changchun Metropolis Changchun Plaza Changchun Summit Changchun View Garden Changchun Emerald Court Ganzhou Metropolis Ganzhou View Garden Ji Scenic Jingdezhen Property No. Property Name I-186 Portion of Evergrande Royal I-190 Portion of Evergrande I-188 Portion of Evergrande Bay I-189 Portion of Evergrande I-187 Portion of Evergrande City I-191 Portion of Evergrande Royal I-192 Portion of Evergrande Scenic I-193 Portion of Evergrande I-194 Portion of Evergrande I-195 Portion of Evergrande Royal I-196 Portion of Evergrande Royal
– II-25 –
– IV-26 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 8.10 Date as at Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group in 8.10 100.0% (2) 194.40 100.0% 194.40 Market Value Existing State 8.52 468.00 100.0% 468.00 2.38 429.10 100.0% 429.10 1.89 275.00 89.0% 244.75 57.89 164.20 100.0% 164.20 26.56 936.80 100.0% 936.80 457.73 652.40 100.0% 652.40 181.95 191.10 100.0% 191.10 156.22 572.10 100.0% 572.10 Pre-Sale (RMB million) (RMB million) Consideration — — — — — — — — CPS Pre-Sale (1) —— — —— — GFA (sq.m.) Pre-Sale Date 2015 1,603 2016 41,542 2016 4,352 2017 40,495 2016 2016 597 2016 6,613 2016 10,858 2016 2016 246 Completion — — — — — — — — — — of CPS Number (1) 1,074 Total 95,378 43,205 38,880 84,260 15,449 56,707 37,661 59,797 (sq.m.) GFA 155,383 (Excl. CPS) Residential Residential Commercial Residential Residential Residential Residential Residential Residential, Commercial, Office Residential Land Use Rights Expiry Date Type of Property 27 Apr 2052 to 27 Apr 2082 27 Jun 2050 to 02 Mar 2081 12 May 2051 to 29 Nov 2082 28 Feb 2050 to 28 Feb 2080 13 Sep 2075 05 Mar 2053 to 05 Mar 2083 24 Nov 2047 to 24 Nov 2077 29 Dec 2050 to 29 Dec 2080 01 Jun 2081 Land Use Commercial Commercial Commercial Commercial Residential, Office 13 Sep 2045 to Residential, Commercial Commercial, Sport and Leisure Commercial Residential, Residential, Yining Jingdezhen Residential, Wujiaqu Residential, Jiujiang Nanchang Residential 17 Mar 2084 Residential, Nanchang Residential, Nanchang Residential, Xinyu Xinyu Nanchang Residential, Office 01 Jun 2051 to Holding Entity City Yining Hengda Yayuan Real Estate Development Company Limited Hengda (Jingdezhen) Real Estate Group Company Limited Wujiaqu Zhuoyue Real Estate Development Company Limited Hengda (Jiujiang) Real Estate Group Company Limited Nanchang Zhongdiantou Gaoxin Property Company Limited Jiangxi Cuilin Shanzhuang Company Limited Nanchang Zhongdiantou Gaoxin Property Company Limited Xinyu Xingwang Real Estate Development Company Limited Xinyu Zhongchen Property Development Company Limited Jiangxi Hongji Investment Company Limited Atrium Yining Metropolis Jingdezhen Splendor Urumchi Scenic Jiujiang Yujingxiaoqu Nanchang Nanchang View Garden Nanchang Xinyu Atrium Xinyu Nanchang Property No. Property Name I-206 Portion of Evergrande I-197 Portion of Evergrande I-203 Portion of Evergrande I-198 Portion of Evergrande Royal I-202 Portion of Evergrande I-200 Portion of Evergrande Oasis I-201 Portion of Evergrande Royal I-204 Portion of Evergrande City I-205 Portion of Evergrande I-199 Portion of Evergrande City
– II-26 –
– IV-27 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) Date as at 84.80 69.90 36.60 35.34 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group in (2) 84.80 100.0% 69.90 100.0% 36.60 100.0% 58.90 60.0% Market Value Existing State 28.32 285.1056.48 100.0% 289.80 285.10 100.0% 289.80 90.20 242.4030.85 100.0% 242.40 69.92 33.76 53.42 194.24 194.20 100.0% 194.20 160.99322.01 170.30 100.0% 334.20 100.0% 170.30 334.20 109.79 474.80 100.0% 474.80 188.12 345.20 100.0% 345.20 Pre-Sale (RMB million) (RMB million) Consideration — — — — — — — — — — — — CPS Pre-Sale (1) GFA (sq.m.) Pre-Sale Date 2016 9,568 2016 21,578 2016 4,359 2016 27,324 2016 4,285 2016 55,335 2016 48,642 2016 26,184 2017 13,360 2016 4,156 2016 5,801 2016 47,053 Completion — — — — — — — — — — — — of CPS Number (1) 4,396 6,201 Total 12,580 51,195 49,762 27,324 51,049 55,335 51,777 50,306 26,994 76,686 (sq.m.) GFA (Excl. CPS) Residential Residential, Commercial Residential Residential Residential Residential Residential Land Use Rights Expiry Date Type of Property 29 Jan 2085 28 Jan 2051 to 28 Jan 2081 27 Apr 2052 to 27 Apr 2082 09 Jul 2050 to 28 Feb 2083 28 Sep 2051 to 28 Sep 2081 21 Apr 2054 to 21 Apr 2084 30 Jan 2082 Residential 29 Aug 2051 to 29 Aug 2081 Land Use Residential 16 Jan 2077 Residential Residential 31 Aug 2081 Residential Residential 28 Jan 2085 to Residential, Residential, Commercial, Office Commercial Commercial Residential, Residential 31 May 2085 Residential Residential, Commercial Residential, Commercial Residential, Commercial Residential 30 Aug 2083 Residential Commercial Residential, Yining Yingtan Anshan Yingtan Yichun Anshan Benxi Dalian Dalian Dalian Dalian Fushun Holding Entity City Yining Jinbi Real Estate Development Company Limited Hengda Real Estate Yingtan Company Limited Anshan Jiarui Property Company Limited Hengda Real Estate Yingtan Company Limited Jiangxi Jimin Kexin Real Estate Development Company Limited Anshan Jiayu Property Company Limited Benxi Jiaxi Property Company Limited Dalian Hengcheng Real Estate Company Limited Dalian Hengke Real Estate Company Limited Dalian Xicheng Real Estate Company Limited Dalian Shicheng Real Estate Company Limited Fushun Jiaxin Property Company Limited Yining Scenic Yingtan Anshan Yingtan Yichun Metropolis Anshan Benxi View Garden Dalian Harbor City Dalian Tanxijun Dalian Scenic Bay Dalian Fushun Property No. Property Name I-207 Portion of Evergrande Oasis I-210 Portion of Evergrande Royal I-211 Portion of Evergrande Oasis I-209 Portion of Evergrande Oasis I-208 Portion of Evergrande Oasis I-212 Portion of Evergrande I-213 Portion of Evergrande Oasis I-214 Portion of Evergrande Royal I-215 Portion of Evergrande I-216 Portion of Evergrande I-217 Portion of Evergrande Royal I-218 Portion of Evergrande Palace
– II-27 –
– IV-28 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) Date as at 14.60 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group in (2) 14.60 100.0% Market Value Existing State 13.70 77.75 128.20 100.0% 128.20 38.02 219.90 100.0% 219.90 74.31 163.60 100.0% 163.60 178.02 228.70178.40 100.0% 319.40 228.70 100.0% 319.40 103.57 344.60 100.0% 344.60 105.52 105.50 100.0% 105.50 163.10 208.60394.02 100.0% 445.10 208.60 100.0% 445.10 209.07 227.80127.75 100.0% 252.50 227.80 100.0% 252.50 Pre-Sale (RMB million) (RMB million) Consideration — — — — — — — — — — — — CPS Pre-Sale (1) GFA (sq.m.) Pre-Sale Date 2016 54,693 2016 49,822 2015 20,529 2016 2,950 2016 17,506 2015 15,542 2016 65,510 2016 7,772 2016 38,847 2016 48,439 2016 22,428 2015 26,683 Completion — — — — — — — — — — — — of CPS Number (1) 3,087 Total 64,086 76,896 62,083 21,219 17,506 46,071 73,020 38,594 51,261 39,523 44,534 (sq.m.) GFA (Excl. CPS) Residential Residential Residential Residential Residential Residential Residential Residential Residential Residential Land Use Rights Expiry Date Type of Property 08 Jun 2051 to 29 May 2084 20 Jun 2050 to 20 Jun 2080 28 Jan 2051 to 29 Mar 2081 31 Mar 2061 29 May 2053 to 19 Jun 2083 31 Oct 2064 19 Oct 2050 to 19 Oct 2080 03 Apr 2052 to 20 Apr 2082 29 Nov 2053 to 29 Nov 2083 17 Jul 2051 to 17 Jul 2081 Land Use Commercial Commercial Commercial Residential, Commercial Commercial Commercial Commercial Commercial Huludao Residential, Liaoyang Residential, Panjin Shenyang Residential 07 Jun 2057 to Shenyang Residential, Shenyang Residential 24 May 2060 Residential Shenyang ResidentialShenyang 31 Dec 2056 to Residential, Shenyang Residential 27 May 2060 Residential Shenyang Residential, Shenyang Residential, Yingkou Residential, Holding Entity City Huludao Jia Shan Property Company Limited Liaoyang Hengsheng Property Company Limited Panjin Jiading Property Company Limited Hengda Xinyuan (Shenyang) Property Company Limited Shenyang Jiahui Property Company Limited Shenyang Jiaqi Property Company Limited Hengda Changji (Shenyang) Property Company Limited Shenyang Yue Tong Properties Company Limited Shenyang Jiakai Property Company Limited Shenyang Jiajun Property Company Limited Shenyang Jiaze Property Company Limited Yingkou Jialong Real Estate Company Limited Scenic Bay Huludao Liaoyang Panjin Shenyang Emerald Court Shenyang Shenyang Shenyang Metropolis Shenyang Shenyang Atrium Shenyang Scenic Bay Shenyang Yingkou Property No. Property Name I-219 Portion of Evergrande Royal I-220 Portion of Evergrande Oasis I-221 Portion of Evergrande Palace I-222 Portion of Evergrande City I-223 Portion of Evergrande I-224 Portion of Evergrande Palace I-226 Portion of Evergrande Oasis I-227 Portion of Evergrande I-225 Portion of Evergrande Bay I-228 Portion of Evergrande I-229 Portion of Evergrande Royal I-230 Portion of Evergrande City
– II-28 –
– IV-29 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) Date as at 93.80 88.50 95.50 19.40 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group in (2) 93.80 100.0% 88.50 100.0% 95.50 100.0% 19.40 100.0% 121.20 100.0% 121.20 Market Value Existing State 9.31 2.08 88.49 95.76 634.80 100.0% 634.80 65.91 383.02 492.70 100.0% 492.70 529.73 660.20258.42 100.0% 309.70 660.20 100.0% 309.70 292.86 852.40 100.0% 852.40 698.83 980.40 100.0% 980.40 Pre-Sale (RMB million) (RMB million) Consideration — — — — — — — — — — CPS Pre-Sale (1) —— — GFA (sq.m.) Pre-Sale Date 2015 24,568 2016 72,575 2015 124,443 2016 9,596 2016 51,769 2016 1,054 2016 8,447 2017 2016 17,212 2016 115,198 2013 444 Completion — — — — — — — — — — — of CPS Number (1) 7,871 2,413 Total 24,568 86,179 38,731 59,192 11,567 12,760 39,592 (sq.m.) GFA 146,183 156,603 (Excl. CPS) Residential Residential Residential Residential Residential Residential Residential Residential, Commercial Land Use Rights Expiry Date Type of Property 29 Jul 2054 to 29 Jul 2084 13 Jun 2084 25 Jan 2051 to 25 Jan 2081 19 Oct 2082 12 Sep 2052 to 12 Sep 2082 19 Oct 2082 10 Nov 2053 to 30 Apr 2084 07 Sep 2080 Land Use Commercial Residential, Office 13 Apr 2051 to Commercial, Accommodation and Catering Residential, Office 19 Oct 2052 to Accommodation and Catering Residential 07 Jul 2085 Residential Residential, Office 19 Oct 2052 to Residential, Commercial Residential 30 Dec 2084 Residential Residential 05 Apr 2080 to Residential 28 Apr 2080 Residential Yingkou Residential, Jinan Dongying Residential, Jinan Dongying Residential, Jinan Jinan Jinan Jinan Jinan Jinan Holding Entity City Yingkou Jialong Real Estate Company Limited Jinan Hengda Jinbi Real Estate Development Company Limited Dongying Hengda Huafu Property Company Limited Jinan Hengda Feicui Huating Property Company Limited Dongying Yujing Property Company Limited Jinan Dongjin Fengshan Property Company Limited Limited Jinan Huafu Property Company Limited Jinan Xichuang Property Company Jinan Dongjin Longding Property Company Limited Jinan Hengda Lvzhou Property Company Limited Jinan Mingdu Property Company Limited Yingkou Jinan He Sheng Tai Cheng Dongying View Garden Jinan Islands Dongying Longao East New Metropolis Jinan Emerald Court Jinan Emerald Court Jinan Longao Regency Jinan Jinan Metropolis Jinan Property No. Property Name I-231 Portion of Evergrande Oasis I-235 Portion of Evergrande City I-232 Portion of Evergrande Huang I-236 Portion of Evergrande Royal I-233 Portion of Evergrande Palm I-234 Portion of Evergrande I-237 Portion of Evergrande I-238 Portion of Evergrande I-239 Portion of Evergrande I-240 Portion of Evergrande Oasis I-241 Portion of Evergrande
– II-29 –
– IV-30 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) Date as at 35.34 45.34 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group in (2) 58.90 60.0% 88.90 51.0% Market Value Existing State 9.44 78.28 66.71 284.1036.40 51.0% 286.90 144.89 51.0% 146.32 431.12 431.10153.37 60.0% 326.30 258.66 100.0% 326.30 232.37 232.40 100.0% 232.40 101.00 473.60 100.0% 473.60 168.97 169.00 100.0% 169.00 460.56 460.60 100.0% 460.60 1,098.66 1,098.70 100.0% 1,098.70 Pre-Sale (RMB million) (RMB million) Consideration — — — — — — — — — — — CPS Pre-Sale (1) GFA (sq.m.) Pre-Sale Date 2017 142,175 2016 77,906 2016 38,250 2016 48,012 2016 15,808 2016 1,776 2016 17,900 2016 9,172 2016 21,303 2016 43,042 2016 92,485 Completion — — — — — — — — — — — of CPS Number (1) 7,665 Total 77,906 38,250 72,152 17,163 61,369 61,369 80,441 43,042 92,485 (sq.m.) GFA 142,175 (Excl. CPS) Residential Residential Residential Residential Residential Residential Residential Residential Residential Land Use Rights Expiry Date Type of Property 30 Apr 2054 to 01 Apr 2084 30 Jul 2084 21 Oct 2082 22 Sep 2081 19 Sep 2050 to 11 Sep 2083 30 Dec 2051 to 30 Dec 2081 30 Dec 2051 to 30 Dec 2081 15 Feb 2052 to 19 Mar 2083 03 Mar 2052 to 03 Mar 2082 Land Use Residential, Commercial Residential, Office 19 Jan 2054 to Residential, Office 21 Oct 2052 to Residential, Office 22 Sep 2051 to Commercial, Accommodation and Catering, Cultural and Entertainment Residential, Commercial Residential, Commercial Residential 20 Aug 2080 Residential Commercial Residential, Commercial Jinan Jining Jinan Linyi Laiwu Liaocheng Residential 09 Dec 2082 Residential Linyi Linyi Taian Weifang Residential, Weifang Residential, an Tianrun ’ Holding Entity City Jinan Xikai Property Company Limited Jining Beihu Hengda Mingdu Property Company Limited Jinan Hengda Xiqu Property Company Limited Linyi Huafu Property Company Limited Laiwu Hengda Jinbi Tianxia Property Company Limited Liaocheng Nanjiao Mingdu Property Company Limited Linyi Lvzhou Property Company Limited Limited Linyi Zhengsheng Property Company Tai Renhe Property Company Limited Shandong Puyun Real Estate Development Company Limited Weifang Jinbi Property Company Limited an ’ Century Square Jinan Metropolis Jining Atrium Jinan Linyi Splendor Laiwu Metropolis Liaocheng Linyi Linyi Tai Emerald Court Weifang Metropolis Weifang Property No. Property Name I-242 Portion of Evergrande I-244 Portion of Evergrande I-243 Portion of Evergrande I-247 Portion of Evergrande Palace I-245 Portion of Evergrande I-246 Portion of Evergrande I-248 Portion of Evergrande Oasis I-249 Portion of Evergrande Oasis I-250 Portion of Evergrande City I-251 Portion of Evergrande I-252 Portion of Evergrande
– II-30 –
– IV-31 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 2.80 3.40 Date as at 36.80 59.80 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group in 4.00 70.0% 3.40 100.0% (2) 36.80 100.0% 59.80 100.0% Market Value Existing State 4.03 36.78 38.07 267.10 100.0% 267.10 20.37 161.79 167.80 100.0% 167.80 200.61 419.80 100.0% 419.80 148.34 148.30 100.0% 148.30 Pre-Sale (RMB million) (RMB million) Consideration — — — — — — 89 CPS Pre-Sale (1) —— — GFA (sq.m.) Pre-Sale Date 2015 40,365 2016 6,155 2016 52,559 2016 2016 2,931 2016 392 2016 35,847 279 253.57 993.90 65.6% 651.80 2016 28,986 – Completion — — — — — — — of CPS Number (1) 379 392 6,155 4,864 89 2016 941 Total 41,464 93,921 22,342 43,812 881 2014 43,812 881 329.55 329.50 95.0% 313.03 28,986 (sq.m.) GFA (Excl. CPS) Residential Residential Residential, Commercial, Carpark Residential Residential, Carpark 100,227 279 2014 Residential, Commercial, Carpark Residential Residential Residential Residential Land Use Rights Expiry Date Type of Property 10 Apr 2054 04 Jan 2052 to 04 Jan 2082 28 Mar 2080 09 Jun 2051 to 09 Jun 2081 06 Jul 2060 14 Nov 2047 to 14 Nov 2057 18 May 2049 to 18 May 2059 22 Apr 2055 to 22 Apr 2085 24 Mar 2055 to 24 Mar 2085 18 May 2051 to 18 May 2061 Land Use Residential 21 Aug 2078 to Commercial Residential, Commercial 18 Apr 2053 to Residential, Commercial Commercial, Office, Education/ Public Facility Office, Education Commercial Commercial Residential, Office 06 Jul 2050 to Office, Education Residential, Residential, Residential, Residential, Residential, Linfen Zibo Datong Lvliang Taiyuan Taiyuan Taiyuan Taiyuan Taiyuan Taiyuan Holding Entity City Linfen Zijing Real Estate Development Company Limited Zibo Hengda Fanhua Property Company Limited Datong Junjing Real Estate Development Company Limited Lvliang Junhui Real Estate Development Company Limited Taiyuan Junjing Real Estate Development Company Limited Taiyuan Mingdu Real Estate Development Company Limited Taiyuan Jinshiheng Real Estate Development Company Limited Taiyuan Shengshi Juntai Real Estate Development Company Limited Hengda (Taiyuan) Real Estate Group Company Limited Taiyuan Deyi Real Estate Development Company Limited Linfen View Garden Zibo Datong Scenic Lvliang Palace Taiyuan Metropolis Taiyuan Bank Riverfront Taiyuan Emerald Court Taiyuan Taiyuan Garden Taiyuan I-255 Portion of Evergrande Palace Property No. Property Name I-253 Portion of Evergrande Royal I-254 Portion of Evergrande Oasis I-256 Portion of Evergrande Royal I-259 Portion of Evergrande Royal I-261 Portion of Evergrande I-257 Portion of Evergrande Left I-258 Portion of Evergrande I-260 Portion of Evergrande Oasis I-262 Portion of Evergrande Scenic
– II-31 –
– IV-32 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) Date as at 13.50 24.70 59.80 26.77 33.90 72.81 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group in (2) 21.10 64.0% 24.70 100.0% 59.80 100.0% 37.70 71.0% 33.90 100.0% 74.30 98.0% Market Value Existing State 3.15 965.40 98.0% 946.09 17.46 247.10 100.0% 247.10 21.15 18.51 59.82 37.68 33.87 74.26 152.38 234.30 100.0% 234.30 123.55 123.60 100.0% 123.60 Pre-Sale (RMB million) (RMB million) Consideration — — — — — — — — — — CPS Pre-Sale (1) 87 GFA (sq.m.) Pre-Sale Date 2016 1,840 2016 3,908 2016 7,491 2016 34,698 2016 4,092 2016 9,059 2015 11,496 2016 4,732 2015 2,035 2015 Completion — — — — — — — — — — of CPS Number (1) 7,491 4,946 9,059 4,092 4,732 2,035 Total 26,013 49,878 11,496 21,375 (sq.m.) GFA (Excl. CPS) Residential Residential Commercial Residential Residential Residential, Commercial Land Use Rights Expiry Date Type of Property 29 Jul 2055 to 29 Jul 2085 17 Feb 2054 to 17 Feb 2084 09 Mar 2049 to 09 Mar 2079 26 Jun 2053 to 22 Dec 2083 21 Aug 2084 23 Aug 2082 Residential Land Use Commercial Commercial, Education Residential, Commercial Residential, Commercial Commercial Taiyuan Taiyuan Yuncheng ResidentialYuncheng 30 Sep 2080 Residential Residential, 13 May 2078 Residential Yangquan Residential 09 Dec 2078 Residential Yuncheng Residential, Chengdu Residential, Dongguan Residential, Office 21 AugShenzhen 2054 to Residential, Shenzhen Residential 23 Aug 2082 Residential Holding Entity City Taiyuan Wanheng Real Estate Development Company Limited Taiyuan Junheng Real Estate Development Company Limited Yuncheng Jinheng Real Estate Development Company Limited Yuncheng Xinwanrui Real Estate Development Company Limited Yangquan Shi Liaoyuan Real Estate Development Company Limited Yuncheng Economic Development Zone Yijiayi Real Estate Development Company Limited Hengda (Dayi) Real Estate Group Company Limited Zehe (Dongguan) Property Company Limited Shenzhen Jisha Real Estate Development Company Limited Shenzhen Shacun Real Estate Development Company Limited Atrium Taiyuan Scenic Bay Taiyuan Yuncheng Yuncheng View Garden Yangquan Metropolis Yuncheng Scenic Garden Chengdu Dongguan Gentleman Hill Emerald Court Shenzhen Gentleman Hill Garden Shenzhen Property No. Property Name I-263 Portion of Evergrande I-264 Portion of Evergrande Royal I-266 Portion of Evergrande Oasis I-267 Portion of Evergrande Oasis I-265 Portion of Evergrande Royal I-268 Portion of Evergrande I-272 Portion of Evergrande Royal I-269 Portion of Evergrande Oasis I-271 Portion of Evergrande I-270 Portion of Evergrande
– II-32 –
– IV-33 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 9.50 Date as at 77.50 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group in 9.50 100.0% (2) 77.50 100.0% Market Value Existing State 3.52 26.29 281.10 100.0% 281.10 10.76 71.10 260.60 100.0% 260.60 227.59 227.60258.20 100.0% 422.00 227.60 100.0% 422.00 180.69 546.60 80.0% 437.28 104.28 117.30 100.0% 117.30 297.68 312.00280.24 100.0% 658.20 312.00 100.0% 658.20 Pre-Sale (RMB million) (RMB million) Consideration — — — — — — — — — — CPS Pre-Sale (1) GFA (sq.m.) Pre-Sale Date 2016 30,669 2016 21,775 2016 1,698 2012 28,278 2015 42,383 2014 73,139 2014 1,003 2015 45,024 2014 18,200 Completion — — — — — — — — — of CPS Number (1) 2,210 7,590 31 2011 2,157 Total 30,669 32,352 19,897 65,986 44,882 75,334 60,305 (sq.m.) GFA 109,081 (Excl. CPS) Residential Residential Residential, Commercial, Carpark Residential Residential Residential Residential Residential Residential Residential Land Use Rights Expiry Date Type of Property 20 Mar 2053 to 20 Mar 2083 26 Feb 2055 to 26 Feb 2085 16 Dec 2048 to 16 Dec 2078 31 Jul 2054 to 31 Jul 2084 26 Jan 2046 to 26 Jan 2076 21 Oct 2050 to 21 Oct 2080 15 Aug 2083 to 02 Aug 2086 18 Jun 2047 to 06 Sep 2086 19 Nov 2050 to 30 Dec 2083 31 Oct 2080 Land Use Commercial Commercial, Public Facility Commercial Commercial Commercial Commercial, Education Commercial Commercial Commercial Residential, Chengdu Residential, Chengdu Residential, Chengdu Residential, Nanchong Residential, Chengdu Residential, Chengdu Residential, Meishan Residential, Panzhihua Residential, Anyang Hanzhong Residential 29 Jul 2077 to Holding Entity City Renji Hengye (Sichuan) Investment Company Limited Chengdu Hengda Xindongcheng Property Company Limited Senxin (Sichuan) Property Company Limited Hengda (Nanchong) Real Estate Group Company Limited Chengdu Hengda Xinbeicheng Property Company Limited Chengdu Xinyi Real Estate Development Company Limited Hengda Xinfeng (Pengshan) Property Company Limited Panzhihua Hengda Real Estate Development Company Limited Anyang Tongruida Real Estate Development Company Limited Hanzhong Hualian Property Company Limited City Chengdu Central Square Chengdu Dujiangyijia Nanchong Caojiaxiang Plaza Chengdu Paradise Peninsula Chengdu Splendor Pengshan Panzhihua Anyang Hanzhong Property No. Property Name I-273 Portion of Evergrande New I-274 Portion of Evergrande I-275 Portion of Chengdu I-278 Portion of Evergrande Oasis I-276 Portion of Evergrande I-277 Portion of Evergrande I-280 Portion of Evergrande I-279 Portion of Evergrande City I-281 Portion of Evergrande Oasis I-282 Portion of Evergrande City
– II-33 –
– IV-34 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) Date as at 22.90 42.50 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group in (2) 22.90 100.0% 42.50 100.0% Market Value Existing State 56.21 141.90 100.0% 141.90 33.28 220.00 57.0% 125.40 18.73 22.19 229.60 100.0% 229.60 144.10 324.80 100.0% 324.80 151.19 371.80 100.0% 371.80 166.92 168.90 100.0% 168.90 Pre-Sale (RMB million) (RMB million) Consideration — — — — — — 132 CPS Pre-Sale (1) —— — — GFA (sq.m.) Pre-Sale Date 2016 28,047 2016 9,805 2016 5,323 2013 5,238 2016 21,107 2016 21,572 Completion — — — — — — of CPS Number (1) 5,728 4,057 14 2016 Total 52,250 285 2016 52,250 28561,501 471.67 471.7024,573 100.0% 471.70 51,754 69535,910 2016 263 51,754 2016 695 35,910 457.47 263 457.50 262.8434,966 100.0% 262.80 457.50 100.0% 262.80 43,398 21,842 (sq.m.) GFA (Excl. CPS) Residential, Commercial, Carpark Residential, Commercial, Carpark Residential, Commercial, Carpark Residential Residential Residential Residential, Commercial Carpark Residential, Commercial Residential Residential, Carpark 26,762 263 2015 Land Use Rights Expiry Date Type of Property 15 Oct 2053 to 22 Feb 2084 15 Oct 2053 to 22 Feb 2084 06 Jan 2048 to 06 Jan 2078 18 Jun 2053 to 18 Jun 2083 18 Jun 2053 to 18 Jun 2083 13 Aug 2053 to 13 Aug 2083 10 Dec 2050 to 15 Oct 2052 27 Oct 2055 to 27 Oct 2085 14 Apr 2055 to 14 Dec 2085 26 Aug 2074 Land Use Residential, Residential, Commercial Commercial Commercial Residential, Commercial Residential, Commercial Commercial Residential 30 Mar 2076 Commercial, Other, Composite Residential, Residential, Residential, Commercial Commercial Residential 25 Aug 2074 to an an an an an an ’ ’ ’ ’ ’ ’ Xi Xi Luohe Luoyang Residential, Luohe Pingdingshan Residential, Wugang Xi Xi Xi Xi an Jiazhi an Yingyu an Hengying an Qujiang ’ ’ ’ ’ Holding Entity City Xi Property Company Limited Xi Property Company Limited Luohe Yusheng Real Estate Development Company Limited Hengda (Luoyang) Real Estate Group Company Limited Luohe Yusheng Real Estate Development Company Limited Pingdingshan Hengrong Property Company Limited Wugang Hengda Property Company Limited Shaanxi Jinhong Investment Company Limited Shaanxi Shuohua Property Company Limited Xi Property Company Limited Xi Investment Construction Company Limited an ’ an an ’ ’ an an an ’ ’ ’ View Garden Xi View Garden Xi Scenic Luohe Luoyang Metropolis Luohe Metropolis Pingdingshan Wugang Xi Emerald Court Xi Xi Xi Property No. Property Name I-283 Portion of Evergrande Royal I-284 Portion of Evergrande Royal I-287 Portion of Evergrande Royal I-285 Portion of Evergrande Oasis I-286 Portion of Evergrande I-288 Portion of Evergrande I-289 Portion of Evergrande Palace I-290 Portion of Evergrande City I-291 Portion of Evergrande I-292 Portion of Evergrande Bay I-293 Portion of Evergrande Oasis
– II-34 –
– IV-35 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 6.70 3.00 2.70 Date as at 35.70 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group in 6.70 100.0% 3.00 100.0% 2.70 100.0% (2) 35.70 100.0% 267.80 100.0% 267.80 Market Value Existing State 0.85 1.38 73.29 264.60 55.0% 145.53 15.60 342.50 100.0% 342.50 46.49 148.90 100.0% 148.90 222.29 302.50 100.0% 302.50 190.90 287.20 100.0% 287.20 Pre-Sale (RMB million) (RMB million) Consideration — — — — — — — CPS Pre-Sale (1) —— — —— — —— — GFA (sq.m.) Pre-Sale Date 2016 2016 167 2016 32,261 2017 2016 11,985 2016 297 2015 2016 3,385 2016 3,742 2016 17,330 Completion — — — — — — — — — — of CPS Number (1) 597 528 4,959 1,395 Total 43,158 38,808 49,501 76,032 11,679 26,469 (sq.m.) GFA (Excl. CPS) Commercial Residential, Carpark 41,016 428 2016 39,876 428 272.05 280.70 100.0% 280.70 Residential Residential Residential Residential Residential Residential Residential Land Use Rights Expiry Date Type of Property 14 Jan 2052 to 14 Jan 2082 16 Jan 2051 to 16 Jan 2081 14 May 2053 to 14 May 2083 29 Jun 2055 to 29 Jun 2085 13 Feb 2055 to 13 Feb 2085 31 Aug 2046 to 31 Aug 2076 29 Mar 2083 19 Jul 2052 to 29 Jun 2086 Land Use Residential 17 Aug 2076 Residential, Residential, Commercial, Education Commercial Commercial Commercial Commercial, Office Commercial Commercial, Accommodation and Catering an an ’ ’ Xi Xi Xinxiang Residential, Xinxiang Residential, Xinxiang Residential, Xinyang Residential, Xuchang Residential, Office 29 Mar 2052 to Xinyang Residential, Yangling ResidentialZhengzhou 30 Jul 2081 Residential Residential 02 May 2085 Residential Zhengzhou Residential, an Qiyun an Jintu Property ’ ’ Holding Entity City Xi Property Company Limited Xi Company Limited Xinxiang Mingdu Property Company Limited Xinxiang Sanlian Property Company Limited Xinxiang Yujing Property Company Limited Xinyang Junjing Real Estate Company Limited Xuchang Dijing Property Company Limited Henan Dayou Real Estate Development Company Limited Shaanxi Yaoze Sihai Real Estate Development Company Limited Zhengzhou Heguang Property Company Limited Xinxiang Yujing Property Company Limited an ’ an ’ Metropolis Xi Scenic Xi Atrium Xinxiang Scenic Bay Xinxiang Scenic Bay Xinxiang Emerald Court Xinyang Xuchang Metropolis Xinyang Yangling Emerald Court Zhengzhou Splendor Zhengzhou Property No. Property Name I-294 Portion of Evergrande I-295 Portion of Evergrande Royal I-296 Portion of Evergrande I-297 Portion of Evergrande Royal I-298 Portion of Evergrande Royal I-299 Portion of Evergrande I-301 Portion of Evergrande Oasis I-300 Portion of Evergrande I-302 Portion of Evergrande City I-303 Portion of Evergrande I-304 Portion of Evergrande
– II-35 –
– IV-36 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 8.79 3.10 Date as at 35.80 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group in 3.10 100.0% 8.90 98.8% (2) 35.80 100.0% Market Value Existing State 3.79 226.806.53 100.0% 348.50 226.80 100.0% 348.50 3.06 4.75 35.84 203.37 685.20240.27 50.2% 374.40 344.04 100.0% 374.40 288.04 288.00439.75 100.0% 439.70 288.00 100.0% 439.70 275.98 437.50 60.0% 262.50 Pre-Sale (RMB million) (RMB million) Consideration — — — — — — — — — — CPS Pre-Sale (1) GFA (sq.m.) Pre-Sale Date 2016 24,753 2016 3,124 2016 39,402 2016 820 2016 1,356 2016 50,700 2016 591 2016 51,064 2016 1,010 2016 39,045 Completion — — — — — — — — — — of CPS Number (1) 591 3,124 1,718 Total 70,722 61,752 48,278 54,794 50,700 77,978 39,045 (sq.m.) GFA (Excl. CPS) Residential Residential Residential Residential Residential Residential Residential Residential Land Use Rights Expiry Date Type of Property 22 May 2083 26 Jul 2085 Jun 2055 to Nov 2086 12 Nov 2050 to 12 Nov 2060 11 Jun 2079 Residential 15 Feb 2054 to 15 Oct 2083 15 Nov 2046 to 05 Jan 2077 26 Oct 2060 Residential 27 Apr 2053 to 17 May 2085 19 Jul 2053 to 19 Jul 2083 Land Use Commercial Commercial Commercial Commercial Commercial Commercial Commercial Commercial Zhengzhou Residential, Office 22 May 2053 to Zhengzhou Residential 03 Mar 2079 to Zhumadian Residential, Chongqing Residential, Guiyang Residential, Guiyang Residential, Guiyang Residential, Guiyang Residential, Guiyang Residential, Guiyang Residential, Holding Entity City Zhengzhou Yubang Property Company Limited Zhengzhou Henglin Property Company Limited Zhumadian Kaifaqu Yucheng Real Estate Development Company Limited Chongqing Hengda Fucheng Real Estate Development Company Limited Guizhou Guangjuyuan Real Estate Development Company Limited Guizhou Jicheng Real Estate Development Company Limited Hengda Real Estate Group Guiyang Property Company Limited Guiyang Haiming Investment Construction Development Company Limited Guiyang Jiude Real Estate Development Company Limited Guizhou Hengda Changji Real Estate Development Company Limited Zhengzhou Garden Zhengzhou Metropolis Zhumadian Garden Fuling Guiyang Garden Guiyang Guiyang Metropolis Guiyang Atrium Guiyang Emerald Court Guiyang Property No. Property Name I-305 Portion of Evergrande Oasis I-306 Portion of Evergrande Scenic I-307 Portion of Evergrande I-308 Portion of Evergrande Scenic I-309 Portion of Evergrande City I-310 Portion of Evergrande Royal I-313 Portion of Evergrande I-314 Portion of Evergrande I-311 Portion of Evergrande I-312 Portion of Evergrande Oasis
– II-36 –
– IV-37 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) Date as at 14.00 16.70 95.50 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group in (2) 14.00 100.0% 16.70 100.0% 95.50 100.0% 233.80 100.0% 233.80 Market Value Existing State 5.24 16.74 56.43 270.00 100.0% 270.00 95.50 295.09 889.40504.74 100.0% 811.50 889.40 100.0% 811.50 121.33 357.30 100.0% 357.30 265.94 720.50 100.0% 720.50 370.73 688.50 100.0% 688.50 Pre-Sale (RMB million) (RMB million) Consideration — — — — — — — — CPS Pre-Sale (1) —— — GFA (sq.m.) Pre-Sale Date 2014 1,186 2016 3,184 2016 34,283 2016 107,148 2016 26,366 2016 12,235 2014 74,422 2016 38,740 Completion — — — — — — — — — of CPS Number (1) 2,807 3,184 Total 87,193 57,415 53,303 53,456 381 2016 53,456 381 589.90 589.90 100.0% 589.90 43,295 71,496 (sq.m.) GFA 154,343 158,604 (Excl. CPS) Residential Residential Residential Residential Residential Residential, Commercial, Carpark Residential Residential Residential Residential Residential, Carpark 3,018 710 2016 3,018 710 Land Use Rights Expiry Date Type of Property 10 Jul 2047 to 10 Jul 2057 31 Mar 2051 to 31 Mar 2061 30 Aug 2053 to 30 Aug 2063 Nov 2050 to Nov 2060 24 Dec 2053 to 24 Dec 2063 22 Apr 2051 to 22 Apr 2081 27 Jan 2054 to 27 Jul 2081 26 Dec 2047 to 08 Oct 2081 26 Dec 2047 to 08 Oct 2081 09 Jun 2055 to 03 Jun 2085 17 Sep 2079 Land Use Commercial Commercial Commercial Commercial Commercial Commercial Commercial Residential, Commercial, Office Commercial, Office Commercial Chongqing Residential, Chongqing Residential, Chongqing Residential, Chongqing Residential, Chongqing Residential, Guiyang Residential, Kaili Kunming Residential, Kunming Residential, Kunming Residential, Kunming Residential 24 Apr 2078 to Holding Entity City Chongqing Hengda Jiyu Property Company Limited Hengda (Chongqing) Real Estate Group Company Limited Chongqing Hengda Xinquan Property Company Limited Chongqing Hengda Jun Xin Real Estate Development Company Limited Chongqing Hengda Xinding Property Company Limited Guiyang Zhongyu Zhidi Real Estate Development Company Limited Guizhou Kaidi Property Company Limited Hengda Xinyuan (Kunming) Property Company Limited Kunming Qiheng Real Estate Development Company Limited Kunming Heng Chang Property Company Limited Yunnan Heding Real Estate Development Company Limited Chongqing View Garden Chongqing Garden Chongqing Atrium Chongqing Scenic Bay Chongqing Central Park Guiyang Kali Splendor Kunming Splendor Kunming (Phase III) Metropolis Kunming Atrium Kunming Property No. Property Name I-315 Portion of Evergrande City I-316 Portion of Evergrande Royal I-317 Portion of Evergrande Scenic I-318 Portion of Evergrande I-319 Portion of Evergrande Royal I-320 Portion of Evergrande I-321 Portion of Evergrande City I-322 Portion of Evergrande I-323 Portion of Evergrande I-324 Portion of Evergrande I-325 Portion of Evergrande
– II-37 –
– IV-38 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 6.30 7.90 2.90 Date as at 49.90 11.40 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group in 6.30 100.0% 7.90 100.0% 2.90 100.0% (2) 11.40 100.0% 49.90 100.0% Market Value Existing State 0.46 7.89 1.60 46.81 152.77 152.80 100.0% 152.80 224.27 224.30 100.0% 224.30 513.26 629.80 100.0% 629.80 257.01 334.60 51.0% 170.65 118.57 579.80 100.0% 579.80 Pre-Sale (RMB million) (RMB million) Consideration — — — — — — — — — CPS Pre-Sale (1) —— — 82 GFA (sq.m.) Pre-Sale Date 2016 64,863 2016 33,188 2016 2012 332 2016 44,257 2011 1,483 2016 7,005 2014 2016 25,295 2016 11,204 Completion — — — — — — — — — — of CPS Number (1) 299 1,447 7,291 1,096 Total 1,483 33,188 44,257 75,458 32,620 45,557 (sq.m.) GFA (Excl. CPS) Residential Residential, Commercial Residential Residential Residential Commercial Residential Residential Residential Land Use Rights Expiry Date Type of Property 17 Oct 2047 to 17 Oct 2057 28 May 2055 to 28 May 2085 30 Aug 2053 to 30 Aug 2063 11 Nov 2050 to 27 Jul 2084 28 Dec 2046 to 18 Sep 2066 14 Feb 2047 to 14 Feb 2057 16 Oct 2047 to 17 Oct 2057 30 Dec 2054 to 30 Dec 2064 30 Aug 2053 to 30 Aug 2063 Land Use Commercial, Education, Carpark Commercial, Cultural and Entertainment, Education Commercial Commercial, Office Commercial, Accommodation and Catering, Cultural and Entertainment Commercial, Clubhouse Commercial, Education Commercial Commercial Residential, Kunming Residential, Chongqing Residential, Chongqing Residential 30 Jun 2061 Residential Chongqing Residential, Chongqing Residential, Chongqing Residential, Qujing Chongqing Residential, Chongqing Residential, Chongqing Residential, Holding Entity City Yunnan Hengyun Property Company Limited Chongqing Hengda Xinquan Property Company Limited Chongqing Hengda Yongjun Real Estate Development Company Limited Hengda (Chongqing) Real Estate Group Company Limited Hengda (Jiangjin) Real Estate Group Company Limited Hengda (Chongqing) Real Estate Group Company Limited Qujing Zhongxi Property Company Limited Hengda (Chongqing) Real Estate Group Company Limited Chongqing Hengda Xinquan Property Company Limited Chongqing Yongli Property Company Limited Yunbao Palace Kunming Emerald Court Chongqing Emerald Court Yongchuan Chongqing Splendor Chongqing Chongqing Metropolis Qujing Metropolis Chongqing Scenic Peninsula Chongqing Century City Chongqing Property No. Property Name I-326 Portion of Evergrande I-329 Portion of Evergrande I-328 Portion of Evergrande I-332 Portion of Evergrande Oasis I-331 Portion of Evergrande I-330 Portion of Evergrande Palace I-327 Portion of Evergrande I-333 Portion of Evergrande I-335 Portion of Evergrande Royal I-334 Portion of Evergrande
– II-38 –
– IV-39 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 2.96 Date as at Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group in 5.80 51.0% (2) Market Value Existing State 61.73 167.50 100.0% 167.50 804.81 1,117.10470.99 100.0% 630.10 1,117.10 461.12 76.4% 713.70 481.14 100.0% 713.70 Pre-Sale (RMB million) (RMB million) Consideration — — — — CPS Pre-Sale (1) —— — GFA (sq.m.) Pre-Sale Date 2016 13,463 2016 91,595 2016 89,223 2016 44,885 2016 Completion — — — — — of CPS Number (1) 1,065 Total 32,672 57,883 (sq.m.) GFA 118,056 130,690 (Excl. CPS) Residential Residential Residential Residential Land Use Rights Expiry Date Type of Property 20 Apr 2051 to 10 Dec 2083 28 Nov 2052 to 18 Jun 2083 30 Nov 2055 to 30 Nov 2065 02 Feb 2048 to 02 Feb 2058 Land Use Commercial Commercial Commercial Commercial, Education Residential, Residential, Residential 01 Jan 2080 Residential Chongqing Residential, Chongqing Residential, Zigong Zigong Zunyi Holding Entity City Chongqing Hengda Xingai Property Company Limited Chongqing Jianzhi Real Estate Company Limited Hengda (Zigong) Real Estate Group Company Limited Zigong Xinmao Property Company Limited Zunyi Xinguang Real Estate Development Company Limited Central Plaza Chongqing Coronation Chongqing Zigong Metropolis Zigong Zunyi Property No. Property Name Notes: 1 All areas are stated in approximations. 2 All values are stated in approximations. I-336 Portion of Evergrande I-337 Portion of Evergrande The I-338 Portion of Evergrande Oasis I-339 Portion of Evergrande I-340 Portion of Evergrande City
– II-39 –
– IV-40 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 29.10 47.90 72.30 59.10 26.70 41.10 80.00 34.70 37.50 427.00 108.40 185.00 230.00 100.00 3,308.30 1,398.50 Attributable to Valuation Date Market Value the Group as at % (RMB million) 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Interest the Group Attributable to (2) 29.10 47.90 72.30 59.10 80.00 41.10 26.70 34.70 37.50 427.00 185.00 230.00 108.40 100.00 3,308.30 1,398.50 (RMB million) Market Value in Existing State Date 2010 2016 2008 2016 2014 2016 2013 2011 2015 2015 2016 2015 2016 2013 Completion 293 2013 to 2015 140 494 Rooms Number of (1) — — 4,693 4,698 4,922 5,755 7,230 5,448 5,078 5,152 3,245 5,255 15,574 18,502 91,180 (sq.m.) GFA 115,248 Type of Property Hotel Composite Commercial Composite Composite Composite Commercial, Composite Commercial Commercial, Hotel Carpark Commercial Land Use Rights Expiry Date 23 Sep 2079 2080 20 Dec 2080 31 Dec 2035 to 31 Dec 2065 07 Jun 2080 21 Oct 2081 08 Oct 2080 11 Aug 2064 Hotel 11 Aug 2082 Commercial 02 Jul 2076 07 Jun 2080 12 Sep 2058 Composite 01 Jul 2083 25 Jul 2082 Commercial Jun 2079 to Jan 16 Aug 2074 Composite Land Use Office, Underground Storage Residential Education Green Space Public Facility, Carpark Residential Residential City Tianjin Residential, Commercial 12 Feb 2077 to Tianjin Residential, Commercial 23 Mar 2050 to Beijing Residential, Commercial, Lanzhou Residential, CommercialWuwei 02 Jul 2046 to Tianjin Residential, Commercial 23 Mar 2050 to Guangzhou Commercial, Office, Carpark 25 Jun 2056 Commercial, Office, Heyuan Residential, Commercial 01 Jul 2053 to Foshan Residential, Commercial, ty Company Limited Huaibei Residential, Commercial 21 Oct 2051 to y Company Limited Tongling Residential, Commercial 20 Dec 2050 to rty Company Limited Chaozhou Residential, Public Facility, Holding Entity Company Limited Limited Huaibei Yuetong Property Company Limited Huaibei Residential, Commercial 08 Oct 2050 to Beijing Lilai Real EstateCompany Development Limited Gansu Yusheng Real EstateCompany Development Limited Company Limited Limited Limited Hengda (Heyuan) Real EstateCompany Group Limited Foshan Nanhai Xinzhongjian RealDevelopment Estate Company Limited Guangzhou City Jiasui Property Company Properties held by the Group for Occupation/Operation in the PRC — Portion of Evergrande City Chaozhou Chaozhou Hengda Prope Portion of Evergrande Elite Shadow Portion of Evergrande Metropolis Portion of Evergrande Oasis Wuwei Wuwei Hengda Real Estate Development Portion of Evergrande Splendor Tianjin Hengda (Tianjin Jixian) Real Estate Group Portion of Evergrande City Hefei Anhui Sanlin Property Company Limited Hefei Portion of Evergrande Metropolis Portion of Evergrande Metropolis Huaibei Creek Beijing Lanzhou Portion of Evergrande Oasis Tianjin TianjinPortion Jin of Li Evergrande Hu Oasis Investment Tianjin Company Tianjin Yilian Chuangzhan Property Company Portion of Evergrande Palace Hefei Qijia (Hefei) Property Company Limited Hefei Portion of Evergrande Oasis Guangzhou Hengda Real Estate Group Company LimitedHeyuan Guangzhou Residential, Commercial, Portion of Evergrande RoyalPeninsula Scenic Foshan Portion of Evergrande Oasis Tongling Tongling Hengda Propert Portion of Evergrande Center Portion of Evergrande Atrium Huaibei Huaibei Hengtong Proper II-1 Group II Property No. Property Name II-2 II-7 II-3 II-5 II-6 II-8 II-9 II-16 II-4 II-12 II-13 II-10 II-11 II-14 II-15
– II-40 –
– IV-41 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 7.10 29.60 39.30 52.50 17.75 75.50 36.00 10.15 24.90 36.40 39.00 49.10 42.60 35.20 77.20 218.90 177.00 Attributable to Valuation Date Market Value the Group as at % (RMB million) 51.0% 66.8% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Interest the Group Attributable to (2) 7.10 75.50 39.30 34.80 52.50 36.00 24.90 36.40 39.00 49.10 15.20 29.60 42.60 35.20 77.20 218.90 177.00 (RMB million) Market Value in Existing State Date 2016 2012 2013 2016 2016 2014 2015 2014 2015 2014 2016 2010 2013 2009 2012 2009 Completion 293 228 310 2015 to 2016 Rooms Number of (1) — 1,752 4,222 4,563 3,555 5,799 3,137 3,753 4,997 4,465 5,164 3,580 7,275 1,360 9,173 3,483 12,977 (sq.m.) GFA Composite, Other Composite Composite Composite, Other Commercial Commercial Commercial, Composite, Hotel Type of Property Commercial Commercial Composite, Hotel Commercial Commercial Commercial Commercial Commercial 15 Nov 2047 to 15 Nov 2077 12 May 2080 19 Dec 2063 to 26 Jan 2078 30 Apr 2077 to 29 Dec 2046 to 29 Dec 2076 28 Jun 2052 to 28 Jun 2082 21 Jul 2082 24 Feb 2081 Land Use Rights Expiry Date 08 Nov 2049 to 08 Nov 2079 26 Feb 2083 29 Aug 2080 09 Feb 2080 15 May 2082 19 Dec 2066 04 Feb 2085 28 Dec 2082 08 Jun 2066 Hotel 08 Jan 2057 to 20 Mar 2047 to 23 Jul 2080 Commercial Residential, Commercial 28 Dec 2052 to Residential, Commercial, Education Residential Residential, Commercial 26 Feb 2052 to Residential, Commercial 30 May 2047 to Residential, Commercial, Office Residential Residential, Commercial 16 May 2051 to Office Land Use Residential, Office Wuhan Daqing Residential, Commercial 21 Jul 2052 to Qingyuan Residential, Office Wuhan Wuhan Ezhou Qinzhou Residential, CommercialDanzhou 09 Feb 2050 Residential to Harbin Harbin Qiqihar Residential, Commercial, Yangjiang Residential, CommercialYunfu 04 Feb 2055 to Zhongshan Residential Guangzhou Residential City gda (Yunfu) Real Estate Group Company Wuhan Sanjiang Dongli Investment Development Company Limited Holding Entity Wuhan Huali Property Company Limited Wuhan Development Company Limited Hengda Shengyu (Qingxin) Property Company Limited Development Company Limited Development Company Limited Harbin Shenghe Property Company Limited Harbin Company Limited Hengda Yongxing (Qiqihaer) RealCompany Estate Limited Company Limited Danzhou Hengda Binhai InvestmentLimited Company Development Company Limited Development Company Limited Hengda (Yangjiang) Real EstateCompany Group Limited Limited Company Limited Guangzhou Hengda (Zengcheng) RealDevelopment Estate Company Limited in Harbin Hengda Xingye Real Estate Portion of Evergrande Shuang City Portion of Evergrande City Harb Wuhan Portion of Evergrande City Yunfu Hen Portion of Evergrande Metropolis Portion of Evergrande Emerald Court Portion of Evergrande Oasis Harbin Harbin Hengda Weiye Real Estate Wuhan Portion of Evergrande Metropolis Portion of Evergrande Oasis Daqing Daqing Hengda Yongsheng Real Estate Portion of Evergrande Metropolis Qingyuan Portion of Evergrande Palace Wuhan Wuhan Donghu Hengda Real Estate Portion of Evergrande Harmonious World Harbin Portion of Evergrande Splendor Ezhou Ezhou Hengda Real Estate Development Tsitsihar Portion of Evergrande Oasis Qinzhou Qinzhou Qinlian Hengda Property Investment Danzhou Yangjiang Portion of Evergrande Splendor Portion of Evergrande ScenicGuangzhou Garden Zengcheng Portion of Evergrande Oasis Wuhan Wuhan Jinbi Luzhou Real Estate Portion of Evergrande Oasis Zhongshan Hengda (Zhongshan) Real Estate Group II-33 II-24 II-32 II-30 II-28 II-29 II-25 II-17 II-20 Property No. Property Name II-31 II-27 II-22 II-23 II-26 II-18 II-19 II-21
– II-41 –
– IV-42 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 28.86 29.50 22.50 72.10 31.50 27.24 33.40 43.60 48.70 67.90 25.40 27.10 29.70 26.90 39.90 32.90 45.50 1 Attributable to Valuation Date Market Value the Group as at % (RMB million) 60.0% 60.0% 69.5% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Interest the Group Attributable to (2) 48.10 29.50 37.50 31.50 39.20 43.60 33.40 27.10 26.90 48.70 39.90 32.90 67.90 25.40 29.70 45.50 172.10 (RMB million) Market Value in Existing State Date 2016 2013 2014 2013 2014 2015 2015 2015 2009 2012 2014 2010 2013 2013 2011 2009 Completion 2013 to 2015 Rooms Number of (1) 4,671 3,468 3,536 4,357 5,151 5,266 5,022 5,140 7,111 5,240 6,378 5,482 5,215 5,213 65,887 13,624 11,902 (sq.m.) GFA Type of Property Composite Commercial Commercial Composite Commercial Composite Composite Composite Composite Composite Composite Commercial, Composite, Hotel, Other Commercial Composite Composite 20 Dec 2076 to Land Use Rights Expiry Date 30 Jun 2084 03 Aug 2083 16 Oct 2081 31 Dec 2081 11 Jun 2081 26 Jul 2081 06 Feb 2082 31 Aug 2074 29 Jan 2077 22 Jan 2078 01 Feb 2082 30 May 2047 to 30 May 2077 06 Feb 2083 31 Mar 2083 30 Oct 2076 19 Aug 2077 Residential 21 Sep 2078 Composite, Other Land Use and Catering ngsha Residential, Commercial 06 Feb 2052 to Yichang Residential, Commercial 30 Jun 2054 to City Changsha Residential, Commercial 31 Aug 2044 to Nanjing Residential Nanjing Residential, Accommodation ty Company Limited Hengyang Residential, Commercial 31 Dec 2051 to ty Company Limited Changsha Residential, Commercial 29 Jan 2047 to ty Company Limited Changsha Residential, Education 04 Oct 2074 to y Company Limited Yiyang Residential, Commercial 31 Mar 2053 to ty Company Limited Changde Residential, Commercial 03 Aug 2053 to Holding Entity Yichang Chutian Hengda RealDevelopment Estate Company Limited Yueyang Jinbi Property Company Limited Yueyang Residential, Commercial 15 Jul 2051 to Limited Hunan Shengji Property Company Limited Changsha Residential Limited Jurong Tiangong Property Company Limited Nanjing Residential, Commercial 05 Mar 2050 to Changsha Hengxi Property Company Limited Cha Hengda Real Estate Group Company Limited Guangzhou Residential Limited Portion of Evergrande RoyalGarden View Yichang Portion of Evergrande Palace Chenzhou Chenzhou Jinbi Property Company Limited Chenzhou Residential, Commercial 25 Oct 2050 to Portion of Evergrande Oasis Nanjing Nanjin Handian Real Estate Company Portion of Evergrande Atrium Nanjing Portion of Evergrande Metropolis Portion of Evergrande Emerald Court Portion of Evergrande Metropolis Portion of Evergrande Palace Liuyang Liuyang Jinbi Property Company Limited Liuyang Residential, Commercial 04 Aug 2050 to Portion of Evergrande Palace Changde Changde Xinze Proper Yueyang Changsha Portion of Evergrande Oasis Changsha Changsha Tianxi Proper Portion of Evergrande Oasis Yiyang Yiyang Hengrui Propert Portion of Evergrande Oasis Jiaxing Jiaxing Hengda Property Company Limited Jiaxing Residential, Commercial 01 Feb 2052 to Jurong Portion of Evergrande Oasis Hengyang Hengyang Baorui Proper Portion of Evergrande City Changsha Changsha Xinlin Proper Changsha Portion of Nanguo Shangyuan Portion of Evergrande Splendor Nanjing Nanjing Hengda Fufeng Property Company Portion of Evergrande Palace Changsha Hunan Xiongzhen Investment Company II-34 Property No. Property Name II-35 II-36 II-37 II-38 II-46 II-44 II-39 II-47 II-50 II-40 II-41 II-42 II-43 II-45 II-48 II-49
– II-42 –
– IV-43 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 67.40 12.70 48.30 47.80 35.50 44.50 46.90 18.40 24.80 64.30 32.50 52.70 41.70 62.00 68.70 167.80 215.47 Attributable to Valuation Date Market Value the Group as at % (RMB million) 51.0% 89.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Interest the Group Attributable to (2) 67.40 24.90 48.30 47.80 44.50 18.40 35.50 46.90 64.30 32.50 24.80 41.70 62.00 52.70 68.70 167.80 242.10 (RMB million) Market Value in Existing State Date 2014 2017 2017 2014 2016 2015 2011 2015 2015 2014 2009 2013 2015 2017 2015 2014 2015 Completion Rooms Number of (1) 4,683 4,806 3,242 4,120 4,636 4,629 3,220 5,411 7,278 3,474 4,215 4,584 5,165 5,326 25,538 17,479 31,090 (sq.m.) GFA Composite Composite Commercial Commercial, Hotel Commercial Commercial Commercial Commercial Composite Commercial Commercial Commercial, Composite, Hotel Commercial Commercial, Composite Commercial Commercial Type of Property 31 Dec 2056 to 31 Mar 2061 31 Oct 2064 01 Apr 2084 25 Jan 2051 to 25 Jan 2081 30 Dec 2081 21 Apr 2084 29 May 2084 29 Jul 2084 04 Jan 2082 28 Jan 2051 to 28 Jan 2081 29 Dec 2080 24 Nov 2047 to 24 Nov 2077 02 Mar 2081 01 Jun 2081 30 May 2082 13 Jan 2081 Land Use Rights Expiry Date 07 Jun 2057 to 01 Jun 2051 to 31 May 2085 Commercial Residential, Commercial 30 Dec 2051 to Residential, Commercial 30 Apr 2054 to Accommodation and Catering Residential, Commercial 21 Apr 2054 to Office Sport and Leisure Land Use Residential Shenyang Residential Shenyang Residential Yingkou Residential, CommercialDongying 29 Jul Residential, 2054 Commercial, to Datong Residential, Commercial 04 Jan 2052 to Dalian Yingtan Residential, Commercial, Nanchang Residential, Commercial 29 Dec 2050 to Jingdezhen Residential, Commercial 27 Jun 2050 to Yancheng Residential, CommercialChangchun 30 May Residential, 2052 Commercial to 13 Jan 2051 to City zhuang Company Limited Nanchang Residential, Commercial, Company Limited Company Limited Jinan Xiye Property Company Limited Jinan Limited Dalian Hengke Real Estate Company Limited Dalian Dongying Hengda Huafu PropertyLimited Company Huludao Jia Shan Property Company Limited Huludao Residential, Commercial 08 Jun 2051 to Company Limited Dalian Hengcheng Real EstateLimited Company Limited Nanchang Zhongdiantou Gaoxin Property Company Limited Hengda (Jingdezhen) Real EstateCompany Group Limited Holding Entity Taiji (Changchun) Real EstateLimited Company Hengda Real Estate GroupCompany Yancheng Limited Portion of Evergrande Oasis Datong Datong Junjing Real Estate Development Portion of Evergrande Oasis Yingkou Yingkou Jialong Real Estate Company Portion of Evergrande Jinbi New Town Jinan Portion of Evergrande Oasis Linyi Linyi Zhengsheng Property Company Limited Linyi Portion of Evergrande Harbor City Portion of Evergrande City Shenyang Hengda Xinyuan (Shenyang) Property Portion of Evergrande Oasis Shenyang Hengda Changji (Shenyang) Property Dalian Tai Cheng Dongying Portion of Evergrande Oasis Yingtan Hengda Real Estate Yingtan Company Portion of Evergrande RoyalBay Scenic Huludao Portion of Evergrande RoyalGarden View Dalian Portion of Evergrande Huang He Sheng Portion of Evergrande City Nanchang Jiangxi Hongji Investment Company Limited Nanchang Residential, Office Portion of Evergrande Scenic View Portion of Evergrande Metropolis Portion of Evergrande RoyalGarden View Nanchang Portion of Evergrande Oasis Nanchang Jiangxi Cuilin Shan Jingdezhen Portion of Evergrande Metropolis Garden Changchun Yancheng II-62 II-61 II-63 II-65 II-66 II-60 II-67 II-58 II-59 II-64 II-57 II-56 II-55 II-52 II-53 II-54 II-51 Property No. Property Name
– II-43 –
– IV-44 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 7.10 99.20 29.45 49.50 19.52 17.60 32.80 30.40 25.90 48.60 27.20 19.10 26.50 27.50 32.60 168.60 495.00 Attributable to Valuation Date Market Value the Group as at % (RMB million) 95.0% 64.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Interest the Group Attributable to (2) 7.10 99.20 31.00 49.50 17.60 32.80 30.50 25.90 30.40 27.20 19.10 26.50 27.50 48.60 32.60 168.60 495.00 (RMB million) Market Value in Existing State Date 2012 2014 2014 2017 2014 2016 2016 2016 2011 2017 2010 2014 2011 2012 Completion 2009 to 2015 2010 to 2015 2013 to 2015 279 Rooms Number of (1) — — 4,924 2,871 4,584 2,756 5,272 4,998 5,294 5,260 3,571 2,602 5,177 5,296 7,277 5,387 19,490 (sq.m.) GFA Commercial, Composite Residential Type of Property Hotel Commercial Composite Commercial Other Composite Commercial Composite Composite Composite 21 Aug 2078 to 14 Nov 2047 to 14 Nov 2057 28 Mar 2080 Land Use Rights Expiry Date 06 Mar 2077 09 Jun 2081 06 Sep 2086 21 Oct 2050 to 21 Oct 2080 22 Feb 2084 08 Mar 2078 12 Dec 2080 22 Feb 2084 06 Jan 2078 09 Dec 2078 Residential 15 Oct 2052 13 May 2078 Commercial 30 Mar 2076 Composite Residential, Commercial 15 Oct 2053 to Residential, Commercial 12 Dec 2050 to Residential Residential, Commercial 15 Oct 2053 to Office, Education/Public Facility Land Use Education Residential Huizhou Golf and Ancillary Facility 5 Oct 2043 Other Chengdu Residential, Commercial 31 Oct 2076 Composite Linfen Yuncheng Residential Taiyuan Residential, Commercial, Chengdu Residential, Commercial 06 Mar 2047 to Lvliang Residential, Commercial 09 Jun 2051 to City Yangquan Residential Meishan Residential, Commercial 18 Jun 2047 to Chengdu Residential, Commercial 22 Mar 2048 to Nanchong Residential, Commercial, Luoyang Residential, Commercial 06 Jan 2048 to Xian an Jiazhi Property Company Limited Xian an Yingyu Property Company Limited Xian ’ ’ Holding Entity Guangsheng Huaqiao (Dayawan) RealDevelopment Estate Company Limited Property Company Limited Company Limited Development Company Limited Company Limited Aimeigao (Chengdu) Property Company Limited Lvliang Junhui Real EstateCompany Development Limited Yangquan Shi Liaoyuan RealDevelopment Estate Company Limited Hengda Xinfeng (Pengshan) Property Company Limited Xi Chengdu Tianfu Shuicheng RealDevelopment Estate Company Limited Company Limited Xi Company Limited Limited an Shaanxi Jinhong Investment Company an an ’ ’ Portion of Evergrande Palace Linfen Linfen Zijing Real Estate Development Portion of Evergrande PalmHuizhou Island Portion of Evergrande City Chengdu Chengdu Wenjiang District Xinjinkang Portion of Evergrande Oasis Taiyuan Hengda (Taiyuan) Real Estate Group Portion of Evergrande HuazhiChengdu Plaza Portion of Evergrande RoyalLvliang Scenic Portion of Evergrande RoyalGarden View Yangquan Portion of Evergrande Oasis Yuncheng Yuncheng Xinwanrui Real Estate Pengshan Portion of Evergrande City Ziyang Ziyang Wancheng Property Company Limited Ziyang Portion of Evergrande RoyalGarden View Xi Portion of Evergrande RoyalPeninsula Scenic Chengdu Portion of Evergrande Splendor Portion of Evergrande City Xi ’ Portion of Evergrande Palace Wugang Wugang Hengda Property Company Limited Wugang Residential, Composite 10 Dec 2050 to Portion of Evergrande RoyalGarden View Xi Portion of Evergrande Oasis Nanchong Hengda (Nanchong) Real Estate Group Portion of Evergrande Oasis Luoyang Hengda (Luoyang) Real Estate Group II-73 II-70 II-74 II-75 II-69 II-68 Property No. Property Name II-71 II-72 II-80 II-76 II-78 II-79 II-77 II-81 II-82 II-83 II-84
– II-44 –
– IV-45 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 3.60 44.10 92.32 40.30 46.30 39.50 28.50 21.40 54.00 57.30 75.50 267.10 165.50 395.20 182.00 Attributable to Valuation Date Market Value the Group as at % (RMB million) 76.4% 60.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Interest the Group Attributable to (2) 6.00 44.10 40.30 39.50 54.00 57.30 46.30 75.50 28.50 21.40 120.90 267.10 165.50 395.20 182.00 (RMB million) Market Value in Existing State Date 2016 2016 2009 2016 2016 2015 2010 2016 2014 2014 2016 2016 2009 2016 Completion 2009 to 2014 306 293 Rooms Number of (1) 7,000 5,601 7,295 8,239 7,160 8,475 1,146 5,493 7,095 5,307 13,309 14,087 59,569 26,006 24,528 (sq.m.) GFA Type of Property Composite Commercial, Hotel, Other Composite, Other Composite, Other Commercial, Composite, Hotel, Other Commercial, Composite, Other Composite, Other Composite Composite Commercial, Composite, Other Composite, Other 25 Aug 2074 to Land Use Rights Expiry Date 26 Aug 2074 19 May 2046 to 19 May 2076 02 Feb 2048 to 02 Feb 2058 17 Oct 2047 to 17 Oct 2057 28 Dec 2046 to 18 Sep 2066 10 Jul 2057 16 Oct 2047 to 17 Oct 2057 31 Mar 2061 05 Jan 2077 Nov 2060 14 Feb 2047 to 14 Feb 2057 30 Aug 2084 Composite 30 Jul 2081 Composite 17 Aug 2076 Composite 30 Jun 2061 Composite Land Use Residential Composite Education Education Education, Carpark Accommodation and Catering, Cultural and Entertainment Clubhouse Residential Xian City Yangling Residential Guiyang Residential, Commercial, Chongqing Residential, Commercial 10 Jul 2047 to Chongqing Residential, Commercial, Chongqing Residential, Commercial, Chongqing Residential, Commercial, Chongqing Residential, Commercial, Chongqing Residential, Commercial 31 Mar 2051 to Guiyang Residential, Commercial 15 Nov 2046 to Chongqing Residential, Commercial Nov 2050 to Chongqing Residential Chongqing Residential, Commercial, an Qujiang Investment Construction an Qiyun Property Company Limited Xian ’ ’ Holding Entity Company Limited Xuchang Pingshan Property Company Limited XuchangDevelopment Residential Company Limited Guiyang New World RealLimited Estate Company Limited Chongqing Jianzhi Real EstateLimited Company Hengda (Chongqing) Real EstateCompany Group Limited Company Limited Hengda (Jiangjin) Real EstateCompany Group Limited Hengda (Chongqing) Real EstateCompany Group Limited Company Limited Chongqing Hengda Jun XinDevelopment Real Company Estate Limited Chongqing Hengda Yongjun RealDevelopment Estate Company Limited Hengda (Chongqing) Real EstateCompany Group Limited an Xi ’ an Xi ’ Portion of Evergrande Oasis Xi Portion of Evergrande Metropolis Xi Portion of Evergrande Emerald Court Portion of Evergrande City Yangling Shaanxi Yaoze Sihai Real Estate Portion of Evergrande Oasis Guiyang Hengda Real Estate Group Guiyang Property Portion of Evergrande New World Portion of Evergrande Atrium Xuchang Portion of Evergrande The Coronation Portion of Evergrande Metropolis Portion of Evergrande Oasis Chongqing Hengda (Chongqing) Real Estate Group Portion of Evergrande Emerald Court Guiyang Chongqing Chongqing Chongqing Portion of Evergrande RoyalGarden View Chongqing Chongqing Portion of Evergrande City Chongqing Chongqing Hengda Jiyu Property Company Portion of Evergrande Splendor Yongchuan Portion of Evergrande Palace Chongqing II-85 Property No. Property Name II-86 II-87 II-88 II-89 II-90 II-92 II-91 II-99 II-98 II-97 II-94 II-96 II-93 II-95
– II-45 –
– IV-46 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 92.40 76.60 Attributable to Valuation Date Market Value the Group as at % (RMB million) 51.0% 100.0% Interest the Group Attributable to (2) 92.40 150.20 (RMB million) Market Value in Existing State Date 2016 2014 Completion Rooms Number of (1) 39,756 10,251 (sq.m.) GFA Composite, Other Type of Property Commercial, Composite Land Use Rights Expiry Date 10 Dec 2083 01 Jan 2080 Commercial, Residential, Commercial 20 Apr 2051 to Land Use Residential Zunyi Zigong City Holding Entity Company Limited Company Limited Portion of Evergrande City Zunyi Zunyi Xinguang Real Estate Development Portion of Evergrande Oasis Zigong Hengda (Zigong) Real Estate Group II-101 II-100 Property No. Property Name Notes: 1 All areas are stated in approximations. 2 All values are stated in approximations.
– II-46 –
– IV-47 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) Date as at 30.70 29.50 55.25 27.60 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group (2) State 30.70 100.0% 29.50 100.0% 85.00 65.0% 27.60 100.0% 184.30 100.0% 184.30 210.10 100.0% 210.10 211.70 100.0% 211.70 473.80 100.0% 473.80 Market Value 1,197.00 100.0% 1,197.00 in Existing Rental Existing Monthly —— —— —— —— —— —— —— —— —— 9% 97,578 260.40 100.0% 260.40 4% 33,351 1,155.40 100.0% 1,155.40 (%) (RMB) (RMB million) 31% 145,020 491.40 100.0% 491.40 20% 40,342 174.90 100.0% 174.90 Date as at Valuation Occupancy Date 2015 2016 2016 2016 2016 2017 2017 2014 2016 2016 2016 2016 2014 to Completion — — — — — — 1,604 2013 to 1,567 2010 of CPS Number (1) — — 8,930 3,923 2016 55% 116,272 571.40 100.0% 571.40 2,461 2,799 2,821 1,424 2015 to 5,754 1,145 2016 to 7,930 1,403 8,153 3,170 2014 to 15,715 2,520 2014 to 22,322 15,935 5,886 2014 to 98,463 (sq.m.) (Excl. CPS) Total GFA Type of Property Commercial, Carpark Commercial Commercial Commercial Commercial, Carpark Carpark Commercial Carpark Carpark Commercial, Carpark Commercial Commercial Commercial, Carpark Land Use Rights Expiry Date 30 May 2053 to 30 Nov 2083 27 Dec 2084 27 Dec 2054 to 29 Jun 2052 to 29 Jun 2082 29 Sep 2050 to 29 Sep 2080 14 Sep 2051 to 14 Sep 2081 14 Sep 2083 Commercial, 20 Aug 2055 to 20 Aug 2085 16 Aug 2074 Carpark 20 May 2083 Commercial, Jun 2079 to Jan 2080 24 Aug 2051 to 24 Aug 2081 15 Oct 2053 to 15 Oct 2083 10 Sep 2053 to 10 Sep 2083 08 Oct 2050 to 08 Oct 2080 Land Use Commercial Commercial Facility Commercial Commercial Commercial Commercial Commercial Commercial Residential Commercial Residential, Commercial Residential Residential, Residential, City Anqing Residential, Bengbu Residential Bengbu Residential, Chaohu Residential, Public Bozhou Residential, Chuzhou Residential, Feidong Residential, Chuzhou Residential, Hefei Hefei Hefei Hefei Hefei Huaibei Residential, Anqing Hengyuan Property Company Limited Bengbu Hengyuan Property Company Limited Bengbu Hengtong Property Company Limited Holding Entity Anhui Lilong Property Company Limited Bozhou Hengda Property Company Limited Chuzhou Yuetong Property Company Limited Yueheng (Hefei) Property Company Limited Chuzhou Hengda Property Company Limited Anhui Sanlin Property Company Limited Yuetong (Hefei) Property Company Limited Qijia (Hefei) Property Company Limited Yuetai (Hefei) Property Company Limited Yuecheng (Hefei) Property Company Limited Huaibei Yuetong Property Company Limited Properties held by the Group for Investment in the PRC (Completed) — Anqing Emerald Court Bengbu Scenic Bay Bengbu View Garden Chaohu Bozhou Chuzhou Feidong Metropolis Chuzhou Hefei View Garden Hefei Hefei International Center Hefei Hefei Metropolis Huaibei III-1 Portion of Evergrande Oasis Group III-A Property No. Property Name III-2 Portion of Evergrande III-3 Portion of Evergrande Royal III-5 Portion of Evergrande Royal III-4 Portion of Evergrande City III-6 Portion of Evergrande Oasis III-8 Portion of Evergrande Oasis III-7 Portion of Evergrande III-9 Portion of Evergrande City III-10 Portion of Evergrande Royal III-11 Portion of Evergrande Palace III-12 Portion of Evergrande III-13 Portion of Evergrande Plaza III-14 Portion of Evergrande
– II-47 –
– IV-48 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) Date as at 94.26 38.87 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group (2) State 59.80 65.0% 171.00 100.0% 171.00 287.20 100.0% 287.20 253.80 100.0% 253.80 164.80 100.0% 164.80 312.00 100.0% 312.00 Market Value in Existing Rental Existing Monthly —— —— —— —— —— —— 5% 22,498 157.10 60.0% 5% 16,001 154.90 100.0% 154.90 (%) (RMB) (RMB million) 17% 59,997 460.10 100.0% 460.10 11% 72,936 741.60 100.0% 741.60 14% 71,189 406.50 100.0% 406.50 29% 61,606 231.00 60.0% 138.60 Date as at Valuation Occupancy Date 2016 2017 2016 2016 2016 2016 2016 2014 2014 2016 2016 Completion — — — 1,390 2014 1,349 2013 to of CPS Number (1) — — 9,745 493 2014 to 5,666 7,530 1,642 2014 to 1,028 1,024 2012 to 6,456 12,760 2,574 2014 to 21,715 3,921 2015 to 16,721 2,291 2015 to 18,924 288 2015 to 10,641 (sq.m.) (Excl. CPS) Total GFA Commercial Commercial, Carpark Commercial, Carpark Carpark Carpark Commercial, Carpark Type of Property Commercial, Carpark Commercial, Carpark Carpark Commercial, Carpark Commercial Commercial 11 Jun 2082 Commercial, Jul 2054 to Jul 2084 19 May 2081 to 20 May 2081 20 Dec 2050 to 20 Dec 2080 Nov 2053 to Oct 2085 28 Dec 2051 to 28 Dec 2081 Land Use Rights Expiry Date 03 May 2081 21 Oct 2051 to 21 Oct 2081 21 May 2048 to 27 Sep 2078 27 Feb 2051 to 28 Feb 2081 02 May 2081 to 23 Jul 2053 to 23 Jul 2083 29 Sep 2053 to 28 Sep 2083 Land Use Commercial Residential Commercial Residential, Commercial Commercial Commercial Commercial Commercial Commercial, Underground Carpark, Composite, Underground Storage Commercial, Office, Underground Carpark, Composite, Underground Storage anshan Residential an ’ ’ Suzhou Residential, Wuhu Tongling Residential, City Ma Suzhou Residential, Lu Huaibei Residential, Baotou Residential, Huainan Residential Baotou Residential, Beijing Residential, Beijing Residential, anshan Hengda Anliang an Yue Tong Property ’ ’ Suzhou Heng Ding Property Company Limited Wuhu Hengda Property Company Limited Tongling Hengda Property Company Limited Ma Property Company Limited Suzhou Hengda Property Company Limited Lu Company Limited Huaibei Hengtong Property Company Limited Hengda (Baotou) Real Estate Group Company Limited Huainan Hengda Tianheng Property Company Limited Holding Entity Hengda (Baotou) Real Estate Group Company Limited Shahe Hengda (Beijing) Property Company Limited Hengda (Beijing) Real Estate Group Company Limited anshan an ’ ’ Metropolis Suzhou Wuhu Tongling Scenic Bay Suzhou Scenic Bay Ma Scenic Bay Lu Huaibei Baotou Huainan Metropolis Baotou Beijing Scenic Bay Beijing III-21 Portion of Evergrande III-20 Portion of Evergrande Palace III-19 Portion of Evergrande Oasis III-22 Portion of Evergrande Royal III-18 Portion of Evergrande Royal III-17 Portion of Evergrande Royal III-15 Portion of Evergrande Atrium Property No. Property Name III-23 Portion of Evergrande Palace III-16 Portion of Evergrande Oasis III-24 Portion of Evergrande III-25 Portion of Evergrande City III-26 Portion of Evergrande Royal
– II-48 –
– IV-49 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) Date as at 98.80 96.80 63.40 58.00 29.52 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group (2) State 96.80 100.0% 63.40 100.0% 58.00 100.0% 32.80 90.0% 251.90 100.0% 251.90 267.90 100.0% 267.90 556.50 74.0% 411.81 Market Value in Existing Rental Existing Monthly —— —— —— —— —— —— —— 3% 10,240 101.10 100.0% 101.10 9% 30,048 406.60 100.0% 406.60 (%) (RMB) (RMB million) 13% 52,427 225.10 70.0% 157.57 12% 32,990 98.80 100.0% Date as at Valuation Occupancy Date 2017 2016 2017 2016 2016 2014 2014 2016 to 2016 to 2012 to Completion — — — — — 249 2012 184 2014 1,810 2013 of CPS Number (1) — — — 6,659 6,067 18,434 353 2016 21,931 2,065 2014 to 18,608 10,423 15,943 1,406 2013 to 10,224 (sq.m.) (Excl. CPS) Total GFA Type of Property Commercial, Carpark Commercial Commercial, Carpark Commercial Commercial Commercial Carpark Carpark Carpark Land Use Rights Expiry Date 03 Sep 2052 to 03 Sep 2082 15 May 2053 to 29 Sep 2084 15 Mar 2051 to 15 Mar 2081 24 Jul 2083 Carpark 07 Oct 2053 to 07 Oct 2083 01 Jun 2051 to 01 Jun 2081 26 Nov 2050 to 14 Aug 2085 18 Aug 2049 to 18 Aug 2079 19 Mar 2079 Commercial 24 Nov 2051 to 24 Nov 2081 19 May 2081 Commercial, Land Use Commercial Commercial Commercial, Office Commercial Accommodation and Catering Commercial Commercial, Office Commercial City Cangzhou Residential, Hengshui Residential, Hohhot Residential Hohhot Residential, Langfang Residential, Luquan Residential, Qinhuangdao Residential, Shijiazhuang Residential, Shijiazhuang Residential Shijiazhuang Residential, Shijiazhuang Residential Hebei Longwei Real Estate Development Company Limited Hengshui Shengyu Real Estate Development Company Limited Holding Entity Hengda (Huhehaote) Real Estate Group Company Limited Inner Mongolia Changshengtai Real Estate Company Limited Hengda Langfang Real Estate Development Company Limited Hengda (Luquan) Real Estate Group Company Limited Hengda Real Estate Group Qinhuangdao Hengda Cheng Real Estate Development Company Limited Hengda (Shijiazhuang) Real Estate Group Company Limited Shijiazhuang Shengyu Real Estate Development Company Limited Hebei Longhai Real Estate Development Company Limited Hebei Gaojie Shi RealDevelopment Estate Company Limited Cangzhou Hengshui Metropolis Hohhot Hohhot Metropolis Langfang Splendor Luquan Qinhuangdao Shijiazhuang Shijiazhuang Metropolis Shijiazhuang Shijiazhuang III-27 Portion of Evergrande City Property No. Property Name III-28 Portion of Evergrande City III-29 Portion of Evergrande III-30 Portion of Evergrande Atrium III-31 Portion of Evergrande III-32 Portion of Evergrande III-33 Portion of Evergrande City III-34 Portion of Evergrande City III-35 Portion of Evergrande Oasis III-36 Portion of Evergrande III-37 Portion of Evergrande Atrium
– II-49 –
– IV-50 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) Date as at 38.70 43.70 90.30 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group (2) State 64.50 60.0% 43.70 100.0% 90.30 100.0% 276.30 70.0% 193.41 433.40 100.0% 433.40 100.40 100.0% 100.40 182.30 70.0% 127.61 455.50 100.0% 455.50 Market Value in Existing Rental Existing Monthly —— —— —— —— —— —— —— —— 7% 23,015 269.70 100.0% 269.70 1% 7,703 127.40 100.0% 127.40 (%) (RMB) (RMB million) 16% 56,734 415.80 100.0% 415.80 67% 121,999 308.30 100.0% 308.30 10% 47,340 153.30 100.0% 153.30 Date as at Valuation Occupancy Date 2017 2016 2016 2016 2015 2016 2016 2016 to 2014 to Completion — — — — 411 2016 2,580 2016 3,120 2017 of CPS Number (1) — — — 3,022 45 2013 to 7,128 936 2016 14% 46,626 248.80 100.0% 248.80 3,771 1,515 2015 to 8,723 348 2016 7,148 7,490 659 2016 24,451 11,293 2,345 2011 to 13,760 781 2016 12,723 11,465 (sq.m.) (Excl. CPS) Total GFA Type of Property Commercial Carpark Commercial, Carpark Carpark Commercial Carpark Carpark Commercial, Carpark Carpark Carpark Commercial Carpark Commercial Carpark 28 Nov 2077 Commercial, Land Use Rights Expiry Date 05 Sep 2052 to 16 Aug 2085 20 Jul 2082 Commercial, 09 May 2081 Commercial, 13 Jun 2082 Commercial, 25 Mar 2053 to 22 Oct 2083 12 Feb 2077 to 23 Sep 2079 23 Mar 2050 to 07 Jun 2080 10 Jun 2081 23 Mar 2050 to 07 Jun 2080 09 Oct 2053 to 09 Oct 2083 07 Jun 2081 to 30 Aug 2054 Commercial, 16 Feb 2054 to 16 Feb 2084 13 Feb 2051 to 13 Feb 2081 Land Use Commercial, Office Commercial Commercial Commercial Commercial Residential Commercial Commercial Commercial Residential, City Shijiazhuang Residential, Tangshan Residential, Tianjin Residential, Tianjin Residential, Tianjin Residential Tianjin Residential Tianjin Residential, Tianjin Residential Xingtai Residential Wuhai Quanzhou Residential, Shishi Lanzhou Residential, Lanzhou Residential Shijiazhuang Diyijia Real Estate Development Company Limited Holding Entity Tangshan Zhaorui Investment Company Limited Hengda (Tianjin Jixian) Real Estate Group Company Limited Tianjin Jin Li HuCompany Investment Limited Tianjin Yujing Bandao Investment Company Limited Tianjin Binqiao Investment Company Limited Tianjin Yilian Chuangzhan Property Company Limited Tianjin Shanshui Cheng Investment Company Limited Xingtai Xiangheng Real Estate Development Company Limited Wuhai Junjing Real Estate Development Company Limited Quanzhou Ansheng Property Company Limited Shishi Jinbi Property Company Limited Hengda Real Estate Group Lanzhou Property Company Limited Gansu Shengda Real Estate Development Company Limited Scenic Peninsula Shijiazhuang Tangshan Splendor Tianjin Tianjin Scenic Peninsula Tianjin Metropolis Tianjin Tianjin Garden Tianjin Metropolis Xingtai Wuhai Emerald Dragon Court Quanzhou Metropolis Shishi Lanzhou Plaza Lanzhou III-38 Portion of Evergrande Royal Property No. Property Name III-39 Portion of Evergrande Palace III-40 Portion of Evergrande III-41 Portion of Evergrande Oasis III-45 Portion of Evergrande Royal III-43 Portion of Evergrande III-42 Portion of Evergrande Oasis III-44 Portion of Evergrande Scenic III-47 Portion of Evergrande III-46 Portion of Evergrande Oasis III-48 Portion of Evergrande III-49 Portion of Evergrande III-51 Portion of Evergrande Oasis III-50 Portion of Evergrande City
– II-50 –
– IV-51 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) Date as at 62.40 56.50 36.94 66.60 63.00 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group (2) State 62.40 100.0% 56.50 100.0% 64.80 57.0% 66.60 100.0% 63.00 100.0% 109.50 100.0% 109.50 296.40 100.0% 296.40 839.00 100.0% 839.00 Market Value in Existing Rental Existing Monthly —— —— —— —— —— —— —— —— 8% 22,038 349.60 100.0% 349.60 9% 24,453 123.50 100.0% 123.50 (%) (RMB) (RMB million) 17% 29,588 242.10 100.0% 242.10 Date as at Valuation Occupancy Date 2015 2014 2016 2016 2015 2016 Completion — — — 577 2016 2,000 2015 4,994 2016 of CPS Number (1) — — — 901 88 2002 614 105 2004 3,710 6,937 777 2013 to 3,075 422 2013 to 3,533 15,278 1,537 2015 to 12,309 1,654 2015 20% 89,217 370.10 100.0% 370.10 11,824 (sq.m.) (Excl. CPS) Total GFA Type of Property Carpark Commercial, Carpark Carpark Commercial, Carpark Commercial, Carpark Carpark Commercial Commercial, Carpark Commercial, Carpark 25 Jul 2082 Commercial 14 Aug 2079 Commercial, Land Use Rights Expiry Date 29 Dec 2080 Commercial 27 Sep 2050 to 27 Sep 2080 02 Jul 2046 to 02 Jul 2076 24 Mar 2051 to 24 Mar 2081 07 Apr 2081 to 01 Sep 2081 29 Nov 2053 to 29 Nov 2083 11 Aug 2082 Carpark 10 Jan 2055 to 11 Jan 2085 14 Jul 2038 to 19 Aug 2042 03 Mar 2043 to 03 Mar 2053 Land Use Commercial Commercial Commercial Commercial Facility, Green Space Commercial, Accommodation and Catering Facility Facility City Lanzhou Residential, Shizuishan Residential, Lanzhou Residential, Wuzhong Residential Wuwei Residential Xining Residential, Yinchuan Residential Yinchuan Residential Chaozhou Residential, Public Chaozhou Residential, Guangzhou Commercial, Public Guangzhou Commercial, Public Lanzhou Shenjun Property Company Limited Hengda (Shizuishan) Real Estate Group Company Limited Gansu Yusheng Real Estate Development Company Limited Ningxia Jinhai Property Company Limited Wuwei Hengda Real Estate Development Company Limited Xining Hengda Real Estate Development Company Limited Holding Entity Hengda (Yinchuan) Real Estate Group Company Limited Ningxia Haotian Real Estate Development Company Limited Chaozhou Hengda Property Company Limited Chaozhou Hengxin Real Estate Development Company Limited Hengda Real Estate Group Company Limited Hengda Real Estate Group Company Limited Garden Lanzhou Shizuishan Metropolis Lanzhou Metropolis Wuzhong Wuwei Metropolis Xining Metropolis Yinchuan Scenic Yinchuan Chaozhou Garden Chaozhou Garden Guangzhou Garden Guangzhou III-53 Portion of Evergrande Scenic III-54 Portion of Evergrande Oasis III-52 Portion of Evergrande Property No. Property Name III-55 Portion of Evergrande III-56 Portion of Evergrande Oasis III-57 Portion of Evergrande III-58 Portion of Evergrande III-59 Portion of Evergrande Royal III-60 Portion of Evergrande City III-61 Portion of Evergrande Scenic III-62 Portion of The Second Jinbi III-63 Portion of The Third Jinbi
– II-51 –
– IV-52 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 9.10 Date as at 85.30 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group (2) 9.10 100.0% State 85.30 100.0% 383.80 100.0% 383.80 272.10 100.0% 272.10 216.40 100.0% 216.40 616.20 100.0% 616.20 217.30 100.0% 217.30 383.00 100.0% 383.00 247.90 100.0% 247.90 Market Value 1,977.50 100.0% 1,977.50 in Existing Rental Existing Monthly —— —— —— —— —— —— —— —— —— —— 3% 16,569 212.30 100.0% 212.30 0% 939 167.30 100.0% 167.30 (%) (RMB) (RMB million) 23% 105,914 280.70 100.0% 280.70 Date as at Valuation Occupancy Date 2006 2016 2015 2017 2015 2016 2016 2013 2016 2015 to Completion — — — — 1,495 2016 1,433 2015 6,338 2009 to of CPS Number (1) — — — 445 6,527 565 2000 to 3,125 580 2012 to 2,335 1,828 2016 1,058 1,023 2010 to 3,785 7,639 348 2010 23% 1,556,281 620.00 100.0% 620.00 7,698 100 2006 11,305 509 2015 to 12,420 13,920 (sq.m.) (Excl. CPS) Total GFA Type of Property Commercial, Carpark Carpark Commercial, Carpark Commercial Commercial, Carpark Carpark Commercial Office, Carpark Commercial, Office, Carpark 21 Sep 2081 Commercial, Land Use Rights Expiry Date 19 May 2074 Commercial 22 Jul 2037 to 20 Apr 2049 16 Apr 2078 Carpark 13 Mar 2052 to 13 Mar 2082 22 Aug 2083 17 Dec 2083 Commercial 30 Dec 2050 to 30 Dec 2080 11 Aug 2064 Carpark 19 May 2074 Carpark 12 Sep 2058 Commercial, 01 Jul 2053 to 01 Jul 2083 25 Jun 2056 Commercial, 03 Jul 2040 to 03 Jul 2050 Land Use Facility Commercial, Accommodation and Catering Commercial Commercial, Education Commercial, Public Facility, Carpark Commercial Carpark Public Facility, Carpark City Guangzhou Commercial, Public Dongguan Residential Dongguan Residential Dongguan Residential Dongguan Residential Enping Residential, Foshan Residential, Office 22 Aug 2053 to Foshan Residential, Foshan Residential, Guangzhou Residential, Heyuan Residential, Guangzhou Residential Guangzhou Commercial, Office, Guangzhou Commercial, Office, Hengda Real Estate Group Company Limited Dongguan Chengbang Real Estate Development Company Limited Dongguan Shenjian Real Estate Company Limited Holding Entity Dongguan Hongjing Real Estate Company Limited Dongguan Shenjian Real Estate Company Limited Hengda (Enping) Real Estate Group Company Limited Foshan Changxin Honglong Real Estate Company Limited Foshan Nanhai Yingyu Real Estate Development Company Limited Foshan Nanhai Xinzhongjian Real Estate Development Company Limited Hengda Real Estate Group Company Limited Hengda (Heyuan) Real Estate Group Company Limited Guangzhou Xincheng Property Company Limited Property Company Limited Guangzhou Tongruida Real Estate Property Company Limited Garden Guangzhou Dongguan View Garden Dongguan Dongguan Dongguan (Phase III) City Enping Scenic Foshan Scenic Bay Foshan Scenic Peninsula Foshan Guangzhou Metropolis Heyuan Palace Guangzhou Emerald Court Guangzhou Jinbi III-64 Portion of The First Jinbi Property No. Property Name III-66 Portion of Evergrande Palace III-65 Portion of Evergrande Royal III-67 Portion of Evergrande Atrium III-68 Portion of Evergrande Atrium III-69 Portion of Evergrande Spring III-70 Portion of Evergrande Royal III-72 Portion of Evergrande Royal III-71 Portion of Evergrande Royal III-73 Portion of Evergrande Oasis III-75 Portion of Evergrande III-74 Portion of Evergrande Royal III-76 Portion of Evergrande Center Guangzhou City Jiasui III-77 Portion of Evergrande
– II-52 –
– IV-53 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 3.20 Date as at 41.70 13.60 75.00 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group (2) 3.20 100.0% State 41.70 100.0% 13.60 100.0% 75.00 100.0% 383.00 100.0% 383.00 278.90 100.0% 278.90 227.60 100.0% 227.60 145.80 100.0% 145.80 201.90 100.0% 201.90 265.20 100.0% 265.20 263.20 100.0% 263.20 Market Value in Existing Rental Existing Monthly —— —— —— —— —— —— —— —— —— —— —— 9% 19,254 620.90 51.0% 316.66 (%) (RMB) (RMB million) Date as at Valuation Occupancy Date 2010 2016 2016 2017 2017 Completion 9 2007 — 583 2005 109 2015 of CPS Number (1) — — — 75 90 2002 425 973 2004 671 843 2007 3,809 1,232 2016 6,834 1,309 2014 to 7,851 8,757 3,438 2015 to 12,208 605 2007 to 16,526 640 2014 to (sq.m.) (Excl. CPS) Total GFA Type of Property Carpark Carpark Carpark Carpark Carpark Commercial, Carpark Carpark Commercial, Carpark Commercial, Carpark Commercial Commercial, Carpark Land Use Rights Expiry Date 21 Jan 2041 Commercial, 10 Jan 2056 Commercial, 15 Feb 2043 Commercial, 06 May 2053 Commercial, 03 Jul 2040 to 21 Jul 2054 24 Feb 2081 17 Sep 2080 to 18 Oct 2080 16 Jul 2054 to 15 Sep 2086 12 Jan 2044 to 17 Aug 2083 04 Feb 2055 to 04 Feb 2085 28 Dec 2052 to 28 Dec 2082 Land Use Carpark Carpark Carpark Composite, Carpark Composite, Carpark Commercial Accommodation and Catering, Cultural and Sport Commercial Commercial Residential, City Guangzhou Commercial, Guangzhou Commercial, Guangzhou Commercial, Guangzhou Residential, Carpark 24 May 2060 Carpark Guangzhou Commercial, Guangzhou Commercial, Office, Qingyuan Residential, Office 08 Jan 2057 to Qingyuan Residential Shaoguan Residential, Yangjiang Residential, Yangjiang Residential, Yunfu Hengda Real Estate Group Company Limited Guangzhou Junhong Real Estate Development Company Limited Guangzhou Junhui Real Estate Development Company Limited Holding Entity Hengda Real Estate Group Company Limited Hengda Real Estate Group Company Limited Guangzhou Tongruida Real Estate Property Company Limited Hengda Shengyu (Qingxin) Property Company Limited Qingyuan Yinhucheng Investment Company Limited Hengda (Shaoguan) Real Estate Group Company Limited Yangjiang Yifeng Property Company Limited Hengda (Yangjiang) Real Estate Group Company Limited Hengda (Yunfu) Real Estate Group Company Limited Guangzhou Garden Guangzhou Garden Guangzhou Guangzhou Guangzhou Guangzhou Jinbi Splendor Qingyuan Silverlake City Qingyuan Shaoguan on the sea Yangjiang Metropolis Yangjiang Yunfu III-78 Portion of Jinbi Palace III-79 Portion of Jinbi Junhong Property No. Property Name III-80 Portion of Jinbi Century III-81 Portion of Jinbi Bay III-82 Portion of Jinbi New City III-83 Portion of Evergrande Atrium III-84 Portion of Evergrande III-85 Portion of Evergrande III-86 Portion of Evergrande City III-87 Portion of Evergrande Hawaii III-88 Portion of Evergrande III-89 Portion of Evergrande City
– II-53 –
– IV-54 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) Date as at 16.50 58.90 27.20 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group (2) State 16.50 100.0% 58.90 100.0% 27.20 100.0% 462.60 100.0% 462.60 242.20 100.0% 242.20 396.70 51.0% 202.32 126.10 100.0% 126.10 Market Value 1,059.70 100.0% 1,059.70 in Existing Rental Existing Monthly —— —— —— —— —— —— —— —— 6% 32,413 275.10 100.0% 275.10 (%) (RMB) (RMB million) Date as at Valuation Occupancy Date 2014 2016 2017 2016 2016 2016 2016 22% 129,921 282.40 100.0% 282.40 2016 39% 123,455 138.80 100.0% 138.80 2017 2015 to Completion — — — — — — 1,338 2010 of CPS Number (1) — 950 3,480 2,231 2013 to 8,769 5,355 2014 to 4,279 2,212 19,075 1,039 2016 14,014 624 2016 to 25,502 10,555 10,993 (sq.m.) (Excl. CPS) Total GFA Carpark Type of Property Commercial Commercial, Carpark Commercial, Carpark Commercial, Carpark Commercial Commercial Commercial 21 Oct 2083 Commercial 01 Aug 2082 Commercial Land Use Rights Expiry Date 19 Dec 2063 to 06 Jun 2053 to 06 Jun 2083 28 Sep 2048 to 29 Nov 2049 16 Jul 2053 to 16 Jul 2083 19 Dec 2066 08 Jun 2066 Carpark 15 Jan 2054 to 15 Jan 2084 01 Jan 2046 to 20 Dec 2084 19 May 2055 to 19 May 2085 Land Use Commercial, Residential, Commercial Residential, Composite Commercial Commercial Commercial, Accommodation and Catering, Park and Green Space Commercial City Guangzhou Residential Guangzhou Residential, Carpark 08 Jun 2066 Commercial, Zhongshan Residential Beihai Zhanjiang Residential, Liuzhou Residential, Zhongshan Residential Beihai Guilin Nanning Residential, Fangchenggang Residential (Fangchenggang) Real Guangzhou Hengda (Zengcheng) Real Estate Development Company Limited Hengda Real Estate Group Company Limited Zhongshan Changxin Hongzhan Real Estate Company Limited Beihai Jiajing Real Estate Development Company Limited Hengda Real Estate Group Zhanjiang Yujing Property Company Limited Holding Entity Liuzhou Hengda Jinbi Property Company Limited Hengda (Zhongshan) Real Estate Group Company Limited Beihai Nanguo Tiantang Real Estate Development Company Limited Guilin Guijia Real Estate Company Limited Nanning Jinbi Hengda Property Company Limited Hengda Estate Group Company Limited Garden Guangzhou Zengcheng Garden Guangzhou Zengcheng (Phase 2 and 3) Metropolis Zhongshan Metropolis Beihai Zhanjiang Emerald Court Liuzhou Zhongshan Scenic Peninsula Beihai Guilin Nanning Scenic Bay Fangchenggang III-91 Portion of Evergrande Scenic III-90 Portion of Evergrande Scenic Property No. Property Name III-94 Portion of Evergrande III-95 Portion of Evergrande III-92 Portion of Evergrande Oasis III-99 Portion of Evergrande III-93 Portion of Evergrande Oasis III-96 Portion of Evergrande Royal III-98 Portion of Evergrande Plaza III-100 Portion of Evergrande City III-97 Portion of Evergrande Royal
– II-54 –
– IV-55 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) Date as at 20.70 78.00 44.70 51.90 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group (2) State 20.70 100.0% 78.00 100.0% 51.90 100.0% 307.70 100.0% 307.70 104.50 100.0% 104.50 130.00 100.0% 130.00 340.50 100.0% 340.50 314.80 100.0% 314.80 225.70 100.0% 225.70 Market Value in Existing Rental Existing Monthly —— —— —— —— —— —— —— —— —— 6% 11,376 44.70 100.0% 9% 52,128 505.70 100.0% 505.70 4% 21,748 224.30 100.0% 224.30 (%) (RMB) (RMB million) 12% 97,645 393.10 100.0% 393.10 Date as at Valuation Occupancy Date 2015 2016 2016 2013 2014 2016 2016 Completion — — — — — 757 2015 473 2016 855 2016 1,852 2016 of CPS Number (1) — — — — 2,108 3,053 1,628 2016 4,790 2,009 245 2016 11,984 1,817 2014 to 25,395 1,397 2014 to 45,210 21,777 19,020 (sq.m.) (Excl. CPS) Total GFA Type of Property Commercial Commercial, Carpark Carpark Commercial, Carpark Commercial, Carpark Carpark Commercial Commercial Commercial Commercial Commercial, Carpark Land Use Rights Expiry Date 22 Jul 2053 to 15 Aug 2053 30 Dec 2050 to 08 Sep 2085 27 Jun 2053 to 27 Jun 2083 30 Dec 2068 Carpark 16 May 2051 to 15 May 2082 21 Jul 2052 to 21 Jul 2082 02 Aug 2053 to 02 Aug 2083 26 Feb 2052 to 26 Feb 2083 01 May 2053 to 28 May 2052 to 27 May 2083 01 May 2083 09 May 2052 to 09 May 2082 18 Jul 2052 to 08 Oct 2082 Land Use Accommodation and Catering Commercial Commercial Commercial Commercial Commercial, Public Facility Commercial Commercial, Public Facility Commercial Commercial City Changjiang Residential, Office, Danzhou Residential, Chengmai Residential Haikou Residential, Haikou Commercial 09 Nov 2063 Carpark Harbin Residential, Daqing Residential, Harbin Residential, Harbin Residential, Harbin Residential, Harbin Residential Mudanjiang Residential, Mudanjiang Residential, Changjiang Guangyi Real Estate Development Company Limited Danzhou Hengda Binhai Investment Company Limited Holding Entity Hainan Minghao Property Company Limited Hengda (Hainan) Real Estate Group Company Limited Hainan Dongfangmingzhu Real Estate Company Limited Harbin Hengda Xingye Real Estate Development Company Limited Daqing Hengda Yongsheng Real Estate Development Company Limited Harbin Mingye Real Estate Development Company Limited Harbin Hengda Weiye Real Estate Development Company Limited Harbin Hengda Weiye Real Estate Development Company Limited Harbin Chengye Real Estate Development Company Limited Mudanjiang Hengda Changjian Real Estate Development Company Limited Mudanjiang Hengda Yongtai Real Estate Development Company Limited Bay Changjiang Gulf Pearl Splendor Danzhou Scenic Bay Hainan Haikou Tourist City Haikou Harbin Daqing View Garden Harbin Harbin Metropolis Harbin Scenic Bay Harbin Emerald Court Mudanjiang Mudanjiang III-101 Portion of Evergrande Qizi Property No. Property Name III-102 Portion of Evergrande III-103 Portion of Evergrande Royal III-104 Portion of Evergrande Bay III-105 Portion of Evergrande Culture III-107 Portion of Evergrande City III-106 Portion of Evergrande Oasis III-108 Portion of Evergrande Royal III-109 Portion of Evergrande Oasis III-110 Portion of Evergrande III-111 Portion of Evergrande Royal III-112 Portion of Evergrande III-113 Portion of Evergrande Oasis
– II-55 –
– IV-56 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) Date as at 66.20 69.56 60.98 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group (2) State 66.20 100.0% 90.90 67.1% 103.70 67.1% 336.50 100.0% 336.50 320.90 100.0% 320.90 162.80 67.1% 109.21 Market Value 1,279.50 67.1% 858.29 in Existing Rental Existing Monthly —— —— —— —— —— —— —— (%) (RMB) (RMB million) 53% 71,707 106.50 100.0% 106.50 18% 65,016 306.30 100.0% 306.30 90% 75,473 199.80 100.0% 199.80 Date as at Valuation Occupancy Date 2016 2014 92% 284,144 233.20 100.0% 233.20 2016 2016 2016 2016 2016 2016 2016 2016 Completion — — 969 2015 610 2012 to of CPS Number (1) — — 7,007 1,488 1,946 2010 to 3,290 465 2011 to 1,156 1,196 2014 to 20,938 1,109 2010 to 25,782 17,569 188 2014 to 10,412 1,152 2009 to 72,376 1,382 2013 to (sq.m.) (Excl. CPS) Total GFA Type of Property Commercial Commercial Carpark Commercial, Carpark Commercial, Carpark Carpark Commercial, Carpark Commercial, Carpark Commercial, Carpark Commercial, Carpark Commercial, Office, Carpark Land Use Rights Expiry Date 28 Jun 2052 to 28 Jun 2082 29 Jul 2082 24 Mar 2050 to 26 Dec 2081 29 Aug 2080 28 Apr 2047 to 29 Apr 2077 26 Dec 2046 to 26 Dec 2076 29 Oct 2047 to 29 Oct 2077 30 Apr 2077 to 12 May 2080 30 May 2047 to 26 Jan 2078 29 Dec 2046 to 29 Dec 2076 09 Aug 2050 to 09 Aug 2080 Land Use Commercial, Office Residential, Commercial Residential, Office 20 Mar 2047 to Commercial Commercial Commercial Commercial Commercial, Office Commercial City Qiqihar Residential, Qiqihar Residential, Office 28 Jun 2052 to Ezhou Ezhou Wuhan Residential, Wuhan Residential, Wuhan Residential, Wuhan Residential Wuhan Residential, Wuhan Residential, Wuhan Residential, Hengda Yongxing (Qiqihaer) Real Estate Company Limited Hengda Yongxing (Qiqihaer) Real Estate Company Limited Holding Entity Hubei Sanjiang Hangtian Commercial Management Company Limited Ezhou Hengda Real Estate Development Company Limited Hubei Yiqing Yazhu Real Estate Development Company Limited Wuhan Sanjiang Hangtian Jiayuan Real Estate Development Company Limited Wuhan Sanjiang Hangtian Panlongcheng Real Estate Development Company Limited Wuhan Huali Property Company Limited Wuhan Jinbi Luzhou Real Estate Development Company Limited Wuhan Donghu Hengda Real Estate Developmen Company Limited Wuhan Sanjiang Hangtian Investment Development Company Limited Emerald Court Tsitshihar Metropolis Tsitshihar Capital Ezhou Splendor Ezhou Wuhan Rainbow Town Wuhan City Wuhan Metropolis Wuhan Wuhan Wuhan Wuhan III-114 Portion of Evergrande Property No. Property Name III-115 Portion of Evergrande III-116 Portion of Evergrande Sky III-117 Portion of Evergrande III-118 Portion of Evergrande City III-119 Portion of Evergrande III-120 Portion of Evergrande Dragon III-124 Portion of Evergrande III-123 Portion of Evergrande Oasis III-122 Portion of Evergrande Palace III-121 Portion of Evergrande Capital
– II-56 –
– IV-57 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) Date as at 24.48 25.98 46.80 41.93 19.56 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group (2) State 40.80 60.0% 78.00 60.0% 64.50 65.0% 32.60 60.0% 157.60 100.0% 157.60 523.80 63.7% 333.77 493.60 69.5% 343.05 Market Value in Existing Rental Existing Monthly —— —— —— —— —— —— —— 2% 44,000 505.20 66.8% 337.32 (%) (RMB) (RMB million) 20% 101,181 288.50 100.0% 288.50 14% 50,434 393.30 100.0% 393.30 Date as at Valuation Occupancy Date 2015 2015 2013 2016 33%2015 57,240 43.30 60.0% 2015 2016 2016 2016 2016 Completion — — — — — — 1,370 2015 of CPS Number (1) — 3,000 4,631 7,362 5,648 3,119 2,294 2015 27% 35,254 301.20 100.0% 301.20 3,555 34,536 412 2011 to 61,523 16,993 1,078 2012 to 12,688 3,185 2015 to 14,575 2,087 2013 to (sq.m.) (Excl. CPS) Total GFA Type of Property Commercial, Carpark Commercial Carpark Commercial Commercial, Carpark Commercial Commercial Commercial, Carpark Commercial, Carpark Commercial Commercial, Carpark Land Use Rights Expiry Date 15 Nov 2047 to 15 Nov 2077 27 Mar 2054 to 24 Sep 2084 23 Mar 2051 to 23 Mar 2081 30 Jun 2054 to 30 Jun 2084 23 Mar 2044 Commercial 28 Dec 2048 to 28 Dec 2078 03 Aug 2053 to 03 Aug 2083 24 Feb 2053 to 24 Feb 2083 25 Oct 2050 to 16 Oct 2081 31 Dec 2051 to 31 Dec 2081 31 Dec 2054 to 31 Dec 2085 04 Aug 2050 to 11 Jun 2081 Land Use Commercial, Education Commercial Accommodation and Catering, Education Commercial Education, Public Facility Commercial, Accommodation and Catering Commercial Commercial Commercial Commercial Commercial Commercial City Wuhan Residential, Wuhan Residential, Xiangyang Residential, Yichang Residential, Yichang Commercial, Yichang Residential, Changde Residential, Chenzhou Residential, Chenzhou Residential, Hengyang Residential, Xiangtan Residential, Liuyang Residential, Wuhan Sanjiang Dongli Investment Development Company Limited Wuhan Hengda Chutian Real Estate Development Company Limited Holding Entity Xiangyang Hengda Real Estate Development Company Limited Yichang Chutian Hengda Real Estate Development Company Limited Yichang Sanjiang Hangtian Real Estate Development Company Limited Yichang Meiziya Market Construction Kaifa Company Limited Changde Xinze Property Company Limited Chenzhou City Wanxiangyuan Real Estate Development Company Limited Chenzhou Jinbi Property Company Limited Hengyang Baorui Property Company Limited Hunan Zongheng Property Company Limited Liuyang Jinbi Property Company Limited City Wuhan Scenic Bay Wuhan Metropolis Xiangyang View Garden Yichang Commercial Buhang Street Yichang Changde View Garden Chenzhou Chenzhou Hengyang Emerald Court Xiangtan Liuyang III-125 Portion of Evergrande Shuang Property No. Property Name III-126 Portion of Evergrande Royal III-127 Portion of Evergrande III-128 Portion of Evergrande Royal III-130 Portion of Yichang III-129 Portion of Evergrande Oasis III-131 Portion of Evergrande Palace III-132 Portion of Evergrande Royal III-133 Portion of Evergrande Palace III-134 Portion of Evergrande Oasis III-136 Portion of Evergrande III-135 Portion of Evergrande Palace
– II-57 –
– IV-58 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) Date as at 32.40 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group (2) State 32.40 100.0% 117.00 100.0% 117.00 262.10 100.0% 262.10 484.60 100.0% 484.60 619.30 100.0% 619.30 185.30 100.0% 185.30 862.40 100.0% 862.40 158.90 100.0% 158.90 508.40 94.0% 477.90 216.50 100.0% 216.50 129.80 100.0% 129.80 Market Value in Existing Rental Existing Monthly —— —— —— —— —— —— —— —— —— —— —— 6% 24,489 116.60 100.0% 116.60 (%) (RMB) (RMB million) 17% 12,244 197.80 100.0% 197.80 Date as at Valuation Occupancy Date 2016 2013 59% 387,256 247.40 100.0% 247.40 2016 2012 2016 2014 2016 Completion — — 270 2015 1,913 2015 1,425 2012 1,177 2016 1,386 2016 of CPS Number (1) — — — — — 9,621 440 2015 to 1,812 1,387 2011 to 4,086 4,731 2014 5,279 5,494 2016 6,859 6,463 483 2015 to 17,141 1,709 2014 to 22,193 38,711 1,151 2015 to (sq.m.) (Excl. CPS) Total GFA Type of Property Commercial, Carpark Commercial Carpark Commercial, Carpark Carpark Commercial, Carpark Carpark Commercial, Carpark Carpark Commercial Carpark Commercial, Office, Carpark Commercial, Carpark Carpark Land Use Rights Expiry Date 31 Mar 2053 to 31 Mar 2083 15 Jul 2051 to 26 Jul 2081 04 Oct 2074 to 30 Oct 2076 06 Feb 2052 to 06 Feb 2082 21 Sep 2078 Commercial, 29 Jan 2047 to 29 Jan 2077 31 Aug 2044 to 31 Aug 2074 24 Mar 2045 to 24 Mar 2075 03 Sep 2050 to 03 Sep 2080 01 Apr 2081 to 26 Jul 2052 to 26 Jul 2082 25 Sep 2081 30 Dec 2050 to 30 Dec 2080 14 Feb 2053 to 14 Feb 2083 10 Sep 2082 to 28 Feb 2083 Land Use Commercial Commercial Education Commercial Commercial Commercial Commercial Commercial Commercial Commercial Commercial City Yiyang Residential, Yueyang Residential, Changsha Residential, Changsha Residential, Changsha Residential, Changsha Residential, Changsha Residential, Changsha Residential Changsha Residential, Changsha Residential, Changzhou Residential, Danyang Residential Pinghu Residential, Haiyan Residential Yiyang Hengrui Property Company Limited Yueyang Jinbi Property Company Limited Holding Entity Changsha Xinlin Property Company Limited Changsha Hengxi Property Company Limited Changsha Tianxi Property Company Limited Hunan Xiongzhen Investment Company Limited Changsha Baorui Real Estate Development Company Limited Hunan Shengji Property Company Limited Changsha Jinxia Development Construction Company Limited Changsha Ruixi Property Company Limited Changzhou Hanjia Property Company Limited Danyang Hengda Property Company Limited Pinghu Hengda Mingdu Property Company Limited Haiyan Shengjian Property Company Limited Yiyang Metropolis Yueyang Changsha Emerald Court Changsha Changsha Changsha Changsha Metropolis Changsha Scenic Peninsula Changsha Scenic Bay Changsha Emerald Court Changzhou Metropolis Danyang Metropolis Pinghu Scenic Haiyan III-137 Portion of Evergrande Oasis Property No. Property Name III-138 Portion of Evergrande III-139 Portion of Evergrande City III-140 Portion of Evergrande III-142 Portion of Evergrande Oasis III-141 Portion of Evergrande Palace III-144 Portion of Evergrande Atrium III-143 Portion of Evergrande III-145 Portion of Evergrande Royal III-146 Portion of Evergrande Royal III-147 Portion of Evergrande III-148 Portion of Evergrande III-149 Portion of Evergrande III-150 Portion of Evergrande Royal
– II-58 –
– IV-59 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) Date as at 46.77 25.90 69.50 43.70 75.70 66.40 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group (2) State 25.90 100.0% 43.70 100.0% 75.70 100.0% 66.40 100.0% 689.90 100.0% 689.90 135.50 100.0% 135.50 224.00 100.0% 224.00 Market Value in Existing Rental Existing Monthly —— —— —— —— —— —— —— 1% 6,069 373.30 100.0% 373.30 (%) (RMB) (RMB million) 61% 250,197 445.30 100.0% 445.30 41% 69,252 252.70 100.0% 252.70 75% 134,245 417.90 100.0% 417.90 39% 89,350 404.00 100.0% 404.00 Date as at Valuation Occupancy Date 2016 2015 2015 34% 70,628 91.70 51.0% 2016 2013 2016 2016 2017 2015 16% 25,001 69.50 100.0% 2016 2016 2016 2015 to Completion — — — — — — — 1,493 2016 of CPS Number (1) — 8,624 1,342 2013 to 6,858 2,758 1,777 2011 to 1,123 9,353 2,327 2012 to 5,145 2,018 2,611 4,428 16,446 2,468 2014 to 15,690 2,244 2015 43,754 1,248 2014 to 14,056 (sq.m.) (Excl. CPS) Total GFA Commercial Commercial, Carpark Commercial, Carpark Commercial, Carpark Type of Property Commercial, Office, Carpark Commercial Commercial, Carpark Commercial Commercial, Carpark Commercial Carpark Commercial Commercial Commercial 22 Aug 2053 to 22 Aug 2083 01 Feb 2052 to 01 Feb 2082 20 Jul 2080 to 14 Aug 2084 20 Dec 2076 to 26 Oct 2051 to 26 Oct 2081 Land Use Rights Expiry Date 05 Mar 2050 to 06 Feb 2083 16 Apr 2054 to 16 Apr 2084 22 Jan 2078 23 Dec 2050 to 23 Dec 2080 30 May 2047 to 30 May 2077 15 Oct 2052 to 02 Apr 2084 09 Sep 2053 to 09 Sep 2053 17 Jan 2084 to 17 Jan 2084 17 Jan 2084 to 17 Jan 2084 05 Oct 2052 to 05 Mar 2083 Land Use Commercial Commercial Commercial Commercial Education Cultural and Entertainment Accommodation and Catering Commercial Commercial Residential, Commercial City Jiangyin Residential, Jiaxing Residential, Lianyungang Residential, Huaian Residential Nanjing Residential, Nanjing Residential, Ningbo Residential, Office, Nanjing Residential Nanjing Residential, Ningbo Residential, Quzhou Residential, Shanghai Residential Shanghai Residential Wuxi an Hengda Fufeng Real ’ Jiangyin Shengjian Property Company Limited Jiaxing Hengda Property Company Limited Lianyungang Hengda Mingdu Property Company Limited Huai Estate Development Company Limited Jurong Tiangong Property Company Limited Nanjing Meixu Real Estate Company Limited Chengbo (Ningbo) Property Company Limited Nanjin Handian Real Estate Company Limited Nanjing Hengda Fufeng Property Company Limited Holding Entity Ningbo Yucheng Property Company Limited Quzhou Hengda Shengjian Property Company Limited Shanghai Songyu Property Company Limited Shanghai Rongshan Property Company Limited Wuxi Hengda Real Estate Development Company Limited an ’ Scenic Jiangyin Jiaxing Metropolis Lianyungang Nanjing Jurong Emerald Court Nanjing Metropolis Huai Lights Ningbo Nanjing Splendor Nanjing Garden Ningbo Scenic Peninsula Quzhou View Garden Shanghai Palace Sheshan Shanghai Wuxi III-153 Portion of Evergrande Royal III-152 Portion of Evergrande Oasis III-154 Portion of Evergrande III-158 Portion of Evergrande Atrium III-155 Portion of Evergrande III-151 Portion of Evergrande Property No. Property Name III-159 Portion of Evergrande City III-157 Portion of Evergrande Oasis III-156 Portion of Evergrande III-160 Portion of Evergrande Scenic III-161 Portion of Evergrande Royal III-162 Portion of Evergrande Royal III-163 Portion of Evergrande First III-164 Portion of Evergrande City
– II-59 –
– IV-60 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) Date as at 99.00 84.90 48.70 62.80 71.70 31.60 98.60 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group (2) State 71.70 100.0% 31.60 100.0% 98.60 100.0% 413.40 100.0% 413.40 132.70 100.0% 132.70 110.00 90.0% Market Value in Existing Rental Existing Monthly —— —— —— —— —— —— 4% 15,384 84.90 100.0% 8% 22,461 48.70 100.0% 0% 2,378 62.80 100.0% 0% 2,046 305.60 100.0% 305.60 4% 86,935 1,091.70 100.0% 1,091.70 7% 84,001 384.20 100.0% 384.20 (%) (RMB) (RMB million) 25% 87,544 131.60 100.0% 131.60 Date as at Valuation Occupancy Date 2015 2016 2016 2017 2016 2016 2016 2015 2016 2014 2016 2014 to 2014 to Completion — — — — — — — — — 580 2016 of CPS Number (1) — 9,238 2,017 2013 to 9,162 9,512 4,199 9,907 61 2015 to 2,520 11,385 67 2016 26% 55,434 107.70 100.0% 107.70 11,618 15,879 12,250 1,438 2016 11,395 98,095 31,778 (sq.m.) (Excl. CPS) Total GFA Carpark Commercial, Carpark Type of Property Commercial Commercial Commercial Commercial Commercial Commercial, Carpark Commercial, Carpark Commercial Commercial Commercial Carpark 10 Mar 2051 to 10 Mar 2081 Land Use Rights Expiry Date 20 Jun 2081 Commercial, 30 May 2052 to 30 May 2082 10 Jul 2082 24 Sep 2055 to 07 Sep 2086 21 Dec 2051 to 21 Dec 2081 27 Jan 2051 to 27 Jan 2081 25 Oct 2052 to 28 Jan 2084 11 Nov 2050 to 11 Nov 2080 15 Jun 2081 to 15 Jun 2081 02 Nov 2050 to 02 Nov 2080 12 May 2051 to 12 May 2081 13 Mar 2053 to 13 Mar 2083 24 May 2060 Commercial Land Use Commercial, Office, Education Commercial Residential, Commercial Commercial, Office, Public Facility Commercial Commercial Residential, Commercial Commercial Commercial Commercial Commercial City Suqian Residential Yancheng Residential, Wuxi Yangzhou Residential, Office 10 Jul 2052 to Zhangjiagang Residential, Zhenjiang Residential, Changchun Residential, Songyuan Residential, Jilin Ulanhot Residential Changchun Residential, Changchun Residential, Changchun Residential, Changchun Residential, Suqian Hengda Huafu Property Company Limited Hengda Real Estate Group Yancheng Company Limited Wuxi Shengdong Real Estate Development Company Limited Yangzhou Honglitai Real Estate Development Company Limited Holding Entity Zhangjiagang Shengjian Property Company Limited Zhenjiang Jia Qi Property Company Limited Jilin Wancheng Real Estate Development Company Limited Songyuan Hengda Yusheng Real Estate Development Company Limited Jilin Hengda Yongsheng Real Estate Development Company Limited Wulanhaote Hengda Shengye Real Estate Development Company Limited Shengji (Changchun) Real Estate Company Limited Xinji (Changchun) Real Estate Company Limited Yongji (Changchun) Real Estate Company Limited Longji (Changchun) Real Estate Company Limited Suqian Metropolis Yancheng Wuxi Scenic Yangzhou Greenview Villa Zhangjiagang Zhengjiang Emerald Court Changchun Scenic Bay Songyuan Jilin Ulanhot Changchun Metropolis Changchun Plaza Changchun Changchun III-166 Portion of Evergrande Palace III-167 Portion of Evergrande III-165 Portion of Evergrande Oasis Property No. Property Name III-168 Portion of Evergrande Royal III-169 Portion of Evergrande III-170 Portion of Evergrande Oasis III-171 Portion of Evergrande III-172 Portion of Evergrande Royal III-173 Portion of Evergrande Palace III-174 Portion of Evergrande Oasis III-175 Portion of Evergrande City III-178 Portion of Evergrande III-176 Portion of Evergrande City III-177 Portion of Evergrande Oasis
– II-60 –
– IV-61 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) Date as at 28.70 41.30 84.80 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group (2) State 28.70 100.0% 205.60 100.0% 205.60 298.20 100.0% 298.20 279.20 100.0% 279.20 118.50 100.0% 118.50 Market Value in Existing Rental Existing Monthly —— —— —— —— —— 2% 10,344 304.30 100.0% 304.30 0% 1,207 84.80 100.0% (%) (RMB) (RMB million) 25% 169,805 861.10 89.0% 766.38 19% 78,225 349.20 100.0% 349.20 13% 40,606 243.80 100.0% 243.80 31% 36,216 427.00 100.0% 427.00 Date as at Valuation Occupancy Date 2016 2017 2017 2016 2016 2016 2016 2016 2016 2015 2016 to 2016 to 2014 to Completion — — — 1,285 2015 to 2,327 2011 to of CPS Number (1) — — 1,782 8,679 1,370 2013 to 7,264 1,632 2275,206 2016 751 94% 2016 49,604 41.30 100.0% 3,394 3,097 2013 to 14,421 5,690 2014 to 13,338 2,042 2011 to 76,943 3,424 2016 12% 209,592 1,074.60 100.0% 1,074.60 33,143 18,251 1,175 2013 to (sq.m.) (Excl. CPS) Total GFA Type of Property Carpark Commercial Carpark Commercial, Carpark Commercial, Carpark Commercial, Office, Carpark Commercial Commercial, Carpark Commercial, Carpark Commercial, Carpark Commercial, Carpark Commercial, Carpark Land Use Rights Expiry Date 07 Dec 2051 to 07 Dec 2081 27 Jun 2083 Commercial 13 Jan 2051 to 13 Jan 2081 24 Nov 2047 to 24 Nov 2077 01 Jun 2081 27 Jun 2050 to 02 Mar 2081 29 Dec 2050 to 29 Dec 2080 12 May 2051 to 29 Nov 2082 13 Sep 2075 28 Feb 2050 to 28 Feb 2080 27 Apr 2052 to 27 Apr 2082 27 Apr 2052 to 27 Apr 2082 28 Jan 2051 to 28 Jan 2081 Land Use Commercial Residential Commercial Commercial, Sport and Leisure Commercial Commercial Commercial Commercial Commercial Commercial Residential, Office 13 Sep 2045 to Commercial, Office Residential, an ’ City Changchun Residential, Changchun Residential, Ji Nanchang Residential, Nanchang Residential, Office 01 Jun 2051 to Jingdezhen Residential, Nanchang Residential, Wujiaqu Residential, Xinyu Yining Residential, Yining Residential, Xinyu Yingtan Residential, an) Real Estate ’ Jinggao (Changchun) Real Estate Company Limited Holding Entity Taiji (Changchun) Real Estate Company Limited Hengda (Ji Group Company Limited Jiangxi Cuilin Shanzhuang Company Limited Jiangxi Hongji Investment Company Limited Hengda (Jingdezhen) Real Estate Group Company Limited Nanchang Zhongdiantou Gaoxin Property Company Limited Wujiaqu Zhuoyue Real Estate Development Company Limited Xinyu Zhongchen Property Development Company Limited Yining Hengda Yayuan Real Estate Development Company Limited Yining Jinbi Real Estate Development Company Limited Xinyu Xingwang Real Estate Development Company Limited Hengda Real Estate Yingtan Company Limited an ‘ Changchun View Garden Changchun View Garden Ji Nanchang Nanchang Metropolis Jingdezhen View Garden Nanchang Splendor Urumchi Xinyu Yining Yining Xinyu Yingtan III-179 Portion of Evergrande Atrium Property No. Property Name III-180 Portion of Evergrande Scenic III-181 Portion of Evergrande Royal III-184 Portion of Evergrande Oasis III-183 Portion of Evergrande City III-182 Portion of Evergrande III-185 Portion of Evergrande Royal III-186 Portion of Evergrande III-188 Portion of Evergrande Atrium III-189 Portion of Evergrande Atrium III-190 Portion of Evergrande Oasis III-187 Portion of Evergrande City III-191 Portion of Evergrande Oasis
– II-61 –
– IV-62 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 4.70 Date as at 17.40 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group (2) 4.70 100.0% State 17.40 100.0% 158.70 100.0% 158.70 119.70 100.0% 119.70 337.60 100.0% 337.60 274.90 100.0% 274.90 Market Value 1,563.10 100.0% 1,563.10 in Existing Rental Existing Monthly —— —— —— —— —— —— —— 8% 47,053 106.10 100.0% 106.10 1% 4,411 304.20 100.0% 304.20 2% 56,420 558.80 100.0% 558.80 0% 3,303 278.30 100.0% 278.30 8% 88,336 234.90 100.0% 234.90 4% 89,495 648.30 100.0% 648.30 0% 29,343 1,104.60 100.0% 1,104.60 (%) (RMB) (RMB million) 10% 114,307 482.20 100.0% 482.20 11% 48,593 412.50 100.0% 412.50 Date as at Valuation Occupancy Date 2016 2015 2016 2015 2016 2016 2015 2017 2017 2015 2017 2015 2015 2012 2016 2012 to 2012 to 2014 to Completion — — — — — — — — — of CPS Number (1) 570 2,023 3,778 15,116 60,672 10,710 28,697 61,725 632 2016 to 18,131 712 2016 40,670 2,033 2013 to 31,449 93,444 50 2012 to 29,188 407 2011 to 14,272 821 2014 to 32,877 (sq.m.) 183,232 1,021 2015 to (Excl. CPS) Total GFA Commercial Type of Property Commercial Commercial Commercial Commercial, Office, Carpark Commercial, Carpark Commercial, Carpark Commercial Commercial Carpark Commercial, Carpark Carpark Commercial, Carpark 31 May 2085 Commercial 29 Jan 2085 Land Use Rights Expiry Date 28 Jan 2085 to 09 Jul 2050 to 28 Feb 2083 31 Aug 2081 Commercial 28 Sep 2051 to 28 Sep 2081 21 Apr 2054 to 21 Apr 2084 30 Jan 2082 Commercial 13 Feb 2051 29 Aug 2051 to 29 Aug 2081 08 Jun 2051 to 29 May 2084 20 Jun 2050 to 20 Jun 2080 27 May 2060 Commercial, 24 May 2060 Commercial, 28 Jan 2051 to 29 Mar 2081 07 Jun 2057 to 31 Mar 2061 29 May 2053 to 19 Jun 2083 Land Use Residential Residential, Residential, Commercial Commercial Residential, Commercial Commercial Commercial Commercial Commercial Residential, Commercial Commercial City Yingtan Residential Anshan Residential, Anshan ResidentialBenxi Dalian Dalian Dalian Fushun Commercial 13 Jan 2051 to Fushun Residential, Huludao Residential, Liaoyang Residential, Panjin Shenyang Residential Shenyang Residential Shenyang Residential, Shenyang Residential Hengda Real Estate Yingtan Company Limited Anshan Jiarui Property Company Limited Anshan Jiayu Property Company Limited Benxi Jiaxi Property Company Limited Holding Entity Dalian Hengcheng Real Estate Company Limited Dalian Hengke Real Estate Company Limited Dalian Xicheng Real Estate Company Limited Fushun Jiashun Property Company Limited Fushun Jiaxin Property Company Limited Huludao Jia Shan Property Company Limited Liaoyang Hengsheng Property Company Limited Panjin Jiading Property Company Limited Hengda Xinyuan (Shenyang) Property Company Limited Shenyang Jiakai Property Company Limited Shenyang Jiahui Property Company Limited Shenyang Jiaqi Property Company Limited Scenic Yingtan Anshan Metropolis Anshan Benxi View Garden Dalian City Dalian Tanxijun Dalian Fushun Fushun Scenic Bay Huludao Liaoyang Panjin Shenyang Shenyang Emerald Court Shenyang Shenyang III-192 Portion of Evergrande Royal III-193 Portion of Evergrande Oasis Property No. Property Name III-194 Portion of Evergrande III-195 Portion of Evergrande Oasis III-196 Portion of Evergrande Royal III-197 Portion of Evergrande Harbor III-198 Portion of Evergrande III-199 Portion of Evergrande Plaza III-200 Portion of Evergrande Palace III-201 Portion of Evergrande Royal III-202 Portion of Evergrande Oasis III-203 Portion of Evergrande Palace III-204 Portion of Evergrande City III-207 Portion of Evergrande Bay III-205 Portion of Evergrande III-206 Portion of Evergrande Palace
– II-62 –
– IV-63 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) Date as at 13.60 69.90 89.50 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group (2) State 13.60 100.0% 89.50 100.0% 257.40 100.0% 257.40 343.40 100.0% 343.40 159.00 100.0% 159.00 246.20 60.0% 147.72 538.60 60.0% 323.16 Market Value in Existing Rental Existing Monthly —— —— —— —— —— —— —— 9% 239,306 1,111.10 100.0% 1,111.10 4% 45,822 470.20 100.0% 470.20 4% 113,803 1,209.10 100.0% 1,209.10 6% 88,159 641.50 100.0% 641.50 4% 10,728 69.90 100.0% (%) (RMB) (RMB million) 31% 281,901 297.60 100.0% 297.60 24% 228,342 1,219.90 100.0% 1,219.90 Date as at Valuation Occupancy Date 2016 2013 2016 2017 2014 2015 2017 2017 2015 2016 2015 to Completion — — — 668 2016 1,060 2014 1,894 2016 of CPS Number (1) — — — 6,799 1,272 2011 to 1,289 4,163 82,762 383 2010 to 22,404 1,631 2014 to 41,154 3,605 2013 to 55,442 1,189 2014 to 33,123 86 2013 to 32,802 6,346 2013 to 17,696 14,220 2,980 2016 (sq.m.) (Excl. CPS) Total GFA Commercial, Carpark Type of Property Commercial, Carpark Commercial, Carpark Commercial Commercial Commercial, Carpark Carpark Commercial Commercial, Carpark Commercial, Carpark Carpark Commercial, Carpark Commercial, Carpark 31 Oct 2064 Land Use Rights Expiry Date 19 Oct 2050 to 19 Oct 2080 31 Dec 2056 to 03 Apr 2052 to 20 Apr 2082 28 Apr 2080 Carpark 29 Nov 2053 to 29 Nov 2083 19 Oct 2082 13 Jun 2084 17 Jul 2051 to 17 Jul 2081 19 Oct 2082 05 Apr 2080 to 25 Jan 2051 to 25 Jan 2081 29 Jul 2054 to 29 Jul 2084 21 Oct 2082 07 Sep 2080 30 Jul 2084 Land Use Commercial Residential, Office 19 Oct 2052 to Residential, Office 13 Apr 2051 to Commercial Residential, Office 19 Oct 2052 to Commercial Commercial Residential, Office 21 Oct 2052 to Residential Commercial, Accommodation and Catering Commercial Residential Residential, Office 19 Jan 2054 to City Shenyang Residential Shenyang Residential, Shenyang Residential, Shenyang Residential, Yingkou Residential, Jinan Jinan Dongying Residential, Yingkou Residential, Jinan Jinan Jinan Jinan Jining Hengda Changji (Shenyang) Property Company Limited Shenyang Yue Tong Properties Company Limited Shenyang Jiajun Property Company Limited Holding Entity Shenyang Jiaze Property Company Limited Yingkou Jialong Real Estate Company Limited Jinan Hengda Feicui Huating Property Company Limited Jinan Hengda Jinbi Real Estate Development Company Limited Dongying Hengda Huafu Property Company Limited Yingkou Jialong Real Estate Company Limited Jinan Huafu Property Company Limited Jinan Mingdu Property Company Limited Jinan Hengda Lvzhou Property Company Limited Jinan Hengda Xiqu Property Company Limited Jining Beihu Hengda Mingdu Property Company Limited Shenyang Metropolis Shenyang Shenyang Scenic Bay Shenyang Yingkou View Garden Jinan He Sheng Tai Cheng Dongying Yingkou Emerald Court Jinan Jinan Metropolis Jinan Jinan Jinan Metropolis Jining III-208 Portion of Evergrande Oasis III-209 Portion of Evergrande Property No. Property Name III-210 Portion of Evergrande Atrium III-211 Portion of Evergrande Royal III-212 Portion of Evergrande City III-216 Portion of Evergrande Royal III-214 Portion of Evergrande Huang III-213 Portion of Evergrande Oasis III-217 Portion of Evergrande III-215 Portion of Evergrande City III-219 Portion of Evergrande III-218 Portion of Evergrande Oasis III-220 Portion of Evergrande Atrium III-221 Portion of Evergrande
– II-63 –
– IV-64 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 9.50 Date as at 34.60 79.92 96.60 74.00 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group (2) 9.50 100.0% State 34.60 100.0% 96.60 100.0% 218.40 100.0% 218.40 425.70 100.0% 425.70 204.60 65.6% 134.18 249.20 100.0% 249.20 Market Value in Existing Rental Existing Monthly —— —— —— —— —— —— —— 1% 7,782 192.10 100.0% 192.10 2% 22,010 301.20 95.0% 286.14 (%) (RMB) (RMB million) 20% 56,414 156.70 51.0% 14% 36,040 74.00 100.0% 90% 379,162 276.60 100.0% 276.60 Date as at Valuation Occupancy Date 2016 2011 2016 2017 2016 2016 2014 2016 2014 to 2016 to 2014 to 2014 to Completion — — — — — — — 740 2016 930 2014 of CPS Number (1) — — 912 568 1,761 2009 to 3,835 3,215 1,570 2016 21,099 343 2016 18,816 29,582 10,091 20,587 39,358 (sq.m.) (Excl. CPS) Total GFA Type of Property Commercial Commercial Commercial, Carpark Commercial Carpark Commercial Commercial Commercial Carpark Commercial, Carpark Commercial, Carpark 20 Aug 2080 Commercial Land Use Rights Expiry Date 19 Sep 2050 to 11 Sep 2083 30 Dec 2051 to 30 Dec 2081 15 Feb 2052 to 19 Mar 2083 03 Mar 2052 to 03 Mar 2082 10 Apr 2054 04 Jan 2052 to 04 Jan 2082 28 Mar 2080 21 Aug 2078 to 09 Jun 2051 to 09 Jun 2081 06 Jul 2060 14 Nov 2047 to 14 Nov 2057 18 May 2049 to 18 May 2059 Land Use Commercial, Accommodation and Catering, Cultural and Entertainment Residential, Commercial Residential Commercial Commercial Residential, Commercial 18 Apr 2053 to Commercial Residential Commercial Commercial, Office, Education/Public Facility Education City Laiwu Taian Linyi Weifang Residential, Weifang Residential, Zibo Datong Residential, Linfen Lvliang Residential, Taiyuan Residential, Office 06 Jul 2050 to Taiyuan Residential, Taiyuan Residential, Office, an Tianrun Renhe ’ Laiwu Hengda Jinbi Tianxia Property Company Limited Tai Property Company Limited Linyi Lvzhou Property Company Limited Shandong Puyun Real Estate Development Company Limited Holding Entity Weifang Jinbi Property Company Limited Zibo Hengda Fanhua Property Company Limited Datong Junjing Real Estate Development Company Limited Linfen Zijing Real Estate Development Company Limited Lvliang Junhui Real Estate Development Company Limited Taiyuan Junjing Real Estate Development Company Limited Hengda (Taiyuan) Real Estate Group Company Limited Taiyuan Mingdu Real Estate Development Company Limited an ’ Splendor Laiwu Linyi Emerald Court Weifang Metropolis Weifang Tai View Garden Zibo Datong Linfen Scenic Lvliang Palace Taiyuan Taiyuan Metropolis Taiyuan III-222 Portion of Evergrande Property No. Property Name III-223 Portion of Evergrande Oasis III-225 Portion of Evergrande III-226 Portion of Evergrande III-224 Portion of Evergrande City III-227 Portion of Evergrande Royal III-228 Portion of Evergrande Oasis III-229 Portion of Evergrande Palace III-230 Portion of Evergrande Royal III-231 Portion of Evergrande Royal III-232 Portion of Evergrande Oasis III-233 Portion of Evergrande
– II-64 –
– IV-65 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) (3) Date as at 43.10 16.70 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group (2) State 16.70 100.0% 367.40 98.0% 360.05 331.50 100.0% 331.50 186.70 100.0% 186.70 465.60 100.0% 465.60 236.90 100.0% 236.90 Market Value 1,014.10 100.0% 1,014.10 2,855.90 100.0% 2,855.90 in Existing Rental Existing Monthly —— —— —— —— —— —— —— —— 0% 2,361 136.70 100.0% 136.70 8% 113,517 875.00 100.0% 875.00 (%) (RMB) (RMB million) 12% 53,359 239.70 71.0% 170.19 Date as at Valuation Occupancy Date 2016 21% 27,431 43.10 100.0% 2016 2016 2016 2016 2005 2016 2015 to 1986 to Completion — — — — 152 2015 1,670 2015 2,210 2016 of CPS Number (1) — — — 4,306 6,712 1,689 950 2012 11,975 1,340 2016 18% 46,172 263.90 64.0% 168.90 17,121 1,038 2015 to 51,242 3,154 2011 to 12,603 2,828 2014 15,652 62,472 (sq.m.) 131,286 1,247 2015 to (Excl. CPS) Total GFA Type of Property Commercial Carpark Commercial Carpark Commercial Commercial, Carpark Carpark Commercial, Carpark Commercial, Carpark Commercial, Office, Carpark 09 Dec 2078 Commercial, Land Use Rights Expiry Date 29 Jul 2055 to 29 Jul 2085 23 Aug 2082 Carpark 17 Feb 2054 to 17 Feb 2084 12 Jun 2054 to 12 Jun 2084 13 May 2078 Commercial 11 Oct 2033 to 17 Jul 2071 09 Mar 2049 to 09 Mar 2079 31 Oct 2076 Commercial, 19 Dec 2050 to 19 Dec 2080 09 Nov 2046 to 09 Nov 2076 06 Mar 2047 to 06 Mar 2077 Land Use Commercial Commercial, Education Commercial Commercial, Office, Industrial Commercial Commercial Commercial Commercial Commercial City Taiyuan Residential, Shenzhen Residential Taiyuan Residential, Chengdu Residential, Shenzhen Residential, Yangquan Residential Yuncheng Residential Yuncheng Residential, Chengdu Residential, Chengdu Residential, Chengdu Residential, Qionglai Commercial 07 Jun 2050 Carpark Chengdu Residential, Taiyuan Wanheng Real Estate Development Company Limited Shenzhen Shacun Real Estate Development Company Limited Taiyuan Junheng Real Estate Development Company Limited Chengdu Hengda Xinxicheng Property Company Limited Holding Entity Shenzhen Construction Group Corporation Limited Yangquan Shi Liaoyuan Real Estate Development Company Limited Yuncheng Xinwanrui Real Estate Development Company Limited Yuncheng Economic Development Zone Yijiayi Real Estate Development Company Limited Chengdu Wenjiang District Xinjinkang Property Company Limited Chengdu Chenming Property Company Limited Aimeigao (Chengdu) Real Estate Company Limited Chengdu Qionglai Yiheng Property Company Limited Aimeigao (Chengdu) Property Company Limited Taiyuan Gentleman Hill Garden Shenzhen Scenic Bay Taiyuan Emerald Court Chengdu Miscellaneous Project Shenzhen View Garden Yangquan Yuncheng Metropolis Yuncheng Chengdu View Garden Chengdu Metropolis Court Chengdu Emerald Court Qionglai Plaza Chengdu III-234 Portion of Evergrande Atrium Property No. Property Name III-240 Portion of Evergrande III-235 Portion of Evergrande Royal III-241 Portion of Evergrande III-239 Portion of Caiwuwei and III-236 Portion of Evergrande Royal III-237 Portion of Evergrande Oasis III-238 Portion of Evergrande III-242 Portion of Evergrande City III-243 Portion of Evergrande Royal III-244 Portion of Evergrande III-245 Portion of Evergrande III-246 Portion of Evergrande Huazhi
– II-65 –
– IV-66 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 2.50 Date as at 75.90 44.60 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group (2) 2.50 100.0% State 75.90 100.0% 44.60 100.0% 478.60 100.0% 478.60 317.80 100.0% 317.80 279.50 80.0% 223.60 169.00 100.0% 169.00 100.40 100.0% 100.40 182.70 100.0% 182.70 Market Value 2,053.60 100.0% 2,053.60 1,126.80 100.0% 1,126.80 in Existing Rental Existing Monthly —— —— —— —— —— —— —— —— —— —— —— (%) (RMB) (RMB million) 17% 63,669 495.20 100.0% 495.20 Date as at Valuation Occupancy Date 2016 2016 2016 2016 2016 2016 2016 Completion — — — 398 2016 2,070 2018 1,536 2014 to of CPS Number (1) — — — 194 4,239 9,879 1,444 1,632 2016 21,900 1,619 2010 to 24,676 2,009 2012 42% 569,709 602.50 100.0% 602.50 15,294 1,106 2016 60,147 1,556 2017 20,031 1,833 2012 to 39,040 6,667 2010 to 11,729 1,727 2016 25% 83,098 305.20 100.0% 305.20 (sq.m.) (Excl. CPS) Total GFA Type of Property Commercial, Carpark Commercial Commercial, Carpark Commercial, Carpark Commercial Commercial, Carpark Commercial, Carpark Carpark Carpark Commercial Commercial, Carpark Commercial, Carpark Commercial, Carpark Carpark Land Use Rights Expiry Date 18 Dec 2046 to 20 Aug 2077 26 Jun 2053 to 22 Dec 2083 02 Nov 2046 to 02 Nov 2076 20 Mar 2053 to 20 Mar 2083 22 Jan 2048 to 08 Oct 2085 31 Jul 2054 to 31 Jul 2084 22 Mar 2048 to 08 Mar 2078 26 Jan 2046 to 26 Jan 2076 21 Oct 2050 to 21 Oct 2080 15 Aug 2083 to 02 Aug 2086 12 Dec 2050 to 12 Dec 2080 18 Jun 2047 to 06 Sep 2086 19 Nov 2050 to 30 Dec 2083 29 Jul 2077 to 31 Oct 2080 Land Use Commercial, Office Commercial Commercial Commercial Commercial Commercial Commercial Commercial Commercial, Education Commercial Commercial Commercial Commercial City Chengdu Residential, Chengdu Residential, Chengdu Residential, Chengdu Residential, Chengdu Residential, Chengdu Residential, Chengdu Residential, Chengdu Residential, Nanchong Residential, Panzhihua Residential, Ziyang Residential, Meishan Residential, Anyang Residential, Hanzhong Residential Chengdu Hengda Yinhe Xincheng Property Company Limited Hengda (Dayi) Real Estate Group Company Limited Holding Entity Sichuan Aimeigao Real Estate Company Limited Renji Hengye (Sichuan) Investment Company Limited Chengdu Anheng Property Company Limited Chengdu Hengda Xinbeicheng Property Company Limited Chengdu Tianfu Shuicheng Real Estate Development Company Limited Chengdu Xinyi Real Estate Development Company Limited Hengda (Nanchong) Real Estate Group Company Limited Panzhihua Hengda Real Estate Development Company Limited Ziyang Wancheng Property Company Limited Hengda Xinfeng (Pengshan) Property Company Limited Anyang Tongruida Real Estate Development Company Limited Hanzhong Hualian Property Company Limited Chengdu Scenic Garden Chengdu Jincheng Chengdu City Chengdu Metropolis Chengdu Caojiaxiang Plaza Chengdu Scenic Peninsula Chengdu Paradise Peninsula Chengdu Nanchong Panzhihua Ziyang Splendor Pengshan Anyang Hanzhong III-247 Portion of Evergrande Oasis Property No. Property Name III-248 Portion of Evergrande Royal III-249 Portion of Evergrande West III-250 Portion of Evergrande New III-253 Portion of Evergrande III-252 Portion of Evergrande III-251 Portion of Evergrande Royal III-254 Portion of Evergrande III-255 Portion of Evergrande Oasis III-256 Portion of Evergrande City III-258 Portion of Evergrande City III-257 Portion of Evergrande III-259 Portion of Evergrande Oasis III-260 Portion of Evergrande City
– II-66 –
– IV-67 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 8.25 Date as at 21.40 33.00 16.90 50.90 66.50 16.80 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group (2) State 21.40 100.0% 50.90 100.0% 16.80 100.0% 196.10 100.0% 196.10 649.80 100.0% 649.80 444.50 100.0% 444.50 466.60 100.0% 466.60 Market Value in Existing Rental Existing Monthly —— —— —— —— —— —— —— 7% 10,000 57.90 57.0% (%) (RMB) (RMB million) 43% 374,166 643.60 100.0% 643.60 45% 128,325 381.60 100.0% 381.60 90% 14,065 199.20 100.0% 199.20 Date as at Valuation Occupancy Date 2016 2017 2016 2013 2013 2015 45% 52,500 16.90 100.0% 2016 2017 18% 37,501 66.50 100.0% 2017 60%2016 54,502 15.00 55.0% 2017 Completion — — — — — — 335 2011 to of CPS Number (1) — 519 1,154 2010 234 1,788 2015 to 2,452 4,594 8,776 1,555 2012 to 2,161 7,387 1,966 8,640 3,016 2016 1,577 15,422 4,487 2013 to 14,657 2,549 2016 59,328 82 2014 to (sq.m.) (Excl. CPS) Total GFA Type of Property Commercial Commercial, Carpark Commercial Carpark Carpark Commercial Carpark Commercial, Carpark Commercial, Carpark Commercial Commercial Commercial, Carpark Commercial Carpark Land Use Rights Expiry Date 18 Jun 2053 to 18 Jun 2083 17 Aug 2076 Commercial, 06 Jan 2048 to 06 Jan 2078 13 Aug 2053 to 13 Aug 2083 26 Aug 2074 30 Mar 2076 Commercial, 07 Jun 2054 to 07 Jun 2084 25 Aug 2074 to 30 Jul 2081 Commercial, 14 Jan 2052 to 14 Jan 2082 16 Jan 2051 to 16 Jan 2081 14 May 2053 to 14 May 2083 13 Feb 2055 to 13 Feb 2085 31 Aug 2046 to 31 Aug 2076 29 Mar 2083 Land Use Residential, Commercial Commercial Commercial Residential Commercial Residential Residential Commercial, Education Commercial Residential, Commercial Commercial, Office Commercial City Luohe Luoyang Residential, Xian Pingdingshan Residential, Xian Shangqiu Residential, Xian Xian Xinxiang Residential, Xinxiang Residential, Xinyang Residential, Xinyang Residential, Xuchang Residential, Office 29 Mar 2052 to Yangling Residential an Qujiang Investment an Qiyun Property an Jintu Property Company ’ ’ ’ Luohe Yusheng Real Estate Development Company Limited Hengda (Luoyang) Real Estate Group Company Limited Xi Construction Company Limited Pingdingshan Hengrong Property Company Limited Xi Company Limited Holding Entity Shangqiu Shilong Real Estate Development Company Limited Shaanxi Jinhong Investment Company Limited Xi Limited Xinxiang Mingdu Property Company Limited Xinxiang Sanlian Property Company Limited Xinyang Junjing Real Estate Company Limited Henan Dayou Real Estate Development Company Limited Xuchang Dijing Property Company Limited Shaanxi Yaoze Sihai Real Estate Development Company Limited an ’ an ’ an an ’ ’ Scenic Luohe Luoyang Metropolis Pingdingshan Metropolis Shangqiu Xi Metropolis Xi Scenic Xi Xi Xinxiang Scenic Bay Xinxiang Emerald Court Xinyang Metropolis Xinyang Xuchang Yangling III-262 Portion of Evergrande Royal III-261 Portion of Evergrande Oasis Property No. Property Name III-263 Portion of Evergrande III-264 Portion of Evergrande III-266 Portion of Evergrande Oasis III-267 Portion of Evergrande III-268 Portion of Evergrande Royal III-265 Portion of Evergrande City III-269 Portion of Evergrande Atrium III-270 Portion of Evergrande Royal III-271 Portion of Evergrande III-272 Portion of Evergrande III-273 Portion of Evergrande Oasis III-274 Portion of Evergrande City
– II-67 –
– IV-68 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) Date as at 29.46 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group (2) State 49.10 60.0% 572.20 100.0% 572.20 294.00 100.0% 294.00 238.60 100.0% 238.60 172.90 100.0% 172.90 Market Value in Existing Rental Existing Monthly —— —— —— —— —— 8% 97,147 484.20 100.0% 484.20 7% 2,136 341.20 50.2% 171.32 6% 28,486 222.50 100.0% 222.50 0% 3,538 323.70 98.8% 319.78 (%) (RMB) (RMB million) 23% 212,952 232.20 100.0% 232.20 72% 35,132 306.50 100.0% 306.50 38% 1,272,152 2,174.20 100.0% 2,174.20 84% 33,412 796.70 100.0% 796.70 Date as at Valuation Occupancy Date 2015 2013 2016 2016 2016 2017 2014 2016 2016 2016 2016 Completion — — 1,491 2011 to of CPS Number (1) — 8,857 417 2011 to 3,865 2,265 2016 1,300 2,260 2013 to 1,601 2,417 2013 to 3,809 1,159 5,982 2010 to 12,528 2,239 2016 10,723 1,345 2014 to 11,387 1,097 2016 to 67,757 6,491 2010 to 19,337 315 2013 to 22,066 (sq.m.) (Excl. CPS) Total GFA Type of Property Commercial, Carpark Commercial, Carpark Commercial, Carpark Commercial, Carpark Commercial Carpark Commercial, Carpark Commercial, Office, Carpark Carpark Commercial, Carpark Carpark Commercial Commercial, Carpark Land Use Rights Expiry Date 22 May 2083 19 Jul 2052 to 29 Jun 2086 08 Dec 2049 to 08 Dec 2079 26 Jul 2085 Jun 2055 to Nov 2086 11 Jun 2079 Commercial, 12 Nov 2050 to 12 Nov 2060 03 Mar 2079 to 19 Jul 2053 to 19 Jul 2083 15 Nov 2046 to 05 Jan 2077 19 May 2046 to 19 May 2076 26 Oct 2060 Commercial, 27 Apr 2053 to 17 May 2085 10 Jul 2047 to 10 Jul 2057 Land Use Commercial, Accommodation and Catering Commercial Commercial Commercial Commercial Commercial Commercial Commercial, Composite Commercial Commercial Commercial City Zhengzhou Residential, Office 22 May 2053 to Zhengzhou Residential, Zhengzhou Residential, Zhengzhou Residential Zhumadian Residential, Guiyang Residential, Chongqing Residential, Guiyang Residential, Guiyang Residential, Guiyang Residential, Guiyang Residential, Guiyang Residential, Chongqing Residential, Zhengzhou Yubang Property Company Limited Xinxiang Yujing Property Company Limited Henan Xingke Property Company Limited Holding Entity Zhengzhou Henglin Property Company Limited Zhumadian Kaifaqu Yucheng Real Estate Development Company Limited Guizhou Guangjuyuan Real Estate Development Company Limited Chongqing Hengda Fucheng Real Estate Development Company Limited Guizhou Hengda Changji Real Estate Development Company Limited Hengda Real Estate Group Guiyang Property Company Limited Guiyang New World Real Estate Company Limited Guiyang Haiming Investment Construction Development Company Limited Guiyang Jiude Real Estate Development Company Limited Chongqing Hengda Jiyu Property Company Limited Zhengzhou Splendor Zhengzhou Metropolis Zhengzhou Garden Zhengzhou Metropolis Zhumadian Guiyang Garden Fuling Emerald Court Guiyang Guiyang World Guiyang Metropolis Guiyang Guiyang Chongqing III-276 Portion of Evergrande Oasis III-275 Portion of Evergrande Property No. Property Name III-277 Portion of Evergrande III-278 Portion of Evergrande Scenic III-279 Portion of Evergrande III-281 Portion of Evergrande City III-280 Portion of Evergrande Scenic III-282 Portion of Evergrande III-284 Portion of Evergrande Oasis III-283 Portion of Evergrande New III-285 Portion of Evergrande III-286 Portion of Evergrande Atrium III-287 Portion of Evergrande City
– II-68 –
– IV-69 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 7.40 Date as at 62.90 21.90 Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group (2) 7.40 100.0% State 283.00 100.0% 283.00 845.50 100.0% 845.50 387.70 60.0% 232.62 262.20 100.0% 262.20 209.80 100.0% 209.80 Market Value in Existing Rental Existing Monthly —— —— —— —— —— —— 0% 4,624 484.30 100.0% 484.30 (%) (RMB) (RMB million) 17% 30,183 105.40 100.0% 105.40 62% 48,301 372.90 100.0% 372.90 90% 46,443 611.60 100.0% 611.60 39% 132,967 912.80 100.0% 912.80 Date as at Valuation Occupancy Date 2015 2017 2016 2016 2016 2017 19% 20,001 62.90 100.0% 2015 2013 2014 53%2016 19,516 21.90 100.0% 2016 2015 to Completion — — — — — of CPS Number (1) 514 4,371 1,523 2013 to 2,100 2,020 2015 7,530 4,315 2,867 2010 to 6,387 3,979 1,036 2010 to 2,062 27,790 3,904 2012 to 16,994 1,230 2016 24,578 19,445 2,300 2015 to 15,428 6,472 2011 to (sq.m.) (Excl. CPS) Total GFA Type of Property Commercial, Carpark Commercial Commercial, Carpark Commercial Carpark Commercial, Carpark Commercial Commercial, Carpark Commercial Commercial Commercial, Carpark Commercial, Carpark Commercial, Carpark Land Use Rights Expiry Date 31 Mar 2051 to 31 Mar 2061 30 Aug 2053 to 30 Aug 2063 Nov 2050 to Nov 2060 24 Dec 2053 to 24 Dec 2063 27 Jan 2054 to 27 Jul 2081 09 Jun 2055 to 03 Jun 2085 26 Dec 2047 to 08 Oct 2081 17 Sep 2079 11 Nov 2050 to 27 Jul 2084 14 Feb 2047 to 14 Feb 2057 24 Apr 2078 to 30 Aug 2053 to 30 Aug 2063 28 Dec 2046 to 18 Sep 2066 Land Use Commercial Commercial Commercial Commercial Residential, Commercial Commercial Commercial, Office Commercial, Office Commercial, Clubhouse Commercial Commercial, Accommodation and Catering, Cultural and Entertainment City Chongqing Residential, Chongqing Residential, Chongqing Residential, Chongqing Residential, Kaili Chongqing Commercial 25 May 2063 Commercial, Kunming Residential, Kunming Residential, Kunming Residential Qujing Residential, Chongqing Residential, Chongqing Residential, Chongqing Residential, Hengda (Chongqing) Real Estate Group Company Limited Chongqing Hengda Xinquan Property Company Limited Holding Entity Chongqing Hengda Jun Xin Real Estate Development Company Limited Chongqing Hengda Xinding Property Company Limited Guizhou Kaidi Property Company Limited Chongqing Zhongyu Property Development Company Limited Kunming Heng Chang Property Company Limited Hengda Xinyuan (Kunming) Property Company Limited Yunnan Heding Real Estate Development Company Limited Qujing Zhongxi Property Company Limited Hengda (Chongqing) Real Estate Group Company Limited Chongqing Hengda Xinquan Property Company Limited Hengda (Jiangjin) Real Estate Group Company Limited View Garden Chongqing Garden Chongqing Chongqing Scenic Bay Chongqing Kali Land Plaza Metropolis Kunming Splendor Kunming Kunming Metropolis Qujing Chongqing Emerald Court Chongqing Splendor Chongqing III-288 Portion of Evergrande Royal Property No. Property Name III-289 Portion of Evergrande Scenic III-290 Portion of Evergrande Atrium III-291 Portion of Evergrande Royal III-293 Portion of Evergrande City III-292 Portion of Evergrande C C III-295 Portion of Evergrande III-294 Portion of Evergrande III-296 Portion of Evergrande Atrium III-297 Portion of Evergrande III-299 Portion of Evergrande Palace III-298 Portion of Evergrande III-300 Portion of Evergrande
– II-69 –
– IV-70 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 4.79 Date as at Market Value Valuation Attributable to the Group (%) (RMB million) Interest Attributable to the Group (2) 9.40 51.0% State 313.70 100.0% 313.70 468.10 100.0% 468.10 404.60 76.4% 308.95 355.20 51.0% 181.15 Market Value in Existing s management reference, had ’ Rental Existing Monthly —— —— —— —— —— 3% 184,910 1,361.90 100.0% 1,361.90 (%) (RMB) (RMB million) 49% 32,958 149.30 100.0% 149.30 Date as at Valuation Occupancy Date 2014 2016 2017 2016 2016 2016 Completion — — 2,529 2015 to of CPS Number (1) — 689 7,643 1,213 2010 to 3,907 2,717 2016 6,150 762 2014 to 90,020 2,040 2012 to 10,911 1,167 2014 86% 118,643 215.60 100.0% 215.60 29,022 (sq.m.) (Excl. CPS) Total GFA Type of Property Commercial, Carpark Commercial, Office, Carpark Commercial Commercial Carpark Commercial, Carpark Carpark Commercial, Carpark Land Use Rights Expiry Date 17 Oct 2047 to 17 Oct 2057 16 Oct 2047 to 17 Oct 2057 30 Aug 2053 to 30 Aug 2063 30 Dec 2054 to 30 Dec 2064 02 Feb 2048 to 02 Feb 2058 20 Apr 2051 to 10 Dec 2083 01 Jan 2080 Commercial, 28 Nov 2052 to 18 Jun 2083 hout title documents nor without full payment of land premium. For Group Land Use Commercial, Education, Carpark Commercial, Education Commercial Commercial Commercial, Education Commercial Residential Commercial nd premium been fully settled, the market value of such part of the property interestsle attributab to the Group would be City Chongqing Residential, Chongqing Residential, Chongqing Residential, Chongqing Residential, Chongqing Residential, Zigong Residential, Zunyi Zigong Residential, Hengda (Chongqing) Real Estate Group Company Limited Hengda (Chongqing) Real Estate Group Company Limited Holding Entity Chongqing Hengda Xinquan Property Company Limited Chongqing Yongli Property Company Limited Chongqing Jianzhi Real Estate Company Limited Hengda (Zigong) Real Estate Group Company Limited Zunyi Xinguang Real Estate Development Company Limited Zigong Xinmao Property Company Limited Chongqing Metropolis Chongqing Scenic Peninsula Chongqing City Chongqing Coronation Chongqing Zigong Zunyi Metropolis Zigong the relevant title documents beenRMB obtained 24,100,000. and the la III-301 Portion of Evergrande Oasis Property No. Property Name Note: 1 All areas are stated in approximations. 2 All values are stated in approximations. 3 We have ascribed no commercial value to the part of the property wit III-302 Portion of Evergrande III-304 Portion of Evergrande Royal III-303 Portion of Evergrande Century III-305 Portion of Evergrande The III-306 Portion of Evergrande Oasis III-308 Portion of Evergrande City III-307 Portion of Evergrande
– II-70 –
– IV-71 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 15.40 39.20 33.67 38.30 281.70 870.73 346.43 147.33 252.10 109.00 196.50 198.20 292.80 117.30 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) 60.0% 70.0% 70.0% 90.0% 70.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Interest the Group Attributable to (2) 15.40 39.20 48.10 38.30 469.50 494.90 163.70 109.00 252.10 198.20 196.50 292.80 117.30 1,243.90 Market Value in Existing State Date as if 21.70 54.20 64.40 50.30 571.70 659.70 231.00 141.90 261.00 297.80 254.60 485.00 235.40 (2) Development at Valuation Value Completed as 7.20 9.72 14.17 35.50 20.81 47.46 14.29 30.63 118.11 710.22 1,604.90 236.13 118.10 103.52 140.27 up to the Development Cost incurred Valuation Date 8.47 Cost 16.68 51.47 26.01 49.96 17.09 10.23 87.94 Total 131.23 816.68 262.79 123.82 115.03 220.64 Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 Estimated Completion Date 2014 2014 2014 2014 2014 2014 2014 2014 2016 2015 2014 2014 2014 2016 Construction Commencement — — — — — — — — 654 657 CPS Number of (1) 3,100 9,681 5,956 3,780 6,499 5,629 1,135 5,202 3,650 49,132 17,913 23,672 26,451 2,338 17,211 16,837 (sq.m.) 133,646 3,658 (Excl. CPS) Total GFA Commercial Commercial, Office, Carpark Commercial Commercial, Carpark Commercial Commercial Commercial Commercial, Carpark Commercial Commercial, Carpark Commercial Commercial Commercial, Carpark Commercial, Carpark 25 Mar 2053 to 22 Oct 2083 05 Sep 2052 to 16 Aug 2085 26 Nov 2050 to 14 Aug 2085 15May2053to 29 Sep 2084 14 Mar 2081 10 Sep 2053 to 10 Sep 2083 07 Oct 2053 to 07 Oct 2083 21May2048to 27 Sep 2078 08 Oct 2050 to 08 Oct 2080 12 Oct 2053 to 12 Oct 2083 20 Dec 2050 to 20 Dec 2080 12 Jan 2056 to 12 Jan 2086 14 Sep 2051 to 14 Sep 2081 30May2053to 30 Nov 2083 Land Use Rights Expiry Date Type of Property Commercial Residential, Commercial, Office Commercial Residential, Commercial Residential, Commercial Residential, Commercial Commercial Commercial Residential, Residential, Commercial Commercial Commercial Residential, Residential, Office 14 Mar 2051 to Residential, Residential, Commercial Commercial Residential, Residential, Land Use Tangshan Shijiazhuang Residential, Qinhuangdao Residential, Handan Hengshui Huaibei Hefei Langfang Baotou Tongling Langfang Anqing City Properties held by the Group for Investment in the PRC (Under Development) Tangshan Zhaorui Investment Company Limited Shijiazhuang Diyijia Real Estate Development Company Limited Hengda Real Estate GroupHengda Qinhuangdao Cheng Real EstateCompany Development Limited Langfang Feicui Huating Real Estate Handan Daye Real EstateCompany Development Limited Hengshui Shengyu Real EstateCompany Development Limited Huaibei Yuetong Property Company Limited Yuecheng (Hefei) Property Company Limited Hengda Langfang Real EstateCompany Development Limited Hengda (Baotou) Real EstateCompany Group Limited Tongling Hengda Property Company Limited Development Company Limited Fuyang Yuetong Property Company Limited Fuyang Bozhou Hengda Property Company Limited Bozhou Anqing Hengyuan Property Company Limited — Palace Tangshan Royal Scenic Peninsula Shijiazhuang City Qinhuangdao Emerald Court Langfang Metropolis Handan City Hengshui Metropolis Huaibei Plaza Hefei Metropolis Langfang Palace Baotou Oasis Tongling Oasis Fuyang City Bozhou Oasis Anqing III-322 Portion of Evergrande III-321 Portion of Evergrande III-320 Portion of Evergrande III-318 Portion of Evergrande III-317 Portion of Evergrande III-316 Portion of Evergrande III-313 Portion of Evergrande III-312 Portion of Evergrande III-319 Portion of Evergrande III-315 Portion of Evergrande III-314 Portion of Evergrande III-311 Portion of Evergrande III-310 Portion of Evergrande III-309 Portion of Evergrande Group III-B Property No. Property Name Holding Entity
– II-71 –
– IV-72 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 8.00 34.50 94.20 78.70 21.80 26.72 35.60 228.20 219.90 111.20 384.30 118.20 125.10 115.13 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) 51.0% 72.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Interest the Group Attributable to (2) 8.00 34.50 94.20 78.70 21.80 52.40 35.60 228.20 219.90 111.20 384.30 118.20 125.10 159.90 Market Value in Existing State Date as if 48.80 10.00 43.70 62.90 44.10 188.20 352.70 263.50 111.40 153.60 485.50 147.40 153.10 230.30 (2) Development at Valuation Value Completed as 2.00 6.14 63.03 21.06 78.97 43.89 47.38 74.99 38.39 15.00 85.11 27.11 37.84 273.68 up to the Development Cost incurred Valuation Date 2.10 6.82 Cost 65.43 26.33 92.91 51.64 47.75 29.99 94.57 30.12 58.71 Total 135.26 304.09 120.14 Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 Estimated Completion Date 2016 2014 2015 2016 2014 2014 2014 2015 2016 2016 2016 2015 2015 2014 Construction Commencement — — — — 406 356 536 969 299 296 CPS 2,151 1,164 2,890 Number of (1) — — — — — — — — 700 6,352 1,122 3,337 2,200 19,013 26,033 (sq.m.) (Excl. CPS) Total GFA Commercial, Carpark Carpark Commercial, Carpark Carpark Commercial Carpark Carpark Carpark Commercial Carpark Commercial 07 Apr 2081 to 17 Dec 2083 Carpark 12 Jan 2044 to 17 Aug 2083 16 Jul 2053 to 16 Jul 2083 06 Jun 2053 to 06 Jun 2083 01 Sep 2081 13 Mar 2052 to 13 Mar 2082 29 Dec 2080 Commercial 16 Jul 2054 to 15 Sep 2086 11 Aug 2082 Carpark 16 Feb 2054 to 16 Feb 2084 13 Feb 2051 to 13 Feb 2081 04 Jun 2055 to 04 Jun 2085 19 Jan 2054 to 19 Jan 2084 16 Oct 2052 to 16 Oct 2082 Land Use Rights Expiry Date Type of Property Residential Residential, Accommodation and Catering, Cultural and Sport Commercial Residential, Residential, Commercial Commercial, Accommodation and Catering Residential, Commercial Commercial Facility, Green Space Residential, Residential, Commercial Residential, Commercial Residential, Residential, Residential, Public Commercial Residential Residential, Commercial Commercial Residential, Land Use Yangjiang Zhanjiang Beihai Yinchuan Chaozhou Enping Lanzhou Guangzhou Shaoguan Lanzhou Quanzhou Xingtai City Yangjiang Yifeng Property Company Limited Hengda Real Estate GroupYujing Zhanjiang Property Company Limited Beihai Jiajing Real EstateCompany Development Limited Hengda (Yinchuan) Real EstateCompany Group Limited Chaozhou Hengda Property Company Limited Hengda (Enping) Real EstateCompany Group Limited Lanzhou Shenjun Property Company Limited Guangzhou Xincheng Property Company Limited Hengda (Shaoguan) Real EstateCompany Group Limited Shishi Jinbi Property Company Limited Shishi Hengda Real Estate GroupProperty Lanzhou Company Limited Xiamen Hengda Property Company Limited Xiamen Quanzhou Ansheng Property Company Limited Xingtai Shuangda Real EstateCompany Development Limited Royal Palace Guangzhou Hawaii on the sea Yangjiang Oasis Zhanjiang Metropolis Beihai Metropolis Yinchuan City Chaozhou Spring City Enping Scenic Garden Lanzhou City Shaoguan Metropolis Shishi Oasis Lanzhou Royal View Garden Xiamen Emerald Court Quanzhou City Xingtai III-332 Portion of Evergrande III-334 Portion of Evergrande III-335 Portion of Evergrande III-336 Portion of Evergrande III-329 Portion of Evergrande III-330 Portion of Evergrande III-331 Portion of Evergrande III-328 Portion of Evergrande III-333 Portion of Evergrande III-326 Portion of Evergrande III-327 Portion of Evergrande III-325 Portion of Evergrande III-324 Portion of Evergrande III-323 Portion of Evergrande Property No. Property Name Holding Entity
– II-72 –
– IV-73 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 24.12 10.40 29.20 71.50 95.80 44.01 11.50 36.20 101.76 147.50 384.20 540.80 510.82 336.00 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) 67.1% 60.0% 67.1% 51.0% 51.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Interest the Group Attributable to (2) 40.20 15.50 29.20 71.50 95.80 86.30 11.50 36.20 151.70 147.50 384.20 540.80 336.00 1,001.60 Market Value in Existing State Date as if 48.50 20.30 52.80 85.60 15.70 51.40 182.20 185.30 115.10 486.70 108.60 717.30 406.00 (2) Development at Valuation Value Completed as 6.70 4.90 5.42 2.51 8.66 67.53 20.20 14.20 95.90 17.14 286.73 191.47 393.00 1,206.30 159.30 up to the Development Cost incurred Valuation Date 7.45 5.77 3.14 Cost 74.40 18.06 21.26 14.95 18.35 10.98 Total 318.59 100.95 257.33 413.69 167.69 Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 Estimated Completion 2015 Date 2015 2015 2014 2016 2015 2014 2015 2014 2016 2015 2014 2015 2014 Construction Commencement — — — — — — — — 720 825 CPS 3,527 Number of (1) — 2,127 1,833 5,900 5,596 4,139 1,288 3,242 5,675 6,796 1,030 4,391 3,129 2,441 20,130 2,700 (sq.m.) 110,822 (Excl. CPS) Total GFA Commercial Office, Carpark Commercial Commercial, Carpark Commercial Commercial Commercial, Carpark Commercial Commercial Commercial, Office, Carpark Commercial, Carpark 30 Dec 2068 Carpark 19 Oct 2065 to 19 Oct 2085 11 Oct 2053 to 11 Oct 2083 09 Nov 2063 Commercial 09 Aug 2050 to 09 Aug 2080 09 Feb 2050 to 09 Feb 2080 18 Jul 2052 to 08 Oct 2082 29 Jun 2055 to 29 Jun 2085 14 Oct 2047 to 14 Oct 2077 22 Jan 2054 to 25 Sep 2085 15 Jan 2054 to 15 Jan 2084 01 Aug 2082 Commercial 28 Sep 2048 to 29 Nov 2049 01 Jan 2046 to 20 Dec 2084 Land Use Rights Expiry Date Type of Property Residential Residential, Park and Green Space Residential, Commercial Commercial Residential, Commercial Commercial Commercial Commercial Residential, Commercial Residential, Residential, Commercial Residential, Residential, Commercial Residential, Composite Commercial, Accommodation and Catering, Park and Green Space Residential, Land Use Commercial, Wuhan Wuhan Wuhan Qinzhou Mudanjiang Haikou Nanning Nanning Liuzhou Beihai Fangchenggang Residential City Wuhan Hengda Dushi RealDevelopment Estate Company Limited Wuhan Hengda Jinbi RealDevelopment Estate Company Limited Wuhan Sanjiang Hangtian Investment Development Company Limited Qinzhou Qinlian Hengda Property Investment Company Limited Hainan Minghao Property Company Limited Chengmai Mudanjiang Hengda Yongtai RealDevelopment Company Estate Limited Hainan Dongfangmingzhu Real Estate Company Limited Nanning Shengshi Hengda RealDevelopment Estate Company Limited Nanning Yinxiang Real EstateCompany Development Limited Liuzhou Zhaofu Property Company Limited Liuzhou Liuzhou Hengda Jinbi PropertyLimited Company Beihai Nanguo Tiantang RealDevelopment Estate Company Limited Hengda (Fangchenggang) Real EstateCompany Group Limited Guilin Guijia Real Estate Company Limited Guilin Royal Palace Wuhan Royal Garden Wuhan Capital Wuhan Oasis Qinzhou Royal Scenic Bay Hainan Oasis Mudanjiang Culture Tourist City Haikou Metropolis Nanning Oasis Nanning Palace Liuzhou Emerald Court Liuzhou Royal Scenic Peninsula Beihai Royal Scenic Bay Fangchenggang Plaza Guilin III-350 Portion of Evergrande III-349 Portion of Evergrande III-348 Portion of Evergrande III-344 Portion of Evergrande III-345 Portion of Evergrande III-347 Portion of Evergrande III-346 Portion of Evergrande III-343 Portion of Evergrande III-342 Portion of Evergrande III-341 Portion of Evergrande III-340 Portion of Evergrande III-337 Portion of Evergrande III-338 Portion of Evergrande III-339 Portion of Evergrande Property No. Property Name Holding Entity
– II-73 –
– IV-74 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 26.40 17.20 66.91 13.10 22.00 21.20 127.40 141.40 850.30 171.80 618.80 106.74 162.40 260.10 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) 51.0% 60.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Interest the Group Attributable to (2) 26.40 17.20 13.10 22.00 21.20 131.20 141.40 127.40 171.80 162.40 177.90 850.30 618.80 260.10 Market Value in Existing State Date as if 32.40 20.60 30.40 16.10 28.10 164.40 169.20 207.20 208.20 245.10 157.60 318.60 764.30 (2) Development at Valuation Value Completed as 9.13 5.40 4.29 8.20 16.28 71.33 94.48 43.19 95.29 246.27 1,042.40 143.98 125.31 226.02 568.58 up to the Development Cost incurred Valuation Date 7.71 4.77 9.65 Cost 10.14 17.13 73.15 Total 48.07 273.63 151.56 156.64 100.30 100.06 237.91 599.48 Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 Estimated Completion Date 2014 2014 2015 2015 2014 2016 2015 2014 2016 2014 2015 2016 2014 2014 Construction Commencement — — — — — — 182 846 446 CPS 1,381 1,810 1,645 2,029 Number of (1) — — — — — 2,951 2,600 1,790 3,569 2,535 4,922 5,920 5,417 16,747 66,818 (sq.m.) (Excl. CPS) Total GFA Commercial Carpark Commercial, Carpark Commercial Commercial Commercial Carpark Carpark Commercial, Carpark Commercial Commercial, Carpark Carpark Commercial 29 Dec 2050 to 29 Dec 2080 27 Jun 2050 to 02 Mar 2081 12May2051to 12 May 2081 22May2048to 22 May 2078 13 Jan 2051 to 13 Jan 2081 09 Sep 2053 Carpark 12 Jun 2054 to 12 Jun 2084 23 Mar 2051 to 23 Mar 2081 27 Mar 2054 to 24 Sep 2084 13 Mar 2053 to 13 Mar 2083 23 Dec 2050 to 23 Dec 2080 30May2052to 30 May 2082 12 Nov 2052 to 12 Nov 2082 05 Mar 2050 to 06 Feb 2083 Land Use Rights Expiry Date Type of Property Commercial Commercial Commercial Residential, Commercial Commercial Commercial Residential, Residential, Commercial Commercial Accommodation and Catering, Education Residential, Commercial Cultural and Entertainment Commercial Commercial Commercial Residential, Land Use Residential, Residential, Residential, Office, Residential, Residential, Residential, Residential, Residential, Residential, Nanchang Jingdezhen Changchun Ganzhou Changchun Changchun Quzhou Ningbo Yancheng Changchun Xiangyang Danyang Wuhan City Nanchang Zhongdiantou Gaoxin Property Company Limited Hengda (Jingdezhen) Real EstateCompany Group Limited Yongji (Changchun) Real EstateLimited Company Jiangxi Xingyu Property Development Company Limited Xinji (Changchun) Real EstateLimited Company Taiji (Changchun) Real EstateLimited Company Quzhou Hengda Shengjian Property Company Limited Chengbo (Ningbo) Property Company Limited Hengda Real Estate GroupCompany Yancheng Limited Zetao (Changchun) Real EstateLimited Company Xiangyang Hengda Real Estate Development Company Limited Danyang Mingyuan Real Estate Development Company Limited Wuhan Hengda Chutian RealDevelopment Estate Company Limited Jurong Tiangong Property Company Limited Nanjing Royal View Garden Nanchang Metropolis Jingdezhen City Plaza Changchun Metropolis Ganzhou Metropolis Changchun Scenic View Garden Changchun Royal Scenic Peninsula Quzhou City Lights Ningbo Metropolis Yancheng Royal View Garden Changchun Metropolis Xiangyang City Danyang Royal Scenic Bay Wuhan Atrium Nanjing Jurong III-364 Portion of Evergrande III-363 Portion of Evergrande III-359 Portion of Evergrande III-362 Portion of Evergrande III-360 Portion of Evergrande III-361 Portion of Evergrande III-356 Portion of Evergrande III-355 Portion of Evergrande III-357 Portion of Evergrande III-358 Portion of Evergrande III-352 Portion of Evergrande III-353 Portion of Evergrande III-351 Portion of Evergrande Property No. Property Name Holding Entity III-354 Portion of Evergrande
– II-74 –
– IV-75 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 50.80 68.50 11.60 85.00 15.50 11.60 204.70 213.10 554.10 543.10 305.40 266.30 123.60 233.60 192.60 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Interest the Group Attributable to (2) 50.80 68.50 11.60 85.00 15.50 11.60 204.70 213.10 543.10 305.40 266.30 554.10 123.60 233.60 192.60 Market Value in Existing State Date as if 64.40 82.60 14.90 20.90 14.60 245.60 273.20 761.90 108.40 365.30 330.00 184.90 685.50 241.10 311.10 (2) Development at Valuation Value Completed as 2.42 5.80 2.74 21.42 83.01 56.19 59.08 18.15 40.69 64.41 105.40 171.05 408.51 216.51 144.22 up to the Development Cost incurred Valuation Date 2.84 6.45 2.88 Cost 22.55 84.70 67.79 72.06 19.40 42.83 67.81 Total 112.56 180.72 468.92 231.80 161.23 Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 Estimated Completion Date 2014 2014 2014 2016 2014 2015 2015 2015 2015 2014 2014 2014 2014 2014 2015 Construction Commencement — — — — — — — — — — — CPS Number of (1) 829 9,851 1,049 2,397 2,298 7,531 7,262 2,342 1,191 3,693 2,169 26,470 26,628 23,576 11,541 21,788 29,352 2,922 (sq.m.) 138,530 (Excl. CPS) Total GFA Commercial, Carpark Commercial, Carpark Office Commercial Office Commercial Commercial Commercial Commercial, Carpark Commercial Commercial, Carpark Commercial Commercial Commercial Commercial 13 Jan 2051 to 31 Dec 2056 to 20 Mar 2053 to 20 Mar 2083 09 Jun 2051 to 09 Jun 2081 31 Oct 2064 13 Feb 2051 15 Feb 2052 to 19 Mar 2083 19 Oct 2082 28 Jan 2051 to 29 Mar 2081 21 Apr 2054 to 21 Apr 2084 29 Jul 2054 to 29 Jul 2084 29May2053to 19 Jun 2083 28 Jan 2051 to 28 Jan 2081 28 Sep 2051 to 28 Sep 2081 27 Apr 2052 to 27 Apr 2082 12May2051to 29 Nov 2082 28 Feb 2050 to 28 Feb 2080 Land Use Rights Expiry Date Type of Property Commercial Commercial Commercial Residential, Residential, Residential, Residential, Residential, Commercial Residential, Commercial Commercial Residential, Office 19 Oct 2052 to Commercial Commercial Commercial, Office Commercial Commercial Commercial Residential, Residential, Commercial Residential, Residential Residential, Land Use Residential, Residential, Chengdu Lvliang Shenyang Jinan Dalian Weifang Yingkou Yingtan Yining Xinyu Wujiaqu City Renji Hengye (Sichuan) Investment Company Limited Lvliang Junhui Real EstateCompany Development Limited Hengda Changji (Shenyang) Property Company Limited Fushun Jiashun Property Company Limited Fushun Jinan Hengda Feicui HuatingCompany Property Limited Panjin Jiading Property Company Limited Panjin Dalian Hengcheng Real EstateLimited Company Shandong Puyun Real EstateCompany Development Limited Yingkou Jialong Real EstateLimited Company Shenyang Jiahui Property Company Limited Shenyang Hengda Real Estate YingtanLimited Company Benxi Jiaxi Property Company Limited Benxi Yining Jinbi Real EstateCompany Development Limited Xinyu Xingwang Real EstateCompany Development Limited Wujiaqu Zhuoyue Real EstateCompany Development Limited New City Chengdu Royal Scenic Lvliang Oasis Shenyang Plaza Fushun Royal View Garden Jinan Palace Panjin Royal View Garden Dalian Emerald Court Weifang Oasis Yingkou Emerald Court Shenyang Oasis Yingtan Oasis Benxi Oasis Yining City Xinyu Splendor Urumchi III-379 Portion of Evergrande III-378 Portion of Evergrande III-374 Portion of Evergrande III-371 Portion of Evergrande III-376 Portion of Evergrande III-372 Portion of Evergrande III-370 Portion of Evergrande III-377 Portion of Evergrande III-375 Portion of Evergrande III-373 Portion of Evergrande III-368 Portion of Evergrande III-369 Portion of Evergrande III-367 Portion of Evergrande III-366 Portion of Evergrande III-365 Portion of Evergrande Property No. Property Name Holding Entity
– II-75 –
– IV-76 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 3.60 9.35 45.84 30.50 51.70 81.04 585.50 116.10 131.30 373.70 266.24 443.60 851.40 1,306.10 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) 60.0% 50.2% 80.0% 57.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Interest the Group Attributable to (2) 3.60 76.40 30.50 51.70 16.40 116.10 585.50 161.40 131.30 373.70 443.60 332.80 851.40 1,306.10 Market Value in Existing State 5.50 Date as if 41.80 69.80 24.10 103.20 139.80 219.40 159.10 500.40 653.10 455.60 905.30 (2) Development at Valuation Value Completed as 1.50 3.78 25.03 35.84 13.24 11.07 26.90 69.30 131.02 114.26 218.84 263.49 1,681.20 296.38 273.23 1,638.00 up to the Development Cost incurred Valuation Date 1.99 5.82 Cost 33.84 37.73 14.81 13.02 29.88 Total 154.14 126.95 273.55 148.89 309.99 437.17 691.83 Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 Estimated Completion Date 2015 2016 2015 2014 2015 2015 2014 2015 2016 2015 2014 2015 2015 2014 Construction Commencement — — — — — — — — — — CPS 3,375 Number of (1) — 701 5,117 1,910 5,906 5,519 9,045 3,053 1,430 11,790 40,953 51,343 96,873 53,482 2,011 (sq.m.) 145,248 2,596 (Excl. CPS) Total GFA Commercial Commercial Office, Carpark Commercial, Carpark Commercial Commercial Commercial Commercial Commercial Carpark Commercial Commercial Commercial, Carpark 25 May 2063 Commercial 13 Aug 2053 to 13 Aug 2083 14 Apr 2055 to 14 Dec 2085 22 May 2083 26 Jul 2085 Jun 2055 to Nov 2086 07 Jun 2054 to 07 Jun 2084 06 Jan 2048 to 06 Jan 2078 15 Oct 2053 to 22 Feb 2084 29 Apr 2085 26 Jan 2046 to 26 Jan 2076 03 Mar 2079 to 31 Jul 2054 to 31 Jul 2084 26 Feb 2055 to 26 Feb 2085 22 Mar 2048 to 08 Mar 2078 Land Use Rights Expiry Date Type of Property Residential, Office 22 May 2053 to Commercial Residential Commercial Residential, Commercial Residential, Commercial Commercial Residential, Residential, Commercial Residential, Commercial Residential, Office 29 Apr 2055 to Commercial Commercial Residential, Residential, Commercial, Public Facility Commercial Residential, Land Use Residential, an an ’ ’ Chongqing Pingdingshan Residential, Zhengzhou Zhengzhou Zhumadian Shangqiu Luoyang Luzhou Chengdu Chengdu Chengdu Chengdu City an Hengying Property Company Limited Xi an Jiazhi Property Company Limited Xi ’ ’ Chongqing Zhongyu Property Development Company Limited Pingdingshan Hengrong Property Company Limited Zhengzhou Yubang Property Company Limited Xi Zhengzhou Henglin Property Company Limited Zhumadian Kaifaqu Yucheng RealDevelopment Estate Company Limited Shangqiu Shilong Real EstateCompany Development Limited Hengda (Luoyang) Real EstateCompany Group Limited Xi Hengda (Luzhou) South CityCompany Property Limited Chengdu Xinyi Real EstateCompany Development Limited Chengdu Hengda Xinbeicheng Property Company Limited Chengdu Hengda Xindongcheng Property Company Limited Chengdu Tianfu Shuicheng RealDevelopment Estate Company Limited an ’ an ’ C C Land Plaza Bay Xi Metropolis Pingdingshan Oasis Zhengzhou Scenic Garden Zhengzhou Metropolis Zhumadian Metropolis Shangqiu Oasis Luoyang Royal View Garden Xi Royal Scenic Bay Luzhou Paradise Peninsula Chengdu Caojiaxiang Plaza Chengdu Central Square Chengdu Royal Scenic Peninsula Chengdu III-393 Portion of Evergrande III-389 Portion of Evergrande III-387 Portion of Evergrande III-390 Portion of Evergrande III-391 Portion of Evergrande III-392 Portion of Evergrande III-388 Portion of Evergrande III-386 Portion of Evergrande III-385 Portion of Evergrande III-384 Portion of Evergrande III-383 Portion of Evergrande III-382 Portion of Evergrande III-381 Portion of Evergrande III-380 Portion of Evergrande Property No. Property Name Holding Entity
– II-76 –
– IV-77 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 59.71 88.80 131.90 321.30 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) 76.4% 100.0% 100.0% 100.0% Interest the Group Attributable to (2) 78.20 88.80 131.90 321.30 Market Value in Existing State Date as if 163.10 101.00 119.40 383.00 (2) Development at Valuation Value Completed as 15.77 96.03 140.57 278.70 up to the Development Cost incurred Valuation Date Cost 22.53 Total 147.97 293.37 106.70 Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2017 2017 2017 2017 Estimated Completion Date 2014 2016 2015 2016 Construction Commencement — 631 CPS 1,523 2,394 Number of (1) — — — 8,229 (sq.m.) (Excl. CPS) Total GFA Carpark Carpark Carpark Commercial 28 Nov 2052 to 18 Jun 2083 30 Nov 2055 to 30 Nov 2065 02 Feb 2048 to 02 Feb 2058 30 Aug 2053 to 30 Aug 2063 Land Use Rights Expiry Date Type of Property Residential, Commercial Commercial Commercial, Education Commercial Residential, Land Use Residential, Residential, Chongqing Chongqing Chongqing City Zigong Xinmao Property Company Limited Zigong Chongqing Hengda Xingai Property Company Limited Chongqing Jianzhi Real EstateLimited Company Chongqing Hengda Xinquan Property Company Limited Metropolis Zigong Central Plaza Chongqing The Coronation Chongqing Emerald Court Chongqing III-397 Portion of Evergrande III-395 Portion of Evergrande III-396 Portion of Evergrande III-394 Portion of Evergrande Property No. Property Name Holding Entity Notes: 1 All areas are stated in approximations. 2 All values are stated in approximations.
– II-77 –
– IV-78 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 19.80 65.90 88.30 47.30 673.11 237.58 607.39 282.90 309.78 355.40 653.60 426.60 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) State 19.80 100.0% 65.90 100.0% 88.30 100.0% 47.30 100.0% Market Value in Existing (2) Date as if 28.90 76.90 Value Development at Valuation Completed as 6.01 299.90 Date 19.50 24.86 291.40 25.48 2,099.70 516.30 60.0% 19.72 Valuation up to the Development Cost incurred Cost 23.52 34.70 Total 167.04 258.68 167.53 580.50 365.50 65.0% 166.21 440.02 114.52 805.90 282.90 100.0% 801.88 126.43 2,140.80895.08 867.70 70.0% 380.22 120.43 781.40 355.40 100.0% 670.96 126.67 1,590.60 653.60 100.0% 399.35 157.70 889.80 426.60 100.0% Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2017 2017 2018 1,264.34 113.82 1,572.80 764.90 88.0% 2017 2017 2018 2017 2019 2020 2017 2018 2018 Estimated Completion Date 2013 2010 2016 2011 2015 2013 2013 2016 2017 2013 2015 2012 Construction Commencement 7.88 Pre-sale consideration (1) —— —— —— GFA Pre-sale (1) 5,838 GFA Total Planned (1) 68,861 90,220 103,954 34,577 278.45 84,502 10,981 1,272 77,946 143,908 80,691 569.45 (sq.m.) (sq.m.) (sq.m.) (RMB million) 310,929 70,809 134,869 359,067 67,814 422.85 216,102 140,886 53,025 317.25 137,229 313,897 183,152 301,218 140,635 1,226.90 126,821 72,240 19,512 27.15 151,411 267,922 115,204 842.96 212,755 131,535 10,776 64.01 Composite, Carpark Residential, Commercial, Composite, Carpark Carpark Composite, Carpark Residential, Commercial, Composite, Other, Carpark Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Office, Other, Carpark Residential, Commercial, Composite, Other, Carpark Type of Property Site Area Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark 27 Dec 2054 to 20 Aug 205520 to Aug 2085 16 Aug 2074 Commercial, Other, 20 May 2083 Commercial, 14 Sep 2083 Commercial, 14 Nov 205614 to Nov 2086 29 Sep 205029 to Sep 2080 14 Jul 2083 Residential, 14 Sep 205114 to Sep 2081 12 Jan 205612 to Jan 2086 29 Jun 2052 to 29 Jun 2082 27 Dec 2084 30 May 2053 to 30 Nov 2083 Land Use Rights Expiry Date Residential Commercial Commercial Commercial Facility Commercial Commercial Commercial Commercial Commercial Land Use Feidong Residential, Chuzhou Residential, Hefei Chuzhou Residential, Chuzhou Residential, Fuyang Residential, Fuyang Residential Chaohu Residential, Public Bozhou Residential, Bengbu Residential Bengbu Residential, Anqing Residential, City Yueheng (Hefei) Property Company Limited Chuzhou Hengda Property Company Limited Fuyang Yuetong Property Company Limited Company Limited Chuzhou Yuetong Property Company Limited Chuzhou Hengtong Property Company Limited Company Limited Anhui Lilong Property Company Limited Bozhou Hengda Property Company Limited Bengbu Hengyuan Property Company Limited Bengbu Hengtong Property Company Limited Holding Entity Anqing Hengyuan Property Company Limited Properties held by the Group Under Development in the PRC — Feidong Chuzhou Fuyang Chuzhou Chuzhou View Garden Chaohu Bozhou Court Bengbu Scenic Bay Bengbu Anqing IV-9 Portion of Evergrande Oasis IV-8 Portion of Evergrande Metropolis IV-10 Portion of Evergrande Oasis IV-7 Portion of Evergrande Oasis IV-12 Portion of Evergrande City Hefei Anhui Sanlin Property IV-6 Evergrande Royal View Garden IV-5 Portion of Evergrande Royal IV-4 Portion of Evergrande City IV-11 Evergrande Royal Scenic Fuyang Fuyang Yuetai Property IV-2 Portion of Evergrande Emerald IV-3 Portion of Evergrande Royal IV-1 Portion of Evergrande Oasis Group IV Property No. Property Name
– II-78 –
– IV-79 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 91.20 24.90 151.98 352.40 680.80 167.90 826.31 526.63 339.70 1,927.00 2,987.30 2,783.20 1,354.60 1,013.40 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) State 91.20 100.0% 24.90 100.0% Market Value in Existing (2) Date as if 32.40 Value Development at Valuation Completed as Date 27.08 647.30 253.30 60.0% 48.10 183.60 65.31 5,140.70 2,783.20 100.0% 23.28 19.47 2,233.80 1,044.90 50.4% Valuation up to the Development Cost incurred Cost 24.50 Total 283.82 101.51 590.43 498.52 564.50 352.40 100.0% 327.12 124.59 2,071.20 1,354.60 100.0% 222.30 211.18 240.10 167.90998.24 100.0% 592.67 145.36464.95 3,033.90 1,639.50 50.4% 621.49 229.27 1,000.10 339.70 100.0% Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2017 2022 3,674.66 561.66 7,657.00 1,927.00 100.0% 2017 2017 2018 1,119.27 189.07 4,751.40 2,987.30 100.0% 2018 2021 1,264.422021 133.15 1,516.132017 3,241.60 178.36 1,013.40 2,978.60 100.0% 680.802018 100.0% 2017 2019 2019 2019 Estimated Completion Date 2011 2012 2010 2011 2014 2014 2014 2014 2014 2014 2009 2016 2016 2012 Construction Commencement Pre-sale consideration (1) —— —— —— —— —— —— —— —— GFA Pre-sale (1) GFA Total Planned (1) 57,689 61,874 19,577 56.51 21,013 129,342 2,094 99.39 28,671 479,153 28,671 442,066 37,045 396,586 58,731 210,344 84,783 1,460.25 30,427 153,751 (sq.m.) (sq.m.) (sq.m.) (RMB million) 261,516 114,650 604,005 1,357,998 37,139 259.11 106,136 257,865 3,773 22.01 183,451 445,564 289,640 36,091 16,312 76.14 280,676 142,876 142,578 10,733 Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Hotel, Office, Other, Carpark Residential, Commercial, Composite, Other, Carpark Commercial, Carpark Residential, Commercial, Composite, Office, Other, Carpark Commercial, Office, Carpark Residential, Commercial, Composite, Carpark Commercial, Office, Carpark Commercial, Hotel, Office, Carpark Commercial, Office, Carpark Other, Carpark Residential, Commercial, Office, Other, Carpark Commercial, Hotel, Office, Carpark Type of Property Site Area Commercial, Hotel, Office, Other, Carpark 28 Dec 205128 to Dec 2081 03 May 2081 02 May 2081 to 21 Oct 205121 to Oct 2081 15 Oct 205315 to Oct 2083 10 Sep 205310 to Sep 2083 10 Sep 205310 to Sep 2083 08 Oct 205008 to Oct 2080 Jun 2079 to Jan 18 May 2055 to 18 May 2085 15 Oct 205315 to Oct 2083 15 Oct 205315 to Oct 2083 10 Sep 205310 to Sep 2083 2080 18 May 2055 to 18 May 2085 24 Aug 205124 to Aug 2081 Land Use Rights Expiry Date Residential, Commercial Commercial Residential, Commercial Residential, Commercial Residential, Commercial Commercial Residential, Commercial Residential, Commercial Residential, Commercial Residential, Commercial Residential, Commercial Residential Residential, Commercial Land Use an ’ Lu Huainan Residential Huaibei Residential, Huaibei Residential, Hefei Hefei Hefei Hefei Hefei Hefei Hefei Hefei Hefei Hefei City an Yue Tong Property ’ Lu Company Limited Huainan Hengda Tianheng Property Company Limited Huaibei Hengtong Property Company Limited Huaibei Yuetong Property Company Limited Yuetai (Hefei) Property Company Limited Yuecheng (Hefei) Property Company Limited Yueqi (Hefei) Property Company Limited Anhui Zhonghui Guoyin Deyuan Property Company Limited Yuetai (Hefei) Business Operation Mangement Company Limited Yueqi (Hefei) Business Operation Mangement Company Limited Anhui Zhonghui Guoyin Deyuan Property Company Limited Yuefeng (Hefei) Property Company Limited Qijia (Hefei) Property Company Limited Holding Entity Yuetong (Hefei) Property Company Limited an ’ Scenic Bay Lu Huainan Huaibei Huaibei International Center Hefei Hefei Hefei Square Hefei Plot A and C International Center Hefei Hefei Square Hefei Plot B International Center Hefei Hefei View Garden Hefei IV-26 Portion of Evergrande Royal IV-25 Portion of Evergrande Oasis IV-24 Portion of Evergrande Atrium IV-21 Portion of Evergrande Plaza IV-23 Portion of Evergrande Metropolis IV-19 Portion of Evergrande IV-20 Portion of Evergrande Plaza IV-22 Portion of Evergrande Plaza IV-15 Evergrande Crystal International IV-18 Portion of Evergrande IV-16 Evergrande Crystal International IV-17 Portion of Evergrande IV-14 Portion of Evergrande Palace IV-13 Portion of Evergrande Royal Property No. Property Name
– II-79 –
– IV-80 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 86.65 429.98 233.20 395.40 760.80 392.60 438.90 117.42 745.80 740.21 2,360.50 2,421.60 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) State Market Value in Existing (2) Date as if Value Development at Valuation Completed as Date 92.07 302.70 233.2049.06 100.0% 1,296.30 395.4022.96 100.0% 288.8093.59 169.90 2,166.90 51.0% 760.80 100.0% 71.54 1,172.50 438.90 100.0% 39.41 2,756.60 661.50 65.0% Valuation up to the Development Cost incurred Cost 96.92 80.43 Total 595.45 495.87 913.29 105.42 1,653.70 392.60 100.0% 167.59 159.21 253.30 195.70 60.0% 835.56 356.58 4,040.60 2,421.60 100.0% Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2017 2017 2017 1,045.65 2019 1,297.28 2019 2018 2019 1,042.94 152.91 2,225.70 745.80 100.0% 2019 2017 2022 4,657.82 598.88 6,084.40 1,451.402017 51.0% 1,666.12 485.44 4,485.40 2,360.50 100.0% 2019 Estimated Completion Date 2013 2011 2007 2009 2011 2015 2016 2010 2013 2006 2014 2015 Construction Commencement 1.54 Pre-sale consideration (1) —— —— 186 GFA Pre-sale (1) GFA Total Planned (1) 82,360 191,094 95,423 724.26 66,677 317,566 130,449 2,282.85 (sq.m.) (sq.m.) (sq.m.) (RMB million) 438,917 308,631 162,473 509,601178,090 4,978 243,582 28.75 20,815 108.34 171,226 34,721 19,407 174.48 291,247 375,795 12,010 54.79 144,145 61,083 5,103 43.11 188,005 282,930 100,033316,743 538.24 1,346,580 182,569 423,885 229,656 2,717.18 Type of Property Site Area Commercial, Composite, Carpark Commercial, Office 19,565Residential, Commercial, 33,511 Composite, Other Residential, Commercial, Composite, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Other Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Other, Carpark Commercial, Composite, Other, Carpark Residential, Commercial, Other, Carpark Commercial, Other, Carpark Commercial, Other, Carpark 11 Jun 2082 Residential, Land Use Rights Expiry Date 21 May 2048 to 27 Sep 2078 21 Jul 2086 Residential, 19 May 2081 to 09 Oct 204509 to Oct 2075 Jul 2054 to2084 Jul Nov 2053 to Oct 2085 27 Feb 205128 to Feb 2081 20 May 2081 20 Dec 205020 to Dec 2080 27 Apr 2054 to 27 Apr 2084 17 Nov 204802 to Jun 2074 23 Jul 205323 to Jul 2083 Commercial Commercial Land Use Commercial Commercial Commercial Commercial Commercial Commercial, Underground Carpark, Composite, Underground Storage Commercial, Public Facility Commercial, Underground Carpark, Composite, Underground Storage Residential anshan Residential, anshan Residential ’ ’ Baotou Residential, Ma Handan Residential, Suzhou Residential, Suzhou Residential, Baotou Residential, Ma City Tongling Residential, Beijing Residential, Wuhu Handan Residential, Beijing Residential, anshan Yuetong anshan Hengda Anliang ’ ’ Holding Entity Hengda (Baotou) Real Estate Group Company Limited Property Company Limited Development Company Limited Suzhou Heng Ding Property Company Limited Suzhou Hengda Property Company Limited Hengda (Baotou) Real Estate Group Company Limited Ma Property Company Limited Tongling Hengda Property Company Limited Henglongxing (Beijing) Property Company Limited Wuhu Hengda Property Company Limited Hebei Dingjiaqi Real Estate Development Company Limited Shahe Hengda (Beijing) Property Company Limited Hebei Dingjiaqi Real Estate anshan Ma ’ anshan ’ Baotou Scenic Bay Ma Suzhou Scenic Bay Suzhou Baotou Tongling Beijing Wuhu Beijing IV-34 Portion of Evergrande Palace IV-27 Evergrande Oasis Ma IV-28 Portion of Evergrande Royal IV-31 Portion of Evergrande Metropolis IV-32 Portion of Evergrande Royal IV-35 Portion of Evergrande Metropolis Property No. Property Name IV-33 Handan Baihua Jiayuan IV-29 Portion of Evergrande Oasis IV-37 Evergrande Left Riverbank IV-30 Portion of Evergrande Palace IV-36 Handan Beihai Manor IV-38 Portion of Evergrande City
– II-80 –
– IV-81 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (3) (2) 365.69 370.40 102.27 893.50 790.90 249.03 8,917.50 3,651.70 8,204.50 4,307.80 2,735.00 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) State Market Value in Existing (2) Date as if Value Development at Valuation Completed as 5.61 756.40 370.40 100.0% 0.54 4,587.30 893.50 100.0% Date 53.13 531.00 146.10 70.0% Valuation up to the Development Cost incurred Cost Total 737.40 406.16 1,276.40 562.60 65.0% 197.22 623.77 537.92 3,802.10 2,735.00 100.0% 400.37 175.28 1,287.30 790.90 100.0% 326.05 Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2019 2019 3,494.25 2,057.07 14,442.80 8,917.50 100.0% 2017 2018 1,493.03 915.82 6,871.002017 4,307.80 1,523.79 100.0% 1,153.00 10,869.30 8,204.502017 100.0% 2019 7,754.96 742.45 16,323.40 3,651.70 100.0% 2019 2,885.37 2017 2017 2020 1,523.37 146.03 2,642.00 488.30 51.0% Estimated Completion Date 2016 2004 2004 2015 2015 2015 2016 2009 2014 2013 2017 Construction Commencement 4.26 Pre-sale consideration (1) —— —— —— GFA Pre-sale (1) GFA Total Planned (1) 46,011 262,542 157,855 5,567.48 80,469 360,609 155,572 3,991.50 35,000 183,920 130,238 3,131.13 74,703 412,639 (sq.m.) (sq.m.) (sq.m.) (RMB million) 312,164 235,656217,012 55,338 14,714 3,997.54 8,311 484.71 616,690 1,933,006 569,840 6,679.02 255,530 820,767 111,577 159,392 133,846 125,860 1,335 Type of Property Site Area Residential, Commercial, Other, Carpark Residential, Commercial, Other, Carpark Residential, Commercial, Other, Carpark Residential, Commercial, Composite, Hotel, Office, Other, Carpark Commercial, Composite, Other, Carpark Residential, Commercial, Other, Carpark Residential, Other Residential, Other Residential, Commercial, Other, Carpark Residential, Commercial, Composite, Other, Carpark 2082 to 2084 Residential, Carpark 187,775 222,550 78,259 514.21 25 May 2054 to 25 May 2084 26 Dec 205326 to Dec 2083 27 Apr 2054 to 27 Apr 2084 Land Use Rights Expiry Date 04 Jul 205604 to Jul 2086 31 Dec 203531 to Dec 2065 31 Dec 203531 to Dec 2065 29 Sep 205328 to Sep 2083 09 Jan 208709 to Jan 2087 15 May 2053 to 29 Sep 2084 11 Oct 2077 Residential, Commercial, Office, Underground Carpark, Underground Composite, Underground Storage Commercial, Composite, Underground Storage Commercial, Underground Carpark, Composite, Underground Storage Commercial Land Use Commercial, Office, Underground Storage Commercial, Office, Underground Storage Commercial, Office, Underground Carpark, Composite, Underground Storage Commercial Beijing Residential, Beijing Residential Beijing Residential, Beijing Residential, Beijing Residential, Tianjin Residential Beijing Residential, Beijing Residential, City Beijing Residential, Handan Residential Hengshui Residential, Holding Entity Real Estate Development Company Limited Laishui Lihua Real Estate Development Company Limited Company Limited Beijing Zhenghao Property Company Limited Huailai Hengda RealDevelopment Estate Company Limited Investment Company Limited Beijing Fuhua Real Estate Development Company Limited Beijing Lilai Real Estate Development Company Limited Hengda (Beijing) Real Estate Group Company Limited Handan Hengting Real Estate Development Company Limited Hengshui Shengyu Real Estate Development Company Limited Beijing Beijing Beijing Shadow Greek Beijing Shadow Greek Beijing Scenic Bay Beijing Handan Hengshui IV-41 Evergrande Royal Mansion IV-39 Evergrande Emerald Court IV-40 Evergrande Palace Beijing Beijing Heng Xingsheng IV-42 Evergrande Metropolis Beijing Henglong (Beijing) Property IV-43 Evergrande Culture Tourist City IV-45 Portion of Evergrande Elite IV-46 Portion of Evergrande Elite IV-49 Evergrande Tianjin Huaxi Town Tianjin Jingxiu Estates Property No. Property Name IV-44 Portion of Evergrande Royal IV-47 Evergrande Emerald Court IV-48 Portion of Evergrande City
– II-81 –
– IV-82 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (4) (2) 35.50 53.13 34.90 661.44 673.30 447.90 311.90 466.38 100.30 119.90 116.54 315.70 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) State 35.50 100.0% 71.80 74.0% 34.90 100.0% Market Value in Existing (2) Date as if 48.70 Value Development at Valuation Completed as 8.33 1,366.60 235.10 51.0% 0.17 2,482.30 228.50 51.0% Date 82.22 733.70 311.90 100.0% 30.75 44.66 144.70 51.34 250.90 Valuation up to the Development Cost incurred Cost 34.53 87.09 Total 506.21 181.43 1,107.00 447.90 100.0% 298.33 699.52 201.08 462.42 224.21 703.60 315.70 100.0% Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2019 1,837.90 296.59 3,650.20 1,102.40 60.0% 2019 1,639.56 812.69 3,001.50 1,320.20 51.0% 2020 2017 2017 2019 2020 2020 1,514.05 262.06 2,351.00 518.20 90.0% 2019 2022 1,473.16 2030 11,343.17 520.90 28,741.90 100.30 100.0% 2017 Estimated Completion Date 2016 2014 2015 2013 2013 2014 2015 2016 2014 2014 2012 2011 Construction Commencement Pre-sale consideration (1) —— —— —— —— —— GFA Pre-sale (1) 9,336 GFA Total Planned (1) 64,343 69,728 179,848 16,264 156.30 95,730 29,774 72,017 209,625 (sq.m.) (sq.m.) (sq.m.) (RMB million) 171,239 618,717 203,555 1,396.27 160,356 538,611 144,317 1,302.34 133,333 122,887 18,018 250.44 167,998 620,465 15,575 137.68 101,351 88,823 5,350 24.79 114,118 441,814 183,033 4,401,269 95,983 586.76 533,333 128,476 Residential, Commercial, Composite, Office, Other, Carpark Commercial, Composite, Other, Carpark Type of Property Site Area Residential, Commercial, Other, Carpark Residential, Commercial, Composite, Other Residential, Commercial, Composite, Other, Carpark Commercial, Other, Carpark Residential, Commercial, Composite, Office, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Office, Other, Carpark Residential, Commercial, Other 24 Jul 2083 Composite, Other 15 Jul 2083 Residential, 17 May 2051 to 17 May 2081 15 Mar 205115 to Mar 2081 12 Oct 205312 to Oct 2083 09 Feb 205409 to Feb 2084 07 Oct 205307 to Oct 2083 14 Mar 2081 Land Use Rights Expiry Date 01 Jun 2051 to 01 Jun 2081 22 Aug 205322 to Aug 2083 26 Nov 205014 to Aug 2085 22 Mar 2081 Residential, Commercial Commercial, Office Commercial Commercial, Education Commercial Accommodation and Catering Commercial Commercial Land Use Hengshui Residential, Hohhot Residential Hohhot Residential Hohhot Residential, Langfang Residential, Tangshan Residential, Langfang Residential, Luquan Residential, Handan Residential, Qinhuangdao Residential, Handan Residential Handan Residential, Office 14 Mar 2051 to City Estate Development Company Limited Hengda (Huhehaote) Real Estate Group Company Limited Hengda (Huhehaote) Real Estate Group Company Limited Inner Mongolia Changshengtai Real Estate Company Limited Langfang Feicui Huating Real Estate Development Company Limited Development Company Limited Holding Entity Hengda Langfang Real Estate Development Company Limited Hengda (Luquan) Real Estate Group Company Limited Development Company Limited Hengda Real Estate Group Qinhuangdao Hengda Cheng Real Estate Development Company Limited Hebei Dingjiaqi Real Estate Development Company Limited Handan Daye Real Estate Development Company Limited Hebei Dingjiaqi Real Estate Hohhot Hohhot Hohhot Court Langfang Langfang Luquan Qinhuangdao Riverside Handan IV-54 Portion of Evergrande Palace IV-55 Portion of Evergrande Metropolis IV-56 Portion of Evergrande Atrium IV-57 Portion of Evergrande Emerald IV-53 Evergrande Oasis Hengshui Hengshui Longze Real IV-58 Portion of Evergrande Metropolis IV-52 Evergrande Academism Tangshan Tanghsan Fujia Real Estate IV-59 Portion of Evergrande Splendor IV-61 Portion of Evergrande City IV-51 Handan Evergrande Seine IV-50 Portion of Evergrande Metropolis IV-60 Handan Mengchengyaju Property No. Property Name
– II-82 –
– IV-83 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 9.50 47.60 86.69 59.30 25.10 538.20 120.96 117.84 180.30 2,888.20 2,383.98 1,880.20 2,390.12 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) 9.50 100.0% State 47.60 100.0% 25.10 100.0% 59.30 100.0% Market Value in Existing (2) Date as if 59.00 88.50 229.60 704.60 196.40 60.0% Value 1,330.80 137.60 63.0% Development at Valuation Completed as — — — 2.19 Date 33.06 56.50 370.80 180.30 100.0% Valuation up to the Development Cost incurred Cost 70.82 50.61 Total 135.88 107.96 104.20 325.96 274.18 731.80 538.20 100.0% 447.17 114.99 102.20 134.40 90.0% 872.80 147.50 373.09 144.38 Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2018 4,035.22 704.37 10,088.60 4,126.00 70.0% 2019 1,472.92 716.42 7,581.40 4,676.30 51.0% 2017 2019 2020 1,360.60 464.34 4,173.50 1,880.20 100.0% 2017 2017 2017 2017 2017 4,839.92 2,868.30 9,002.802018 4,686.50 51.0% 2018 2019 Estimated Completion Date 2012 2011 2016 2011 2009 2010 2010 2014 2012 2016 2009 2014 2011 Construction Commencement 0.04 1.47 2.36 Pre-sale consideration (1) —— —— —— —— 12 169 695 GFA Pre-sale (1) GFA Total Planned (1) 25,423 113,436 107,713 654.00 99,050 219,242 122,473 924.44 84,686 120,028 19,924 71.51 50,202 205,954 (sq.m.) (sq.m.) (sq.m.) (RMB million) 202,915 2,032,426 184,166 2,828.55 176,426 26,031 172,676 110,124 245,414 48,873 419,230 1,511,272 113,570 355,731388,726 113,009 4,018.58 19,053 489,330 430,596289,514 29,122 52,200 227.06 Type of Property Site Area Residential, Commercial, Other, Carpark Residential, Commercial, Carpark Carpark Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Hotel, Other, Carpark Residential, Commercial, Carpark Residential, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Commercial, Composite, Other, Carpark Residential, Commercial, Other, Carpark Commercial, Composite, Other, Carpark 19 May 2081 Composite, Other, 05 Sep 205216 to Aug 2085 27 Jan 205527 to Jan 2085 19 Mar 2079 Composite, Other, 01 Sep 2085 18 Aug 204918 to Aug 2079 Land Use Rights Expiry Date 09 Feb 2084 24 Apr 2054 to 24 Apr 2084 23 Mar 205007 to Jun 2080 25 Mar 205322 to Oct 2083 24 Nov 205124 to Nov 2081 11 Mar 2083 to 23 Mar 205007 to Jun 2080 31 Mar 2048 to 28 Nov 2077 Residential, Commercial, Office Commercial Commercial, Office Commercial, Education Commercial Commercial Commercial Land Use Commercial Shijiazhuang Residential, Shijiazhuang Residential, Shijiazhuang Residential Shijiazhuang Residential Tianjin Residential, Tianjin Residential, Tangshan Residential, Shijiazhuang Residential, Shijiazhuang Residential Shijiazhuang Residential, Tangshan Residential City Tianjin Residential, Tianjin Residential Shijiazhuang Diyijia Real Estate Development Company Limited Holding Entity Shijiazhuang Xinlong Real Estate Development Company Limited Shijiazhuang Shengyu Real Estate Development Company Limited Hebei Gaojie ShiEstate Real Development Company Limited Tianjin Dijing Real Estate Development Limited Tianjin Jin Li Hu Investment Company Limited Tangshan Zhaorui Investment Company Limited Hebei Longhai Real Estate Development Company Limited Shijiazhuang Wei Xuan Real Estate Development Company Limited Hengda (Shijiazhuang) Real Estate Group Company Limited Tangshan Bozhi Real Estate Development Company Limited Tianjin Yilian Chuangzhan Property Company Limited Tianjin Binqiao Investment Company Limited Scenic Peninsula Shijiazhuang Shijiazhuang Shijiazhuang Tianjin Tianjin Tangshan Shijiazhuang Shijiazhuang Shijiazhuang Tangshan Tianjin Tianjin IV-67 Portion of Evergrande Royal IV-68 Shijiazhuang Jingyuan IV-64 Portion of Evergrande Oasis IV-66 Portion of Evergrande Atrium IV-72 Portion of Evergrande Oasis IV-69 Portion of Evergrande Palace IV-65 Portion of Evergrande Metropolis IV-63 Evergrande Forest Creek County IV-62 Portion of Evergrande City IV-70 Evergrande Dragon Court IV-71 Evergrande Royal View Garden Property No. Property Name IV-73 Portion of Evergrande Oasis IV-74 Portion of Evergrande Metropolis
– II-83 –
– IV-84 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 4.82 15.70 64.90 608.13 160.63 208.50 214.60 581.40 728.90 786.50 539.60 3,567.70 1,793.10 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) 6.70 72.0% State 15.70 100.0% 64.90 100.0% Market Value in Existing (2) Date as if 66.20 97.60 100.60 Value Development at Valuation Completed as — 0.46 Date 20.74 7,185.10 3,567.70 100.0% 52.47 1,657.0093.50 581.40 2,773.80 100.0% 728.90 100.0% 56.24 1,005.60 208.50 100.0% 83.89 777.90 214.60 100.0% Valuation up to the Development Cost incurred Cost 49.48 69.22 Total 349.65 106.66 643.60 223.10 72.0% 694.32 772.13 813.56 183.29 3,514.60 1,793.10 100.0% 440.25 615.95 129.74 1,388.00 539.60 100.0% 293.90 279.21 Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2019 2019 1,253.79 299.57 2,772.50 1,048.50 58.0% 2020 1,445.96 2017 2018 1,186.04 2018 2017 2019 2019 2020 1,398.242019 140.86 2,938.00 786.50 100.0% 2018 2017 Estimated Completion Date 2014 2016 2017 2012 2016 2014 2014 2013 2016 2011 2011 2015 Construction Commencement 4.26 Pre-sale consideration (1) —— —— —— — 943 GFA Pre-sale (1) 5,033 GFA Total Planned (1) 2,604 27,376 31,333 3,521 10.05 88,671 284,619 3,447 19.85 88,065 226,472 107,996 2,458.82 66,242 13,364 (sq.m.) (sq.m.) (sq.m.) (RMB million) 106,353 139,902 34,330 276.77 115,902 441,615 151,543 1,093.78 195,155 397,766 506,159 416,673 213,680 141,712 6,046 52.82 126,506 329,939 74,288 712.67 147,283 224,141 21,467 212.12 130,266 161,035 29,514 266.01 Type of Property Site Area Residential, Commercial, Other, Carpark Residential, Other, Carpark Residential, Commercial, Other, Carpark Commercial, Composite, Other, Carpark Residential, Other, Carpark Residential, Commercial, Carpark Composite Commercial, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Other, Carpark Residential, Other, Carpark 03 Dec 2083 to 20 Jul 2082 Residential, 07 Jun 2081 to 16 Oct 205216 to Oct 2082 16 Oct 205216 to Oct 2082 05 Jan 205605 to Jan 2086 11 Jul 205611 to Jul 2086 23 Jan 205723 to Jan 2087 Land Use Rights Expiry Date 20 Jul 205620 to Jul 2086 14 Sep 204703 to May 2086 10 Jun 2081 01 Jun 2085 28 Apr 2050 Commercial 13 Jun 2082 Residential, 09 May 2081 Residential, Commercial Commercial Commercial Commercial, Education, Park and Green Space Commercial, Education, Roadway Commercial Commercial Underground Land Use Carpark Residential, Xingtai Residential, Xingtai Residential, Xingtai Residential Xingtai Residential, Tianjin Residential, Wuhai Residential Fuqing Residential, Beijing Commercial, Tianjin Residential, Tianjin Residential Tianjin Residential Fuzhou Residential Anxi City an Real Estate ’ Xingtai Shuangda Real Estate Development Company Limited Xingtai Chengjia Real Estate Development Company Limited Holding Entity Xingtai Xiangheng Real Estate Development Company Limited Xingtai Henghao Real Estate Development Company Limited Development Limited Wuhai Junjing Real Estate Development Company Limited Company Limited Beijing Dongfang Yejia Culture and Art Company Limited Tianjin Yujingwan Investment Company Limited Tianjin Shanshui Cheng Investment Company Limited Tianjin Yujing Bandao Investment Company Limited Fuqing Hengda Property Fuzhou Jin Development Company Limited Investment Development Company Limited 1 Land – Xingtai View Garden Xingtai Xingtai Xingtai & Culture Conservation Zone Renovation Project No.1 Wuhai Tianjin Garden Tianjin Scenic Peninsula Tianjin Fuzhou IV-80 Portion of Evergrande City IV-81 Portion of Evergrande Royal IV-82 Portion of Evergrande Metropolis IV-83 Evergrande Scenic Garden IV-84 Portion of Beijing Yuhe History IV-79 Portion of Evergrande Oasis IV-77 Evergrande Royal Scenic Bay IV-78 Evergrande Joy Palace Tianjin Tianjin Yuefu Real Estate IV-75 Portion of Evergrande Scenic IV-76 Portion of Evergrande Royal IV-86 Evergrande City Fuqing IV-87 Evergrande Scenic Garden Property No. Property Name IV-85 Evergrande Royal Scenic Anxi Quanzhou Zuanshi
– II-84 –
– IV-85 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 69.80 297.60 658.21 596.30 511.60 853.10 288.30 577.30 594.60 166.40 809.70 1,898.70 1,230.99 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) State 69.80 100.0% Market Value in Existing (2) Date as if Value Development at Valuation Completed as Date 23.88 521.70 297.60 100.0% 28.67 109.90 51.93 2,243.10 1,290.60 51.0% 50.54 1,121.70 511.60 100.0% 89.99 3,689.10 1,898.70 100.0% 12.48 641.80 288.30 100.0% 63.98 1,645.70 577.30 100.0% 52.14 512.00 166.40 100.0% 51.42 4,051.90 2,413.70 51.0% 29.23 2,418.80 809.70 100.0% Valuation up to the Development Cost incurred Cost 45.32 Total 196.22 551.13 883.95 119.27 1,834.00 596.30 100.0% 403.38 906.23 206.78 728.99 265.39 533.55 276.51 262.68865.94 774.00 594.60 100.0% Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2018 2018 2018 2018 2017 2019 2020 1,212.84 402.21 2,471.10 853.10 100.0% 2018 2018 2018 2018 2017 2018 Estimated Completion Date 2015 2015 2015 2016 2017 2014 2016 2015 2016 2017 2016 2015 2014 Construction Commencement Pre-sale consideration (1) —— —— GFA Pre-sale (1) GFA Total Planned (1) 18,955 148,252 15,839 14,604 2,720 14.87 57,068 82,076 21,661 193.59 70,495 245,663 51,785 366.77 87,329 284,007 18,925 218.76 98,480 106,167 6,627 75.59 99,694 46,555 71,498 173,969 31,782 934.07 (sq.m.) (sq.m.) (sq.m.) (RMB million) 199,443 265,769 6,995 170.39 191,389 322,879 28,095 160.71 173,956 171,704 31,646 444.88 112,002 265,067 87,951 696.16 Type of Property Site Area Commercial, Carpark Residential, Commercial Residential, Composite, Other, Carpark Residential, Carpark 29,031Residential, Commercial, Composite, Carpark 71,760Residential, 25,031Commercial, Composite, Other, Carpark 182.20 Residential, Commercial, Composite, Other, Carpark Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Other, Carpark Residential, Commercial, Residential, Commercial, Composite, Carpark Residential, Composite, Hotel Composite, Carpark 18 Sep 2086 Residential, 19 Jan 205419 to Jan 2084 09 Oct 205309 to Oct 2083 08 Mar 205508 to Mar 2085 08 Oct 206608 to Oct 2086 06 Aug 205223 to Apr 2084 08 Sep 205507 to Sep 2085 23 Aug 205623 to Aug 2086 Land Use Rights Expiry Date 11 Oct 205611 to Oct 2086 25 Sep 2052 Residential, 04 Jun 2055 to 04 Jun 2085 16 Feb 205416 to Feb 2084 30 Sep 205130 to Sep 2081 Commercial Commercial Commercial Roadway Commercial, Public Facility Commercial Commercial Commercial Commercial Land Use Commercial Commercial, Accommodation and Catering Quanzhou Residential, Quanzhou Residential, Quanzhou Commercial Putian Residential, Quanzhou Residential, Sanming Residential, Putian Residential, Longyan Residential Nanping Residential, Shishi Residential, Xiamen Residential, Shishi Residential, Wuyishan Residential, City Quanzhou Ansheng Property Company Limited Quanzhou Ansheng Property Company Limited Holding Entity Company Limited Putian Hengsheng Property Company Limited Jinjiang Jinbi Property Company Limited Panshi (Fujian) Real Estate Development Company Limited (Xintiandi Branch Office) Putian Jinbi Property Company Limited Company Limited Nanping Hengda Property Company Limited Company Limited Xiamen Hengda Property Company Limited Shishi Jinbi Property Company Limited Zhaode (Wuyishan) Hotel Company Limited Court Quanzhou Dragon Court Quanzhou Putian Scenic Bay Quanzhou Sanming Scenic Peninsula Putien Nanping View Garden Xiamen Shishi Wuyishan IV-93 Portion of Evergrande Emerald IV-94 Portion of Evergrande Emerald IV-91 Evergrande The Coronation IV-95 Portion of Evergrande Royal IV-96 Evergrande Royal Palace IV-90 Portion of Evergrande Royal IV-89 Evergrande Royal Scenic IV-92 Evergrande City Plaza Quanzhou Quanzhou Renjian Property IV-97 Portion of Evergrande Royal IV-88 Evergrande Oasis Longyan Longyan Hengda Property IV-99 Evergrande First Palace Shishi Shishi HengdaIV-100 Property Evergrande Scenic Garden Property No. Property Name IV-98 Portion of Evergrande Metropolis
– II-85 –
– IV-86 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 44.10 53.10 39.30 34.90 286.40 481.10 797.50 399.20 852.70 397.30 2,105.10 1,364.70 2,622.30 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) State 44.10 100.0% 53.10 100.0% 39.30 100.0% 34.90 100.0% Market Value in Existing (2) Date as if 58.90 Value Development at Valuation Completed as Date 11.48 209.50 27.75 1,093.50 286.40 100.0% 10.94 20.80 209.60 38.67 109.40 10.83 1,918.70 852.70 100.0% Valuation up to the Development Cost incurred Cost 19.15 86.49 Total 132.00 507.42 316.77 259.97 611.50 399.20 100.0% 126.58 540.66 677.13 117.47 1,340.30 397.30 100.0% Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2020 1,006.46 186.29 2,303.00 797.50 100.0% 2018 2020 2018 1,599.97 270.22 2,390.10 481.10 100.0% 2020 2,237.322021 211.46 2,231.03 5,966.70 291.582023 2,105.10 4,930.10 3,788.18 100.0% 2017 1,364.70 333.15 100.0% 9,942.70 2,622.30 100.0% 2018 2018 2018 2018 2019 Estimated Completion Date 2014 2011 2012 2011 2011 2016 2016 2013 2013 2011 2014 2015 2016 Construction Commencement 7.27 Pre-sale consideration (1) —— —— GFA Pre-sale (1) 7,315 GFA Total Planned (1) 77,333 40,274 10,238 45.23 86,683 93,309 45,319 1,929 11.52 68,224 189,732 34,125 444.02 89,312 231,499 28,635 176.98 (sq.m.) (sq.m.) (sq.m.) (RMB million) 357,460 352,476 34,672 231.65 139,835 187,647 9,570 58.25 172,502 514,406 1,950 317,016 1,169,125 47,238 398.07 138,355 116,689 16,139 76.78 218,580 32,978 144,625 746,574172,800 120,500 732,260 1,200.21 179,889 1,174.95 Commercial, Composite, Other, Carpark Type of Property Site Area Commercial, Composite Commercial, Composite, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other Residential, Commercial, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other Residential, Commercial, Composite, Carpark Commercial, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Other, Carpark 07 Apr 2081 to 29 Dec 2080 Residential, 29 Nov 2053 to 29 Nov 2083 27 Sep 205027 to Sep 2080 01 Nov 2055 to 13 Feb 205113 to Feb 2081 02 Jul 204602 to Jul 2076 25 Jul 2082 Residential, 24 Mar 205124 to Mar 2081 01 Sep 2081 24 Sep 205424 to Sep 2084 01 Nov 2085 Land Use Rights Expiry Date 16 Aug 205616 to Aug 2086 14 Aug 2079 Residential, 08 Aug 2086 Residential, Commercial Commercial Commercial Commercial Commercial Commercial Commercial Land Use Lanzhou Residential, Wuzhong Residential Wuwei Residential Shizuishan Residential, Xining Residential, Yinchuan Residential Lanzhou Residential Lanzhou Residential Lanzhou Residential, Lanzhou Residential, Yinchuan Residential, Yinchuan Residential Zhangzhou Residential, City Lanzhou Shenjun Property Company Limited Ningxia Jinhai Property Company Limited Wuwei Hengda RealDevelopment Estate Company Limited Hengda (Shizuishan) Real Estate Group Company Limited Holding Entity Xining Hengda Real Estate Development Company Limited Ningxia Haotian Real Estate Development Company Limited Gansu Hengyuan Real Estate Development Company Limited Yuzhong Junxing Real Estate Development Company Limited Hengda Real Estate Group Lanzhou Property Company Limited Gansu Yusheng Real Estate Development Company Limited Ningxia Jin Honghai Property Company Limited Hengda (Yinchuan) Real Estate Group Company Limited Zhangzhou Xincheng Real Estate Development Company Limited Garden Lanzhou Wuzhong Wuwei Shizuishan Xining Scenic Yinchuan Lanzhou Lanzhou Lanzhou Lanzhou Yinchuan Yinchuan Scenic Peninsula Zhangzhou IV-106 Portion of Evergrande Scenic IV-108 Portion of Evergrande Metropolis IV-109 Portion of Evergrande Oasis IV-107 Portion of Evergrande Oasis IV-110 Portion of Evergrande Metropolis IV-111 Evergrande Royal View Garden IV-113 Portion of Evergrande Royal IV-102 Evergrande Royal View Garden IV-103 Evergrande Emerald Court IV-104 Portion of Evergrande Oasis IV-105 Portion of Evergrande Metropolis IV-112 Portion of Evergrande Metropolis IV-101 Portion of Evergrande Royal Property No. Property Name
– II-86 –
– IV-87 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 4.00 33.50 34.40 23.20 496.07 324.00 327.20 106.80 325.40 570.00 262.10 1,185.00 1,720.80 2,330.40 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) 4.00 100.0% State 33.50 100.0% 34.40 100.0% 23.20 100.0% Market Value in Existing (2) 7.50 Date as if 42.50 75.40 Value Development at Valuation Completed as 8.21 1,578.40 327.204.28 100.0% 541.30 106.80 100.0% 1.98 0.73 0.01 650.00 262.10 100.0% Date 15.21 65.26 2,149.20 405.00 80.0% 35.74 106.70 Valuation up to the Development Cost incurred Cost 16.01 87.04 Total 32.20 26.76 220.05 209.04 2,266.30 1,720.80 100.0% 565.74 163.92 195.42 188.62 125.66 482.00 325.40 100.0% 235.93 109.34 926.20 570.00 100.0% Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2017 2025 2,624.14 306.30 5,588.60 1,185.00 100.0% 2020 1,086.78 2020 1,646.90 129.95 3,345.80 870.30 57.0% 2018 2018 1,166.79 392.77 4,120.60 2,330.40 100.0% 2019 2018 2017 2017 2018 2018 2017 2018 Estimated Completion Date 2013 2013 2016 2017 2016 2017 2017 2008 2007 2017 2016 2016 2013 Construction Commencement 8.17 0.28 Pre-sale consideration (1) —— —— —— — —— —— —— —— 23 GFA Pre-sale (1) 7,643 1,153 GFA Total Planned (1) 7,870 11,897 66,667 347,133 85,866 176,549 27,264 61,218 78,344 87,851 44,244 509.85 43,588 45,316 27,443 246.77 99,518 66,077 (sq.m.) (sq.m.) (sq.m.) (RMB million) 525,029 912,089 245,369 554,281 7,468 53.43 173,962 58,185 114,126 16,110 146,889 31,655 5,281 76.84 149,793 388,629 106,225 1,464.33 Type of Property Site Area Commercial, Other, Carpark Commercial, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Office, Carpark Commercial, Office, Carpark Commercial, Other, Carpark Commercial, Composite, Other Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Carpark Commercial Residential, Commercial, Carpark 21 Sep 2081 Residential, Carpark 45,401 16 Apr 2078 Residential, 30 Apr 2080 to 11 Aug 2082 Residential, 10 Jan 205511 to Jan 2085 19 Sep 2056 Residential, 03 Mar 204303 to Mar 2053 Land Use Rights Expiry Date 19 Dec 2053 to 19 May 2074 Residential, 19 May 2074 Residential, 18 Dec 205318 to Dec 2083 18 Dec 205318 to Dec 2083 19 Dec 2053 30 Sep 2080 13 May 2063 to 15 May 2063 20 Jan 205720 to Jan 2087 Facility, Green Space Commercial, Accommodation and Catering Commercial Facility Land Use Commercial Commercial Commercial Commercial Chaozhou Residential, Public Chaozhou Residential, Guangzhou Commercial, Public Yinchuan Residential, Dongguan Residential, City Dongguan Residential, Dongguan Commercial Dongguan Residential Dongguan Residential Dongguan Residential, Dongguan Residential Dongguan Residential Dongguan Residential, Dongguan Residential Chaozhou Hengda Property Company Limited Chaozhou Hengxin Real Estate Development Company Limited Holding Entity Hengda Real Estate Group Company Limited Ningxia Runjing Real Estate Development Company Limited Dongguan Guanxiang Commercial and Residential Company Limited Dongguan Zhonghui Property Company Limited Dongguan Hongfeng Commercial Development Company Limited Dongguan Qingpengxinyi Real Estate Development Company Limited Dongguan Shenjian Real Estate Company Limited Dongguan Huawei Real Estate Development Company Limited Dongguan Hongjing Real Estate Company Limited Dongguan Shenjian Real Estate Company Limited Kaixing (Dongguan) Real Estate Development Company Limited Dongguan Chengbang Real Estate Development Company Limited Chaozhou Garden Chaozhou Garden Guangzhou Peninsula Yinchuan Guli Project Guli Project Guli Project Peninsula Dongguan View Garden Dongguan Court Dongguan Dongguan Dongguan (Phase III) Court Dongguan Dongguan IV-115 Portion of Evergrande City IV-116 Portion of Evergrande Scenic IV-117 Portion of The Third Jinbi IV-114 Evergrande Royal Scenic IV-118 Portion of Dongguan Furong Property No. Property Name IV-119 Portion of Dongguan Furong IV-120 Portion of Dongguan Furong IV-127 Evergrande Royal Scenic IV-121 Portion of Evergrande Royal IV-122 Portion of Evergrande Emerald IV-125 Portion of Evergrande Atrium IV-126 Portion of Evergrande Atrium IV-123 Portion of Evergrande Emerald IV-124 Portion of Evergrande Palace
– II-87 –
– IV-88 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 103.70 672.80 230.80 118.10 929.34 184.41 415.10 321.58 1,788.80 1,618.10 1,770.00 2,129.00 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) State Market Value in Existing (2) Date as if Value Development at Valuation Completed as Date 20.54 126.10 103.70 100.0% 12.26 267.30 118.10 100.0% 61.89 1,534.50 415.10 100.0% 40.84 2,331.90 459.40 70.0% Valuation up to the Development Cost incurred Cost 21.62 Total 428.71 407.27 926.80 672.80 100.0% 141.71 134.63 303.70 230.80 100.0% 531.90 381.27 1,527.40 1,032.60 90.0% 105.23 112.56 106.94 263.90 204.90 90.0% 543.15 449.29 2,362.40 1,770.00 100.0% 387.56 294.10 2,894.90 2,129.00 100.0% 808.97 Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2017 2019 1,651.71 130.59 4,824.30 1,618.10 100.0% 2018 2018 2019 4,244.37 1,168.032018 6,738.30 1,788.80 100.0% 2017 2017 2017 2018 2018 2020 1,304.49 Estimated Completion Date 2012 2016 2010 2014 2012 2014 2014 2013 2014 2015 2013 2017 Construction Commencement 3.18 Pre-sale consideration (1) —— —— —— 252 GFA Pre-sale (1) 5,937 2,801 50.78 GFA Total Planned (1) 8,101 57,255 13,417 842.15 60,491 74,271 170,398 31,079 388.06 90,079 63,572 80,194 47,731 2,878 39.00 51,271 51,854 44,275 146,026 (sq.m.) (sq.m.) (sq.m.) (RMB million) 135,831 515,578 140,080 1,508.34 171,869 194,749 15,136 170.10 250,777 350,251 19,014 99.09 115,084 404,053 2,056,500 1,435,216 46,152 341.18 Type of Property Site Area Residential Residential, Commercial, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Hotel, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Other, Carpark Commercial, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark 17 Dec 2083 to 31 Jul 2062 to 12 May 2056 to 12 May 2086 22 Aug 2083 30 Dec 205030 to Dec 2080 23 Dec 205223 to Dec 2082 17 May 2052 to 17 May 2082 11 Aug 2064 18 Mar 205318 to Mar 2083 13 Mar 205213 to Mar 2082 Land Use Rights Expiry Date 17 Dec 2083 01 Jul 205301 to Jul 2083 10 Nov 205610 to Nov 2086 Commercial, Office, Accommodation and Catering Commercial Commercial Commercial Commercial Commercial, Accommodation and Catering Land Use Commercial Commercial Foshan Residential, Foshan Residential, Foshan Residential, Foshan Residential Foshan Residential, Foshan Residential, Office 22 Aug 2053 to Enping Residential, Dongguan Residential, Guangzhou Residential City Guangzhou Commercial, Other 22 Aug 2052 Residential, Heyuan Residential, Jiangmen Residential, Foshan Nanhai Yingyu Real Estate Development Company Limited Property Company Limited Foshan Nanhai Outai Property Company Limited Foshan Nanhai Juncheng Real Estate Development Limited Holding Entity Foshan Nanhai Junkai Real Estate Development Limited Foshan Changxin Honglong Real Estate Company Limited Hengda (Enping) Real Estate Group Company Limited Hongjun (Dongguan) Property Company Limited Guangzhou Xincheng Property Company Limited Hengda (Heyuan) Real Estate Group Company Company Limited Foshan Nanhai Outai Limited Guangdong Jiangmen Shipyard Company Limited Scenic Bay Foshan Court Foshan City Foshan City Foshan Scenic Foshan City Enping Dongguan Palace Guangzhou Heyuan Peninsula Jiangmen IV-135 Portion of Evergrande Royal IV-131 Portion of Evergrande Emerald IV-132 Portion of Evergrande Cruise IV-133 Evergrande Azure Lake Grand IV-134 Portion of Evergrande Royal IV-129 Portion of Evergrande Spring IV-130 Evergrande City Foshan IV-128 Evergrande Royal Scenic IV-136 Portion of Evergrande Royal IV-137 Portion of Evergrande Metropolis Property No. Property Name IV-138 Evergrande Jewelry Guangzhou Hengda Real Estate Group IV-139 Evergrande Royal Scenic
– II-88 –
– IV-89 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 31.50 22.10 689.70 312.70 356.30 247.40 776.64 3,406.80 1,426.40 2,001.20 1,368.00 1,568.60 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) State 31.50 100.0% 22.10 100.0% Market Value in Existing (2) Date as if 39.90 27.50 Value Development at Valuation Completed as Date 12.85 10.31 Valuation up to the Development Cost incurred Cost Total 13.52 10.85 974.35 148.12 2,179.40 689.70 100.0% 127.03 120.68 417.50 312.70 100.0% 257.17 154.97 574.10 356.30 100.0% Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2020 2018 2,942.22 254.99 5,626.60 1,426.40 100.0% 2020 4,206.39 975.07 10,126.70 3,406.80 100.0% 2018 2021 2,407.54 873.10 4,476.20 1,368.00 100.0% 2019 4,599.672025 850.85 5,518.28 8,820.50 221.77 2,501.50 12,506.40 80.0% 1,568.60 100.0% 2017 2022 1,218.50 451.28 1,978.80 485.10 51.0% 2017 2019 1,121.18 173.53 3,113.10 1,294.40 60.0% 2017 Estimated Completion Date 2015 2012 2011 2014 2013 2011 2015 2007 2015 2016 Construction Commencement Pre-sale consideration (1) —— —— — —— — GFA Pre-sale (1) 3,953 5,449 GFA Total Planned (1) 39,405 59,880 84,881 414,474 111,793 1,115.90 (sq.m.) (sq.m.) (sq.m.) (RMB million) 249,732 955,580 1,622,157 210,216166,253 1,419.27 316,657 150,901420,952 970.93 969,285 127,817 704.11 597,006 1,685,064 205,099 1,253.44 138,669 109,855 5,895 70.14 369,888 436,013 34,119 152.70 286,467 1,228,925 719,798 11,669 89.55 2,703,665 2,277,816 43,585 164.02 Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Hotel, Other, Carpark Residential, Commercial, Composite, Carpark Residential, Commercial, Hotel, Other, Carpark Type of Property Site Area Residential, Commercial, Other, Carpark Residential, Commercial, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Carpark 17 Sep 2080 to 12 Jan 204417 to Aug 2083 08 Jun 2066 Residential, Other, 18 Oct 2080 13 Mar 205613 to Mar 2086 16 Jul 205415 to Sep 2086 19 Feb 205311 to Jan 2075 24 Feb 2081 04 Feb 205504 to Feb 2085 28 Dec 205228 to Dec 2082 08 Oct 205325 to Nov 2085 Land Use Rights Expiry Date 19 Apr 2055 to 19 Apr 2085 Accommodation and Catering, Cultural and Sport Facility Commercial Commercial Commercial Commercial Commercial Land Use Commercial, Park and Green Space Yangjiang Residential, Qingyuan Residential Shantou Residential, Public Shaoguan Residential, Foshan Residential, Yangjiang Residential, Yunfu Residential, Qingyuan Residential, Office 08 Jan 2057 to Meizhou Residential, City Zhanjiang Residential, Guangzhou Residential, Carpark 08 Jun 2066Guangzhou Residential, Other Residential Yangjiang Yifeng Property Company Limited Qingyuan Yinhucheng Investment Company Limited Shantou Hengyue Property Company Limited Hengda (Shaoguan) Real Estate Group Company Limited Foshan Shunde District Shunya Fangzhou Real Estate Company Limited Hengda (Yangjiang) Real Estate Group Company Limited Holding Entity Hengda (Yunfu) Real Estate Group Company Limited Hengda Shengyu (Qingxin) Property Company Limited Meizhou Dabaihui Brand Industrial Park Company Limited Zhanjiang Longchao Real Estate Development Company Limited Hengda Real Estate Group Company Limited Guangzhou Hengda (Zengcheng) Real Estate Development Company Limited the sea Yangjiang City Qingyuan Shantou Shaoguan View Garden Shunde Yangjiang Yunfu Qingyuan Peninsula Meizhou Zhanjiang Garden Guangzhou Zengcheng (Phase 2 and 3) Garden Guangzhou Zengcheng IV-146 Portion of Evergrande Hawaii on IV-142 Portion of Evergrande Silverlake IV-143 Evergrande Royal Scenic Bay IV-144 Portion of Evergrande City IV-145 Portion of Evergrande Royal IV-147 Portion of Evergrande Metropolis IV-148 Portion of Evergrande City IV-141 Portion of Evergrande Splendor IV-140 Evergrande Royal Scenic Property No. Property Name IV-151 Evergrande Royal View Garden IV-149 Portion of Evergrande Scenic IV-150 Portion of Evergrande Scenic
– II-89 –
– IV-90 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 78.30 909.89 215.70 364.10 586.30 792.80 888.10 260.70 257.65 539.30 1,421.70 1,167.90 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) State 78.30 100.0% Market Value in Existing (2) Date as if Value Development at Valuation Completed as Date 54.04 2,539.20 364.10 100.0% 17.89 319.60 Valuation up to the Development Cost incurred Cost Total 373.82 351.18 1,513.90 1,167.90 100.0% 134.93 125.46 282.90 215.70 100.0% 181.84 799.77 297.63 1,865.50 792.80 100.0% 737.77 138.87 1,571.40 586.30 100.0% 236.99 216.81 377.20 260.70 100.0% 549.99 129.18 1,222.50 505.20 51.0% 503.90 126.51 1,211.50 539.30 100.0% Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2020 1,740.01 213.80 4,270.90 1,421.70 100.0% 2018 1,004.47 954.25 2,555.50 1,784.10 51.0% 2017 2019 1,463.53 2017 2018 2019 2018 2025 2,435.29 113.34 5,214.30 888.10 100.0% 2018 2018 2018 Estimated Completion Date 2016 2016 2012 2016 2014 2014 2016 2013 2011 2014 2013 2016 Construction Commencement 8.98 Pre-sale consideration (1) —— —— GFA Pre-sale (1) GFA Total Planned (1) 63,323 42,334 5,362 80.31 94,908 165,430 50,063 309.89 67,304 175,985 23,339 194.75 (sq.m.) (sq.m.) (sq.m.) (RMB million) 107,652 133,381 1,677 242,800 301,681 120,295201,594 1,183.01 529,825 49,823 424.94 140,604 528,492 111,944 341,628 130,460 279,498 5,639 37.79 127,834 69,484 34,438 215.77 377,995 710,645 6,384 44.77 115,327 107,382 4,135 12.22 Residential, Commercial, Composite, Other, Carpark Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Hotel, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Other, Carpark Residential, Commercial, Composite, Carpark Type of Property Site Area Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Hotel, Other, Carpark Composite, Other, Carpark Residential, Commercial, Hotel, Office, Carpark Residential, Commercial, Composite, Other, Carpark 19 Dec 2063 to 19 Dec 2066 30 Dec 204230 to Dec 2072 20 Jul 205620 to Jul 2086 27 Dec 205227 to Dec 2082 21 Oct 2083 Commercial, 06 Jun 2053 to 06 Jun 2083 04 Aug 205004 to Aug 2080 01 Jan 204620 to Dec 2084 01 Aug 2082 Residential, 16 Jul 205316 to Jul 2083 Land Use Rights Expiry Date 28 Sep 204829 to Nov 2049 15 Apr 2056 to 15 Apr 2086 Commercial Commercial, Accommodation and Catering, Cultural and Entertainment Commercial Commercial Commercial, Accommodation and Catering Commercial, Accommodation and Catering, Park and Green Space Commercial Composite Land Use Commercial Zhuhai Residential, Beihai Residential, Zhongshan Residential Zhongshan Residential Beihai Residential, Zhaoqing Residential, Zhaoqing Residential, Beihai Residential, Zhanjiang Residential, Guilin Commercial, Fangchenggang Residential Guilin Residential, City Property Company Limited Culture Company Limited Hengda (Zhongshan) Real Estate Group Company Limited Zhongshan Changxin Hongzhan Real Estate Company Limited Beihai Jiajing Real Estate Development Company Limited Sihui City Huiwen Real Estate Development Company Limited Zhaoqing Tuanxing Real Estate Development Company Limited Beihai Nanguo Tiantang Real Estate Development Company Limited Holding Entity Hengda Real Estate Group Zhanjiang Yujing Property Company Limited Guilin Guijia Real Estate Company Limited Guilin Hengda Real Estate Hengda (Fangchenggang) Real Estate Group Company Limited Development Company Limited Zhongshan Zhongshan Beihai Zhaoqing Dinghu Haoting Scenic Peninsula Beihai Zhanjiang Guilin Scenic Bay Fangchenggang IV-155 Portion of Evergrande Oasis IV-156 Portion of Evergrande Metropolis IV-157 Evergrande Ocean Spring Zhuhai Zhuhai Hengda Haiquanwan IV-158 Evergrande Royal Coast Beihai Beihai Junhai Tourism IV-159 Portion of Evergrande Metropolis IV-154 Evergrande Royal Town IV-153 Portion of Zhaoqing Evergrande IV-160 Portion of Evergrande Royal IV-152 Portion of Evergrande Oasis IV-162 Portion of Evergrande Plaza IV-161 Portion of Evergrande Royal IV-163 Evergrande Bay Guilin Property No. Property Name
– II-90 –
– IV-91 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (5) (2) 270.40 810.90 275.00 584.50 930.41 441.90 133.60 1,094.00 2,365.90 1,726.50 1,291.70 1,998.30 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) State Market Value in Existing (2) Date as if Value Development at Valuation Completed as Date 58.58 4,451.60 275.00 100.0% 91.30 1,157.20 441.90 100.0% Valuation up to the Development Cost incurred Cost Total 611.99 297.75 1,574.50 810.90 100.0% 312.59 228.16 497.70 270.40330.24 100.0% 313.73 808.20 584.50 100.0% 492.96 120.77 101.29 203.90 133.60 100.0% Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2020 1,503.28 661.54 4,413.30 2,145.10 51.0% 2019 2020 1,728.46 166.29 5,950.90 2,365.90 100.0% 2019 2018 2020 2,228.26 2020 1,953.95 205.19 4,058.60 1,094.60 85.0% 2019 2018 2019 1,244.06 268.55 3,728.00 1,726.50 100.0% 2019 1,133.712020 214.05 1,720.10 3,042.70 326.93 1,291.70 4,893.90 100.0% 1,998.30 100.0% Estimated Completion Date 2015 2016 2016 2015 2014 2017 2017 2015 2015 2016 2016 2015 Construction Commencement Pre-sale consideration (1) —— —— GFA Pre-sale (1) GFA Total Planned (1) 91,344 141,746 6,40883,093 225,873 35.52 92,593 131,324 21,225 139.17 50,549 795,379 103,203 692.71 87,862 206,907 87,743 625.83 37,240 55,431 7,666 39.43 76,912 405,670 136,334 1,057.41 67,333 595,056 18,260 149.60 (sq.m.) (sq.m.) (sq.m.) (RMB million) 213,110 541,924 22,288 231.92 132,394 636,688 93,457153,984 983.00 601,159 135,705 451,459 149,858 1,412.88 Type of Property Site Area Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Carpark Residential, Commercial, Composite, Carpark Residential, Commercial, Composite, Office, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Hotel, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Other, Carpark Commercial, Hotel, Office, Other, Carpark Residential, Commercial, Composite, Other, Carpark 15 Jan 205415 to Jan 2084 15 Aug 205615 to Aug 2086 03 Apr 2055 to 03 Apr 2085 16 Feb 205616 to Feb 2086 22 Jan 205425 to Sep 2085 Land Use Rights Expiry Date 19 May 2055 to 19 May 2085 22 Apr 2056 to 22 Apr 2086 10 May 2056 to 10 May 2086 29 Apr 2054 to 29 Apr 2084 01 Dec 205501 to Dec 2085 06 Nov 205306 to Nov 2063 01 Dec 205501 to Dec 2085 Commercial Commercial Commercial Commercial, Park and Green Space, Roadway Commercial Land Use Commercial Commercial Commercial, Cultural and Entertainment Commercial Commercial Accommodation and Catering Commercial Liuzhou Residential, Liuzhou Residential, Liuzhou Residential, Liuzhou Residential, Liuzhou Residential, Nanning Residential, City Liuzhou Residential, Liuzhou Residential, Nanning Residential, Nanning Residential, Nanning Commercial, Nanning Residential, Liuzhou Hengda Jinbi Property Company Limited Holding Entity Liuzhou Yaoshi Hengda Real Estate Development Company Limited Liuzhou Zhaofu Property Company Limited Estate Development Company Limited Liuzhou Hengda Real Estate Development Company Limited Nanning Jinbi Hengda Property Company Limited Liuzhou Yujing Longheng Real Estate Development Company Limited Liuzhou Shanshui Yunhe Property Company Limited Guangxi Honghao Huihuang Real Estate Development Company Limited Nanning Yujing Tianheng Real Estate Development Company Limited Nanning Hengda Urban Construction Company Limited Real Estate Development Company Limited Court Liuzhou III) Liuzhou Liuzhou Nanning Liuzhou Liuzhou View Garden Nanning Nanning Nanning IV-166 Portion of Evergrande Emerald IV-165 Evergrande City Liuzhou (Phase IV-167 Portion of Evergrande Palace IV-164 Portion of Evergrande City IV-168 Evergrande Atrium Liuzhou Liujiang Xian Hengda Real IV-171 Portion of Evergrande City Property No. Property Name IV-169 Evergrande Royal Palace IV-170 Evergrande Royal Scenic Bay IV-172 Portion of Evergrande Royal IV-173 Evergrande Emerald Court IV-174 Evergrande International Center IV-175 Evergrande Palace Nanning Nanning Yaoshi Longting
– II-91 –
– IV-92 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 57.70 76.80 53.80 592.20 432.00 925.30 426.30 469.50 381.48 323.68 548.50 133.40 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) State 57.70 100.0% 53.80 100.0% Market Value in Existing (2) Date as if 89.20 Value Development at Valuation Completed as 4.92 1,313.30 426.30 100.0% Date 60.73 92.02 1,273.80 432.00 100.0% 37.40 2,244.50 548.50 100.0% 67.02 311.90 133.40 100.0% 33.64 110.20 Valuation up to the Development Cost incurred Cost 73.45 Total 68.39 272.32 258.71 770.30 592.20 100.0% 477.03 704.40 439.91 1,809.50 925.30658.68 100.0% 458.14 175.06 583.80 128.00 60.0% 294.01 Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2017 2017 2019 2021 2019 2025 1,280.04 194.63 2,109.80 469.502020 100.0% 2020 1,222.84 230.31 2,256.50 588.502020 55.0% 1,252.84 196.38 2,357.80 635.80 60.0% 2018 1,117.55 2017 2017 Estimated Completion Date 2014 2014 2015 2016 2016 2011 2015 2016 2016 2012 2014 2010 Construction Commencement Pre-sale consideration (1) —— —— —— GFA Pre-sale (1) GFA Total Planned (1) 62,906 194,997 105,373 852.80 20,051 31,468 23,969 59.78 44,633 179,947 89,070 461,107 63,151 347.72 95,477 462,269 110,084 657.86 (sq.m.) (sq.m.) (sq.m.) (RMB million) 249,894 82,512 37,007 262.77 248,870 272,479 36,461 273.63 202,979 467,221 138,993 141,284 4,188 18.81 169,798 71,710 566,394 367,331 29,095126,780 221.13 26,673 8,064 21.23 Type of Property Site Area Residential, Commercial, Composite, Other, Carpark Residential, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Commercial, Composite, Other, Carpark Residential Commercial, Composite, Hotel, Carpark Residential, Commercial, Composite, Other, Carpark Commercial, Composite, Other, Carpark 24 Mar 205624 to Mar 2086 29 Jun 2055 to 29 Jun 2085 15 Apr 2056 to 15 Apr 2086 09 Feb 205009 to Feb 2080 14 Jan 204914 to Jan 2079 25 Feb 2086 Residential, 14 Oct 204714 to Oct 2077 Land Use Rights Expiry Date 09 Dec 205309 to Dec 2083 22 Jul 205315 to Aug 2053 22 Jul 205315 to Aug 2053 30 Dec 205008 to Sep 2085 23 Jul 2080 Residential, Residential Commercial Commercial Commercial Commercial Commercial Commercial Commercial Land Use Accommodation and Catering Accommodation and Catering Commercial Nanning Residential, Nanning Residential, Qinzhou Residential, Qinzhou Residential, Nanning Residential, Wuzhou Residential, Yulin Nanning Residential, Changjiang Residential, Office, City Changjiang Residential, Office, Danzhou Residential, Danzhou Residential Yulin Hengda Jinbi Real Estate Development Company Limited Holding Entity Nanning Jinhua Yufu Real Estate Development Company Limited Qinzhou Qinlian Hengda Property Investment Company Limited Guangxi Binhui Property Company Limited Nanning Shengshi Hengda Real Estate Development Company Limited Guangxi Wuzhou Wanguo Real Estate Development Company Limited Property Company Limited Nanning Yinxiang Real Estate Development Company Limited Changjiang Guangyi Real Estate Development Company Limited Changjiang Shengda Investment Company Limited Danzhou Hengda Binhai Investment Company Limited Danzhou Hengda Binhai Investment Company Limited View Garden Nanning Qinzhou Peninsula Qinzhou Nanning Garden Wuzhou Nanning Changjiang Gulf Pearl Hotel and Conference Centre Project Danzhou Danzhou IV-179 Portion of Evergrande Scenic IV-180 Portion of Evergrande Oasis IV-181 Evergrande Royal Scenic IV-178 Evergrande Atrium Nanning Nanning Chengxin Yayuan IV-177 Portion of Evergrande Metropolis IV-182 Portion of Evergrande Scenic IV-183 Evergrande City Yulin IV-176 Portion of Evergrande Oasis IV-184 Portion of Evergrande Qizi Bay Property No. Property Name IV-185 Evergrande Qizi Bay Changjiang IV-186 Portion of Evergrande Splendor IV-187 Portion of Evergrande Metropolis
– II-92 –
– IV-93 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 349.90 217.40 408.60 250.05 230.00 2,394.40 2,569.40 3,290.80 1,721.10 1,033.20 11,820.60 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) State Market Value in Existing (2) Date as if Value Development at Valuation Completed as Date 85.04 2,053.10 333.40 75.0% 27.78 1,154.70 230.00 100.0% 56.84 584.90 408.60 100.0% Valuation up to the Development Cost incurred Cost Total 184.37 154.28 314.60 217.40 100.0% 636.55 516.25 Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2019 1,634.22 749.23 4,591.40 2,394.40 100.0% 2023 1,295.81 117.74 2,196.40 349.90 100.0% 2019 1,712.62 213.92 5,869.40 2,569.40 100.0% 2019 3,744.34 1,278.492019 8,456.70 1,431.12 3,290.80 108.322018 100.0% 4,352.50 5,458.26 1,721.10 235.392020 100.0% 8,788.60 1,199.37 1,033.20 100.0% 2017 2018 2019 2022 9,053.84 3,128.71 31,137.30 11,820.60 100.0% Estimated Completion Date 2013 2011 2014 2014 2016 2013 2015 2012 2012 2013 2012 Construction Commencement Pre-sale consideration (1) —— —— —— GFA Pre-sale (1) GFA Total Planned (1) 86,106 371,103 (sq.m.) (sq.m.) (sq.m.) (RMB million) 328,286 422,191 75,179 944.19 840,339 1,032,503 20,493 273.28 266,625 332,360 271,956 441,088 30,275 113.88 171,983 53,330 4,771 19.50 122,822 87,622 5,639 40.63 115,408 477,372239,331 10,818 183,069 135.17 46,493 329.19 1,110,000 1,406,208 1,865,094 2,657,317 76,064 1,096.86 Residential, Hotel, Carpark Residential, Commercial, Type of Property Site Area Commercial, Composite, Hotel, Office, Other, Carpark Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Carpark Residential, Commercial, Composite, Other, Carpark Composite, Other, Carpark Residential, Commercial, Composite, Hotel, Other, Carpark Commercial, Composite, Hotel, Carpark Residential, Commercial, Carpark Composite, Other 30 Dec 2068 Residential, 22 Mar 205222 to Mar 2082 21 Jul 205221 to Jul 2082 31 Jan 205031 to Jan 2080 28 Feb 205128 to Feb 2081 16 May 2051 to 15 May 2082 09 Nov 2063 Residential, 14 Nov 204514 to Nov 2075 27 Jun 2053 to 27 Jun 2083 27 Jun 2048 to 27 Jun 2078 Land Use Rights Expiry Date Commercial, Green Space Commercial Commercial Commercial Commercial Residential, Office 28 Sep 2073 Residential, Commercial, Accommodation and Catering, Medical, Cultural and Entertainment, Education, Public Facility, Park and Green Space Commercial Accommodation and Catering Residential, Land Use Daqing Residential, Lingao Residential, Sanya Sanya Dingan Residential, Harbin Residential, Haikou Commercial Haikou Residential, Haikou Residential, Haikou Residential, Chengmai Residential City Daqing Hengda Yongsheng Real Estate Development Company Limited Development Company Limited Hainan Lingshui Zonglvquan Property Company Limited Products Trading Company Limited Hainan Changmao Longhu Real Estate Investment Company Limited Harbin Hengda Xingye Real Estate Development Company Limited Holding Entity Hainan Dongfangmingzhu Real Estate Company Limited Estate (Haikou) Company Limited Hengda (Hainan) Real Estate Group Company Limited Haikou Waitan ChengEstate Real Company Limited Hainan Minghao Property Company Limited Daqing Garden Sanya Manor Haikou Harbin Tourist City Haikou Haikou Haikou Scenic Bay Hainan IV-197 Portion of Evergrande Oasis IV-196 Evergrande Royal Seaview IV-194 Evergrande Royal Sea Hainan Hainan Jincui Real Estate IV-195 Evergrande Dingan Royal Lake IV-198 Portion of Evergrande City IV-192 Portion of Evergrande Culture IV-193 Evergrande Royal Palace Sanya Sanya Hada Agriculture IV-191 Portion of Evergrande Bay IV-189 Portion of Evergrande Bund IV-190 Portion of Evergrande Royal IV-188 Evergrande Elissa Haikou New World China Real Property No. Property Name
– II-93 –
– IV-94 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 81.70 86.30 428.17 280.80 264.05 546.00 807.80 234.10 824.80 528.80 180.80 1,587.10 1,331.40 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) State 81.70 100.0% 86.30 100.0% Market Value in Existing (2) Date as if Value Development at Valuation Completed as Date 61.78 469.30 72.54 1,113.00 280.80 100.0% 20.98 1,038.10 394.10 67.0% 76.07 1,832.40 546.00 100.0% 66.58 113.80 46.20 679.60 234.10 100.0% Valuation up to the Development Cost incurred Cost 70.09 Total 351.01 575.70 186.53 1,108.50 450.70 95.0% 610.36 362.75 692.68 386.84 367.49 1,115.50 807.80 100.0% 297.24 601.23 502.68 1,289.90 824.80 100.0% 151.38 143.81 251.40 180.80 100.0% Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2018 2019 1,199.01 307.492020 3,420.00 1,414.27 1,587.10 729.75 100.0% 2,905.00 1,331.40 100.0% 2018 2020 2019 2022 2017 2017 2019 2019 2022 1,063.64 116.982018 2,274.50 528.80 100.0% Estimated Completion Date 2014 2016 2011 2016 2010 2016 2017 2011 2013 2016 2012 2016 2015 Construction Commencement Pre-sale consideration (1) —— —— —— GFA Pre-sale (1) GFA Total Planned (1) 31,765 167,181 121,289 811.43 71,070 149,019 47,420 182,300 20,185 96,921 22,982 191.28 90,703 348,422 15,89847,318 119.18 51,939 13,572 126.91 (sq.m.) (sq.m.) (sq.m.) (RMB million) 103,001 385,032 170,174 1,685.46 233,318 200,722 12,384 84.52 170,385 147,561 36,620 267.87 243,306 474,543 81,858 377.34 298,778 134,931 86,197 918.36 190,351 203,280 102,087 25,832 12,704 75.68 Carpark Residential, Commercial, Composite, Other, Carpark Carpark Commercial, Hotel, Office, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Other, Carpark Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Commercial, Composite, Other, Carpark Residential, Commercial, Other, Carpark Type of Property Site Area Residential, Commercial, Carpark Residential, Composite, Other, Carpark Commercial, Composite, Other, Carpark 29 Jun 2050 Residential, 02 Jun 2081 Residential, Other, 19 Jul 2056 to 01 May 2053 to 02 Feb 205602 to Feb 2086 02 Jun 2081 Residential, Other, 31 Jul 204909 to Jul 2080 19 Jul 2086 01 May 2083 26 Feb 205226 to Feb 2083 19 Jul 2086 Residential, 29 Jun 2050 to 29 Jun 2080 28 May 2052 to 27 May 2083 09 Jul 205509 to Jul 2085 02 Aug 205302 to Aug 2083 Land Use Rights Expiry Date Commercial Commercial, Public Facility Commercial Commercial Commercial Commercial, Public Facility Commercial, Public Facility Commercial, Public Facility Land Use Harbin Residential, Harbin Residential Harbin Residential, Harbin Residential, Harbin Residential, Harbin Residential Harbin Residential, Harbin Residential Harbin Residential, Harbin Residential Harbin Residential, Harbin Commercial Harbin Residential, City Development Company Limited Real Estate Development Company Limited Harin Xinye Real Estate Company Limited Harbin Zhongcheng Real Estate Development Company Limited Harbin Hengda Weiye Real Estate Development Company Limited Real Estate Development Company Limited Harbin Gaodeng Property Company Limited Harbin Chengye Real Estate Development Company Limited Harbin Hengda Weiye Real Estate Development Company Limited Development Company Limited Harbin Chiye Real Estate Development Company Limited Harbin Gaodeng Property Company Limited Holding Entity Harbin Mingye Real Estate Development Company Limited Harbin Harbin Harbin Scenic Bay Harbin Harbin Court Harbin Harbin View Garden Harbin IV-209 Evergrande Peak Harbin IV-208 Evergrande Atrium Harbin Heilongjiang Haiyi Mingjia IV-203 Evergrande Flower Garden IV-204 Evergrande Jade Court Harbin Harbin Jiaye Real Estate IV-205 Portion of Evergrande Oasis IV-211 Evergrande Grande Century IV-210 Portion of Evergrande Royal IV-206 Portion of Evergrande Metropolis IV-207 Evergrande Mingjia Harbin Heilongjiang Pubeimingjia IV-201 Portion of Evergrande Emerald IV-202 Evergrande International Center IV-200 Evergrande Lilac Manor Harbin Harbin Kunye Real Estate IV-199 Portion of Evergrande Royal Property No. Property Name
– II-94 –
– IV-95 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (6) (7) (2) 85.40 840.40 614.40 247.10 457.40 393.49 260.90 493.10 200.80 945.30 502.70 5,813.88 1,228.70 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) State 85.40 100.0% Market Value in Existing (2) Date as if Value Development at Valuation Completed as Date 88.20 114,50 92.47 636.50 260.90 100.0% Valuation up to the Development Cost incurred Cost 92.84 Total 585.54 556.26 1,102.40 840.40 100.0% 287.67 273.29 779.50 614.40 100.0% 681.59 230.23 1,256.70 457.40 100.0% 690.76 199.56 1,134.10 247.10 100.0% 310.99 413.70 139.29 1,069.50 493.10 100.0% 209.83 199.33 268.60 200.80 100.0% 462.93 439.79 706.70 502.70 100.0% 699.70 132.34 1,982.20 945.30 100.0% Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2017 2017 2017 2019 2022 2021 6,604.30 409.91 25,022.00 9,689.80 60.0% 2018 2019 2025 2,667.43 126.83 6,552.40 586.60 67.1% 2017 2025 6,332.93 130.01 7,973.10 1,228.70 100.0% 2018 2017 Estimated Completion Date 2013 2010 2014 2012 2013 2016 2015 2013 2012 2013 2007 2015 2016 Construction Commencement Pre-sale consideration (1) —— GFA Pre-sale (1) GFA Total Planned (1) 25,924 96,114 24,418 172.35 43,864 173,522 13,830 93.37 99,537 81,380 15,163 147.70 83,009 303,995 160,449 1,222.49 (sq.m.) (sq.m.) (sq.m.) (RMB million) 113,493 122,143 74,470 584.88 106,452 206,466 7,188 28.12 182,052 270,250 16,009 96.25 376,720 1,115,034 105,070 728.72 629,875 1,754,524 161,224 2,193.59 103,342 195,624 1,483,742 1,534,427 111,556 491.29 Type of Property Site Area Residential, Carpark 372,728 101,461 77,743 896.55 Residential, Carpark 29,147 34,033 24,218 81.21 Residential, Commercial, Other, Carpark Residential, Commercial, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Other, Carpark Residential, Commercial, Composite, Hotel, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Office, Other, Carpark Residential, Commercial, Hotel, Other, Carpark Commercial, Carpark Residential, Commercial, Composite, Office, Other, Carpark 08 Nov 2049 to 08 Nov 2079 09 May 2052 to 09 May 2082 25 Apr 2056 to 25 Apr 2086 10 Feb 205110 to Feb 2081 18 Jul 205208 to Oct 2082 29 Jul 2082 08 Oct 2075 Land Use Rights Expiry Date 28 Jun 2052 to 28 Jun 2082 24 Mar 205026 to Dec 2081 28 Jun 2052 to 28 Jun 2082 29 Aug 2080 19 Feb 205419 to Feb 2084 08 Oct 2045 to 13 Jun 2086 Residential, Commercial Commercial Commercial Commercial Commercial, Office Commercial Commercial, Office Land Use Commercial Harbin Residential Mudanjiang Residential, Qiqihar Residential, Harbin Residential, Mudanjiang Residential, Qiqihar Residential, Ezhou Residential, Qiqihar Residential, Qiqihar Residential, Office 28 Jun 2052 to Wuhan Residential Jingzhou Residential, City Ezhou Residential, OfficeJingzhou 20 Mar 2047 to Residential Holding Entity Harbin Shenghe Property Company Limited Mudanjiang Hengda Changjian Real Estate Development Company Limited Hengda Yongxing (Qiqihaer) Real Estate Company Limited Company Limited Mudanjiang Hengda Yongtai Real Estate Development Company Limited Hengda Yongxing (Qiqihaer) Real Estate Company Limited Hubei Sanjiang Hangtian Commercial Management Company Limited Hengda Yongxing (Qiqihaer) Real Estate Company Limited Hengda Yongxing (Qiqihaer) Real Estate Company Limited Wuhan New World Kangju Development Company Limited Investment Conpany Limited Ezhou Hengda Real Estate Development Company Limited Jingzhou Hengda Real Estate Development Company Limited Harmonious World Harbin Court Mudanjiang Tsitshihar Mudanjiang Tsitshihar Capital Ezhou Court Tsitshihar Tsitshihar Wuhan Ezhou Jingzhou IV-213 Portion of Evergrande IV-214 Portion of Evergrande Emerald IV-218 Evergrande Royal View IV-215 Portion of Evergrande Oasis IV-219 Evergrande Emerald Court IV-220 Portion of Evergrande Sky IV-212 Evergrande Natural Unity Harbin Harbin Shengmao Property IV-216 Portion of Evergrande Emerald IV-217 Portion of Evergrande Metropolis IV-224 Evergrande Evergreen Garden Property No. Property Name IV-221 Portion of Evergrande Splendor IV-222 Evergrande Golden Metropolis IV-223 Evergrande Metropolis Jingzhou Jingzhou Hongxing Plaza
– II-95 –
– IV-96 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 35.69 42.50 25.80 18.30 922.89 836.35 127.26 600.48 175.28 193.50 429.60 1,069.30 1,343.20 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) State 42.50 100.0% 53.20 67.1% 25.80 100.0% 18.30 100.0% Market Value in Existing (2) Date as if 52.40 10.20 Value Development at Valuation Completed as 4.64 410.10 261.30 67.1% Date 50.90 132.60 14.77 63.11 240.30 190.60 66.8% 15.46 Valuation up to the Development Cost incurred Cost 98.24 15.54 67.05 66.43 26.26 Total 132.65 126.02 253.60 193.50 100.0% 386.90 234.87 233.20 759.53 237.41 2,015.90 1,000.80 60.0% 737.79 465.53 2,148.30 1,343.20 100.0% 317.47 301.60 977.10 716.00 60.0% Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2018 2017 2020 1,042.682019 168.13 2,861.60 1,460.56 1,069.302017 264.02 100.0% 3,546.10 1,253.86 1,375.80 255.69 67.1% 2,842.102017 1,246.80 67.1% 2017 2017 2018 2018 2018 2017 2018 Estimated Completion — Date 2011 2013 2007 2016 2014 2014 2010 2012 2015 2008 2007 2014 Construction Commencement Pre-sale consideration (1) —— —— —— GFA Pre-sale (1) 7,705 4,935 18.47 GFA Total Planned (1) 19,920 26,695 25,275 384.28 75,459 214,377 120,151 1,569.43 69,023 103,222 35,193 419.75 (sq.m.) (sq.m.) (sq.m.) (RMB million) 107,785 37,763 37,763 132.64 506,663 465,903 51,697 371.45 154,259 134,691 31,598 9,829 83.04 440,137 512,882 186,411 1,435.63 351,306 60,997 199,474 66,989 370,494 299,227101,892 4,529 312,036 33.02 60,161 775.54 314,901 10,601 Residential, Commercial, Office Commercial, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Carpark Commercial, Carpark Residential, Commercial, Composite, Other, Carpark Type of Property Site Area Residential, Commercial, Composite, Carpark Residential, Commercial, Other, Carpark Residential, Office, Other, Carpark Residential, Commercial, Composite, Hotel, Other Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Office, Other, Carpark Other, Carpark 30 Apr 2077 to 11 Oct 205311 to Oct 2083 09 Aug 205009 to Aug 2080 29 Oct 204729 to Oct 2077 29 Dec 204629 to Dec 2076 12 May 2080 15 Nov 204715 to Nov 2077 19 Oct 206519 to Oct 2085 26 Dec 204626 to Dec 2076 30 May 2047 to 26 Jan 2078 27 Mar 205424 to Sep 2084 23 Mar 205123 to Mar 2081 28 Apr 2047 to 29 Apr 2077 28 Sep 205628 to Sep 2086 Land Use Rights Expiry Date Commercial Commercial Commercial Commercial, Office Commercial, Education and Green Space Commercial Commercial Commercial Accommodation and Catering, Education Commercial Commercial Land Use Wuhan Residential, Wuhan Residential, Wuhan Residential, Wuhan Residential, Park Wuhan Residential, Wuhan Residential, Wuhan Residential, Wuhan Residential Wuhan Residential, Xiangyang Residential, Wuhan Residential, Wuhan Residential, Wuhan Residential, City Wuhan Jinbi Luzhou Real Wuhan Hengda Jinbi Real Estate Development Company Limited Wuhan Donghu Hengda Real Estate Developmen Company Limited Wuhan Sanjiang Dongli Investment Development Company Limited Wuhan Hengda Dushi Real Estate Development Company Limited Wuhan Sanjiang Hangtian Investment Development Company Limited Wuhan Sanjiang Hangtian Panlongcheng Real Estate Development Company Limited Estate Development Company Limited Wuhan Huali Property Company Limited Wuhan Hengda Chutian Real Estate Development Company Limited Xiangyang Hengda Real Estate Development Company Limited Holding Entity Wuhan Sanjiang Hangtian Jiayuan Real Estate Development Company Limited Hubei Yiqing Yazhu Real Estate Development Company Limited Wuhan Jinbi FeicuiEstate Real Development Company Limited Wuhan garden Wuhan Wuhan City Wuhan Palace Wuhan Wuhan City Wuhan Wuhan Scenic Bay Wuhan Xiangyang Town Wuhan Wuhan Wuhan IV-232 Portion of Evergrande Oasis IV-230 Portion of Evergrande Royal IV-231 Portion of Evergrande Palace IV-234 Portion of Evergrande Shuang IV-235 Portion of Evergrande Royal IV-229 Portion of Evergrande Capital IV-228 Portion of Evergrande Dragon IV-233 Portion of Evergrande Metropolis IV-236 Portion of Evergrande Royal IV-237 Portion of Evergrande Metropolis IV-227 Portion of Evergrande Rainbow IV-225 Portion of Evergrande City IV-226 Evergrande Emerald Court Property No. Property Name
– II-96 –
– IV-97 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 25.96 14.25 90.81 310.32 541.00 398.22 364.60 417.04 665.88 590.58 675.30 228.60 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) State 38.70 67.1% 20.50 69.5% Market Value in Existing (2) Date as if 28.10 Value Development at Valuation Completed as Date 12.65 117.50 30.58 61.57 761.50 139.70 65.0% Valuation up to the Development Cost incurred Cost 66.51 32.19 Total 701.86 666.77 954.50 675.30 100.0% 279.30 265.33 502.00 381.00 60.0% 580.94 Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2017 2026 2,510.51 113.72 3,480.00 517.20 60.0% 2021 1,009.79 375.95 1,806.60 541.00 100.0% 2022 1,404.97 166.69 1,463.60 364.60 100.0% 2022 1,330.72 610.04 2,187.70 641.60 65.0% 2020 1,374.95 615.33 2,824.90 1,109.80 60.0% 2020 1,292.67 240.50 2,932.00 984.30 60.0% 2022 1,768.74 459.49 3,107.70 663.70 60.0% 2017 2018 2017 2019 Estimated Completion Date 2014 2017 2010 2014 2016 2014 2015 2014 2012 2013 2014 2017 Construction Commencement 7.43 Pre-sale consideration (1) —— —— GFA Pre-sale (1) GFA Total Planned (1) 95,441 12,158 4,367 21.27 58,651 196,307 (sq.m.) (sq.m.) (sq.m.) (RMB million) 207,209 845,472 282,639 378,270 66,066 331.55 187,024 286,239 14,184 43.33 121,668 443,931 44,251 248.77 314,862 514,507 52,041 354.60 107,257 491,984 76,729 492.98 334,623 623,184 105,248 620.09 265,890 175,796 6,133 37.61 121,316 119,294 8,334 67.86 Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Other, Carpark Residential, Composite, Hotel, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Office, Other, Carpark Commercial, Composite, Other, Carpark Type of Property Site Area Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Hotel, Other, Carpark Residential, Other, Carpark Residential, Commercial, Other, Carpark 09 Aug 2077 Residential, Carpark 77,734 24,357 1,969 30 Dec 2051 to 30 Dec 2081 30 Dec 2084 Residential, 04 Aug 2050 to 11 Jun 2081 31 Dec 2051 to 31 Dec 2081 25 Jan 2050 to 25 Jan 2080 25 Oct 2050 to 16 Oct 2081 24 Feb 2053 to 24 Feb 2083 03 Aug 2053 to 03 Aug 2083 23 May 2052 to 30 Jan 2063 28 Dec 2048 to 28 Dec 2078 30 Jun 2054 to 30 Jun 2084 Land Use Rights Expiry Date Commercial Commercial Commercial Commercial Commercial Commercial Commercial Commercial Commercial, Accommodation and Catering Commercial Land Use Shaoyang Residential, Huaihua Residential, Liuyang Residential, Hengyang Residential, Chenzhou Residential, Chenzhou Residential, Changde Residential, Yichang Residential Li County Residential, Yichang Residential, Yichang Residential, Xiaogan Residential City Estate Development Limited Huaihua Junda Real Estate Development Company Limited Liuyang Jinbi Property Company Limited Hengyang Baorui Property Company Limited Chenzhou Jinbi Property Company Limited Chenzhou City Wanxiangyuan Real Estate Development Company Limited Changde Xinze Property Company Limited Real Estate Development Company Limited Dadonghuang (Hunan) Property Company Limited Yichang Meiziya Market Construction Kaifa Company Limited Yichang Chutian Hengda Real Estate Development Company Limited Holding Entity Real Estate Development Company Limited View Garden Huaihua Liuyang Hengyang Chenzhou View Garden Chenzhou Changde Lixian Yichang View Garden Yichang IV-246 Portion of Evergrande Royal IV-249 Evergrande Palace Shaoyang Shaoyang City Lushan Real IV-245 Portion of Evergrande Oasis IV-244 Portion of Evergrande Palace IV-243 Portion of Evergrande Royal IV-242 Portion of Evergrande Palace IV-248 Portion of Evergrande Palace IV-247 Evergrande Royal Scenic Bay IV-241 Evergrande Atrium Yichang Yichang Chutian Hengda IV-240 Portion of Evergrande Oasis IV-239 Portion of Evergrande Royal IV-238 Evergrande First Palace Xiaogan Xiaogan Sanjiang Hangtian Property No. Property Name
– II-97 –
– IV-98 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 56.70 712.77 301.34 101.10 228.70 226.40 101.10 953.90 486.91 473.88 1,511.90 2,418.10 2,460.20 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) State 56.70 100.0% Market Value in Existing (2) Date as if 70.10 Value Development at Valuation Completed as Date 87.64 133.90 101.1047.13 100.0% 131.20 101.10 100.0% 22.65 Valuation up to the Development Cost incurred Cost 92.25 49.61 23.84 Total 951.48 556.46 2,316.40 1,113.70 64.0% 157.98 111.13 342.10 228.70 100.0% 242.61 110.76 473.80 226.40 100.0% 907.72 813.94 1,651.20 953.90 100.0% Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2020 2023 1,308.86 159.85 4,456.10 1,511.90 100.0% 2020 1,300.632017 130.24 2,524.40 463.60 65.0% 2017 2018 2017 2021 1,793.00 513.82 5,823.90 2,418.10 100.0% 2021 1,741.15 205.77 3,330.10 667.00 73.0% 2020 2017 2021 1,303.54 972.91 4,324.90 2,460.20 100.0% 2020 1,919.41 160.60 3,758.60 789.80 60.0% Estimated Completion — Date 2015 2014 2016 2011 2012 2008 2015 2011 2013 2015 2011 2009 Construction Commencement 6.35 Pre-sale consideration (1) —— —— —— —— 660 GFA Pre-sale (1) 8,566 GFA Total Planned (1) 68,341 77,087 (sq.m.) (sq.m.) (sq.m.) (RMB million) 193,928 373,794 7,207 28.86 135,514 102,388 121,039 480,090 139,186 943.11 139,723 21,763 11,957 30.66 178,644 469,601 28,922191,768 248.09 665,924 48,855 343.73 565,249 605,150 204,527 358,735 107,959 532.71 270,663 42,082 5,051 23.29 174,389 506,419 185,376 143,199 708,921 36,169 209.01 Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Other, Carpark Residential, Commercial, Other, Carpark Residential, Commercial, Composite, Office, Other, Carpark Residential, Commercial, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Other, Carpark Type of Property Site Area Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Office, Other, Carpark Commercial, Carpark Residential, Commercial, Composite, Other, Carpark 21 Sep 2078 Residential, 30 Dec 205730 to Dec 2087 15 Jul 205126 to Jul 2081 04 Oct 207430 to Oct 2076 06 Feb 205206 to Feb 2082 31 Aug 204431 to Aug 2074 16 Apr 2053 to 16 Apr 2083 09 May 2079 03 Jun 2056 to 03 Jun 2086 24 Mar 204524 to Mar 2075 29 Jan 204729 to Jan 2077 31 Mar 205331 to Mar 2083 31 Dec 205431 to Dec 2085 Land Use Rights Expiry Date Commercial Commercial Commercial Education Commercial Commercial Commercial Commercial Commercial Commercial Commercial Land Use Yueyang Residential, Changsha Residential, Changsha Residential, Changsha Residential, Changsha Residential, Yueyang Residential, Changsha Residential, Office 09 May 2059 to Changsha Residential, Yueyang Residential, Changsha Residential, Changsha Residential Yiyang Residential, Xiangtan Residential, City Yueyang Jinrui Property Company Limited Hunan Xiongzhen Investment Company Limited Changsha Xinlin Property Company Limited Changsha Hengxi Property Company Limited Zhangsha Xinfu Property Company Limited Yueyang Jinbi Property Company Limited Hunan Yicheng Investment Company Limited Changsha Baorui Real Estate Development Company Limited Company Limited Changsha Tianxi Property Company Limited Holding Entity Hunan Shengji Property Company Limited Yiyang Hengrui Property Company Limited Hunan Zongheng Property Company Limited Peninsula Yueyang Changsha Changsha Court Changsha Changsha Yueyang Changsha Changsha Changsha Changsha Yiyang Court Xiangtan IV-254 Portion of Evergrande Nanhu IV-257 Portion of Evergrande Palace IV-255 Portion of Evergrande City IV-256 Portion of Evergrande Emerald IV-258 Portion of Evergrande Bay IV-253 Portion of Evergrande Metropolis IV-259 Evergrande Forest Creek City IV-262 Portion of Evergrande Atrium IV-260 Portion of Evergrande Oasis IV-252 Evergrande Oasis Yueyang Yueyang Jintou Property IV-261 Portion of Evergrande Metropolis IV-251 Portion of Evergrande Oasis IV-250 Portion of Evergrande Emerald Property No. Property Name
– II-98 –
– IV-99 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 15.70 35.60 505.56 682.43 170.40 749.60 284.80 254.60 773.70 3,710.70 3,337.90 1,591.50 3,597.40 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) State 35.60 100.0% 16.70 94.0% Market Value in Existing (2) Date as if 48.20 Value Development at Valuation Completed as — Date 95.25 527.30 284.80 100.0% 27.54 251.80 Valuation up to the Development Cost incurred Cost 20.42 Total 143.94 114.90 253.30 170.40 100.0% 226.90 208.08 197.68 356.50 254.60 100.0% 389.47 315.34 1,112.60 773.70 100.0% 241.83 Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2022 2,428.42 175.47 4,913.90 842.60 60.0% 2021 2,035.02 420.18 4,466.40 1,338.10 51.0% 2017 2017 2017 2022 1,029.79 226.08 2,365.10 749.602018 100.0% 1,679.50 425.19 3,782.20 1,591.50 100.0% 2028 4,048.45 372.23 13,825.90 3,337.90 100.0% 2018 2020 2,529.27 185.60 14,502.80 7,138.70 52.0% 2022 2,063.18 608.36 8,436.40 3,597.40 100.0% 2017 2017 Estimated Completion Date 2016 2012 2012 2012 2012 2011 2016 2011 2012 2016 2015 2014 2014 Construction Commencement 4.25 1.50 Pre-sale consideration (1) —— 220 GFA Pre-sale (1) 5,912 GFA Total Planned (1) 65,028 68,412 1,407 49,696 88,646 23,627 108.53 94,832 67,717 40,858 206.58 37,867 626,504 56,749 1,964.24 98,328 135,599 27,660 152.32 92,191 68,941 (sq.m.) (sq.m.) (sq.m.) (RMB million) 319,053 822,384 117,269 788.79 298,042 757,542 162,902 1,150.79 282,022 379,721 5,181 34.73 305,604 1,252,780 11,885 66.05 124,085 377,473 41,604 473.15 180,365 586,595 49,208 983.84 Residential, Commercial, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Carpark 47,512 Residential, Commercial, Composite, Other, Carpark Type of Property Site Area Residential, Commercial, Composite, Other, Carpark Residential, Composite Residential, Commercial, Composite, Carpark Residential, Commercial, Composite, Office, Other, Carpark Residential, Commercial, Office, Carpark Composite, Carpark Residential, Commercial, Carpark Residential, Commercial, Composite, Carpark Residential, Commercial, Composite, Hotel, Other, Carpark 10 Jun 2049 to 24 Oct 2080 01 Apr 2051 to 01 Apr 2081 30 Dec 205030 to Dec 2080 14 Feb 2084 Residential, 26 Jul 205226 to Jul 2082 01 Apr 2081 to 25 Sep 2081 26 Jul 205226 to Jul 2082 12 Nov 205212 to Nov 2082 11 Jan 204611 to Jan 2081 03 Sep 205003 to Sep 2080 23 Aug 205323 to Aug 2083 Land Use Rights Expiry Date 14 Feb 205314 to Feb 2083 17 Nov 205417 to Nov 2084 Commercial Commercial Commercial Commercial Commercial, Office, Commercial Commercial Cultural and Entertainment Commercial Commercial Commercial Land Use Commercial, Education Zhuzhou Residential, Zhuzhou Residential, Changzhou Residential, Changsha Residential, Danyang Residential, Danyang Residential Nanjing Residential, Changsha Residential, Hangzhou Residential Jiangyin Residential, Changsha Residential, Pinghu Residential, Hangzhou Residential, City Estate Development Company Limited Zhuzhou Jinbi Property Company Limited Changzhou Hanjia Property Company Limited Changsha Ruixi Property Company Limited Danyang Mingyuan Real Estate Development Company Limited Danyang Hengda Property Company Limited Real Estate Company Limited Holding Entity Changsha Xiangjiang Mingyuan Real Estate Company Limited Hangzhou Suihua Property Company Limited Jiangyin Yasheng Hengtai Property Company Limited Changsha Jinxia Development Construction Company Limited Pinghu Hengda Mingdu Property Company Limited Hangzhou Jingli Property Company Limited Zhuzhou Court Changzhou Scenic Bay Changsha Danyang Danyang Changsha View Garden Hangzhou Jiangyin Scenic Peninsula Changsha Pinghu International Plaza Hangzhou IV-267 Portion of Evergrande Metropolis IV-268 Portion of Evergrande Emerald IV-266 Evergrande Palace Zhuzhou Zhuzhou Xiangyu Real IV-265 Portion of Evergrande Royal IV-269 Portion of Evergrande City IV-270 Portion of Evergrande Metropolis IV-264 Evergrande Royal Scenic Land IV-271 Portion of Evergrande Royal IV-272 Evergrande Riverside Nanjing Nanjing Linjiang Yujing IV-273 Evergrande Royal View Garden IV-263 Portion of Evergrande Royal IV-274 Portion of Evergrande Metropolis IV-275 Portion of Evergrande Crystal Property No. Property Name
– II-99 –
– IV-100 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 3.40 48.90 23.20 491.80 317.93 299.90 182.90 622.32 715.90 678.40 3,867.40 2,861.30 1,302.60 1,923.50 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) 3.40 100.0% State 48.90 100.0% 23.20 100.0% Market Value in Existing (2) 4.30 Date as if 29.50 Value Development at Valuation Completed as 1.62 1,316.20 299.90 100.0% 1.95 Date 25.51 253.40 81.85 8,763.70 3,867.40 100.0% 76.76 2,104.60 1,302.60 100.0% 11.44 Valuation up to the Development Cost incurred 2.05 Cost 12.04 Total 501.06 192.89 1,064.50642.47 491.80 100.0% 372.53 242.90179.66 943.10 623.40 51.0% 194.71 184.98 245.00 182.90 100.0% 944.30 146.44 2,155.80 777.90 80.0% 856.19 172.27 4,607.40 2,861.30 100.0% 515.03 489.28 990.00 715.90 100.0% 423.78 722.14 132.76 3,336.80 1,923.50 100.0% 728.67 692.23 953.80 678.40 100.0% Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2018 2019 2017 2017 2018 2,326.05 2017 2017 2020 2018 2018 2018 2017 2018 2018 Estimated Completion Date 2013 2017 2014 2012 2013 2012 2011 2012 2014 2011 2014 2009 2016 2007 Construction Commencement Pre-sale consideration (1) —— —— —— —— —— —— —— —— —— GFA Pre-sale (1) 633 4,349 GFA Total Planned (1) 58,816 220,349 98,560 81,042 83,427 231,278 11,653 370.44 51,072 113,142 24,377 732.75 72,434 174,877 (sq.m.) (sq.m.) (sq.m.) (RMB million) 224,417 189,414 7,328 45.41 113,029 80,459 115,355 120,927 132,154 29,860 164.79 118,842 234,518 126,985 777,182 30,223 331.78 315,352 219,736 137,098 982,714 168,695 Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Other, Carpark Commercial, Composite, Carpark Type of Property Site Area Residential Residential, Commercial, Composite, Carpark Residential, Composite, Carpark Commercial, Composite, Carpark Residential, Commercial, Hotel, Office, Carpark Residential, Commercial, Other, Carpark Commercial, Office, Other, Carpark Commercial, Carpark Commercial, Composite, Other, Carpark Residential, Commercial, Other Residential, Commercial, Hotel, Other, Carpark 20 Jul 2080 to 20 Jul 2080 to 16 Apr 2054 to 10 Sep 2082 to 14 Aug 2084 14 Aug 2084 01 Feb 2052 to 01 Feb 2082 26 Oct 2051 to 26 Oct 2081 20 Dec 2076 to 22 Aug 2053 to 22 Aug 2083 16 Apr 2084 28 Feb 2083 Land Use Rights Expiry Date 23 Dec 2050 to 23 Dec 2080 05 Mar 2050 to 06 Feb 2083 22 Jan 2078 30 May 2047 to 30 May 2077 05 May 2085 Residential, 24 Mar 2050 Residential, 07 May 2086 Residential, Education Commercial Commercial Commercial Cultural and Entertainment Land Use Commercial Accommodation and Catering Nanjing Residential, Jiaxing Residential, Lianyungang Residential, Huaian Residential Huaian Residential Jiangyin Residential, Jiaxing Residential Ningbo Residential, Office, Haiyan Residential Nanjing Residential, Nanjing Residential City Nanjing Residential, Nanjing Residential Nanjing Residential an Hengda Fufeng an Jiaxin Property ’ ’ Nanjing Meixu Real Estate Company Limited Jiaxing Hengda Property Company Limited Lianyungang Hengda Mingdu Property Company Limited Huai Real Estate Development Company Limited Huai Company Limited Jiangyin Shengjian Property Company Limited Holding Entity Jinhu (Zhejiang) Property Company Limited Chengbo (Ningbo) Property Company Limited Haiyan Shengjian Property Company Limited Jurong Tiangong Property Company Limited Nanjing Xutai Real Estate Company Limited Nanjing Hengda Fufeng Property Company Limited Nanjing Hengyu Real Estate Company Limited Nanjin Handian Real Estate Company Limited an an ’ ’ Court Nanjing Jiaxing Lianyungang Huai Huai Scenic Jiangyin Jiaxing Lights Ningbo Scenic Haiyan Nanjing Jurong Nanjing Nanjing Nanjing Nanjing IV-283 Portion of Evergrande Emerald IV-279 Portion of Evergrande Oasis IV-282 Portion of Evergrande Metropolis IV-277 Portion of Evergrande Metropolis IV-278 Portion of Evergrande Metropolis IV-281 Portion of Evergrande Royal IV-280 Evergrande Left Lake Land IV-289 Portion of Evergrande City IV-276 Portion of Evergrande Royal IV-288 Portion of Evergrande Atrium IV-284 Portion of Evergrande Palace Property No. Property Name IV-285 Portion of Evergrande Splendor IV-286 Evergrande Dragon Court IV-287 Portion of Evergrande Oasis
– II-100 –
– IV-101 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 61.00 513.80 195.20 129.60 228.20 446.40 330.10 436.40 575.70 2,081.62 3,529.35 3,110.49 3,271.90 1,059.00 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) State 61.00 100.0% Market Value in Existing (2) Date as if 80.50 Value Development at Valuation Completed as 0.01 1,227.00 330.10 100.0% Date 15.54 5,697.90 4,081.60 51.0% 89.90 7,194.90 3,456.10 90.0% 49.16 70.68 268.10 195.20 100.0% 99.66 295.70 228.20 100.0% 13.15 1,653.50 446.40 100.0% Valuation up to the Development Cost incurred Cost 51.74 74.40 Total 957.07 231.39 180.57 715.20 513.80 100.0% 578.50 414.79 155.94104.90 512.50 129.60 100.0% 769.83 565.64 160.32 1,200.50758.35 436.40 217.84 1,591.80 100.0% 575.70 100.0% Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2018 1,451.262019 630.77 1,637.79 6,303.702019 3,921.50 90.0% 2017 2017 2021 1,345.80 687.56 6,004.70 3,271.90 100.0% 2017 2017 1,230.81 256.14 2,634.50 1,059.002023 100.0% 2018 2017 2021 2020 2020 Estimated Completion Date 2016 2017 2016 2014 2015 2014 2014 2013 2014 2013 2014 2014 2014 2014 Construction Commencement Pre-sale consideration (1) —— —— —— —— —— —— —— —— —— —— GFA Pre-sale (1) GFA Total Planned (1) 50,964 76,018 2,752 107.85 40,129 20,464 31,307 136,769 30,893 26,396 3,585 45.79 69,936 39,055 55,403 171,355 83,789 251,301 (sq.m.) (sq.m.) (sq.m.) (RMB million) 350,533 205,101401,273 38,118 239,563 1,347.48 129,188 315,083 104,204 176,403 181,050 77,155 118,808 231,531 312,328 416,690 15,681 118.83 Commercial, Other, Carpark Commercial, Carpark Residential, Commercial, Other, Carpark Composite, Carpark Carpark Residential, Hotel, Other, Carpark Commercial, Carpark Commercial, Other, Carpark Residential, Commercial, Carpark Composite, Hotel, Other, Carpark Type of Property Site Area Residential, Commercial, Carpark Residential, Commercial, Carpark Residential, Commercial, Other, Carpark Residential, Commercial, Composite, Hotel, Carpark 22 Dec 2086 Residential, 24 Feb 2084 Residential, 22 Nov 2075 27 Dec 204327 to Dec 2063 12 Nov 2075 to 29 Jul 205018 to Jan 2085 29 Jul 205018 to Jan 2085 29 Jul 205018 to Jan 2085 09 Sep 2053 Commercial, 29 Jul 205018 to Jan 2085 15 Oct 205202 to Apr 2084 17 Jan 2084 Residential, Other, 24 May 2084 Residential, 12 Nov 2075 Residential, Land Use Rights Expiry Date 17 Jan 2084 Residential, Commercial Commercial, Accommodation and Catering Commercial, Accommodation and Catering Commercial, Accommodation and Catering Commercial Commercial, Accommodation and Catering Commercial Land Use Shanghai Residential Shanghai Residential Shanghai Residential Suzhou Residential Shanghai Residential Shanghai Residential, Shanghai Residential Shanghai Residential Ningbo Residential, Ningbo Residential, Ningbo Residential, Quzhou Residential, Ningbo Residential, Ningbo Residential, City an Property ’ Shanghai Jinbi Property Company Limited Shanghai Fengtao Property Company Limited Shanghai Fenshun Property Company Limited Suzhou Wuxiang Property Company Limited Shanghai Rongshan Property Company Limited Company Limited Shanghai Yue Shanghai Songyu Property Company Limited Company Limited Ningbo Sanji Lancheng Property Company Limited Ningbo Sanli Xianghe Property Company Limited Ningbo Sanji Yongheng Property Company Limited Quzhou Hengda Shengjian Property Company Limited Holding Entity Ningbo Sanji Jiada Property Company Limited Ningbo Yucheng Property Company Limited Scenic Bay Shanghai Garden Shanghai Shanghai Suzhou Palace Sheshan Shanghai Shanghai View Garden Shanghai On The Sea Ningbo On The Sea Ningbo On The Sea Ningbo Scenic Peninsula Quzhou On The Sea Ningbo Garden Ningbo IV-300 Portion of Evergrande Royal IV-301 Evergrande Royal Seaview IV-302 Portion of Evergrande Yulanwan IV-303 Evergrande Jewelry Court IV-298 Portion of Evergrande Metropolis IV-299 Portion of Evergrande First IV-296 Portion of Evergrande Royal IV-297 Evergrande Palace Shanghai Shanghai Suihua Property IV-292 Portion of Evergrande Peninsula IV-293 Portion of Evergrande Peninsula IV-294 Portion of Evergrande Peninsula IV-295 Portion of Evergrande Royal IV-291 Portion of Evergrande Peninsula IV-290 Portion of Evergrande Scenic Property No. Property Name
– II-101 –
– IV-102 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (7) (2) 35.40 24.40 787.41 795.90 258.60 233.30 240.80 435.48 146.30 1,862.70 1,279.00 1,580.03 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) State 35.40 100.0% 24.40 100.0% Market Value in Existing (2) Date as if Value Development at Valuation Completed as Date 26.76 185.00 95.12 1,143.20 240.80 100.0% 18.35 2,524.50 458.40 95.0% 17.04 124.40 26.10 370.70 146.30 100.0% 14.27 4,264.30 3,098.10 51.0% Valuation up to the Development Cost incurred Cost Total 955.22 511.92 2,894.60 1,862.70 100.0% 526.88 308.35137.49 605.70 258.60 100.0% 198.03 181.98 316.10 233.30 100.0% 664.74 842.08 108.20 159.15 Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2017 2019 1,462.08 434.30 3,160.90 1,211.40 65.0% 2017 2017 2019 1,270.00 259.86 2,525.10 802.40 99.2% 2017 2018 2021 2,337.14 355.30 4,975.10 1,279.00 100.0% 2019 2017 2018 2019 1,219.71 Estimated Completion Date 2011 2013 2011 2012 2016 2017 2013 2016 2016 2013 2012 2017 Construction Commencement 1.50 9.16 Pre-sale consideration (1) —— —— —— —— —— 690 11.71 293 GFA Pre-sale (1) GFA Total Planned (1) 84,270 219,960 88,783 592.85 34,818 233,099 92,452 82,121 85,935 242,556 (sq.m.) (sq.m.) (sq.m.) (RMB million) 165,227 401,376 133,354 1,159.74 237,834 164,333 116,345 57,446 2,724 263,300 346,617 124,954 368,044 106,152 841.00 259,015 687,983 193,559 1,473.32 105,857 49,338 181,456 48,328 Residential, Commercial, Composite, Other, Carpark Composite, Other, Carpark Commercial, Composite, Other, Carpark Composite, Carpark Type of Property Site Area Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Other, Carpark Residential, Composite, Other Residential, Commercial, Composite, Carpark 29 Jun 2052 to 29 Jun 2082 10 Mar 2051 to 10 Mar 2081 23 Jun 2086 Residential, 20 Jun 2081 Residential, 26 Jun 2081 Residential, 29 Jul 2054 to 29 Jul 2084 05 Oct 2052 to 05 Mar 2083 02 Jun 2056 to 05 Mar 2087 10 Jul 2082 Land Use Rights Expiry Date 30 May 2052 to 30 May 2082 22 Dec 2056 to 22 Dec 2086 Commercial Commercial, Office, Education Commercial Commercial Commercial Commercial Commercial Residential, Residential, Land Use Commercial Residential, Wuxi Wuxi Suqian Residential Suqian Residential Suqian Residential Xuzhou Residential, Yuyao Residential, Yancheng Residential, Wuxi Yancheng Residential, Yangzhou Residential, Office 10 Jul 2052 to Suzhou Residential, City Wuxi Shengdong Real Estate Development Company Limited Company Limited Suqian Hengda Lvzhou Real Estate Development Company Limited Suqian Hengda Huafu Property Company Limited Suqian Hengda Lvzhou Real Estate Development Company Limited Xuzhou Runyang Weiye Property Company Limited Estate Development Company Limited Hengda Real Estate Group Yancheng Chengnan Property Company Limited Holding Entity Development Company Limited Hengda Real Estate Group Yancheng Company Limited Yangzhou Honglitai Real Estate Development Company Limited Development Company Limited Wuxi Suqian Suqian Suqian Xuzhou Yancheng Yancheng Scenic Yangzhou IV-305 Portion of Evergrande Oasis IV-307 Evergrande Emerald Court IV-308 Portion of Evergrande Palace IV-309 Portion of Evergrande Oasis IV-310 Evergrande Left Riverbank IV-306 Evergrande Grand Bay Wuxi Wuxi Yunsha Property IV-311 Evergrande Royal View Garden IV-314 Yuyao Evergrande YuLanTing Yuyao Shengjian Real IV-312 Portion of Evergrande Metropolis IV-304 Portion of Evergrande City Wuxi Wuxi Hengda Real Estate IV-313 Portion of Evergrande Royal Property No. Property Name IV-315 Evergrande Joyful Bay Suzhou Suzhou Hengda Real Estate
– II-102 –
– IV-103 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 30.60 40.70 361.90 458.90 469.89 228.20 385.70 675.50 305.44 1,085.80 1,204.30 1,355.60 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) State 30.60 100.0% 40.70 100.0% Market Value in Existing (2) Date as if 59.70 Value Development at Valuation Completed as 2.72 Date 62.89 1,441.90 458.90 100.0% 60.74 213.70 59.30 1,618.60 522.10 90.0% 32.90 1,040.80 228.20 100.0% 90.66 1,320.00 385.70 100.0% Valuation up to the Development Cost incurred Cost 20.18 Total 627.57 191.32 710.91 593.10 626.34 982.91 221.72 2,701.40985.10 1,204.30 159.56 100.0% 3,176.10 1,355.60 100.0% 776.69 133.94 1,641.60 675.50 100.0% 328.90 110.75 746.40 381.80 80.0% Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2018 1,709.88 169.80 3,901.00 1,085.80 100.0% 2017 2020 1,154.79 128.47 1,935.30 361.90 100.0% 2019 2017 2019 2019 2020 2018 2020 2017 2017 Estimated Completion Date 2016 2011 2015 2012 2016 2011 2011 2011 2014 2013 2015 2016 Construction Commencement Pre-sale consideration (1) —— —— GFA Pre-sale (1) 6,861 GFA Total Planned (1) 55,113 149,765 64,64218,841 764.20 63,383 73,024 51,067 67,402 19,263 185.58 (sq.m.) (sq.m.) (sq.m.) (RMB million) 188,431 530,265 10,049 104.03 222,933 371,471 4,387 25.36 130,993 242,703 21,039 180.51 127,455 177,655 13,610 37.07 215,377 213,483 6,691 63.29 199,970 301,509 5,078 44.89 124,968 313,787 28,619 226.90 119,948 260,993 7,178 47.45 Type of Property Site Area Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Carpark Residential, Commercial, Composite, Other, Carpark Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Carpark 06 Apr 2056 to 06 Apr 2086 25 Oct 205228 to Jan 2084 22 Nov 205622 to Nov 2086 27 Jan 205127 to Jan 2081 21 Dec 205121 to Dec 2081 24 Sep 205507 to Sep 2086 Land Use Rights Expiry Date 11 Nov 205011 to Nov 2080 02 Nov 205002 to Nov 2080 12 Jun 2054 to 12 Jun 2084 13 Mar 205313 to Mar 2083 12 Feb 205512 to Feb 2085 11 Dec 205311 to Dec 2083 Commercial Commercial Commercial Commercial Residential, Commercial, Office, Public Facility Commercial Commercial Land Use Commercial Commercial Commercial Commercial Commercial Changchun Residential, Songyuan Residential, Zhoushan Residential, Changchun Residential, Jilin Zhenjiang Residential, Zhangjiagang Residential, Changchun Residential, City Changchun Residential, Changchun Residential, Changchun Residential, Changchun Residential, Hongji (Changchun) Real Estate Company Limited Songyuan Hengda Yusheng Real Estate Development Company Limited Zhoushan Jingshun Real Estate Company Limited Jilin Wancheng Real Estate Development Company Limited Holding Entity Jilin Hengda Yongsheng Real Estate Development Company Limited Zhenjiang Jia Qi Property Company Limited Zhangjiagang Shengjian Property Company Limited Shengji (Changchun) Real Estate Company Limited Zetao (Changchun) Real Estate Company Limited Yongji (Changchun) Real Estate Company Limited Jitao (Changchun) Real Estate Company Limited Jilin Nuoda Real Estate Development Company Limited Changchun Scenic Bay Songyuan Zhoushan Court Changchun Jilin Zhengjiang Villa Zhangjiagang Changchun View Garden Changchun Changchun Changchun Changchun IV-320 Evergrande First Palace IV-321 Portion of Evergrande Royal IV-318 Evergrande Royal Scenic Bay IV-319 Portion of Evergrande Emerald IV-322 Portion of Evergrande Palace IV-317 Portion of Evergrande Oasis IV-316 Portion of Evergrande Greenview IV-323 Portion of Evergrande City Property No. Property Name IV-324 Portion of Evergrande Royal IV-325 Portion of Evergrande City Plaza IV-326 Portion of Evergrande Bay IV-327 Evergrande Moon Residence
– II-103 –
– IV-104 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 7.40 65.70 494.80 110.50 191.00 373.30 460.74 517.70 829.60 242.30 231.29 405.00 1,361.60 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) 7.40 100.0% State 65.70 100.0% Market Value in Existing (2) Date as if 32.30 Value Development at Valuation Completed as 1.09 0.25 1,139.90 405.00 100.0% Date 28.15 103.10 63.05 1,056.50 373.30 100.0% 60.03 144.5049.95 110.50 407.10 100.0% 191.00 100.0% 71.43 2,211.10 829.60 100.0% 44.56 1,026.60 242.30 100.0% Valuation up to the Development Cost incurred Cost 45.37 63.19 Total 27.30 428.31 220.66 982.10 494.80 100.0% 528.80 164.79 859.25 189.70 2,019.80 767.90 60.0% 443.16 317.68 860.70 517.70 100.0% 794.78 552.09 385.70 425.43 201.34 945.60 453.50 51.0% Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2018 1,320.03 465.62 2,883.90 1,361.60 100.0% 2017 2019 2019 2017 2018 2020 2018 2019 2017 2019 2019 2019 Estimated Completion Date 2012 2014 2010 2016 2014 2011 2016 2016 2017 2010 2013 2015 2015 Construction Commencement 1.38 Pre-sale consideration (1) —— —— —— 129 GFA Pre-sale (1) 7,066 GFA Total Planned (1) 54,394 148,220 27,70259,514 201.01 28,383 3,916 31.80 91,917 280,670 49,154 144,565 (sq.m.) (sq.m.) (sq.m.) (RMB million) 149,910 416,904 1,574 11.61 197,940 14,757 125,076 125,236 87,113 640.67 170,324 61,671 3,954 38.49 107,429 314,678 23,756 161.73 205,558 111,480 181,558 24,982 156.89 244,219 238,820 33,804 261.66 110,741 174,163 3,787 32.49 Type of Property Site Area Residential, Commercial, Composite, Other, Carpark Commercial, Composite, Carpark Residential, Commercial, Composite, Other Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Carpark Residential, Commercial, Composite, Carpark Residential, Commercial, Composite, Other, Carpark Composite, Other Residential, Commercial, Carpark Commercial, Composite, Carpark Residential, Commercial, Composite, Other, Carpark 12 May 2051 to 12 May 2081 27 Jun 2083 Residential, 24 May 2060 Residential, 07 Dec 205107 to Dec 2081 Land Use Rights Expiry Date 11 Dec 205311 to Dec 2083 11 Dec 205311 to Dec 2083 13 Jan 205113 to Jan 2081 07 Jun 2055 to 26 Jun 2086 07 Jun 2085 02 Dec 205202 to Dec 2082 27 Jun 2050 to 02 Mar 2081 20 Oct 2085 07 Jun 2055 to 22 May 2048 to 22 May 2078 Commercial Commercial Commercial Commercial Commercial Commercial Land Use Commercial Commercial Residential Commercial Commercial Changchun Residential, Changchun Residential, Changchun Residential, Changchun Residential, Changchun Residential, Changchun Residential, Ganzhou Residential, Ganzhou Residential City Jiujiang Residential, Jingdezhen Residential, Jingdezhen Residential, Office 20 Oct 2055 to Ganzhou Residential, Jian an) Real Estate ’ Jiangxi Huashang Ronghe Xinji (Changchun) Real Estate Company Limited Holding Entity Jinggao (Changchun) Real Estate Company Limited Guangji (Changchun) Real Estate Company Limited Taiji (Changchun) Real Estate Company Limited Longji (Changchun) Real Estate Company Limited Taiji (Changchun) Real Estate Company Limited Ganzhou Hengpeng Property Company Limited Ganzhou Hengda Real Estate Company Limited Property Company Limited Hengda (Jingdezhen) Real Estate Group Company Limited Hengda (Jingdezhen) Real Estate Group Company Limited Jiangxi Xingyu Property Development Company Limited Hengda (Ji Group Company Limited an ’ Changchun Changchun Changchun (Phase II) Summit Changchun Changchun View Garden Changchun Ganzhou Court Ganzhou Jingdezhen Scenic Jingdezhen Ganzhou View Garden Ji IV-329 Portion of Evergrande Metropolis IV-330 Portion of Evergrande Atrium IV-331 Evergrande Royal Summit IV-332 Portion of Evergrande Royal IV-328 Portion of Evergrande Oasis IV-333 Portion of Evergrande Scenic IV-334 Evergrande Royal View Garden IV-335 Portion of Evergrande Emerald Property No. Property Name IV-340 Evergrande Bay Jiujiang IV-339 Portion of Evergrande Metropolis IV-338 Portion of Evergrande Royal IV-336 Portion of Evergrande Metropolis IV-337 Portion of Evergrande Royal
– II-104 –
– IV-105 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (8) (2) 17.10 11.50 45.80 21.60 378.00 281.78 901.48 129.30 161.60 752.60 270.05 846.60 1,959.80 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) State 17.10 100.0% 11.50 100.0% 45.80 100.0% 21.60 100.0% Market Value in Existing (2) Date as if 43.20 36.20 Value Development at Valuation Completed as 5.06 163.00 1.41 Date 41.30 3,603.20 378.00 100.0% 22.58 336.30 56.72 399.30 161.60 100.0% 21.95 Valuation up to the Development Cost incurred Cost 33.95 30.10 Total 620.21 206.03 3,235.70 1,959.80 100.0% 143.13 768.23 153.09 2,069.10 552.50 51.0% 479.26 318.70 366.60 129.30 100.0% 222.05 570.53 335.03 1,385.80 752.60 100.0% 209.69 506.74 131.91 1,220.30 529.50 51.0% Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2018 2019 1,419.85 2017 2021 2022 1,480.63 316.34 3,454.30 1,012.90 89.0% 2017 2017 2021 2019 2017 2017 2018 2020 5,809.22 338.55 8,308.70 846.60 100.0% Estimated Completion Date 2016 2017 2014 2016 2012 2010 2011 2012 2013 2010 2011 2016 2011 Construction Commencement 8.69 Pre-sale consideration (1) —— —— —— —— —— —— —— GFA Pre-sale (1) 8,129 GFA Total Planned (1) 61,456 231,65163,203 57,151 539,926 885.80 70,144 218,019 12,449 90.30 92,696 79,525 1,932 88,492 47,395 57,489 149,029 3,344 32.50 (sq.m.) (sq.m.) (sq.m.) (RMB million) 105,280 283,307 25,371 249.29 759,473 558,179 18,732 172.37 123,575 84,545 192,891 11,027 113,168 1,577,388 76,461 2,117,748 1,633,765 Residential, Commercial, Composite, Carpark Commercial, Composite, Other, Carpark Type of Property Site Area Commercial, Hotel, Other Residential, Other Commercial, Composite, Other, Carpark Residential, Commercial, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Composite, Other Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Carpark Residential, Composite, Other Residential, Commercial, Other, Carpark 17 Mar 2084 Other, Carpark 02 Feb 2086 31 Mar 2087 Residential, 29 Dec 205029 to Dec 2080 26 Jan 2085 Residential, 24 Nov 204724 to Nov 2077 01 Jun 2081 05 Mar 205305 to Mar 2083 13 Sep 2075 27 Apr 2052 to 27 Apr 2082 Land Use Rights Expiry Date 14 May 2056 to 14 May 2066 12 May 2051 to 29 Nov 2082 28 Feb 205028 to Feb 2080 Commercial, Accommodation and Catering Commercial Commercial, Sport and Leisure Commercial Commercial Land Use Commercial Commercial Commercial Shangrao Residential, Nanchang Residential, Office 02 Feb 2056 to Nanchang Residential Nanchang Residential, Nanchang Residential, Nanchang Residential Nanchang Residential, Office 01 Jun 2051 to Yining Residential, Jiujiang Residential, Xinyu Residential, Office 13 Sep 2045 to Urumqi Residential, City Wujiaqu Residential, Xinyu Residential, Company Limited Property Company Limited Nanchang Zhongdiantou Gaoxin Property Company Limited Nanchang Zhongdiantou Gaoxin Property Company Limited Jiangxi Cuilin Shanzhuang Company Limited Jiangxi Jigan Property Company Limited Holding Entity Jiangxi Hongji Investment Company Limited Yining Hengda Yayuan Real Estate Development Company Limited Hengda (Jiujiang) Real Estate Group Company Limited Xinyu Zhongchen Property Development Company Limited Real Estate Development Company Limited Wujiaqu Zhuoyue Real Estate Development Company Limited Xinyu Xingwang Real Estate Development Company Limited Yujingxiaoqu Nanchang View Garden Nanchang Nanchang Nanchang Nanchang Yining Scenic Jiujiang Xinyu Urumchi Xinyu IV-348 Evergrande Metropolis Shangrao Shangrao Hengda Property IV-347 Evergrande Palace Nanchang Nanchang Hengda Zhaoyang IV-346 Portion of Evergrande IV-345 Portion of Evergrande Royal IV-344 Portion of Evergrande Oasis IV-343 Evergrande Emerald Court IV-342 Portion of Evergrande City IV-353 Portion of Evergrande Atrium IV-341 Portion of Evergrande Royal IV-352 Portion of Evergrande Atrium Property No. Property Name IV-349 Evergrande Oasis Urumchi WulumuqiIV-350 Shengshi Junxing Portion of Evergrande Splendor IV-351 Portion of Evergrande City
– II-105 –
– IV-106 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (9) (2) 57.00 636.10 776.70 136.60 123.80 614.80 650.60 976.90 236.20 1,989.90 1,195.70 1,129.10 1,370.96 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) State 57.00 100.0% Market Value in Existing (2) Date as if Value Development at Valuation Completed as 2.97 290.50 123.80 100.0% Date 46.37 171.10 83.29 953.50 236.20 100.0% Valuation up to the Development Cost incurred Cost Total 110.55 613.13 240.57 3,292.20 1,989.90 100.0% 200.17 144.82 358.80 136.60 100.0% 813.02 614.17 1,289.50 636.10 100.0% 597.93 258.97 1,478.80 776.70 100.0% 794.55 633.66 1,663.10 976.90 100.0% 143.36 572.96 544.31 2,603.10 1,713.70 80.0% 534.69 Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2019 2019 2018 2020 2018 2018 1,009.39 260.76 2,656.40 1,195.70 100.0% 2023 1,981.76 283.94 3,582.50 614.80 100.0% 2020 2017 2026 3,221.382026 283.58 5,819.60 1,461.35 1,129.10 221.64 100.0% 2,800.50 650.602019 100.0% 2019 Estimated Completion Date 2011 2015 2015 2012 2016 2014 2015 2013 2012 2011 2012 2012 Construction Commencement Pre-sale consideration (1) —— —— — —— —— GFA Pre-sale (1) GFA Total Planned (1) 86,143 77,520 14,021 84.70 74,261 210,805 49,956 918.06 56,921 43,501 5,429 28.64 32,068 172,626 38,592 174,635 (sq.m.) (sq.m.) (sq.m.) (RMB million) 160,203 249,954 2,217 10.79 152,704 203,271 1,835 28.77 133,308 355,529 325,185 45,388 17,873 49.71 378,753 753,237 17,014 119.09 352,910 1,217,639 50,858112,504 107.56 537,753 2,863 14.11 111,400 186,764 Type of Property Site Area Residential, Commercial, Composite, Other, Carpark Commercial, Other, Carpark Residential, Commercial, Composite, Carpark Residential, Commercial, Composite, Other, Carpark Commercial, Composite, Other, Carpark Carpark Residential, Composite, Other, Carpark Commercial, Composite, Other, Carpark Commercial, Office, Other, Carpark Commercial, Other, Carpark Residential, Commercial, Composite, Other, Carpark Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark 15 Jul 2080 Residential, 29 Jan 2085 18 Dec 2057 Residential, 31 May 2085 Residential, 27 Apr 2052 to 27 Apr 2082 Land Use Rights Expiry Date 30 Mar 2051 Residential, 21 Apr 2054 to 21 Apr 2084 30 Jan 2082 Residential, Other, 28 Jan 205128 to Jan 2081 28 Jan 2085 to 16 Jan 2077 Residential, 09 Jul 205028 to Feb 2083 31 Aug 2081 Residential, 28 Sep 205128 to Sep 2081 Commercial Commercial Commercial Commercial, Office Land Use Commercial Residential, Commercial shan Residential, shan Residential ’ ’ Dalian Residential Yingtan Residential Dalian Residential Dalian Residential, Yining Residential, Yichun Residential Dalian Commercial Dalian Residential, Dalian Residential Yingtan Residential, City An An Benxi Holding Entity Land Company Limited Hengda Real Estate Yingtan Company Limited Dalian Hengke Real Estate Company Limited Dalian Xicheng Real Estate Company Limited Yining Jinbi Real Estate Development Company Limited Jiangxi Jimin Kexin Real Estate Development Company Limited Company Limited Dalian Hengcheng Real Estate Company Limited Hansi (Dalian) Apartments Development Company Limited Hengda Real Estate Yingtan Company Limited Anshan Jiarui Property Company Limited Anshan Jiayu Property Company Limited Benxi Jiaxi Property Company Limited Scenic Yingtan City Dalian Dalian Yining Yichun View Garden Dalian Dalian Yingtan Anshan Anshan Benxi IV-357 Portion of Evergrande Royal IV-364 Portion of Evergrande Harbor IV-365 Evergrande Seasons Dalian DalianIV-366 Dongfang Shengdu Portion of Evergrande Tanxijun IV-354 Portion of Evergrande Oasis IV-355 Portion of Evergrande Oasis IV-362 Portion of Evergrande Royal IV-363 Evergrande Golden Avenue IV-356 Portion of Evergrande Oasis Property No. Property Name IV-358 Portion of Evergrande Oasis IV-361 Evergrande City Lights Dalian Dalian Junyuan Property IV-359 Portion of Evergrande Metropolis IV-360 Portion of Evergrande Oasis
– II-106 –
– IV-107 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (10) (11) (2) 12.30 60.12 60.20 42.00 224.80 424.10 715.60 143.00 726.50 389.40 421.80 304.70 1,306.70 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) State 12.30 100.0% 60.20 100.0% 42.00 100.0% Market Value in Existing (2) Date as if 27.50 89.90 Value Development at Valuation Completed as 4.29 262.50 224.80 100.0% 7.52 1,350.00 715.60 100.0% 1.19 3.71 197.70 Date 32.26 1,503.80 424.10 100.0% 25.11 158.70 100.20 60.0% 38.08 1,900.30 389.40 100.0% 15.58 Valuation up to the Development Cost incurred Cost 50.15 11.13 Total 24.33 245.29 194.14 512.98 824.36 141.56 1,538.60 143.00 100.0% 268.45 112.60 609.90 304.70 100.0% 129.48 Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2019 2019 2017 2022 2020 2017 2023 1,003.25 2025 1,344.06 431.272023 2,295.60 1,922.69 421.80 256.27 100.0% 3,918.70 726.50 100.0% 2020 2,696.50 292.95 5,369.80 1,306.702018 100.0% 2018 2017 Estimated Completion Date 2017 2017 2014 2013 2011 2012 2016 2010 2011 2016 2013 2010 2007 Construction Commencement 7.63 1.64 9.76 Pre-sale consideration (1) —— —— —— —— 303 GFA Pre-sale (1) 4,200 3,111 18.46 8,868 1,471 GFA Total Planned (1) 28,396 35,000 28,400 18,772 12,780 96.14 66,627 193,441 1,444 72,970 (sq.m.) (sq.m.) (sq.m.) (RMB million) 102,657 64,285 152,247 300,072 22,825171,887 358,613 91.79 338,866 471,933 301,934 711,822 8,007 31.01 217,114 137,881 835,566 103,314359,812 706.35 39,950 104,410 100,576 30,978 229.51 Type of Property Site Area Composite, Carpark Residential Commercial, Office, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Commercial, Carpark Commercial Commercial, Composite, Other, Carpark Commercial, Composite, Other, Carpark Residential, Commercial, Other, Carpark 13 Jan 2051 to 13 Feb 2051 15 Jul 2050 Hotel 15 Jul 2050 to15 Jul 2080 Land Use Rights Expiry Date 28 Jan 2051 to 29 Mar 2081 29 Aug 2051 to 29 Aug 2081 08 Jun 2051 to 29 May 2084 20 Jun 2050 to 20 Jun 2080 20 Mar 2087 Residential, 31 Mar 2061 30 Aug 2083 Commercial, 29 May 2053 to 19 Jun 2083 27 May 2060 Residential, 24 May 2060 Residential, 07 Jun 2057 to Accommodation and Catering Accommodation and Catering Land Use Commercial Commercial Commercial Commercial Commercial Commercial Dalian Residential, Dalian Residential, Fushun Commercial Dalian Residential Panjin Residential, City Fushun Residential, Huludao Residential, Liaoyang Residential, Shenyang Residential, Shenyang Residential Shenyang Residential Shenyang Residential Shenyang Residential, Dalian Dongfang Yadou Property Company Limited Dalian Shengdu Yihe Real Estate Development Company Limited Holding Entity Fushun Jiashun Property Company Limited Dalian Shicheng Real Estate Company Limited Panjin Jiading Property Company Limited Fushun Jiaxin Property Company Limited Huludao Jia Shan Property Company Limited Liaoyang Hengsheng Property Company Limited Shenyang Jiaxing Property Company Limited Shenyang Jiakai Property Company Limited Shenyang Jiaqi Property Company Limited Hengda Xinyuan (Shenyang) Property Company Limited Shenyang Jiahui Property Company Limited Dalian Dalian Fushun Scenic Bay Dalian Panjin Fushun Scenic Bay Huludao Liaoyang Shenyang Shenyang Shenyang Shenyang Court Shenyang IV-368 Portion of Evergrande Seasons IV-369 Portion of Evergrande Seasons IV-370 Portion of Evergrande Plaza IV-367 Portion of Evergrande Royal IV-374 Portion of Evergrande Palace Property No. Property Name IV-371 Portion of Evergrande Palace IV-372 Portion of Evergrande Royal IV-373 Portion of Evergrande Oasis IV-375 Evergrande Left Riverbank IV-378 Portion of Evergrande Palace IV-376 Portion of Evergrande City IV-377 Portion of Evergrande Emerald IV-379 Portion of Evergrande Bay
– II-107 –
– IV-108 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (12) (2) 94.50 577.40 431.99 782.90 430.20 797.80 213.80 862.70 470.30 386.80 1,308.30 1,136.50 3,994.80 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) State 94.50 100.0% Market Value in Existing (2) Date as if Value Development at Valuation Completed as 8.27 271.80 Date 40.00 1,960.80 493.70 87.5% 28.18 1,282.90 213.80 100.0% 70.84 951.80 470.30 100.0% Valuation up to the Development Cost incurred Cost Total 939.26 724.15 128.43 288.56 Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2021 1,860.632019 266.59 1,367.02 4,054.80 263.99 1,308.30 2,946.50 100.0% 1,136.50 100.0% 2020 2021 1,181.91 139.22 2,445.80 782.90 100.0% 2020 1,553.30 626.01 1,929.70 430.20 100.0% 2026 1,833.942020 163.97 2,164.24 3,112.10 685.37 577.40 3,333.00 100.0% 797.80 100.0% 2024 2017 2022 4,876.12 1,745.732022 11,780.00 1,295.58 3,994.80 236.73 100.0% 2,877.40 862.70 100.0% 2019 2031 4,383.14 242.77 6,009.60 386.80 100.0% Estimated Completion Date 2011 2010 2012 2017 2013 2011 2011 2011 2014 2012 2017 2015 2011 Construction Commencement 1.27 8.70 Pre-sale consideration (1) —— —— —— —— —— 290 GFA Pre-sale (1) GFA Total Planned (1) 88,885 292,454 50,066 99,727 60,344 756.28 61,038 48,051 1,161 69,621 477,513 (sq.m.) (sq.m.) (sq.m.) (RMB million) 575,404 725,795 353,066 505,785 2,604 16.23 239,169 400,615 21,887 133.63 281,687 617,973 2,809 14.26 126,428 249,606 373,637 348,677 28,227 158.74 589,133 659,683 44,708 106.45 351,382 1,833,131 121,621 1,452,026 Type of Property Site Area Residential, Commercial, Other, Carpark Residential, Commercial, Composite, Other, Carpark Commercial, Composite, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Carpark Residential, Commercial, Composite, Other Commercial, Composite, Carpark Residential, Commercial, Hotel, Other, Carpark Residential, Commercial, Composite, Hotel, Other, Carpark Residential, Commercial, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Other, Carpark Residential, Commercial, Composite, Other, Carpark 31 Dec 2056 to Land Use Rights Expiry Date 31 Oct 2064 19 Oct 205019 to Oct 2080 03 Apr 2052 to 20 Apr 2082 25 Sep 2051 to 06 Mar 2087 Residential, 07 Jul 2085 Residential, 29 Jul 205429 to Jul 2084 29 Nov 205329 to Nov 2083 18 Apr 2052 to 07 Apr 2083 17 Jul 205117 to Jul 2081 12 Sep 205212 to Sep 2082 25 Jan 205125 to Jan 2081 06 Dec 205306 to Dec 2083 25 Sep 2081 Commercial Commercial Land Use Commercial Commercial Residential Commercial Commercial Commercial Commercial Accommodation and Catering Commercial, Accommodation and Catering Commercial Shenyang Residential Shenyang Residential, Shenyang Residential, Yingkou Residential, Shenyang Residential, City Yingkou Residential, Shenyang Residential, Shenyang Residential, Yingkou Residential, Jinan Dongying Residential, Dongying Residential, Shenyang Residential, Holding Entity Hengda Changji (Shenyang) Property Company Limited Shenyang Yue Tong Properties Company Limited Shenyang Jiajun Property Company Limited Company Limited Shenyang Jiashang Property Company Limited Yingkou Jialong Real Estate Company Limited Shenyang Jiaze Property Company Limited Jindao (Shenyang) Real Estate Development Company Limited Yingkou Jialong Real Estate Company Limited Jinan Dongjin Fengshan Property Company Limited Dongying Yujing Property Company Limited Dongying Hengda Huafu Property Company Limited Jindao United (Shenyang) Real Estate Development Company Limited Shenyang Shenyang Shenyang Shenyang Yingkou Scenic Bay Shenyang Plaza Shenyang Yingkou East New Metropolis Jinan Islands Dongying Sheng Tai Cheng Dongying Plaza Shenyang IV-380 Portion of Evergrande Oasis IV-381 Portion of Evergrande Metropolis IV-383 Portion of Evergrande Atrium IV-382 Evergrande Shengjing Impression Property No. Property Name IV-389 Portion of Evergrande Oasis IV-384 Portion of Evergrande Royal IV-385 Portion of Evergrande Central IV-387 Portion of Evergrande City IV-388 Evergrande Bay Yingkou Yingkou Jiayu Property IV-392 Portion of Evergrande Longao IV-391 Portion of Evergrande Palm IV-390 Portion of Evergrande Huang He IV-386 Portion of Evergrande Central
– II-108 –
– IV-109 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 75.80 784.20 909.12 319.90 607.52 238.60 1,683.40 1,282.50 1,657.50 1,289.90 1,662.90 2,691.20 4,730.50 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) State 75.80 100.0% Market Value in Existing (2) Date as if Value Development at Valuation Completed as Date 52.57 3,067.20 1,136.40 80.0% 70.84 128.50 84.83 502.60 238.60 100.0% Valuation up to the Development Cost incurred Cost 96.38 Total 866.36 138.65 3,447.60 1,657.50 100.0% 196.07 186.26 440.40 319.90 100.0% 652.91 113.50 1,645.60 759.40 80.0% 225.96 Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2020 1,224.27 701.242022 3,204.80 1,428.22 1,683.40 584.72 100.0% 3,317.60 1,282.50 100.0% 2020 2025 2,088.56 1,096.90 4,149.20 1,289.90 100.0% 2021 1,632.10 130.60 3,359.60 784.20 100.0% 2020 1,243.06 633.06 3,293.90 1,662.90 100.0% 2018 1,143.49 2018 2017 2022 2,598.49 131.74 6,239.20 2,691.20 100.0% 2017 2018 2023 5,140.43 1,509.42 13,953.80 4,730.50 100.0% Estimated Completion Date 2014 2014 2015 2010 2012 2013 2016 2012 2010 2011 2016 2011 2013 Construction Commencement Pre-sale consideration (1) —— —— GFA Pre-sale (1) GFA Total Planned (1) 30,935 360,892 4,358 43.41 52,245 206,202 151,009 1,297.97 (sq.m.) (sq.m.) (sq.m.) (RMB million) 118,133 408,098 115,446103,965 1,128.21 448,542 186,125199,751 1,347.98 225,585 82,084 1,309.12 234,112 376,217 678,556 686,506 118,973 796.00 143,066 521,234 47,791 189.74 134,118 37,406 5,490 23.03 311,630 879,091 116,421 83,102 72,878 392.12 234,119 79,314 33,763 176.22 334,620 1,617,037 539,135 3,927.82 Residential, Commercial, Composite, Office, Carpark Residential, Commercial, Composite, Office, Carpark Commercial, Composite, Carpark Residential, Commercial, Carpark Residential, Commercial, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Carpark Composite, Other, Carpark Residential, Commercial, Other, Carpark Residential, Commercial, Carpark Residential, Commercial, Composite, Other, Carpark Type of Property Site Area Residential, Commercial, Composite, Carpark 05 Apr 2080 to 28 Apr 2080 Residential, 30 Apr 2054 to 01 Apr 2084 30 Apr 2054 to 01 Apr 2084 30 Dec 2084 Residential, 10 Nov 205330 to Apr 2084 07 Sep 2080 21 Aug 205521 to Aug 2085 19 Oct 2082 19 Oct 2082 21 Aug 205521 to Aug 2085 13 Jun 2084 13 Jun 2084 18 Dec 205209 to Aug 2085 Land Use Rights Expiry Date Residential Commercial Commercial Residential Residential, Office 19 Oct 2052 to Commercial Residential, Residential, Residential Commercial Residential, Office 19 Oct 2052 to Residential, Residential, Residential, Office 13 Apr 2051 to Commercial Residential, Residential, Office 13 Apr 2051 to Commercial Residential, Land Use Jinan Jinan Jinan Jinan Jinan Jinan Jinan Jinan Jinan Jinan Jinan Jinan Jinan City Company Limited Jinan Xiye Property Company Limited Jinan Dongjin Longding Property Company Limited Jinan Xichuang Property Company Limited Jinan Hengda Lvzhou Property Company Limited Jinan Mingdu Property Company Limited Jinan Jialong Property Company Limited Jinan Huafu Property Company Limited Jinan Hengda Feicui Huating Property Company Limited Jinan Hongshulin Property Company Limited Company Limited Jinan Xishi Property Estate Development Company Limited Holding Entity Company Limited Town Jinan Regency Jinan Court Jinan Jinan Jinan City Jinan Court Jinan View Garden Jinan City Jinan IV-400 Portion of Evergrande Jinbi New IV-401 Portion of Evergrande Longao IV-398 Portion of Evergrande Emerald IV-399 Evergrande Palace Jinan IV-402 Portion of Evergrande Oasis IV-403 Portion of Evergrande Metropolis IV-397 Portion of Evergrande Emerald IV-405 Portion of Evergrande Bright IV-396 Portion of Evergrande Royal IV-404 Portion of Evergrande Bright IV-395 Evergrande City Jinan (Junhui) Jinan Junhui Property IV-394 Portion of Evergrande City Jinan Jinan Hengda Jinbi Real IV-393 Evergrande Left Riverbank Jinan Jinan Yuanhao Property Property No. Property Name
– II-109 –
– IV-110 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 27.29 61.50 709.50 430.80 956.90 211.70 260.81 116.80 2,754.70 1,003.40 1,393.40 1,814.80 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) State 61.50 100.0% 53.50 51.0% Market Value in Existing (2) Date as if Value Development at Valuation Completed as Date 87.94 2,176.00 415.10 51.0% 30.90 252.60 93.86 434.10 22.56 551.90 116.80 100.0% Valuation up to the Development Cost incurred Cost Total 848.46 121.08 2,059.30 718.00 60.0% 183.51 362.67 357.49 Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2019 1,993.36 1,184.38 4,939.10 2,754.70 100.0% 2020 1,724.95 185.97 3,785.40 1,182.50 60.0% 2020 2020 1,631.39 314.12 3,162.80 956.90 100.0% 2030 3,272.05 226.21 5,437.20 1,003.40 100.0% 2020 1,394.50 2020 2,677.78 693.02 4,811.50 1,393.40 100.0% 2019 1,090.32 948.14 2,906.60 1,814.80 100.0% 2020 1,108.06 341.67 1,828.80 511.40 51.0% 2019 2018 2020 Estimated Completion Date 2014 2012 2013 2011 2011 2012 2011 2016 2012 2014 2011 2013 Construction Commencement Pre-sale consideration (1) —— GFA Pre-sale (1) GFA Total Planned (1) 89,583 344,592 177,918 1,691.06 76,200 73,291 27,086 61.87 87,534 135,039 11,001 24.58 (sq.m.) (sq.m.) (sq.m.) (RMB million) 202,511 312,380 52,194 206.17 264,016 603,849 87,275 302.97 225,109 656,498 69,525 292.29 158,223 579,873 36,575 153.67 137,981 497,875 12,837 47.07 170,159 359,837 335,790 508,349 139,391 1,604.04 178,459 152,449 37,056 127.82 1,068,026 848,916 43,095 177.65 Type of Property Site Area Residential, Commercial, Composite, Office, Other, Carpark Residential, Commercial, Hotel, Carpark Commercial, Composite, Carpark Residential, Commercial, Composite, Office, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Office, Carpark Composite, Other, Carpark Residential, Commercial, Composite, Carpark Residential, Commercial, Other, Carpark Residential, Commercial, Hotel, Office, Other, Carpark Residential, Commercial, Other, Carpark Commercial, Composite, Carpark 20 Feb 2084 Residential, 21 Oct 2082 22 Sep 2081 19 Sep 205011 to Sep 2083 30 Jul 2084 30 Apr 2054 to 01 Apr 2084 Land Use Rights Expiry Date 30 Dec 205130 to Dec 2081 30 Dec 205130 to Dec 2081 16 Jan 204809 to May 2057 09 Dec 2082 Residential, 15 Feb 205219 to Mar 2083 20 Aug 2080 Residential, Residential, Office 21 Oct 2052 to Residential Commercial, Accommodation and Catering, Cultural and Entertainment Commercial Residential, Commercial Residential, Office 22 Sep 2051 to Residential, Commercial Accommodation and Catering Residential, Land Use Commercial Residential Laiwu Residential, Jinan Jinan Linyi Linyi Linyi Qingdao Residential, Liaocheng Residential Jining Residential, Office 19 Jan 2054 to Jinan City Weifang Residential, Taian an Tianrun Renhe ’ Holding Entity Laiwu Hengda Jinbi Tianxia Property Company Limited Jinan Yufeng Property Company Limited Jinan Hengda Xiqu Property Company Limited Linyi Lvzhou Property Company Limited Linyi Huafu Property Company Limited Linyi Zhengsheng Property Company Limited Qingdao Jinwan Property Company Limited Liaocheng Nanjiao Mingdu Property Company Limited Jining Beihu Hengda Mingdu Property Company Limited Jinan Xikai Property Company Limited Tai Shandong Puyun Real Estate Development Company Limited Property Company Limited an ’ Laiwu Jinan Linyi Linyi Linyi Qingdao Liaocheng Jining Square Jinan Tai Court Weifang IV-410 Portion of Evergrande Splendor IV-408 Evergrande Peak Jinan IV-407 Portion of Evergrande Atrium IV-413 Portion of Evergrande Oasis IV-412 Portion of Evergrande Palace IV-414 Portion of Evergrande Oasis IV-415 Evergrande Golden Sands IV-411 Portion of Evergrande Metropolis IV-409 Portion of Evergrande Metropolis IV-406 Portion of Evergrande Century IV-416 Portion of Evergrande City Property No. Property Name IV-417 Portion of Evergrande Emerald
– II-110 –
– IV-111 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (13) (2) 43.51 43.40 250.30 193.00 468.42 950.40 633.86 270.12 197.30 243.60 1,809.00 3,027.90 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) State 45.80 95.0% 43.40 100.0% Market Value in Existing (2) Date as if Value Development at Valuation Completed as Date 26.38 238.30 28.07 671.70 250.30 100.0% 31.77 382.10 193.00 100.0% 27.35 116.50 58.25 445.00 348.00 70.0% Valuation up to the Development Cost incurred Cost 77.59 Total 61.32 175.08 307.04 125.38 877.48 521.20 1,735.60 780.70 60.0% 949.65 119.02 2,226.60 773.00 82.0% 230.37 166.16 603.30 411.90 65.6% 174.43 102.23 341.40 197.30 100.0% Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2021 1,622.62 1,262.12 3,413.30 1,809.00 100.0% 2018 2017 2018 2018 1,262.37 1,045.04 4,328.30 3,027.90 100.0% 2020 2020 1,945.15 308.27 3,613.00 950.40 100.0% 2019 2017 2017 2017 2017 Estimated Completion Date 2014 2012 2012 2011 2015 2012 2012 2016 2010 2012 2015 2010 Construction Commencement Pre-sale consideration (1) —— —— GFA Pre-sale (1) GFA Total Planned (1) 34,577 53,723 6,528 38.94 54,897 291,467 170,824 1,553.36 36,505 24,036 16,775 195.19 (sq.m.) (sq.m.) (sq.m.) (RMB million) 134,264 79,030 1,500 11.57 143,421 508,074 79,189194,483 561.11 156,653 115,006 370,749 97,146 1,059.74 199,989 266,177 289,254 698,607 76,987 261.71 197,054 62,572 6,789 157.51 691,679 56,891 5,520 35.67 121,328 28,239 11,457 64.44 Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Carpark Type of Property Site Area Residential, Commercial, Composite, Other, Carpark Residential, Composite, Other, Carpark Residential, Commercial, Composite, Office, Other, Carpark Residential, Commercial, Composite, Carpark Commercial, Carpark Residential, Commercial, Composite, Other, Carpark Commercial, Other, Carpark Residential, Commercial, Composite, Other, Carpark 18 Apr 2053 to 28 Mar 2080 09 Jun 2051 to 09 Jun 2081 10 Apr 2054 04 Jan 205204 to Jan 2082 21 Aug 2078 to 22 Apr 2055 to 22 Apr 2085 16 Aug 205108 to Jul 2084 18 Oct 205618 to Oct 2086 03 Mar 205203 to Mar 2082 Land Use Rights Expiry Date 06 Jul 2060 24 Mar 205524 to Mar 2085 14 Nov 204714 to Nov 2057 18 May 2049 to 18 May 2059 Commercial Commercial Commercial Commercial Residential, Commercial Commercial Commercial Land Use Commercial Commercial, Office, Education/Public Facility Education Linfen Residential Lvliang Residential, Datong Residential, Taiyuan Residential, Zibo Zibo Taiyuan Residential, Weifang Residential, City Taiyuan Residential, Taiyuan Residential, Taiyuan Residential, Office 06 Jul 2050 to Taiyuan Residential, Office, Linfen Zijing Real Estate Development Company Limited Lvliang Junhui Real Estate Development Company Limited Datong Junjing Real Estate Development Company Limited Taiyuan Jinshiheng Real Estate Development Company Limited Zibo Hengda Fanhua Property Company Limited Holding Entity Real Estate Development Company Limited Shanxi Lanhua Kangyu Real Estate Development Company Limited Weifang Jinbi Property Company Limited Taiyuan Shengshi Juntai Real Estate Development Company Limited Hengda (Taiyuan) Real Estate Group Company Limited Taiyuan Junjing Real Estate Development Company Limited Taiyuan Mingdu Real Estate Development Company Limited Linfen Scenic Lvliang Datong Riverfront Taiyuan View Garden Zibo Taiyuan Weifang Court Taiyuan Taiyuan Palace Taiyuan Taiyuan IV-422 Portion of Evergrande Palace IV-423 Portion of Evergrande Royal IV-421 Portion of Evergrande Oasis IV-424 Portion of Evergrande Left Bank IV-420 Portion of Evergrande Royal IV-425 Portion of Evergrande City IV-419 Zi Bo Zheng Cheng.Park Gaoxin Zhengcheng (Zi Bo) IV-418 Portion of Evergrande Metropolis Property No. Property Name IV-426 Portion of Evergrande Emerald IV-428 Portion of Evergrande Oasis IV-427 Portion of Evergrande Royal IV-429 Portion of Evergrande Metropolis
– II-111 –
– IV-112 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 26.26 89.39 18.10 497.30 403.56 185.20 437.57 239.90 6,118.80 4,414.40 1,517.00 1,942.00 1,401.00 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) State 26.80 98.0% 18.10 100.0% Market Value in Existing (2) Date as if 33.80 34.70 Value Development at Valuation Completed as 6.53 442.40 239.90 100.0% Date 76.61 7,462.20 4,414.40 100.0% 81.69 527.40 411.80 98.0% 28.13 697.40 125.90 71.0% 20.44 41.02 7,703.10 1,942.00 100.0% 32.37 Valuation up to the Development Cost incurred Cost 85.98 21.51 38.36 Total 849.67 197.57 9,023.60 6,118.80 100.0% 209.75 135.88 723.80 497.30 100.0% 412.12 338.08 129.69 521.40 185.20 100.0% 803.22 217.80 2,616.10 1,401.00 100.0% 793.70 435.15 1,453.30 683.70 64.0% 100.23 Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2018 2018 1,278.91 2017 2017 2019 2017 2019 1,268.28 198.85 3,571.90 1,517.00 100.0% 2021 2,893.10 2018 2017 2019 2018 2020 Estimated Completion Date 2016 2016 2015 2012 2012 2012 2013 2015 2011 2016 2014 2015 2011 Construction Commencement 7.15 Pre-sale consideration (1) —— —— —— —— —— 756 GFA Pre-sale (1) 8,988 6,101 GFA Total Planned (1) 10,448 141,597 42,329 268,684 69,955 67,418 16,745 28,237 35,831 61,289 235,209 147,420 1,559.40 62,842 40,478 12,064 136.03 67,975 (sq.m.) (sq.m.) (sq.m.) (RMB million) 107,824 145,570 12,350 64.81 106,763 130,786 59,480 214.59 341,865 449,180 73,323 589.87 249,271 939,870 38,958179,636 311.65 249,012 49,450 285.26 Commercial, Other, Carpark Commercial, Office, Other, Carpark Residential, Commercial, Composite, Other, Carpark Carpark Commercial, Other Commercial, Carpark Type of Property Site Area Residential, Commercial, Composite, Carpark Commercial, Other, Carpark Commercial, Other, Carpark Commercial, Composite Residential, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Commercial, Composite, Carpark 09 Dec 2078 Residential, 23 Aug 2082 Residential, Other, 13 May 2078 Residential, 21 Aug 2084 30 Sep 2080 Residential, 04 Feb 2053 Residential, 09 Mar 204909 to Mar 2079 29 Jul 205529 to Jul 2085 18 May 2051 to 18 May 2061 17 Feb 205417 to Feb 2084 Land Use Rights Expiry Date 23 Aug 2082 Residential, 28 Jan 2056 Residential, Commercial Commercial, Office Commercial Commercial Education Commercial, Education Land Use Shenzhen Residential, Shenzhen Commercial, Office 30 Dec 2055Shenzhen Residential, Commercial Dongguan Residential, Office 21 Aug 2054 to Shenzhen Residential Yuncheng Residential, Taiyuan Residential, Taiyuan Residential, Yuncheng Residential Yuncheng Residential Taiyuan Residential, Yangquan Residential Taiyuan Residential, Office, City Shenzhen Wanjing Shenzhen Jisha RealDevelopment Estate Company Limited Shenzhen Shacun Real Development (Shenzhen) Company Limited Investment Company Limited Zehe (Dongguan) Property Company Limited Estate Development Company Limited Yuncheng Economic Development Zone Yijiayi Real Estate Development Company Limited Development Company Limited Taiyuan Wanheng Real Estate Development Company Limited Yuncheng Xinwanrui Real Estate Development Company Limited Holding Entity Yuncheng Jinheng Real Estate Development Company Limited Taiyuan Junheng Real Estate Development Company Limited Yangquan Shi Liaoyuan Real Estate Development Company Limited Taiyuan Deyi Real Estate Development Company Limited Hill Emerald Court Shenzhen Hill Garden Shenzhen Dongguan Yuncheng Taiyuan Yuncheng Yuncheng Scenic Bay Taiyuan View Garden Yangquan Garden Taiyuan IV-439 Portion of Evergrande Gentleman IV-440 Portion of Evergrande Gentleman IV-442 Shenzhen Ailian Project IV-441 Evergrande Sky Tower Shenzhen Qianhai Junlin Industrial IV-438 Portion of Evergrande Oasis IV-437 Portion of Evergrande Metropolis IV-432 Portion of Evergrande Atrium IV-436 Portion of Evergrande Oasis IV-435 Portion of Evergrande Oasis IV-431 Evergrande Future City Taiyuan Shanxi Jiasheng Real Estate IV-433 Portion of Evergrande Royal IV-434 Portion of Evergrande Royal IV-430 Portion of Evergrande Scenic Property No. Property Name
– II-112 –
– IV-113 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 33.80 60.00 191.00 273.40 166.70 461.10 758.40 382.27 780.00 557.70 181.40 1,058.60 9,035.20 1,422.20 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) State 60.00 100.0% 33.80 100.0% Market Value in Existing (2) Date as if 77.00 47.00 Value Development at Valuation Completed as 9.23 Date 33.48 257.50 191.00 100.0% 39.86 20.28 736.80 166.70 100.0% 76.73 586.20 461.10 100.0% 40.06 1,491.00 557.70 100.0% 25.90 761.40 181.40 100.0% Valuation up to the Development Cost incurred Cost 35.24 41.96 14.21 Total 193.97 139.15 1,411.20 1,058.60 100.0% 475.52 451.75 1,832.90 1,422.20363.23 100.0% 159.89 603.70 273.40 100.0% 498.02 333.46 892.07 205.26 1,712.30 588.10 65.0% 853.13 120.77 2,043.60 780.00847.62 100.0% 102.60 2,112.00 758.40 100.0% 613.39 484.25 Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2018 2017 2018 1,957.162017 211.23 15,092.802017 9,035.20 100.0% 2017 2017 2020 2018 2018 2018 2019 2018 2017 Estimated Completion Date 2009 2010 2016 2015 2007 2012 2008 2011 2007 2016 2017 2016 2014 2011 Construction Commencement — 5.36 2.15 Pre-sale consideration (1) —— —— 203 GFA Pre-sale (1) 4,961 1,209 GFA Total Planned (1) 18,061 12,365 12,365 257.52 37,557 68,060 57,316 1,154.46 45,924 183,259 156,613 1,707.16 62,639 115,542 46,936 191.25 33,354 138,978 85,748 434,316 65,195 325,842 147,563 1,150.44 83,848 314,786 43,540 183,665 138,285 548.39 (sq.m.) (sq.m.) (sq.m.) (RMB million) 169,501 17,060 9,805 45.61 142,145 113,037 6,567 193,148 321,894 29,461 212.84 118,936 250,429 39,605 281.45 Type of Property Site Area Residential, Commercial, Carpark Residential, Commercial, Composite, Carpark Commercial, Hotel, Carpark Commercial, Office, Other, Carpark Residential, Commercial, Other, Carpark Residential Residential Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Carpark Residential, Commercial, Composite, Carpark Residential, Commercial, Composite, Office, Other, Carpark Residential, Carpark 73,914 Residential, Commercial, Composite, Carpark Residential, Commercial, Composite, Other, Carpark 12 Jun 2054 to 12 Jun 2084 19 Dec 205019 to Dec 2080 09 Nov 204609 to Nov 2076 12 Jan 2066 Residential, 31 Oct 207631 to Oct 2076 06 Mar 204706 to Mar 2077 18 Aug 2056 to 14 Jun 2056 to 14 Jun 2086 Land Use Rights Expiry Date 18 Aug 2086 18 Dec 204620 to Aug 2077 07 Jun 2050 Residential, 09 Mar 205109 to Mar 2081 02 Nov 204602 to Nov 2076 19 Oct 205019 to Oct 2080 20 Mar 205320 to Mar 2083 Commercial Commercial Commercial Commercial Industrial Commercial Commercial Commercial, Office Land Use Commercial Commercial Commercial Commercial Chengdu Residential, Chengdu Residential, Chengdu Residential, Chengdu Residential, Chengdu Residential, Qionglai Commercial Chengdu Residential, Shenzhen Commercial, New Chengdu Residential Chengdu Residential, Chengdu Residential, City Chengdu Residential, Chengdu Residential, Chengdu Residential, Chengdu Hengda Xinxicheng Property Company Limited Chengdu Chenming Property Company Limited Aimeigao (Chengdu) Real Estate Company Limited Products Company Limited Holding Entity Chengdu Wenjiang District Xinjinkang Property Company Limited Chengdu Qionglai Yiheng Property Company Limited Aimeigao (Chengdu) Property Company Limited Jiantao Digits Development (Shenzhen) Company Limited Chengdu Shuren Property Company Limited Chengdu Hengda Yinhe Xincheng Property Company Limited Sichuan Xinbaodi Real Estate Development Company Limited Sichuan Aimeigao Real Estate Company Limited Investment Company Limited Renji Hengye (Sichuan) Investment Company Limited Court Chengdu View Garden Chengdu Court Chengdu Chengdu Court Qionglai Plaza Chengdu Huizhou Chengdu Chengdu Chengdu Jincheng Chengdu Chengdu IV-444 Portion of Evergrande Emerald IV-446 Portion of Evergrande Royal IV-447 Portion of Evergrande Metropolis IV-445 Portion of Evergrande City IV-448 Portion of Evergrande Emerald IV-449 Portion of Evergrande Huazhi IV-452 Evergrande Royal City Chengdu Sichuan Weian Health IV-443 Evergrande Mountain Bay IV-450 Evergrande Splendid City IV-451 Portion of Evergrande Oasis IV-453 Evergrande Shanglin Garden Property No. Property Name IV-454 Portion of Evergrande West IV-455 Portion of Evergrande New City IV-456 Evergrande Atrium Chengdu Chengdu Guangjuyuan
– II-113 –
– IV-114 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 72.40 311.37 957.50 370.90 377.75 533.00 524.00 1,792.30 2,278.60 1,149.40 5,299.60 2,521.53 1,260.40 1,037.70 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) State 72.40 100.0% Market Value in Existing (2) Date as if Value Development at Valuation Completed as 6.77 2,494.90 533.00 100.0% Date 87.42 1,799.70 1,149.40 100.0% 11.15 1,272.40 615.00 50.6% 23.89 199.20 84.82 6,040.80 1,260.40 100.0% 92.81 1,558.50 449.70 84.0% Valuation up to the Development Cost incurred Cost Total 781.85 280.56 108.87 497.33 127.45 2,132.40 1,037.70781.35 100.0% Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2019 1,484.78 969.07 3,931.40 2,278.60 100.0% 2020 2018 2021 1,280.91 869.48 4,929.80 2,801.70 90.0% 2024 5,915.79 856.15 11,554.90 1,792.30 100.0% 2017 2025 7,057.98 1,709.63 21,639.50 6,624.50 80.0% 2019 1,263.16 793.11 1,993.302020 957.50 1,263.612019 100.0% 345.82 2,935.09 1,822.302020 370.90 1,205.96 100.0% 2020 2019 2023 2,461.45 130.12 4,534.10 524.00 100.0% Estimated Completion Date 2015 2015 2015 2010 2010 2010 2010 2011 2011 2017 2018 2016 2011 2016 Construction Commencement Pre-sale consideration (1) —— —— —— —— —— —— GFA Pre-sale (1) GFA Total Planned (1) 62,100 214,776 24,171 217.94 62,100 97,309 63,232 461,560 54,280 45,344 5,501 22.70 96,366 390,997 83,997 475,007 31,232 979,22934,492 53,586 184,847 343.57 53,399 910.09 56,482 306,899 (sq.m.) (sq.m.) (sq.m.) (RMB million) 113,382 605,221 22,155 311.09 926,437 2,149,619 108,114 435.04 950,072 2,749,450 142,496 1,288.35 204,003 1,153,718 103,177 420,362 236,634 1,185.38 Type of Property Site Area Residential, Commercial, Hotel, Carpark Residential, Commercial, Carpark Residential, Commercial, Office, Other, Carpark Residential, Commercial, Office, Carpark Residential, Commercial, Hotel, Other, Carpark Residential, Commercial, Composite, Carpark Residential, Commercial, Composite, Hotel, Other, Carpark Residential, Commercial, Carpark Residential, Commercial, Composite, Carpark Residential, Commercial, Carpark Residential, Commercial, Composite, Carpark Residential, Commercial, Composite, Carpark Residential, Commercial, Other, Carpark Commercial, Carpark 31 Jul 205431 to Jul 2084 24 May 2051 to 24 May 2081 26 Feb 205526 to Feb 2085 26 Feb 205526 to Feb 2085 22 Jan 204808 to Oct 2085 22 Mar 204808 to Mar 2078 Land Use Rights Expiry Date 26 Jan 204626 to Jan 2076 03 Sep 204003 to Sep 2080 03 Dec 204210 to Sep 2080 03 Dec 204210 to Sep 2080 10 Aug 205610 to Aug 2086 01 May 2054 to 01 May 2084 27 Jan 204827 to Jan 2078 28 Oct 2086 Residential, Commercial Commercial, Research Commercial, Public Facility Commercial, Public Facility Commercial Commercial Commercial Land Use Commercial Commercial Commercial Commercial Commercial Commercial Commercial Chengdu Residential, Chengdu Residential, Chengdu Residential, Chengdu Residential, Chengdu Residential, Chengdu Residential, Chengdu Residential, Chengdu Residential, Chengdu Residential, City Chengdu Residential, Chengdu Residential, Chengdu Residential, Dazhou Residential, Chengdu Residential, Chengdu Hengda Xinbeicheng Property Company Limited Park (South District) Development Company Limited Holding Entity Chengdu Xihua Property Company Limited Chengdu Anheng Property Company Limited Chengdu Hengda Xindongcheng Property Company Limited Chengdu Xinyi Real Estate Development Company Limited Chengdu Tianfu Shuicheng Real Estate Development Company Limited Estate Development Company Limited Chengdu Yulong Yihao Real Estate Development Company Limited Chengdu Yulong Erhao Real Estate Development Company Limited Xinjin Hengda Xincheng Property Company Limited Chengdu Shengshi Ruicheng Property Company Limited Property Company Limited Sichuan Yatian Ruihe Investment Company Limited Caojiaxiang Plaza Chengdu Chengdu Phase 2 Chengdu Square Chengdu Peninsula Chengdu Scenic Peninsula Chengdu Chengdu (Plot A1) Chengdu (Plot A2) Chengdu Chengdu Chengdu IV-460 Portion of Evergrande IV-459 Evergrande Central Square IV-461 Evergrande Junlinge Chengdu Sichuan University Science IV-462 Portion of Evergrande Metropolis IV-458 Portion of Evergrande Central IV-463 Portion of Evergrande Paradise IV-457 Portion of Evergrande Royal IV-464 Evergrande Paradise Mansion IV-469 Evergrande The Coronation Property No. Property Name IV-468 Evergrande Royal Scenic (Jinjun) Jinzun (Chengdu) Real IV-470 Evergrande The Coronation IV-465 Evergrande River Palace IV-467 Evergrande Royal Scenic IV-466 Evergrande Yonghewan Dazhou Yongqiao (Sichuan)
– II-114 –
– IV-115 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (14) (15) (2) 76.40 24.90 40.30 397.60 390.20 466.60 283.20 868.20 230.60 290.20 472.70 419.60 1,698.80 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) State 76.40 100.0% 24.90 100.0% 40.30 100.0% Market Value in Existing (2) Date as if 34.70 568.30 230.60 100.0% 239.10 Value Development at Valuation Completed as — — Date 23.02 133.60 27.74 66.31 1,879.00 419.60 100.0% Valuation up to the Development Cost incurred Cost 54.00 29.20 Total 540.50 202.14 1,049.90 397.60 100.0% 320.57 304.54 648.60 466.60 100.0% 376.91 348.05 396.30 283.20 100.0% 351.76 208.74595.22 550.20 281.32 290.20 1,046.20 100.0% 472.70 100.0% 199.00 141.72 Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2019 2017 2018 2019 1,771.77 417.05 2,543.60 390.20 100.0% 2017 2025 2,586.75 428.33 4,420.20 868.20 100.0% 2018 2017 2018 2019 1,006.86 2017 2017 2019 5,512.17 518.74 9,724.20 1,698.80 100.0% Estimated Completion Date 2017 2010 2015 2016 2014 2011 2011 2014 2011 2015 2017 2014 2007 Construction Commencement 6.04 1.84 Pre-sale consideration (1) —— —— —— —— —— 286 GFA Pre-sale (1) 7,868 GFA Total Planned (1) 81,573 121,07250,646 14,913 206,299 101.83 64,510 238,353 24,330 117.58 91,545 96,285 350,937 (sq.m.) (sq.m.) (sq.m.) (RMB million) 102,963 20,167 8,218 42.60 129,368 556,957 1,166 131,001 71,506 246,990 906,054 87,873 209.67 127,568 146,217 29,983 90.12 2,384,044 1,934,779 124,004 539.29 Residential, Commercial, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Type of Property Site Area Residential, Composite, Other, Carpark Other, Carpark Residential, Commercial, Composite, Carpark Commercial, Composite, Other, Carpark Residential, Carpark 45,761 77,411 Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Carpark 63,331 70,376 Residential, Commercial, Other, Carpark Residential, Commercial, Composite, Other, Carpark 21 Oct 2053 Commercial, Hotel, 21 Oct 205021 to Oct 2080 29 Apr 2085 28 Aug 205628 to Aug 2056 15 Aug 208302 to Aug 2086 29 Jul 2077 to 31 Oct 2080 15 Oct 205322 to Feb 2084 Land Use Rights Expiry Date 23 Nov 205423 to Nov 2084 19 Nov 205030 to Dec 2083 15 Oct 205322 to Feb 2084 16 Sep 205616 to Sep 2086 18 Jun 2047 to 06 Sep 2086 12 Dec 205012 to Dec 2080 Commercial, Education Commercial Commercial Residential, Commercial Commercial, Accommodation and Catering Commercial Residential, Commercial Land Use Commercial Commercial Commercial Nanchong Residential, Mianyang Residential, Panzhihua Residential, Luzhou Residential, Office 29 Apr 2055 to Nyingchi Commercial Xian Ziyang Residential, Anyang Residential, Hanzhong Residential Xian Jiaozuo Residential, City Meishan Residential, Ziyang Residential, an Jiazhi Property an Yingyu Property ’ ’ Hengda (Nanchong) Real Estate Group Company Limited Mianyang Xinmaoyuan Trading Company Limited Panzhihua Hengda Real Estate Development Company Limited Hengda (Luzhou) South City Property Company Limited Holding Entity Development Company Limited Xi Company Limited Development Company Limited Anyang Tongruida Real Estate Development Company Limited Hanzhong Hualian Property Company Limited Xi Company Limited Company Limited Hengda Xinfeng (Pengshan) Property Company Limited Ziyang Wancheng Property Company Limited Jiaozuo Yujing Property an an ’ ’ Nanchong Mianyang Panzhihua Scenic Bay Luzhou View Garden Xi Anyang Hanzhong View Garden Xi Pengshan Ziyang IV-474 Portion of Evergrande Oasis IV-473 Evergrande Emerald Court IV-475 Portion of Evergrande City IV-472 Portion of Evergrande Royal IV-481 Portion of Evergrande Royal IV-479 Portion of Evergrande Oasis IV-471 Aiding Tibet Project Linzhi Linzhi Hengda Tourism IV-480 Portion of Evergrande City IV-482 Portion of Evergrande Royal IV-478 Evergrande Metropolis Ziyang Sichuan Ruoyu Real Estate Property No. Property Name IV-476 Portion of Evergrande Splendor IV-477 Portion of Evergrande City IV-483 Evergrande City Jiaozuo
– II-115 –
– IV-116 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 823.70 374.77 222.28 428.30 104.14 142.68 202.30 378.70 268.16 141.36 1,522.10 1,086.60 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) State Market Value in Existing (2) Date as if Value Development at Valuation Completed as 2.56 744.90 182.70 57.0% Date 40.55 2,171.9079.23 419.40 1,068.30 53.0% 269.20 53.0% 80.71 848.20 202.30 100.0% 58.72 1,302.30 419.00 64.0% 78.35 1,109.40 235.60 60.0% Valuation up to the Development Cost incurred Cost Total 360.35 620.23 474.24 592.32 612.39 Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2019 2,081.91 370.722021 3,484.80 1,079.65 823.70 257.082018 100.0% 2,307.00 681.40 55.0% 2023 5,121.44 428.332020 10,081.40 1,383.04 1,522.10 115.57 100.0% 2,342.90 428.30 100.0% 2019 1,007.08 2018 2020 2018 1,046.23 119.65 2,100.802019 378.70 2,636.01 100.0% 352.73 4,598.70 1,086.60 100.0% 2019 2018 Estimated Completion Date 2014 2016 2016 2014 2010 2016 2016 2015 2016 2015 2016 2016 Construction Commencement Pre-sale consideration (1) —— —— GFA Pre-sale (1) GFA Total Planned (1) 50,779 184,334 26,993 141.84 72,377 181,180 79,702 186,862 103,327 878.88 63,881 197,427 (sq.m.) (sq.m.) (sq.m.) (RMB million) 892,080 1,657,045 104,719170,124 653.21 514,118 16,352 103.95 204,621 545,826 203,057117,592 1,465.21 347,508 176,998100,546 1,388.09 138,315 13,601 78.64 108,571 351,542 177,122 1,382.68 138,477 341,824 168,377 1,299.37 368,407 985,822 122,151 584.16 Residential, Commercial, Composite, Hotel, Other, Carpark Residential, Commercial, Composite, Other, Carpark Type of Property Site Area Residential, Commercial, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Other, Carpark Residential, Commercial, Other, Carpark Residential, Commercial, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Carpark 06 Jan 204806 to Jan 2078 18 Jun 2053 to 18 Jun 2083 18 Jun 2053 to 18 Jun 2083 18 Jan 205614 to Apr 2086 24 Jan 204724 to Jan 2077 13 Aug 205313 to Aug 2083 24 Dec 2055 to 25 May 2053 to 25 Mar 2083 25 May 2053 to 25 Mar 2083 24 Dec 2085 Land Use Rights Expiry Date 18 Aug 205618 to Aug 2086 31 Aug 205631 to Aug 2086 07 Jun 2054 to 07 Jun 2084 Commercial Commercial Commercial Commercial Commercial, Office Commercial Commercial Commercial Commercial Land Use Commercial Commercial Commercial Luoyang Residential, Luohe Residential, Luohe Residential, Nanyang Residential, Nanyang Residential, Pingdingshan Residential, Pingdingshan Residential, Kaifeng Residential, Kaifeng Residential, Puyang Residential, City Shangqiu Residential, Shangqiu Residential, Hengda (Luoyang) Real Estate Group Company Limited Luohe Yusheng Real Estate Development Company Limited Luohe Yusheng Real Estate Development Company Limited Nanyang Hengda Property Company Limited Nanyang Yi Hexin Real Estate Development Company Limited Pingdingshan Hengrong Property Company Limited Pingdingshan Yujing Bandao Property Company Limited Holding Entity Kaifeng Kaicheng Real Estate Development Company Limited Kaifeng Jiancheng Real Estate Development Company Limited Puyang Yujing Property Company Limited Shangqiu Hengwan Property Company Limited Shangqiu Shilong Real Estate Development Company Limited Luoyang Luohe Scenic Luohe Nanyang Nanyang Pingdingshan Peninsula Pingdingshan View Garden Kaifeng View Garden Kaifeng Puyang Shangqiu Shangqiu IV-486 Portion of Evergrande Oasis IV-487 Portion of Evergrande Metropolis IV-488 Portion of Evergrande Royal IV-489 Evergrande Royal View Garden IV-490 Evergrande Royal Scenic Bay IV-491 Portion of Evergrande Metropolis IV-492 Evergrande Royal Scenic IV-485 Portion of Evergrande Royal IV-484 Portion of Evergrande Royal IV-493 Evergrande YueLong Court Property No. Property Name IV-494 Evergrande Emerald Court IV-495 Portion of Evergrande Metropolis
– II-116 –
– IV-117 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 31.30 22.40 276.10 160.90 620.80 201.10 249.84 689.70 194.80 645.00 112.15 1,109.16 1,929.10 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) State 31.30 100.0% 22.40 100.0% Market Value in Existing (2) Date as if 81.60 129.30 Value Development at Valuation Completed as — 9.13 655.40 201.10 100.0% Date 14.14 1,143.00 276.10 100.0% 98.87 560.20 194.80 100.0% 43.17 Valuation up to the Development Cost incurred Cost 77.63 75.29 Total 183.57 120.78 328.50 160.90 100.0% 943.06 280.43 1,772.80 620.80 100.0% 311.00 571.09 962.30 169.13 1,964.30 689.70 100.0% 329.96 671.02 129.94 1,319.10 416.40 60.0% 181.96 172.86 270.80 203.90 55.0% Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2018 1,083.95 252.59 2,814.00 1,232.40 90.0% 2020 2019 2017 2019 2018 2017 2018 2019 1,117.452019 100.26 1,873.47 2,299.00 490.34 645.00 4,826.30 100.0% 2017 1,929.10 100.0% 2019 2017 Estimated Completion Date 2016 2012 2012 2013 2015 2013 2015 2013 2015 2017 2014 2016 2015 Construction Commencement 4.57 Pre-sale consideration (1) —— —— —— 923 GFA Pre-sale (1) GFA Total Planned (1) 62,556 236,542 145,639 1,006.89 79,002 13,491 87,431 75,664 3,015 24.40 (sq.m.) (sq.m.) (sq.m.) (RMB million) 130,295 31,147 130,248 70,635 15,070 72.82 185,052 336,484 36,640 223.78 323,530 132,181 17,916 81.76 158,644 356,881 43,302 514.36 106,233 358,720 154,096 685,170 144,247 208,600 115,327 686.08 118,164 311,939 93,984 647.81 233,060 122,965 13,191 101.59 Residential, Composite, Other, Carpark Type of Property Site Area Commercial, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Commercial, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Carpark Residential, Commercial, Composite, Other Residential, Commercial, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Carpark Residential, Commercial, Other, Carpark Commercial, Composite, Carpark 30 Jul 2081 Residential, 14 May 2053 to 14 May 2083 31 Jan 204831 to Jan 2078 14 Apr 2055 to 14 Dec 2085 14 Jan 205214 to Jan 2082 29 Mar 2083 31 Aug 204631 to Aug 2076 16 Feb 205516 to Feb 2085 16 Jan 205116 to Jan 2081 18 Sep 205618 to Sep 2086 13 Feb 205513 to Feb 2085 29 Jun 2055 to 29 Jun 2085 Land Use Rights Expiry Date 30 Aug 2084 Residential, Commercial Residential, Commercial Residential, Commercial, Education Residential, Commercial Commercial Residential, Commercial Commercial Residential, Commercial Commercial, Office Commercial Land Use Xinxiang Residential, Xian Xian Xian Yangling Residential Xinyang Residential, Xuchang Residential Xian Xinxiang Residential, Xuchang Residential, Office 29 Mar 2052 to Xinyang Residential, Xinxiang Residential, Xian City an) ’ an Jintu Property an Hengying Property an Yongyuan Property an Hengsheng Property ’ ’ ’ ’ Xinxiang Sanlian Property Company Limited Yuansheng (Xi Company Limited Xi Company Limited Company Limited Shaanxi Yaoze SihaiEstate Real Development Company Limited Henan Dayou Real Estate Development Company Limited Xuchang Pingshan Property Company Limited Company Limited Xinxiang Mingdu Property Company Limited Holding Entity Xuchang Dijing Property Company Limited Xinyang Junjing Real Estate Company Limited Xinxiang Yujing Property Company Limited Company Limited an Xi ’ an Xi ’ an Xi ’ an ’ an ’ Scenic Bay Xinxiang Xi Yangling Xinyang Court Xuchang Xinxiang Scenic Xi Xuchang Court Xinyang Scenic Bay Xinxiang IV-502 Portion of Evergrande Royal IV-497 Evergrande International Town IV-508 Portion of Evergrande City IV-506 Portion of Evergrande Emerald IV-501 Portion of Evergrande Atrium IV-498 Portion of Evergrande Bay Xi IV-499 Portion of Evergrande Royal IV-507 Portion of Evergrande Oasis IV-504 Portion of Evergrande Emerald IV-505 Portion of Evergrande Metropolis IV-503 Portion of Evergrande Royal IV-500 Evergrande Dragon Bay Xi IV-496 Evergrande City Plaza Xi Property No. Property Name
– II-117 –
– IV-118 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 225.68 110.30 235.00 670.70 492.40 559.78 561.51 245.10 3,400.00 8,748.50 1,442.48 1,191.30 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) State Market Value in Existing (2) Date as if Value Development at Valuation Completed as Date 24.20 1,059.00 110.30 100.0% 66.92 831.50 235.00 100.0% 11.21 14,866.70 8,748.50 100.0% 25.34 887.00 492.40 100.0% 32.64 7,798.30 1,097.60 51.0% Valuation up to the Development Cost incurred Cost Total 637.02 549.74 615.57 189.38 5,385.60 3,400.00 100.0% 449.60 155.58 1,334.70 670.70 100.0% 233.16 277.39 243.66 371.40 245.10 100.0% 547.87 144.51 2,177.00 1,101.00 51.0% Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2019 1,476.392020 105.69 2,308.80 322.40 70.0% 2021 2018 2020 1,622.12 1,472.27 4,447.10 2,872.90 50.2% 2017 2,256.67 2019 2017 2018 1,868.81 261.47 3,692.80 1,191.30 100.0% 2019 4,266.77 2018 2019 Estimated Completion Date 2016 2015 2011 2016 2014 2010 2016 2013 2014 2014 2015 2016 Construction Commencement Pre-sale consideration (1) GFA Pre-sale (1) GFA Total Planned (1) 72,590 191,919 91,898 2,629.91 43,312 169,991 108,185 1,151.55 88,000 152,861 67,958 167.63 81,016 191,778 122,260 1,778.62 (sq.m.) (sq.m.) (sq.m.) (RMB million) 132,779 513,365103,043 130,106 244,752 738.82 25,597 152.88 197,054 202,548 79,446 254.88 743,347 498,978 88,393 937.37 126,730 768,357 12,472 246.12 198,422 177,618 43,167 297.77 735,760 1,469,710 21,720 131.19 938,228 670,917 168,139 1,143.65 Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Composite, Other, Carpark Commercial, Composite, Other, Carpark Residential, Composite, Other Residential, Commercial, Composite, Other, Carpark Type of Property Site Area Residential, Commercial, Composite, Office, Carpark Residential, Commercial, Composite, Other, Carpark Commercial, Composite, Other, Carpark Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Hotel, Other, Carpark Commercial, Composite, Carpark 12 Nov 205012 to Nov 2060 10 Apr 2084 Residential, Jun 2055 to Nov 2086 20 Sep 2086 Residential, 03 May 2086 Residential, 26 Jul 2085 Sep 2084 Residential, 08 Dec 204908 to Dec 2079 03 Mar 2079 to 22 May 2083 19 Jul 205229 to Jun 2086 Land Use Rights Expiry Date 02 May 2085 Residential, 02 Mar 2081 Residential, Commercial Commercial Commercial Commercial Commercial, Accommodation and Catering Land Use Chongqing Residential, Zhoukou Residential, Zhumadian Residential, Zhengzhou Residential Zhengzhou Residential Zhengzhou Residential, Zhengzhou Residential Zhengzhou Residential, Zhengzhou Residential, Office 22 May 2053 to Zhengzhou Residential Kaifeng Residential Zhengzhou Residential City Chongqing Hengda Fucheng Real Estate Development Company Limited Company Limited Zhumadian Kaifaqu Yucheng Real Estate Development Company Limited Henan Henglong Property Company Limited Property Company Limited Henan Xingke Property Company Limited Zhengzhou Henglin Property Company Limited Holding Entity Xinxiang Yujing Property Company Limited Zhengzhou Yubang Property Company Limited Estate Development Company Limited Kaifeng Guoji Cheng Yihao Industrial Development Company Limited Zhengzhou Heguang Property Company Limited Garden Fuling Zhumadian Zhengzhou Zhengzhou Garden Zhengzhou Zhengzhou Zhengzhou City Zhengkai Court Zhengzhou IV-520 Portion of Evergrande Scenic IV-519 Portion of Evergrande Metropolis IV-518 Evergrande Metropolis Zhoukou Zhoukou Huayu Industry IV-517 Evergrande YueLong Court IV-516 Evergrande Atrium Zhengzhou Zhenzhou Zhongkai IV-514 Portion of Evergrande Metropolis IV-515 Portion of Evergrande Scenic IV-512 Portion of Evergrande Splendor IV-513 Portion of Evergrande Oasis IV-509 Portion of Evergrande Future IV-511 Portion of Evergrande Emerald IV-510 Evergrande City Zhengzhou Zhengzhou Jiuzhi Real Property No. Property Name
– II-118 –
– IV-119 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 4.00 34.56 61.64 48.25 43.80 89.20 326.50 722.90 245.50 2,409.50 1,038.16 1,083.40 1,143.93 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) 4.00 100.0% State 57.60 60.0% 62.40 98.8% 43.80 100.0% 79.10 61.0% 89.20 100.0% Market Value in Existing (2) 5.20 Date as if 57.70 Value Development at Valuation Completed as 4.50 7.28 227.00 Date 50.20 328.50 73.50 105.20 51.71 21.63 112.00 Valuation up to the Development Cost incurred 4.74 Cost 77.37 54.43 Total 22.76 297.52 181.60 640.70 326.50 100.0% 516.91 122.86 950.40 245.50 100.0% 242.30 126.93 421.92 376.24 1,117.60 722.90 100.0% Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2019 1,640.52 296.32 4,330.80 1,701.90 61.0% 2019 2017 2021 2018 2017 2021 3,093.09 345.782020 5,781.102025 1,083.40 7,356.54 100.0% 2,804.94 12,759.50 2,409.50 100.0% 2021 1,997.88 669.55 4,991.60 1,875.30 61.0% 2017 2017 2017 Estimated Completion Date 2006 2010 2014 2008 2013 2011 2013 2014 2008 2014 2008 2006 2011 Construction Commencement 2.78 1.92 Pre-sale consideration (1) —— —— —— —— —— —— 626 537 GFA Pre-sale (1) 1,881 9,958 GFA Total Planned (1) 64,290 104,78655,634 7,388 108,162 49.51 70,940 172,781 8,981 91.39 29,720 58,310 (sq.m.) (sq.m.) (sq.m.) (RMB million) 906,961 577,585 230,172 1,049,335 8,476 73.54 146,825 248,965 208,043 40,085 251.22 205,941 643,716 548,043 21,878 906,961 28,312 115,521 1,863,181 2,774,457 482,672 4,829.53 Type of Property Site Area Residential, Commercial, Office, Other, Carpark Residential, Commercial, Composite, Carpark Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Other, Carpark Residential, Commercial, Composite, Hotel, Other, Carpark Other Commercial, Composite, Other, Carpark Commercial, Carpark Residential, Commercial, Office, Carpark Residential, Commercial, Other Residential, Commercial, Other, Carpark Residential, Commercial, Other, Carpark 16 Jun 2045 to 16 Jun 2055 27 Apr 2053 to 17 May 2085 08 Dec 2053 Commercial, Office, 26 Oct 2060 Residential, 15 Feb 205415 to Oct 2083 19 Jul 205319 to Jul 2083 19 May 2046 to 19 May 2076 15 Nov 204605 to Jan 2077 11 Jun 2079 Residential, Land Use Rights Expiry Date 29 Apr 2054 to 29 Apr 2064 16 Jun 2045 to 16 Jun 2055 10 Jul 204710 to Jul 2057 31 Mar 205131 to Mar 2061 Commercial Commercial Commercial Commercial Commercial Commercial, Composite Commercial Commercial Commercial Land Use Commercial Commercial Commercial Chongqing Residential, Guiyang Residential, Chongqing Commercial Guiyang Residential, Guiyang Residential, Guiyang Residential, Chongqing Residential, Guiyang Residential, Guiyang Residential, Guiyang Residential, Chongqing Residential, Chongqing Residential, City Chongqing Residential, Tongjing (Chongqing) Property Company Limited Holding Entity Guiyang Jiude Real Estate Development Company Limited Tongjing (Chongqing) Investment Development Company Limited Guiyang Haiming Investment Construction Development Company Limited Guiyang New World Real Estate Company Limited Hengda Real Estate Group Guiyang Property Company Limited Tongjing Honghang (Chongqing) Property Company Limited Guizhou Jicheng Real Estate Development Company Limited Guizhou Hengda Changji Real Estate Development Company Limited Guizhou Guangjuyuan Real Estate Development Company Limited Lianxing (Chongqing) Investment Company Limited Chongqing Hengda Jiyu Property Company Limited Hengda (Chongqing) Real Estate Group Company Limited International Town Chongqing Guiyang Headquarter Intelligence EcoCity Guiyang World Guiyang Guiyang Chongqing Garden Guiyang Court Guiyang Guiyang Chongqing Chongqing View Garden Chongqing IV-529 Evergrande Tongjing IV-527 Portion of Evergrande Atrium IV-528 Evergrande Liangjiang IV-526 Portion of Evergrande Metropolis IV-524 Portion of Evergrande New IV-525 Portion of Evergrande Oasis IV-530 Evergrande Energetic City IV-522 Portion of Evergrande Royal IV-523 Portion of Evergrande Emerald IV-521 Portion of Evergrande City IV-531 Evergrande Tongjing Town IV-532 Portion of Evergrande City Property No. Property Name IV-533 Portion of Evergrande Royal
– II-119 –
– IV-120 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 661.20 174.10 173.20 313.20 354.90 208.10 145.90 112.86 1,317.40 1,548.10 1,657.20 2,074.40 1,443.10 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) State Market Value in Existing (2) Date as if Value Development at Valuation Completed as 1.24 1,583.20 174.10 100.0% 8.64 836.60 313.20 100.0% 2.55 1,124.602.24 354.90 657.30 100.0% 208.10 100.0% Date 59.63 292.60 188.10 60.0% Valuation up to the Development Cost incurred Cost 91.38 Total 690.90 188.37 2,219.00957.34 1,102.00 60.0% 320.10 449.84 262.92 384.47 365.25 256.40 173.20 100.0% 130.50 123.98 224.30 145.90 100.0% Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2020 1,518.80 112.81 3,819.70 1,317.40 100.0% 2019 1,059.63 150.14 3,354.10 1,548.10 100.0% 2019 2022 2020 1,602.99 174.24 4,407.50 1,657.20 100.0% 2019 2018 2,155.602018 453.24 5,109.102018 2,074.40 100.0% 2018 2018 2018 1,245.122020 334.48 3,112.80 1,443.10 100.0% Estimated Completion Date 2014 2014 2016 2017 2016 2017 2011 2011 2011 2007 2010 2016 2011 Construction Commencement Pre-sale consideration (1) —— —— —— —— —— —— —— —— —— —— GFA Pre-sale (1) GFA Total Planned (1) 8,572 31,489 37,174 146,052 28,454 85,363 53,579 232,016 (sq.m.) (sq.m.) (sq.m.) (RMB million) 141,898 404,258 189,745 699,871 164,772 293,923 131,700 618,777 44,663278,526 267.36 408,526 236,857 437,660906,961 75,150 113,084 710.91 318,188 49,389 12,624 39.44 1,798,093 138,572 Type of Property Site Area Commercial, Composite, Other, Carpark Residential, Other, Carpark Residential, Commercial, Composite, Other, Carpark Commercial, Hotel, Office, Other Residential, Commercial, Other, Carpark Residential, Commercial, Carpark Residential Commercial, Office, Other, Carpark Residential, Commercial, Carpark Commercial, Carpark 29 Dec 2061 Residential 29 Dec 2061 Residential 29 Dec 2051 Residential 28 Dec 204618 to Sep 2066 11 Feb 205411 to Feb 2084 28 Dec 204618 to Sep 2066 30 Aug 205330 to Aug 2063 16 Jun 2045 to 16 Jun 2055 29 Mar 205129 to Mar 2061 25 May 2062 Residential, Land Use Rights Expiry Date Nov 2050 to Nov 2060 29 Jun 2063 Residential, 30 Mar 2060 Residential, Commercial, Accommodation and Catering, Cultural and Entertainment Commercial, Cultural Commercial, Accommodation and Catering, Cultural and Entertainment Commercial Commercial Commercial Land Use Commercial Commercial Chongqing Residential, Guiyang Residential, Chongqing Residential Chongqing Residential, Chongqing Residential, Chongqing Residential, Chongqing Residential Chongqing Commercial Chongqing Residential Chongqing Residential, Chongqing Residential, Chongqing Residential, Chongqing Residential City Chongqing Yuantuo Real Estate Development Company Limited Holding Entity Real Estate Development Company Limited Chongqing Heshengyu Real Estate Development Company Limited Hengda (Jiangjin) Real Estate Group Company Limited Chongqing Hengda Xinquan Property Company Limited Tongjing Boda (Chongqing) Property Company Limited Ruiyang (Chongqing) Real Estate Development Company Limited Taiyang (Chongqing) Real Estate Development Company Limited Property Development Company Limited Hengyang (Chongqing) Real Estate Development Company Limited Chongqing Hengda Jun Xin Real Estate Development Company Limited Chongqing Weigang Property Company Limited Kaiyang (Chongqing) Real Estate Development Company Limited 4) 9) – – View Splendor Chongqing Chongqing and Tourism City Chongqing Garden Chongqing International Town Chongqing Chongqing (Plot 1 Chongqing (Plot 5) Chongqing (Plot 6) Chongqing (Plot 7 Chongqing Chongqing IV-546 Portion of Evergrande Royal IV-535 Evergrande Emerald Bay IV-536 Portion of Evergrande Health IV-537 Portion of Evergrande Scenic IV-538 Evergrande Tongjing IV-539 Evergrande Future City IV-540 Evergrande Future City IV-541 Evergrande Future City IV-542 Evergrande Future City IV-534 Evergrande City Square Guiyang Guiyang Zhongyu Yunshang IV-545 Evergrande Yudouhui Group C Chongqing Zhongyu IV-543 Portion of Evergrande Atrium IV-544 Evergrande Yudouhui Group A Property No. Property Name
– II-120 –
– IV-121 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 5.50 34.20 698.20 402.00 335.00 562.20 835.50 3,528.20 1,373.80 1,008.72 1,540.62 2,587.10 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) 5.50 100.0% State 34.20 100.0% Market Value in Existing (2) Date as if 35.80 Value Development at Valuation Completed as 4.17 162.40 3.77 3,039.60 335.00 100.0% 0.22 Date 56.63 5,761.00 1,681.20 60.0% 14.57 3,285.80 937.00 60.0% Valuation up to the Development Cost incurred Cost 92.74 Total 23.05 774.05 735.35 3,657.40 2,567.70 60.0% 589.61 Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2026 2,050.40 629.35 3,850.60 698.20 100.0% 2019 1,319.83 380.27 1,817.20 402.00 100.0% 2017 2020 3,182.94 1,370.08 7,806.60 3,528.20 100.0% 2020 1,006.80 2019 2030 1,906.77 2025 3,085.45 367.89 6,936.20 1,373.80 100.0% 2019 2021 2,592.89 809.97 6,584.40 2,587.10 100.0% 2020 1,309.30 264.47 2,667.50 835.50 100.0% 2017 Estimated Completion Date 2011 2007 2014 2012 2011 2011 2016 2015 2011 2015 2015 2013 Construction Commencement 0.93 Pre-sale consideration (1) —— —— —— —— 66 GFA Pre-sale (1) GFA Total Planned (1) 59,416 195,836 9,505 326.20 31,540 42,313 1,901 14.05 73,933 345,657 59,416 196,255 46,272 11,408 (sq.m.) (sq.m.) (sq.m.) (RMB million) 367,407 758,733 345,774 1,206,477 231,422 1,622.17 827,604 405,477 18,912 101.52 166,912 624,597 314,680 1,164,770 139,954 1,350.07 113,779 498,045 7,318 76.77 207,135 925,839 89,913 760.13 Residential, Commercial, Composite, Other, Carpark Type of Property Site Area Commercial, Office, Other Residential, Commercial, Other, Carpark Residential, Commercial, Composite, Office, Other, Carpark Commercial, Office Residential, Commercial, Composite, Hotel, Other, Carpark Residential, Commercial, Other, Carpark Residential, Commercial, Composite, Other, Carpark Commercial Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Office, Other, Carpark Other, Carpark 27 Jan 205427 to Jul 2081 25 May 2063 Residential, 26 Dec 204708 to Oct 2081 24 Dec 205324 to Dec 2063 26 Dec 204708 to Oct 2081 24 Apr 2078 to 22 Apr 2051 to 22 Apr 2081 Land Use Rights Expiry Date 18 Aug 205518 to Aug 2085 25 May 2063 Residential, 29 May 2063 Residential, 09 Jun 2055 to 03 Jun 2085 17 Sep 2079 28 May 2055 to 28 May 2085 Residential, Commercial Commercial, Office Commercial Commercial, Office Commercial Commercial, Education Land Use Commercial Commercial Commercial, Cultural and Entertainment, Education Kaili Kunming Residential, Kunming Residential, Guiyang Residential, Chongqing Commercial Chongqing Residential, Guiyang Residential, Chongqing Residential Chongqing Residential, City Kunming Residential, Kunming Residential, Kunming Residential Company Limited Hengda Xinyuan (Kunming) Property Company Limited Holding Entity Kunming Qiheng Real Estate Development Company Limited Guiyang Zhongyu Zhidi Real Estate Development Company Limited Chongqing Zhongyu Property Development Company Limited Chongqing Hengda Xinding Property Company Limited Kunming Heng Chang Property Company Limited Guiyang Zhongyu Zhidi Real Estate Development Company Limited Chongqing Zhongyu Property Development Company Limited Chongqing Zhongyu Property Development Company Limited Yunnan Hengyun Property Company Limited Yunnan Heding RealDevelopment Estate Company Limited Kunming Kunming (Phase III) Park Guiyang Plaza Scenic Bay Chongqing Kunming Guiyang (Plot No.9) (Plot No.3) Palace Kunming Kunming IV-553 Portion of Evergrande City Kali Guizhou Kaidi Property IV-554 Portion of Evergrande Splendor IV-555 Portion of Evergrande Splendor IV-548 Portion of Evergrande Central IV-552 Portion of Evergrande C C Land IV-547 Portion of Evergrande Royal IV-556 Portion of Evergrande Metropolis IV-549 Evergrande Central Square IV-551 Evergrande Zhongyu Chongqing IV-550 Evergrande Zhongyu Chongqing Property No. Property Name IV-558 Portion of Evergrande Yunbao IV-557 Portion of Evergrande Atrium
– II-121 –
– IV-122 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 8.70 8.60 18.10 184.20 757.90 458.11 114.60 283.94 952.70 1,277.90 1,097.00 1,556.47 7,106.70 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) 8.70 100.0% 8.60 100.0% State 18.10 100.0% Market Value in Existing (2) Date as if 11.20 41.10 12.50 Value Development at Valuation Completed as 6.91 3.20 Date 44.81 178.60 114.60 100.0% 13.36 Valuation up to the Development Cost incurred 7.27 4.95 Cost 71.14 28.44 Total 508.72 103.78 492.70 184.20 100.0% 360.00 140.04 1,294.00 757.90 100.0% 894.53 131.45 2,295.80 952.70 100.0% Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2017 2017 2019 2,331.50 403.282021 4,484.30 1,473.37 1,277.90 302.76 100.0% 2,655.20 1,097.00 100.0% 2017 2018 2017 2019 1,962.832017 280.47 3,307.10 751.00 61.0% 2020 2,257.352021 439.59 1,282.77 6,840.90 396.85 3,051.90 2,209.30 51.0% 618.60 45.9% 2019 2023 2,872.38 215.12 16,662.40 7,106.70 100.0% Estimated Completion Date 2011 2011 2007 2007 2015 2009 2014 2012 2013 2016 2013 2014 2015 Construction Commencement 1.24 5.79 Pre-sale consideration (1) —— —— 108 GFA Pre-sale (1) 2,828 8,778 1,088 2,368 2,368 12.50 GFA Total Planned (1) 77,387 76,041 125,580 36,251 384.76 62,024 336,616 91,928 63,971 1,135,509 55,112 693.50 (sq.m.) (sq.m.) (sq.m.) (RMB million) 190,963 99,547 4,767 24.51 378,700 236,907 653,839 191,078 31,146 15,577 98.79 263,148 846,474182,270 112,906 406,175 1,092.67 98,562 446.22 358,030 300,279 16,006 189.69 1,798,093 759,460 47,667 348.43 Type of Property Site Area Commercial, Other Residential, Composite, Hotel, Other, Carpark Residential, Commercial, Other, Carpark Residential, Commercial, Carpark Residential, Commercial, Composite, Other, Carpark Commercial, Other Residential, Commercial Residential, Commercial, Carpark Residential, Commercial, Carpark Residential, Commercial, Composite, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Composite, Other, Carpark Residential, Commercial, Carpark 11 Nov 205027 to Jul 2084 Land Use Rights Expiry Date 30 Aug 205330 to Aug 2063 14 Feb 204714 to Feb 2057 28 Dec 204618 to Sep 2066 27 Feb 2064 Residential, 30 Dec 205130 to Oct 2063 17 Oct 204717 to Oct 2057 16 Oct 204717 to Oct 2057 25 Nov 2063 to 30 Dec 205430 to Dec 2064 06 Jan 2064 30 Aug 205330 to Aug 2063 30 Jun 2061 Residential, 30 Nov 205530 to Nov 2065 Commercial, Office Commercial Commercial, Clubhouse Commercial, Accommodation and Catering, Cultural and Entertainment Commercial Commercial, Education, Carpark Land Use Commercial, Education Commercial Commercial Commercial Chongqing Residential Chongqing Residential, Chongqing Residential, Chongqing Residential, Chongqing Residential, Chongqing Residential, Qujing Residential, Chongqing Residential City Chongqing Residential, Chongqing Residential, Chongqing Residential, Chongqing Residential Chongqing Residential, Holding Entity Chongqing Hengda Yongjun Real Estate Development Company Limited Chongqing Hengda Xinquan Property Company Limited Hengda (Chongqing) Real Estate Group Company Limited Hengda (Jiangjin) Real Estate Group Company Limited Tongjing Gonghao (Chongqing) Property Company Limited Hengda (Chongqing) Real Estate Group Company Limited Qujing Zhongxi Property Company Limited Beimeng Shihui (Chongqing) Property Company Limited Hengda (Chongqing) Real Estate Group Company Limited Chongqing Yongli Property Company Limited Chongqing Hengda Xinquan Property Company Limited Kaicheng (Chongqing) Real Estate Development Company Limited Chongqing Hengda Xingai Property Company Limited Court Yongchuan Court Chongqing Chongqing Chongqing New City Chongqing Chongqing Qujing Chongqing City Chongqing Chongqing Scenic Peninsula Chongqing Chongqing Plaza Chongqing IV-560 Portion of Evergrande Emerald IV-561 Portion of Evergrande Emerald IV-562 Portion of Evergrande Palace IV-563 Portion of Evergrande Splendor IV-565 Portion of Evergrande Greenland IV-566 Portion of Evergrande Oasis IV-559 Portion of Evergrande Metropolis IV-564 Evergrande Lu Village IV-568 Portion of Evergrande Century Property No. Property Name IV-567 Portion of Evergrande Metropolis IV-570 Portion of Evergrande Royal IV-569 Evergrande Mountain Palace IV-571 Portion of Evergrande Central
– II-122 –
– IV-123 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 54.80 321.30 856.30 456.60 654.60 483.53 171.90 1,438.50 2,657.00 4,466.40 1,753.00 3,001.02 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) Interest Attributable to the Group (2) State 54.80 100.0% Market Value in Existing (2) Date as if 80.50 Value Development at Valuation Completed as 5.90 2,164.10 654.60 100.0% 8.11 Date 21.45 7,783.30 2,657.00 100.0% 12.22 1,361.50 456.60 100.0% Valuation up to the Development Cost incurred Cost 18.03 Total 955.55 294.89 3,019.60 1,438.50 100.0% 638.83 123.46 1,782.40 321.30 100.0% 898.43 104.96 1,856.20 856.30 100.0% 822.30 485.02 324.98 167.70 436.80 171.90 100.0% Estimated Development (RMB million) (RMB million) (RMB million) (RMB million) Date 2019 2022 3,035.01 2019 2020 1,446.55 130.602019 8,871.00 4,466.40 100.0% 2020 1,180.47 365.452019 3,553.80 1,753.00 100.0% 2019 2022 2,501.49 212.22 5,091.00 948.10 51.0% 2017 2022 3,254.672018 671.37 10,458.60 3,930.10 76.4% Estimated Completion Date 2016 2017 2017 2016 2016 2012 2012 2011 2017 2012 2012 2011 Construction Commencement 4.04 Pre-sale consideration (1) —— —— —— —— —— —— —— 678 GFA Pre-sale (1) 7,316 GFA Total Planned (1) 51,965 200,516 55,557 272,861 35,244 152,736 95,594 (sq.m.) (sq.m.) (sq.m.) (RMB million) 358,214 926,069 103,196 335,812 154,596 1,902.53 108,898 503,541 245,091 355,701 108,478 260,053 540,573 986,794 27,929 139.58 194,488 1,090,834 284,871217,007 2,864.51 147,503 6,409 19.07 Residential, Commercial, Composite, Other, Carpark Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Other, Carpark Residential, Other, Carpark Residential, Commercial, Composite, Other, Carpark Commercial, Carpark Type of Property Site Area Residential, Commercial, Other Residential, Commercial, Other, Carpark Residential, Commercial, Composite, Other, Carpark 04 Mar 204904 to Mar 2079 05 Apr 2045 to 24 Jan 2058 19 Nov 205519 to Nov 2085 25 Feb 205625 to Feb 2086 09 Apr 2054 to 09 Apr 2084 14 Nov 205314 to Nov 2083 19 Nov 205519 to Nov 2085 28 Nov 205218 to Jun 2083 02 Feb 204802 to Feb 2058 20 Apr 2051 to 10 Dec 2083 Land Use Rights Expiry Date 31 Mar 2085 Residential, 01 Jan 2080 Residential, Commercial, Office Commercial Commercial Commercial Commercial Commercial Commercial Commercial Commercial, Education Commercial Residential Land Use Foshan Residential, Guangzhou Residential Huizhou Residential, Huizhou Residential, Foshan Residential, Foshan Residential, Huizhou Residential, Foshan Residential, Zunyi Zigong Residential, Chongqing Residential, Zigong Residential, City Real Estate Development Company Limited Guangzhou Shunli Investment Company Limited Meidu Jianfeng (Huizhou) Property Company Limited (Dayawan) Real Estate Development Company Limited Foshan Sanshui District Shengli Real Estate Company Limited Xiecheng (Shunde Foshan) Real Estate Company Limited Huizhou City Guangxin Real Estate Development Company Limited Estate Development Limited Zunyi Xinguang Real Estate Development Company Limited Holding Entity Zigong Xinmao Property Company Limited Chongqing Jianzhi Real Estate Company Limited Hengda (Zigong) Real Estate Group Company Limited Shunde Zengcheng Haiwan Huizhou Foshan (Plot L) Zunyi Zigong Coronation Chongqing Zigong IV-580 Evergrande Zilin Garden Foshan Sanshui Yingsheng (Foshan) IV-581 Evergrande Dragon Emerald IV-578 Evergrande Scenic Garden IV-579 Evergrande MeiDou Yishan IV-577 Evergrande Royal Alcazar IV-582 Evergrande Palm Island Huizhou Guangsheng Huaqiao IV-583 Evergrande Palm Island Huizhou IV-576 Evergrande Joy Town Foshan Foshan Yulang Tong Real IV-575 Portion of Evergrande City IV-574 Portion of Evergrande Metropolis IV-572 Portion of Evergrande The IV-573 Portion of Evergrande Oasis Property No. Property Name
– II-123 –
– IV-124 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT
Notes:
1 All areas are stated in approximations.
2 All values are stated in approximations.
3 We have ascribed no commercial value to the part of the property without title documents nor without full payment of land premium. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of such part of the properties attributable to the Group would be RMB822,100,000.
4 We have ascribed no commercial value to the part of the property without title documents nor without full payment of land premium. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of such part of the properties attributable to the Group would be RMB3,845,800,000.
5 We have ascribed no commercial value to the part of the property without title documents nor without full payment of land premium. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of such part of the properties attributable to the Group would be RMB466,000,000.
6 We have ascribed no commercial value to the part of the property without title documents nor without full payment of land premium. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of such part of the properties attributable to the Group would be RMB317,154,240.
7 We have ascribed no commercial value to the part of the property without title documents nor without full payment of land premium. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of such part of the properties attributable to the Group would be RMB397,765,000.
8 We have ascribed no commercial value to the part of the property without title documents nor without full payment of land premium. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of such part of the properties attributable to the Group would be RMB685,200,000.
9 We have ascribed no commercial value to the part of the property without title documents nor without full payment of land premium. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of such part of the properties attributable to the Group would be RMB64,100,000.
10 We have ascribed no commercial value to the part of the property without title documents nor without full payment of land premium. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of such part of the properties attributable to the Group would be RMB27,900,000.
11 We have ascribed no commercial value to the part of the property without title documents nor without full payment of land premium. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of such part of the properties attributable to the Group would be RMB237,600,000.
12 We have ascribed no commercial value to the part of the property without title documents nor without full payment of land premium. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of such part of the properties attributable to the Group would be RMB718,100,000.
– II-124 –
– IV-125 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT
13 We have ascribed no commercial value to the part of the property without title documents nor without full payment of land premium. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of such part of the properties attributable to the Group would be RMB9,676,000.
14 We have ascribed no commercial value to the part of the property without title documents nor without full payment of land premium. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of such part of the properties attributable to the Group would be RMB168,300,000.
15 We have ascribed no commercial value to the part of the property without title documents nor without full payment of land premium. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of such part of the properties attributable to the Group would be RMB381,200,000.
– II-125 –
– IV-126 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (3) (2) 49.90 818.30 138.00 113.80 129.64 463.80 368.00 386.90 162.80 730.80 199.16 2,536.20 2,705.10 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) 55.0% 70.0% 51.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Interest the Group Attributable to (2) 49.90 818.30 138.00 206.90 185.20 463.80 368.00 386.90 162.80 730.80 390.50 2,536.20 2,705.10 (RMB million) Market Value in Existing State Date 2020 2019 2018 2020 2020 2019 2017 2019 2019 2020 2024 2017 2020 Estimated Completion (1) Total GFA Planned (1) 66,303 198,909 57,368 153,891 32,939 67,939 16,446 57,115 58,326 485,449 20,393 27,266 25,061 129,809 (sq.m.) (sq.m.) 129,473 330,674 171,898 322,335 512,271 42,566 854,165 810,483 993,678 949,175 129,399 231,313 Commercial, Other, Carpark Residential, Commercial, Composite, Other Commercial, Other, Carpark Residential, Commercial, Other Residential, Commercial, Other, Carpark Residential, Composite, Other Commercial, Composite, Other, Carpark Type of Property Site Area Commercial, Office, Carpark Commercial Residential, Composite, Carpark Other 12 Dec 2086 Residential, 30 Aug 2054 to 13 Sep 2083 30 Aug 2054 Land Use Rights Expiry Date 03 Sep 2082 30 Dec 2051 Residential 11 Aug 2064 Residential, 22 Jul 2086 Residential, 10 Feb 2081 23 Sep 2079 20 Mar 2047 to 20 Mar 2077 09 Apr 2051 Commercial, Other Residential Land Use Commercial Education Office Quanzhou Residential, Commercial 13 Sep 2053 to Baotou Residential, Commercial Lanzhou Residential Cangzhou Residential, Commercial 03 Sep 2052 to Chaozhou Residential Foshan Residential, Commercial, City Langfang Residential, Commercial 01 May 2053 to Foshan Shijiazhuang Residential, Commercial 24 Jul 2056 Residential, Tianjin Residential, Commercial 12 Feb 2077 to Handan Commercial Foshan Residential, Commercial, Meiya (Quanzhou) Tourism Development Company Limited Company Limited Gansu Shengda Real EstateCompany Development Limited Company Limited Limited Foshan Nanhai Xinzhongjian RealDevelopment Estate Company Limited Development Company Limited Company Limited Company Limited Company Limited Hebei Dingjiaqi Real EstateCompany Development Limited Development Company Limited Holding Entity Chaozhou Hengchen Property Company Properties held by the Group for Future Development in the PRC — Evergrande YueLong Court Hefei Hengrui (Hefei)Evergrande Property Emerald Company Court Limited Baotou Hefei Baotou Hengda Real Estate Development Lanzhou Evergrande Atrium Quanzhou Portion of Evergrande City Cangzhou Hebei Longwei Real Estate Development Property Name Peninsula Foshan Portion of Evergrande City Plaza Evergrande Zhongding Project Langfang Langfang City Zhongding Real Estate Portion of Evergrande Splendor Tianjin Hengda (Tianjin Jixian) Real Estate Group Handan Taihongsen Commercial Building Evergrande Central Plaza Shijiazhuang Hengrun (Hebei) Real Estate Development V-1 V-2 V-9 Group V Property No. V-8 V-3 V-10 Evergrande Metropolis Chaozhou V-11 Portion of Evergrande Royal Scenic V-4 V-12 Portion of Foshan Shanshui Longpan Foshan Sanshui Fangao Estates Investment V-5 V-7 V-6 V-13 Portion of Foshan Shanshui Longpan Foshan Shanshui Nengrun Real Estate
– II-126 –
– IV-127 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 52.08 87.77 231.00 653.30 339.80 289.80 120.90 161.70 882.93 1,775.93 1,780.90 1,379.10 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) 66.0% 65.0% 90.0% 58.0% 58.0% 51.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Interest the Group Attributable to (2) 89.80 350.00 653.30 339.80 322.00 120.90 161.70 172.10 2,732.20 1,780.90 1,522.30 1,379.10 (RMB million) Market Value in Existing State Date 2018 2024 2020 2019 2020 2021 2021 2018 2036 2025 2023 2022 Estimated Completion (1) Total GFA Planned (1) 65,017 219,770 89,073 542,122 92,791 255,093 61,392 172,691 41,739 146,967 (sq.m.) (sq.m.) 339,912 884,753 145,831 437,494 147,252 459,963 195,094 130,200 237,336 535,890 101,363 238,523 3,346,851 3,594,803 Residential, Residential, Commercial, Composite, Other Residential, Commercial, Composite, Other Residential, Commercial, Composite, Other, Carpark Commercial, Composite, Other Type of Property Site Area Residential, Commercial, Composite, Other, Carpark Other Other Residential, Commercial, Composite Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Hotel, Other Residential, Commercial, Composite, Carpark Residential, Commercial, Composite, Other, Carpark 10 Oct 2063 to 17 Dec 2063 27 Dec 2074 Land Use Rights Expiry Date 29 Sep 2086 27 Dec 2054 to 24 Mar 2084 23 Aug 2081 07 May 2080 07 Nov 2086 20 Nov 2065 27 Mar 2033 to 19 Dec 2062 19 Aug 2072 30 Dec 2080 Land Use Commercial, Cultural, Education, Public Facility Residential, Commercial 30 Dec 2050 to Residential, Industrial 19 Aug 2052 to Office Jieyang Residential, Office Shantou Residential, Office, Medical, City Yangjiang Residential, Commercial 28 Jan 2051 to Zhaoqing Residential, Commercial 23 May 2051 to Zhaoqing Residential, Commercial 06 May 2080 to Zhaoqing Residential, Commercial 07 Nov 2056 to Zhaoqing Residential, Commercial 30 Aug 2035 to Zhuhai Zhaoqing Residential, Commercial, ty Company Limited Shantou Residential Jieyang Hengda Property Company Limited Jieyang Residential, Education 29 Sep 2086 to Damin (Shantou) Plant Development Henghe (Shantou) Proper Hengda (Jieyang) Investment Management Company Limited Company Limited Yangjiang Yangdong Huameiju RealCompany Estate Limited Zhaoqing Dinghu Tuanxing RealDevelopment Estate Company Limited Holding Entity Zhaoqing Dinghu Tuanxing Estates Investment Company Limited Zhaoqing Guosheng Laser Technology Production Limited Guangdong Juting Fengfang RealDevelopment Estate Company Limited Limited Guangdong Juting Fengfang HotelLimited Company Fuda (Beihai) Investment Company Limited Beihai Property Name Yangjiang Haoting Haoting Zhaoqing World Zhaoqing World Zhaoqing V-14 Evergrande Palace Jieyang Property No. V-15 Evergrande Oasis Jieyang V-17 Evergrande Bund Shantou V-16 Evergrande Bund Shantou V-18 Evergrande Royal View Garden V-19 Portion of Zhaoqing Evergrande Dinghu V-20 Portion of Zhaoqing Evergrande Dinghu V-21 Portion of Evergrande Emerald Court V-22 Portion of Evergrande Century Fancy V-23 Portion of Evergrande Century Fancy V-24 Evergrande Emerald Court Zhuhai Zhuhai Hengxin Sugar Industry Company V-25 Evergrande Atrium Beihai
– II-127 –
– IV-128 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 98.12 49.98 83.88 729.20 150.70 202.47 489.90 394.80 224.70 106.90 280.28 239.65 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) 55.0% 51.0% 55.0% 80.0% 60.0% 51.0% 70.0% 63.7% 60.0% 100.0% 100.0% 100.0% Interest the Group Attributable to (2) 83.30 729.20 274.00 397.00 178.40 489.90 493.50 224.70 209.60 400.40 376.10 139.80 (RMB million) Market Value in Existing State Date 2021 2022 2023 2018 2018 2020 2018 2019 2019 2024 Estimated Completion (1) —— —— Total GFA Planned (1) 84,018 272,088 71,664 234,221 52,792 261,251 67,700 310,171 60,527 229,731 96,359 121,399 84,348 311,697 (sq.m.) (sq.m.) 174,093 717,422 194,510 200,007 107,908 177,167 6,998,000 10,417,333 Residential, Residential, Commercial, Composite, Other, Carpark Commercial, Composite, Other, Carpark Residential, Commercial, Composite Other Other Other Type of Property Site Area Residential, Commercial, Composite, Carpark Other Residential, Commercial, Composite, Hotel, Carpark Residential, Commercial, Composite, Other, Carpark Commercial, Office, Carpark Residential, Commercial, Carpark 18 Feb 2083 Land Use Rights Expiry Date 01 Aug 2084 09 May 2015 to 04 Jul 2081 26 Aug 2050 26 Aug 2050 24 Dec 2082 06 Nov 2084 14 Oct 2084 15 Aug 2086 23 Mar 2044 Residential, 23 Dec 2080 Land Use Education Residential, Commercial 18 Feb 2053 to Agricultural and Tourism Aug 2048 to Agricultural and Tourism Aug 2048 to Public Facility Guigang Residential, Commercial Wanning Residential, Commercial 01 Aug 2054 to Qinzhou Residential, Commercial, Baoting Li and Miao Autonomous County Baoting Li and Miao Autonomous County City Suizhou Residential, Commercial 24 Dec 2052 to Jingmen Residential, Commercial 06 Nov 2054 to Suizhou Residential, Commercial 14 Oct 2054 to Xiangyang Residential, Commercial 15 Aug 2056 to Huaihua Residential, Commercial 23 Dec 2050 to Yichang Commercial, Education, zhou Tianxin Real Estate Development Company Limited Company Limited Investment Development Company Limited Hainan Baoting Huayi GaoxiaoDevelopment Agriculture Company Limited Hengda (Guigang) Huananmao Property Hainan Baoting Hongsen Technology Development Company Limited Company Limited Jingmen Royal View PropertyLimited Company Company Limited Development Company Limited Holding Entity Company Limited Yichang Sanjiang Hangtian RealDevelopment Estate Company Limited Wanli (Lingui) Real Estate Company Limited Guilin Sui Property Name City Baoting City Baoting Garden Jinmen Street V-26 Evergrande City Guigang Property No. V-31 Evergrande Shuanghai Bay Wanning Huayu (Wanning) Real Estate Development V-27 Evergrande City Guilin V-28 Portion of Evergrande Xuefu Qinzhou Jinzonglu (Qinzhou) Commercial City V-30 Portion of Evergrande Cultural Tourist V-29 Portion of Evergrande Cultural Tourist V-32 Portion of Evergrande Royal View V-34 Evergrande Roayl Palace Suizhou Minjiang (Suizhou) Real Estate Development V-33 Evergrande Metropolis Suizhou V-35 Evergrande Emerald Court Xiangyang Xiangyang Hengda Feicui Real Estate V-36 Portion of Yichang Commercial Buhang V-37 Evergrande Royal Scenic Bay Huaihua Tianrun (Huaihua) Real Estate Development
– II-128 –
– IV-129 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 95.85 303.72 141.70 442.32 686.94 655.40 393.28 335.40 197.68 574.29 617.90 524.94 227.50 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) 60.0% 65.0% 60.0% 60.0% 51.0% 80.0% 80.0% 90.0% 62.0% 60.0% 100.0% 100.0% 100.0% Interest the Group Attributable to (2) 506.20 218.00 737.20 491.60 335.40 247.10 638.10 154.60 617.90 874.90 227.50 1,144.90 1,285.10 (RMB million) Market Value in Existing State Date 2021 2021 2025 2020 2022 2022 2019 2022 2025 2018 2017 2019 2021 Estimated Completion (1) Total GFA Planned (1) 3,554 85,328 59,640 218,643 49,397 510,805 56,623 400,355 10,716 134,237 24,949 99,795 27,913 177,263 58,624 271,290 58,869 120,154 39,328 178,029 (sq.m.) (sq.m.) 118,967 557,250 252,583 941,584 665,346 620,669 Commercial, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Office, Carpark Type of Property Site Area Residential, Commercial, Carpark Residential, Commercial, Other, Carpark Commercial, Other, Carpark Residential, Commercial Residential, Commercial, Other, Carpark Residential, Commercial, Office, Carpark Other Residential, Commercial, Composite, Carpark 01 May 2080 Land Use Rights Expiry Date 14 Aug 2040 to 25 Mar 2084 01 Dec 2060 Residential, 25 May 2082 16 Aug 2040 11 Oct 2053 to 11 Oct 2083 09 Jul 2042 Residential, 14 Feb 2087 14 Oct 2080 06 Jun 2086 01 Nov 2079 29 Sep 2081 Land Use Residential, Commercial 29 Sep 2051 to Composite Xiangtan Residential Xiangtan Residential, Commercial 01 May 2050 to Changsha Residential, Commercial 25 May 2052 to City Changsha Commercial Changsha Commercial Zhuzhou Residential, Commercial 30 Aug 2044 to Changzhou Residential, Commercial 06 Jun 2056 to Changzhou Residential, Commercial 13 May 2047 to Xingsu (Hunan) Property Company Limited Changsha Residential, Commercial 20 Jan 2052 Commercial Limited Songjiang Wanshun (Hunan) Investment Company Limited Hunan Xiangtian Real EstateCompany Development Limited Changsha Tianying Real EstateCompany Development Limited Furong Haoting (Hunan) RealDevelopment Estate Company Limited Xianghe (Changsha) Company Limited Changsha Residential, Commercial, Holding Entity Company Limited Junlang (Jiangsu) Property Company Limited Wuxi Development Company Limited Maoshan (Jiangsu) Property Investment Company Limited Xiangtan Property Name Financial Square Changsha Changsha Changsha Peninsula Changzhou V-38 Evergrande Shuxiang Mendi XiangtanV-39 Mingsheng (Xiangtan) Property Company Evergrande Royal Scenic Peninsula Property No. V-41 Portion of Evergrande Centuried V-40 Evergrande Royal Scenic Bay Yueyang Jinxi (Yueyang) Property Company Limited Yueyang Residential, Commercial 25 Mar 2054 to V-42 Evergrande Huangxing Road Project V-43 Portion of Evergrande Junyuefu V-44 Portion of Evergrande Junyuefu V-46 Evergrande Yufu Changsha V-45 Evergrande Shang Lin Yuan Changsha Jinrai (Changsha) Property Company Limited Changsha Residential, Commercial 14 Feb 2057 to V-47 Evergrande Royal Scenic Bay Zhuzhou Hengye (Zhuzhou) Real Estate Development V-48 Evergrande Royal Scenic Changzhou Changzhou Hengyun Real Estate V-49 Portion of Evergrande Royal Scenic V-50 Evergrande Jewelry Court Wuxi
– II-129 –
– IV-130 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 383.80 497.00 274.60 231.36 335.11 746.84 247.80 335.11 517.60 816.30 538.30 1,701.00 1,401.17 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) 80.0% 49.0% 51.0% 51.0% 62.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Interest the Group Attributable to (2) 383.80 497.00 274.60 289.20 683.90 247.80 540.50 517.60 816.30 538.30 1,701.00 2,747.40 1,464.40 (RMB million) Market Value in Existing State Date 2017 2020 2019 2019 2019 2020 2019 2019 2019 2025 2019 2022 2020 Estimated Completion (1) Total GFA Planned (1) 8,916 35,720 76,847 361,882 49,199 119,413 82,164 233,505 39,657 126,295 46,020 145,080 (sq.m.) (sq.m.) 177,932 274,128 140,201 466,661 114,444 249,576 104,440 216,817 120,254 205,331 148,344 390,531 147,673 423,225 Residential, Other, Carpark Commercial, Composite, Carpark Residential, Type of Property Site Area Commercial, Other, Carpark Commercial, Carpark Carpark Composite, Carpark Residential, Commercial, Composite, Carpark Carpark Residential, Residential, Commercial, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Carpark Commercial, Composite, Other, Carpark 03 Feb 2085 Land Use Rights Expiry Date 22 Nov 2085 Residential, Other, 22 Dec 2086 Residential, 01 Mar 2087 27 Jan 2086 Residential, 20 Sep 2081 Residential, Other, 24 Oct 2086 Residential, 28 Sep 2081 Residential, Commercial Land Use Residential, Commercial 01 Mar 2057 to Residential, Commercial an ’ Taizhou Residential, Commercial 03 Feb 2055 to Lianyungang Residential, CommercialLianyungang 29 May 2081 Residential Other City Pizhou Nanjing Residential Shanghai Residential Yangzhou Residential Changchun Residential, Commercial 28 Sep 2051 to Ji Ganzhou Residential, Commercial an) Real Estate Development ’ Suzhou Shengjian Property Company Limited Suzhou Residential Jiaojiang Xianghe (Taizhou) RealDevelopment Estate Company Limited Lianyungang Hengda Cheng RealCompany Estate Limited Yongsheng (Lianyungang) Real Estate Development Company Limited Nanjing Shengji Real Estate Company Company Limited Limited Shanghai Jingqi Real EstateCompany Development Limited Wuxi Shengjian Property Company Limited Wuxi Holding Entity Company Limited Xinmao (Changchun) Real Estate Development Company Limited Company Limited Hengxi (Ji Limited an ’ Village Ligaitao Construction Project (Urban World) Lianyungang Lianyungang Property Name Shanghai Changchun Ji V-51 Taizhou Hongjia Street Zhujiadian Property No. V-52 PortionV-53 of Evergrande City Evergrande Forest Creek County V-54 Evergrande Forest Creek County Pizhou Xuzhou Jiulongyuan Hotel Management V-55 Evergrande Xishan Nanjing V-56 Evergrande First Palance Jiangwan V-57 Suzhou Jun Lan Ting V-58 Evergrande Dragon Bay Wuxi V-59 Evergrande Royal Palace Yangzhou Jinhua (Yangzhou) Real Estate Development V-60 Evergrande Yu Shui Zhuangyuan V-61 Evergrande Royal Palace Ganzhou Hengda (Ganzhou) Real Estate Company V-62 Evergrande Royal Scenic Peninsula V-63 Evergrande Emerald JunTing Nanchang Jiangxi Heng Yao Property Company Limited Nanchang Residential
– II-130 –
– IV-131 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 227.87 695.30 563.30 314.90 781.00 337.62 282.00 333.90 810.60 554.40 1,284.90 1,192.22 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) 51.0% 51.0% 49.0% 60.0% 99.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Interest the Group Attributable to (2) 446.80 695.30 563.30 314.90 781.00 662.00 470.00 333.90 810.60 560.00 1,284.90 2,433.10 (RMB million) Market Value in Existing State Date 2019 2020 2020 2020 2020 2020 2025 2020 2023 2021 2030 2025 Estimated Completion (1) Total GFA Planned (1) 37,787 207,735 58,984 185,410 69,346 333,900 (sq.m.) (sq.m.) 466,185 646,413 111,038 334,224 133,308 269,304 121,153 370,067 293,979 1,056,773 149,228 447,525 108,572 1,029,963 456,546 623,515 533,333 373,333 Commercial Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Type of Property Site Area Residential, Commercial, Carpark Commercial Commercial, Other, Carpark Residential, Commercial, Composite, Other, Carpark Composite, Other Commercial, Office, Carpark Residential, Commercial, Composite Other 08 Nov 2052 Residential, Land Use Rights Expiry Date 31 Jan 2062 13 Sep 2075 03 Aug 2085 Residential, 21 Oct 2052 Residential, 31 Mar 2082 31 Jan 2062 to 13 Sep 2045 to 14 Mar 2080 Residential, 17 Nov 2086 19 Aug 2052 to 20 Aug 2082 06 Dec 2086 Residential, 04 Jul 2076 Other Land Use Office Residential, Commercial 31 Mar 2051 to Residential Residential Residential, Office Residential Residential, Commercial 17 Nov 2056 to Office, Cultural and Entertainment, Public Facility, Transit Station Urumqi Commercial Urumqi Residential City Xinyu Dalian Dalian Jinan Linyi Qingdao Residential e Real Estate Development ’ Xinjiang Baitian Company Limited Jiangxi Heng Yao Property Company Limited Nanchang Residential Panjin Haili Property Company Limited Panjin Development Company Limited Company Limited Xinyu Fuchen Property Development Limited Holding Entity Company Limited Jinan Hengda Chengxi PropertyLimited Company Hengjin (Linyi) Property Company Limited Linyi Dalian Hengchuang Real Estate Company Limited Haiwen (Qingdao) Property Company Limited Qingdao Residential, Commercial, Haozhou (Qingdao) Property Company Limited Hengsheng Sunshine Xindi (Dalian) Property Huaqian (Shandong) Property Company Nanchang Property Name Center Jinan Qingdao Qingdao V-64 Evergrande Emerald LongTing Property No. V-66 Evergrande Green Metropolis Urumchi Wulumuqi Hengxin Jiacheng Real Estate V-65 Evergrande City Lights Urumchi V-67 Evergrande Atrium Xinyu V-68 Evergrande Harbor City Dalian V-69 Evergrande Atrium Dalian V-70 Evergrande Binhe Shijia Panjin V-71 Evergrande International Financial V-72 Evergrande Emerald Court Linyi V-73 Evergrande Central Square Linyi V-74 Portion of Evergrande Dragon Bay V-75 Portion of Evergrande Yuelongtai
– II-131 –
– IV-132 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (4) (5) (2) 612.90 113.19 311.90 145.81 408.40 443.10 931.90 309.50 132.80 221.60 1,537.68 2,547.30 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) 60.0% 55.0% 55.0% 80.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Interest the Group Attributable to (2) 612.90 205.80 311.90 265.10 510.50 443.10 931.90 132.80 221.60 309.50 2,562.80 2,547.30 (RMB million) Market Value in Existing State Date 2020 2020 2020 2019 2021 2018 2019 2021 2018 2018 2019 2018 Estimated Completion (1) Total GFA Planned (1) 87,264 250,441 89,868 260,516 83,893 310,132 68,051 249,815 54,986 276,631 51,362 166,377 64,200 292,432 (sq.m.) (sq.m.) 116,239 865,814 220,088 322,693 217,468 922,673 142,987 201,044 508,865 1,631,005 Commercial, Composite, Other Residential, Commercial, Composite Commercial, Other Commercial, Composite, Carpark Residential, Commercial, Composite, Office, Carpark Residential, Residential, Commercial, Composite, Carpark Residential, Commercial, Carpark Residential, Carpark Type of Property Site Area Other Residential, Commercial, Composite, Hotel, Carpark Commercial, Composite, Carpark Residential, Commercial, Hotel 17 Oct 2086 Residential, 28 Oct 2086 Residential, Land Use Rights Expiry Date 08 Nov 2086 30 Nov 2086 24 Feb 2083 22 Feb 2082 10 Sep 2080 22 Feb 2082 22 Dec 2083 04 Jan 2087 Residential, Land Use Residential, Commercial 08 Nov 2056 to Residential, Office, Public Facility, Park and Green Space Residential Luzhou Residential Linfen Zibo Taiyuan Residential, Commercial 24 Feb 2053 to Huizhou Residential, Commercial 22 Feb 2052 to City Chengdu Residential, Commercial 03 Dec 2042 to Huizhou Residential, Commercial 22 Feb 2052 to Nanchong Residential Chengdu Residential, Commercial 26 Jun 2053 to Weihai Huafu Property Company Limited Weihai Hengping (Linfen) Real Estate Development Mingshang (Shandong) Property Company Chengdu Wanhao Property Company Limited Chengdu Residential, Commercial 03 Nov 2056 to Luzhou Hengda Beicheng PropertyLimited Company Company Limited Limited Taiyuan Hengdelong Real Estate Development Company Limited Huizhou Gubaowan Hunqing Culture Industrial Park Company Limited Chengdu Yulong Sanhao RealDevelopment Estate Company Limited Huizhou Dayawan Yuezhu PropertyLimited Company Kairui (Nanchong) Property Company Limited Holding Entity Hengda (Dayi) Real EstateLimited Group Company Property Name Garden Huizhou Chengdu (Plot B) Garden Huizhou Garden Chengdu V-76 Evergrande Royal Coast Weihai Property No. V-77 Evergrande Emerald Court Zibo V-83 Evergrande Royal Palace Chengdu Chengdu Jiuyuan Chemical Company Limited Chengdu Residential V-85 Evergrande Metropolis Nanchang V-79 Evergrande Bay Taiyuan V-84 Evergrande Palace Luzhou V-78 Evergrande Yuelongtai Linfen V-80 Portion of Evergrande Xiaoguiwan V-86 Portion of Evergrande The Coronation V-81 Portion of Evergrande Xiaoguiwan V-87 Evergrande City Nanchong V-82 Portion of Evergrande Royal Scenic
– II-132 –
– IV-133 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (6) (2) 13.16 553.60 153.60 218.30 898.30 297.31 641.16 527.80 177.43 800.24 110.10 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) 58.0% 51.0% 90.0% 51.0% 51.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Interest the Group Attributable to (2) 25.80 553.60 153.60 218.30 898.30 512.60 712.40 527.80 347.90 110.10 1,569.10 (RMB million) Market Value in Existing State Date 2018 2022 2020 2019 2020 2020 2023 2017 2018 2024 2020 Estimated Completion (1) Total GFA Planned (1) 838 7,795 62,204 334,544 93,867 623,190 95,299 427,296 22,986 189,163 (sq.m.) (sq.m.) 160,020 480,013 124,886 348,287 109,053 425,304 161,189 579,511 190,611 631,019 290,118 1,161,045 Commercial, Composite, Other Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other Residential, Commercial, Office, Other, Carpark Commercial, Hotel, Office, Carpark Type of Property Site Area Residential, Commercial, Other, Carpark Commercial, Hotel, Other, Carpark Commercial, Composite, Other, Carpark Commercial, Other, Carpark 17 Feb 2087 01 Jan 2085 Land Use Rights Expiry Date 29 Jan 2060 19 Jun 2052 to 20 Jun 2082 20 Aug 2078 Commercial, Carpark 02 Mar 2051 Residential, 16 May 2063 Residential, 26 Oct 2086 Residential, 08 Jan 2087 Residential, Residential, Commercial 17 Feb 2057 to Land Use Residential, Commercial 19 Nov 2082 Residential, Residential, Commercial Research an an ’ ’ Xi Hebi Xi Xianyang Residential, Commercial 01 Jan 2055 to City Kaifeng Commercial Guiyang Residential Chongqing Commercial Kunming Residential Kunming Residential an) Technology Investment ’ an Chuangheng Real Estate Development ’ Baolisen (Hebi) Real Estate Development Juncheng (Xi Company Limited Company Limited Xi Company Limited Hengyuan (Xianyang) Property Company Limited Bohua (Guizhou) Property Company Limited Guiyang Residential, Commercial, Kaifeng Guoji Cheng WuhaoDevelopment Industrial Company Limited Nanrun (Guizhou) Real EstateCompany Development Limited Tongjing Wenlong (Chongqing) Property Company Limited Holding Entity Co., Ltd Kaimao Yunnan Real EstateCompany Development Limited an ’ an ’ Xianyang Xi Property Name Zhengkai Guiyang Chongqing Kunming V-88 Evergrande Metropolis Hebi V-91 Evergrande Royal View Garden Property No. V-90 Evergrande Atrium Xi V-89 Evergrande Emerald Dragon Court V-92 Evergrande Royal Scenic Bay XinyangV-93 Dayang (Xinyang) Property Company Limited Portion Xinyang of Evergrande Future City Residential, Commercial 29 Jan 2050 to V-95 Evergrande Royal Palace Nanming V-96 Evergrande Nanmenjin Street V-94 Guiyang Binhe Left Coast V-97 Evergrande JiuLong Bay Kunming Kunming Henghai Real Estate Development V-98 Evergrande Dragon River Court
– II-133 –
– IV-134 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 565.23 370.90 177.59 251.00 872.40 695.00 224.40 135.40 678.60 110.00 183.00 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) 51.0% 70.0% 75.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Interest the Group Attributable to (2) 370.90 253.70 251.00 872.40 695.00 299.20 135.40 678.60 110.00 183.00 1,108.30 (RMB million) Market Value in Existing State Date 2021 2019 2020 2021 2019 2019 2020 2019 2020 2019 2022 Estimated Completion (1) Total GFA Planned (1) 38,452 297,608 31,033 121,429 64,655 213,201 93,833 368,583 30,000 132,573 30,000 84,000 60,986 182,957 (sq.m.) (sq.m.) 127,271 254,542 103,954 544,039 183,091 575,363 254,388 531,903 Residential, Commercial, Composite, Other, Carpark Residential Commercial, Composite, Other, Carpark Type of Property Site Area Residential, Commercial, Composite, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Commercial, Composite, Other, Carpark Residential, Commercial, Office, Carpark Residential, Commercial, Composite, Hotel, Other, Carpark Commercial, Composite Residential, Commercial, Composite 10 Dec 2085 16 Dec 2066 Land Use Rights Expiry Date 18 Oct 2062 07 Jan 2087 20 Nov 2083 05 Nov 2081 17 Oct 2086 20 Jun 2082 25 May 2080 Residential, 05 Sep 2063 Residential, Land Use Residential, Commercial 04 Jan 2053 to Commercial, Composite 07 Dec 2058 Residential, Qujing Zunyi City Dongguan Residential, Commercial 07 Jan 2057 to Dongguan Residential, Commercial 20 Nov 2053 to Huizhou Residential Huidong Residential, Commercial 16 May 2052 to Huizhou Residential Huizhou Residential, Commercial 20 Jun 2052 to Henggongda (Qujing) Property Company Limited Lianfeng (Huizhou City) Company Limited Huizhou Residential, Commercial 05 Nov 2051 to Zunyi Hengda Qiangui RealDevelopment Estate Company Limited Weishun (Huizhou City) Company Limited Huizhou Residential, Commercial 18 Oct 2032 to Development Company Limited Donghai Yijing (Huidong) Investment Investment Company Limited Holding Entity Company Limited Company Limited Limited Company Limited Huayuanhong (Huizhou) Development Zunyi Property Name Huizhou V-99 Evergrande Oasis Qujing Property No. V-101 Portion of Evergrande Emerald Court V-100 Evergrande Royal Palace Chongqing Chongqing Yongli Property Company Limited Chongqing Residential, Commercial 16 Dec 2056 to V-102 Evergrande Royal View Garden V-103 Evergrande Royal Garden Dongguan Hengzhan (Dongguan) Real Estate V-104 Evergrande Left Riverbank Dongguan Dongguan Mayongzhen Gumei Real Estate V-105 Evergrande YueLong Court Huizhou Kailianda (Huizhou City) Investment V-106 Evergrande Moon Bund Huizhou V-107 Evergrande Dragon Bay Huizhou V-108 Evergrande Emerald Court HuizhouV-109 Guanghuifeng (Huizhou) Property Evergrande Company Atrium Huizhou
– II-134 –
– IV-135 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 524.90 788.50 553.55 1,305.90 Attributable to Valuation Date Market Value the Group as at (%) (RMB million) 51.0% 100.0% 100.0% 100.0% Interest the Group Attributable to (2) 524.90 788.50 1,305.90 1,085.40 (RMB million) Market Value in Existing State Date 2020 2020 2021 2020 Estimated Completion (1) Total GFA Planned (1) 88,390 350,834 79,103 309,998 49,227 369,587 (sq.m.) (sq.m.) 141,558 532,528 Residential, Commercial, Composite, Other, Carpark Type of Property Site Area Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Other, Carpark 17 Jun 2081 Land Use Rights Expiry Date 29 Apr 2068 to 26 Oct 2068 25 Jan 2057 Commercial, Carpark Land Use Commercial Huizhou Residential, Commercial 17 Jun 2051 to Foshan City Zhongshan Residential Zhongshan Residential Limited Company Limited Development Company Limited Development Company Limited Holding Entity Property Name V-110 Huizhou Guangyao Jiangjun Lake Rongruifa (Huizhou) Investment Company Property No. V-111 Evergrande Central Square Shunde Yichuang (Foshan Shunde) Real Estate V-112 Evergrande Royal Palace Zhongshan Hengjun (Zhongshan) Real Estate V-113 Evergrande Royal Scenic Zhongshan Hongtai (Zhongshan) Real Estate
– II-135 –
– IV-136 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT
Notes:
1 All areas are stated in approximations.
2 All values are stated in approximations.
3 We have ascribed no commercial value to the part of the property without title documents nor without full payment of land premium. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of such part of the properties attributable to the Group would be RMB1,880,700,000.
4 We have ascribed no commercial value to the part of the property without title documents nor without full payment of land premium. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of such part of the properties attributable to the Group would be RMB1,022,400,000.
5 We have ascribed no commercial value to the part of the property without title documents nor without full payment of land premium. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of such part of the properties attributable to the Group would be RMB2,123,500,000.
6 We have ascribed no commercial value to the part of the property without title documents nor without full payment of land premium. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of such part of the properties attributable to the Group would be RMB148,600,000.
– II-136 –
– IV-137 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) — — — — — — — — — — — Market Value Attributable to Valuation Date the Group as at (%) (RMB million) 51.0% 51.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Interest the Group Attributable to — — — — — — — — — — — (RMB million) Existing State Market Value in Date 2019 2022 2018 2020 2018 2020 2020 2018 2020 2021 2023 Estimated Completion (1) Total GFA Planned (1) 48,707 174,960 98,053 325,843 26,017 104,069 (sq.m.) (sq.m.) 226,116 918,841 164,970 599,138 109,511 325,732 140,406 423,613 120,786 362,465 174,419 417,519 175,278 261,251 3,427,962 4,586,511 Residential, Residential, Residential, Residential, Residential, Residential, Residential, Commercial, Composite, Other, Carpark Commercial, Composite, Hotel, Other, Carpark Residential, Commercial, Composite, Other, Carpark Commercial, Composite, Other, Carpark Commercial, Carpark Commercial, Hotel, Office, Other, Carpark Residential, Commercial, Other, Carpark Commercial, Composite, Other, Carpark Commercial, Composite, Other, Carpark Commercial, Composite, Other Residential, Type of Property Site Area Other Land Use Rights Expiry Date Residential, Commercial Residential, Commercial Accommodation and Catering Land Use City Anqing Residential Huangshan Residential, Commercial Harbin Xuancheng Residential, Commercial Baoding Residential, Commercial Bozhou Residential, Commercial Harbin Jingzhou Residential Jingzhou Residential Huzhou Residential Holding Entity Limited Yuecheng (Huangshan) Project CompanyLimited Company Limited Yuecheng (Xuancheng) Property CompanyLimited Hengda (Baiyangdian Wenquan Cheng)Estate Group Real Company Limited Ningde Hengda Property Company Limited Ningde Residential, Commercial, Yuecheng (Bozhou) Property CompanyLimited Company Limited Jingzhou Guangrun Property Company Limited Huayuan (Jingzhou) Property Company Limited Limited Properties contracted to be acquired by the Group in the PRC — Huangshan Xuancheng Hotspring Tourist City Peninsula Ningde Evergrande Emerald Court Bozhou Evergrande Emerald Court Jingzhou Royal Scenic Jingzhou Evergrande Jewelry Court Anqing Yuecheng (Anqing) Property Company Evergrande Central Square Harbin Zhenye (Harbin) Real Estate Development Evergrande Yujing Huzhou Wuhonghu (Huzhou) Property Company Evergrande Royal Palace Harbin Kaiye (Harbin) Real Estate Development Evergrande Royal Scenic Evergrande International Evergrande Royal Scenic Portion of Evergrande Tiangu Evergrande Left Riverbank VI-1 Group VI Property No. Property Name VI-2 VI-3 VI-4 VI-5 VI-6 VI-7 VI-8 VI-9 VI-10 VI-11
– II-137 –
– IV-138 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (14) (15) (16) (17) (18) (19) (20) (21) (22) (23) (24) — — — — — — — — — — — Market Value Attributable to Valuation Date the Group as at (%) (RMB million) 75.0% 99.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Interest the Group Attributable to — — — — — — — — — — — (RMB million) Existing State Market Value in Date 2020 2018 2018 2020 2019 2019 2019 2019 2019 2021 2018 Estimated Completion (1) Total GFA Planned (1) 90,818 267,892 77,326 154,652 82,754 143,160 70,317 153,177 61,228 140,425 79,054 245,030 78,206 231,637 26,239 305,641 (sq.m.) (sq.m.) 140,727 445,468 101,890 228,106 163,657 363,648 Residential, Residential, Residential, Residential, Residential, Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Other, Carpark Residential, Other, Commercial, Composite, Other Commercial, Composite, Other, Carpark Commercial, Composite, Other, Carpark Carpark Commercial, Composite, Carpark Residential, Commercial, Composite, Other Commercial, Composite, Carpark Commercial, Composite, Other, Carpark Residential, Residential, Type of Property Site Area Commercial Land Use Rights Expiry Date Education Land Use City Lianyungang Residential Shaoxing Residential, Commercial Shengzhou Residential, Commercial, Yangzhou Residential Changchun Residential, Commercial Changchun Residential, Commercial Nantong Residential Yangzhou Residential Yangzhou Residential Changchun Residential, Commercial Pingxiang Residential, Commercial Holding Entity Development Company Limited Xushengfa (Yangzhou) Real Estate Development Company Limited Changchun Aosheng Property Company Limited Shaoxing Yongheng Property CompanyLimited Limited Zhongbao (Jilin) Real EstateCompany Development Limited Limited Hengfu (Yangzhou) Real EstateCompany Development Limited Company Limited Taiji (Changchun) Real EstateLimited Company Henghui (Pingxiang) Real EstateLimited Company Yangzhou Changchun Shaoxing Changchun Evergrande Grand Court Nantong Nantong Shengjian Property Company Yangzhou Changchun Pingxiang Evergrande Yuelong Court Evegrande Yufeng Lianyungang Henglong (Lianyungang) Real Estate Evergrande Royal View Garden Evergrande Emerald Court Evergrande Palace Yangzhou Shengji (Yangzhou) Real Estate Development Evergrande Yuefu Shengzhou Hengda (Shengzhou) Property Company Evergrande International Center Evergrande Tanxi Manor Evergrande Beihu Impression Evergrande Royal Palace VI-12 Property No. Property Name VI-13 VI-14 VI-15 VI-16 VI-17 VI-18 VI-19 VI-20 VI-21 VI-22
– II-138 –
– IV-139 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (25) (26) (27) (28) (29) (30) (31) (32) (33) (34) (35) — — — — — — — — — — — Market Value Attributable to Valuation Date the Group as at (%) (RMB million) 60.0% 85.7% 90.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Interest the Group Attributable to — — — — — — — — — — — (RMB million) Existing State Market Value in Date 2021 2019 2019 2022 2021 2018 2022 2021 2020 2022 2023 Estimated Completion (1) Total GFA Planned (1) 65,960 229,529 85,644 295,205 57,679 192,846 14,867 47,747 (sq.m.) (sq.m.) 214,835 869,813 189,002 573,285 138,197 412,936 192,288 523,640 196,517 532,534 267,106 716,292 262,231 380,115 Residential, Residential, Residential, Residential, Residential, Residential, Commercial, Composite, Office, Other, Carpark Commercial, Composite, Other Commercial, Composite, Other, Carpark Commercial, Composite, Other, Carpark Commercial, Composite, Carpark Commercial, Composite, Other, Carpark Commercial, Composite Residential, Commercial, Composite, Other Commercial, Other, Carpark Commercial, Composite, Other, Carpark Residential, Commercial, Composite, Carpark Residential, Residential, Type of Property Site Area Residential, Land Use Rights Expiry Date Accommodation and Catering Land Use City Nanchang Residential Nanchang Residential, Commercial Nanchang Residential, Commercial Nanchang Residential, Commercial, Luzhou Residential Chongqing Residential Jiujiang Residential, Commercial Chengdu Residential, Commercial Luzhou Residential Nanchong Residential Hengda (Luzhou) New City Property Holding Entity Nanchang Hengfu Real EstateCompany Development Limited Hengqiang (Nanchang) Property CompanyLimited Company Limited Limited Company Limited Company Limited Jiujiang Zhonghai Shihao PropertyLimited Company Jinjinjiang (Chengdu) Real Estate Development Company Limited Hengda (Luzhou) East CityCompany Property Limited East City (Nanchong) PropertyLimited Company Nanchang Nanchang Jiujiang Chengdu Peninsula Luzhou Nanchong Evergrande City Luzhou Evergrande YuLanFu Nanchang Nanchang Zhongdiantou Gaoxin Property Evergrande YueLongTai Nanchang Hengteng (Nanchang) Property Company Evergrande YueLong Court Evergrande Yudouhui Group B Chongqing Zhongyu Property Development Evergrande Forest Creek City Evergrande Peak Shenyang Shenyang Jiajing Property Company Limited Shenyang Residential, Commercial Evergrande Bay LongTing Evergrande Forest Creek County Evergrande Shidaizhiguang Evergrande Royal Scenic VI-23 Property No. Property Name VI-24 VI-25 VI-26 VI-27 VI-28 VI-29 VI-30 VI-31 VI-32 VI-33
– II-139 –
– IV-140 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (36) (37) — — Market Value Attributable to Valuation Date the Group as at (%) (RMB million) 51.0% 60.0% Interest the Group Attributable to — — (RMB million) Existing State Market Value in Date 2020 2021 Estimated Completion (1) Total GFA Planned (1) (sq.m.) (sq.m.) 161,266 726,887 253,423 796,528 Residential, Commercial, Composite, Other, Carpark Commercial, Composite, Other, Carpark Residential, Type of Property Site Area Land Use Rights Expiry Date Land Use City Kunming Residential, Commercial Chongqing Residential Holding Entity Henghui (Kunming) Property CompanyLimited Company Limited Kunming Evergrande New Town Chongqing Hengda (Chongqing) Xinnan Property Evergrande Binhe Left Coast VI-34 Property No. Property Name VI-35
– II-140 –
– IV-141 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT
Notes:
1 All areas are stated in approximations.
2 All values are stated in approximations.
3 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB1,275,400,000.
4 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB409,900,000.
5 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB338,500,000.
6 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB536,200,000.
7 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB2,749,900,000.
8 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB819,400,000.
9 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB393,600,000.
10 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB1,957,500,000.
11 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB96,135,000.
12 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB148,900,000.
13 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB537,489,000.
14 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB188,100,000.
– II-141 –
– IV-142 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT
15 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB781,704,000.
16 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB2,267,400,000.
17 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB419,600,000.
18 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB748,000,000.
19 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB1,129,900,000.
20 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB425,600,000.
21 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB307,100,000.
22 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB253,725,000.
23 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB768,400,000.
24 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB362,300,000.
25 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB295,000,000.
26 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB1,313,000,000.
27 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB1,678,200,000.
28 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB1,119,000,000.
– II-142 –
– IV-143 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT
29 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB5,478,300,000.
30 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB549,743,940.
31 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB230,400,000.
32 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB963,900,000.
33 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB738,900,000.
34 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB342,090,000.
35 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB107,460,000.
36 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB359,601,000.
37 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB873,120,000.
– II-143 –
– IV-144 – APPENDIX IV VALUATION REPORT OF HENGDA REAL ESTATE GROUP APPENDIX II PROPERTY VALUATION REPORT (2) 9.80 11,000.00 Attributable to Valuation Date Market Value the Group as at (%) (HKD million) Interest Attributable to the Group (2) 9.80 100.0% 11,000.00 100.0% Market Value in Existing State — 12.80 Rental Existing Monthly 0% (%) (HKD million) (HKD million) 79% Date at Valuation Occupancy as Date 1963 1985 Completion — — CPS Number of (1) 120 32,557 (sq.m.) (Excl. CPS) Total GFA Type of Property Expiry Date of Land Tenure Hong Kong 23 Jun 2038 Commercial City Hong Kong 24 Jun 2862 Office Company Limited Holding Entity Pioneer Time Investment Limited Properties held by the Group for Investments in Hong Kong — PROPERTIES IN HONG KONG Group VII Property No. Property Name Notes: 1 All areas are stated in approximations. 2 All values are stated in approximations. VII-1 Unit 4D, Majestic House, Tsim Sha Tsui Yingtian International Investment VII-2 China Evergrande Centre
– II-144 –
– IV-145 – APPENDIX V GENERAL INFORMATION
1. RESPONSIBILITY STATEMENT
This circular, for which the Directors collectively and individually accept full responsibility, includes particulars given in compliance with the Listing Rules for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this circular is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this circular misleading.
2. DISCLOSURE OF INTERESTS
(a) Interests and short positions of directors and chief executives of the Company in the shares, underlying shares and debentures of the Company and its associated corporations
As at the Latest Practicable Date, the interests and short positions of the directors and chief executives of the Company in the shares, underlying shares and debentures of the Company and any associated corporations (within the meaning of Part XV of the SFO) which were required to be (i) notified to the Company and the Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO (including interests and short positions which the directors and chief executives of the Company were taken or deemed to have pursuant to Divisions 7 and 8 of Part XV of the SFO), or (ii) entered in the register required to be kept under Section 352 of the SFO or (iii) required to be notified to the Company and the Stock Exchange pursuant to the Model Code for Securities Transactions by Directors of Listed Issuers (the “Model Code”) adopted by the Company were as follows:
Long positions in the Shares and underlying Shares
Underlying Percentage Name of Number of Shares pursuant Aggregate of Shares Directors Capacity Shares to share options interests in issue1
LU Hua Beneficial 1,133,713 11,003,597 12,137,310 0.15 owner
HUANG Wei Beneficial – 9,941,861 9,941,861 0.12 owner
MOU Yong Beneficial – 7,190,305 7,190,305 0.09 owner
LIU Chong Beneficial – 7,188,880 7,188,880 0.09 owner
WU Jiesi Beneficial 3,400,000 – 3,400,000 0.04 owner
LI Wai Beneficial 1,180,880 – 1,180,880 0.01 Keung owner
– V-1 – APPENDIX V GENERAL INFORMATION
Note:
1. The percentage was calculated based on 8,058,124,983 Shares in issue as at the Latest Practicable Date.
Save as disclosed above, none of the directors and chief executives of the Company had, as at the Latest Practicable Date, any interests or short positions in any shares and underlying shares or debentures of the Company or any of its associated corporations (within the meaning of Part XV of the SFO) which would have to be notified to the Company and the Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO (including interests and short positions which the directors and chief executives of the Company were taken or deemed to have pursuant to Divisions 7 and 8 of Part XV of the SFO), or which were entered in the register required to be kept by the Company under Section 352 of the SFO, or which were required to be notified to the Company and the Stock Exchange pursuant to the Model Code.
(b) Interests and short positions of the Shareholders in the Shares and underlying Shares
As at the Latest Practicable Date, so far as is known to any director or chief executive of the Company, the interests and short positions of the Shareholders (other than directors or chief executives of the Company) who had interests or short positions in the Shares and underlying Shares which would fall to be disclosed to the Company under the provisions of Divisions 2 and 3 of Part XV of the SFO, or which were entered in the register required to be kept by the Company pursuant to Section 336 of the SFO, and, where any Director is a director or employee of such Shareholders, the names and the positions held by them in such Shareholders, were as follows:–
Capacity of Percentage the Director Name of Capacity of Number of Shares held of Shares Name of in the Shareholder Shareholder by Shareholder in issue1 Director Shareholder Long position Short position
Shum Yip Interest in 4,965,577,2322 – 61.62 LU Hua Chairman and Group controlled Director corporation HUANG Director and Wei President
MOU Yong Director
LIU Chong Vice President
LIU Director and Shichao Chief Financial Officer
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Capacity of Percentage the Director Name of Capacity of Number of Shares held of Shares Name of in the Shareholder Shareholder by Shareholder in issue1 Director Shareholder Long position Short position
Shum Yip Beneficial 4,897,856,631 – 60.78 LU Hua Chairman and Holdings owner Director
Interest in 67,720,6013 – 0.84 HUANG Director and controlled Wei President corporation MOU Yong Director
LIU Chong Vice President
LIU Shichao Director
Notes:
1. The percentage was calculated based on 8,058,124,983 Shares in issue as at the Latest Practicable Date.
2. Shum Yip Group is deemed to be interested in the 4,965,577,232 Shares which Shum Yip Holdings is interested in by virtue of Shum Yip Holdings being its direct wholly-owned subsidiary.
3. These 67,720,601 Shares were held by Goldclass Industrial Limited, a wholly-owned subsidiary of Successful Years Holdings Limited, which in turn is wholly-owned by Shum Yip Finance Company Limited (“SYF”). SYF is a wholly-owned subsidiary of Shum Yip Holdings and accordingly, Shum Yip Holdings is deemed to be interested in these 67,720,601 Shares.
Save as disclosed above, as at the Latest Practicable Date, the Company had not been notified by any person (other than directors and chief executives of the Company) who had interests or short positions in the Shares and underlying Shares under the provisions of Divisions 2 and 3 of Part XV of the SFO, or which were entered in the register required to be kept under Section 336 of the SFO.
3. COMPETING INTERESTS
As at the Latest Practicable Date, Dr. LU Hua is the chairman and a director, Mr. HUANG Wei, is the president and a director, Mr. MOU Yong and Mr. LIU Shichao are directors, and Mr. LIU Chong is the vice president, of both Shum Yip Holdings and Shum Yip Group. Shum Yip Holdings and Shum Yip Group, through their subsidiaries and associates, have interests in property investment and development businesses in PRC.
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In addition, Mr. MOU Yong is also a non-executive director of Road King Infrastructure Limited (1098.HK), an associated company of the Company, whose shares are listed on the Stock Exchange and engages in property investment and development businesses.
Save as disclosed above, as at the Latest Practicable Date, none of the Directors or his or her respective close associates were considered to have an interest in a business which competes or was likely to compete, either directly or indirectly, with the business of the Group other than those business to which the Directors or his or her close associates were appointed to represent the interests of the Company and/or the Group.
4. DIRECTORS’ INTEREST IN CONTRACTS AND ASSETS OF THE GROUP
As at the Latest Practicable Date,
(a) none of the Directors were materially interested in any contract or arrangement subsisting and which was significant in relation to the business of the Group; and
(b) none of the Directors had any interest, direct or indirect, in any assets which had been acquired or disposed of by or leased to any member of the Group or were proposed to be acquired or disposed of by or leased to any member of the Group since 31 December 2016, being the date to which the latest published audited consolidated financial statements of the Company were made up.
5. MATERIAL CONTRACTS
The following are contracts (not being contracts entered into in the ordinary course of business carried on or intended to be carried on by the Group) entered into by the members of the Group within the two years immediately preceding the date of this circular and which is or may be material:
(a) the sale and purchase agreement dated 21 December 2015 entered into between the Company as purchaser and Shum Yip Holdings as vendor, pursuant to which the Company agreed to acquire approximately 95% of the issued share capital of Fairwind Power Limited for the consideration of RMB1,914,000,000;
(b) the second supplemental agreement dated 24 June 2016 entered into amongst the Company, Shum Yip Holding, 深圳市農科集團有限公司 (Shenzhen Nongke Holdings Company Limited*) (“Nongke”) and Shum Yip Group, pursuant to which the parties to it agreed to amend and supplement certain terms (including the downward adjustment of the consideration by RMB157,020,000) of the conditional sale and purchase agreement dated 27 January 2014 entered into amongst the Company as purchaser, Shum Yip Holdings as vendor, Nongke and Shum Yip Group (as amended by the supplemental agreement dated 8 May 2014 entered into amongst the same parties) in respect of the acquisition of the entire issued share capital of Shenzhen Bio-Agriculture Company Limited by the Company from the Shum Yip Holdings for the consideration of RMB5,589,000,000;
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(c) the capital increase agreement dated 20 December 2016 entered into amongst深業 置地有限公司 (Shum Yip Land Company Limited) (“SY Land”) (an indirect wholly-owned subsidiary of the Company), 深國際前海投資管理(深圳)有限公司 (Shenzhen International Qianhai Investment and Management (Shenzhen) Co., Ltd.) (“SIQ Investment”) and 深國際前海置業(深圳)有限公司 (Shenzhen International Qianhai Real Estate (Shenzhen) Co., Ltd.) (“SIQ Real Estate”, a wholly-owned subsidiary of SIQ Investment), pursuant to which SY Land agreed to make a capital contribution of RMB1.12 billion to SIQ Real Estate in return for 50% equity interest in SIQ Real Estate (which was consolidated into SY Land’s financial statements thereafter);
(d) the cooperation framework agreement dated 11 May 2017 entered into between Medos Limited (a wholly-owned subsidiary of the Company) (“Medos”) and Profit City Global Limited (“Profit City”) in relation the formation of Shum King Company Limited (a company which is owned as to 50% by each of Medos and Profit City) (the “JV Co”) to participate in the tender for New Kowloon Inland Lot No. 6567, Kai Tak Area 1K Site 1, Kai Tak, Kowloon, Hong Kong (the “Land”), and to engage in the development of the Land and the sale or lease and the management of the properties to be constructed on the Land; pursuant to the said agreement, each of Medos and Profit City has committed to provide shareholder’s loan in the amount of HK$13 million to the JV Co principally to finance its payment of the deposit payable upon submission of the tender and has agreed to an obligation to finance the funding requirement of the JV Co should the JV Co be successful in the tender; as the JV Co’s bid for the Land had not been successful, Medos and Profit City agreed to terminate the said agreement, and the JV Co had repaid all its shareholders’ loan in the aggregate amount of HK$26 million to its shareholders;
(e) the equity transfer agreement dated 24 May 2017 entered into between Shumyip Southern Property (Group) Co., Ltd. (“Shumyip Southern”) as transferor and Hengda Real Estate Group Guangdong Property Development Co., Ltd. (“Hengda Guangdong”) as transferee in relation to the disposal by Shumyip Southern of the entire equity interest and shareholder’s loan in Foshan City Sanshui Shumyip Property Co., Ltd. for a consideration of RMB2,575,608,822.78 plus interest on shareholders’ loan;
(f) the equity transfer agreement dated 24 May 2017 entered into between Shumyip Southern as transferor and Hengda Guangdong as transferee in relation to the disposal by Shumyip Southern of the entire equity interest in Foshan City Sanshui Shumyip Investment Co., Ltd. for a consideration of RMB45,536,400;
(g) the equity transfer agreement dated 24 May 2017 entered into between SY Land as transferor and Hengda Guangdong as transferee in relation to the disposal by SY Land of the entire equity interest and the shareholder’s loan in Foshan City Sanshui Shumyip Hotel Co. Ltd. for a consideration of RMB199,001,000.07 plus interest on shareholders’ loan;
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(h) the equity transfer agreement dated 24 May 2017 entered into between Shumyip Pengji (Group) Co., Ltd. (“Shumyip Pengji”) as transferor and Hengda Real Estate Group Nanjing Property Co., Ltd. as transferee, in relation to the disposal by Shumyip Pengji of the entire equity interest and the shareholder’s loan in Shenzhen Pengji Assets Management Co., Ltd. for the consideration of RMB2,604,575,600 plus interest on shareholders’ loan;
(i) the equity transfer agreement dated 5 June 2017 entered into between Taizhou Shumyip Pengji Investment Co., Ltd. (“Taizhou Pengji”) as transferor and Jingjiang Country Garden Property Development Co., Ltd. as transferee in relation to the disposal by Taizhou Pengji of the entire equity interest and shareholder’s loan in Taizhou City Pengxiang Property Co., Ltd. for the consideration of RMB361,482,040 plus interest on shareholder’s loan;
(j) the new cooperation framework agreement dated 16 June 2017 entered into between Medos and Profit City in relation the continued operations of the JV Co to participate in the tender for land in Hong Kong, and to engage in the development of such land and the sale of, and/or the provision of ancillary management of the properties to be constructed on such land; pursuant to the said agreement, each of Medos and Profit City has committed to provide the JV Co a revolving shareholder’s loan in the amount of up to HK$15.5 million to finance the deposit payable by the JV Co upon submission of such tender as the board of directors of the JV Co considers appropriate form time to time and the necessary expenses arising therefrom;
(k) the shareholders’ agreement dated 14 July 2017 entered into amongst Medos, Profit City, the Company (as guarantor for Medos), Road King Infrastructure Limited (as guarantor for Profit City) and the JV Co to provide for the arrangements regarding the operations and management of the JV Co to engage in the development of Tuen Mun Town Lot No. 520 at Kwun Chui Road, Area 56, Tuen Mun, New Territories, and the sale of and provision of ancillary management for the properties to be constructed thereon; pursuant to the said agreement, the aggregate capital commitment to be provided by each of Medos and Profit City to the JV Co, whether by way of shareholders’ loans and/or other form of financial assistance, will not exceed HK$3,000 million;
(l) the Principal Investment Agreement;
(m) the First Supplemental Investment Agreement;
(n) the Second Supplemental Investment Agreement; and
(o) the Third Supplemental Investment Agreement.
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6. LITIGATION
On 12 September 2014, Shum Yip Terra (Holdings) Company Limited (“Shum Yip Terra”), a 75.05%-owned subsidiary of the Company, and its wholly-owned subsidiary, Wuhan Shum Yip Terra Property Development Company Limited (“Wuhan Terra”), received a “notification for the appointment of defender/application for legal aid during the prosecution review phase” from The People’s Procuratorate of Jianli County of Hubei Province (the “People’s Procuratorate”), informing Shum Yip Terra and Wuhan Terra that materials in respect of the suspected corporate offence of bribery against both of them were transferred to the Public Prosecution Bureau of the People’s Procuratorate for prosecution review. The People’s Procuratorate considered that relevant regulations were violated by Wuhan Terra in the course of its acquisition of state-owned land for the purpose of the Terra-Nanhu Rose Bay Project, causing a loss of income from state-owned land to the state. In connection with the matter, the People’s Procuratorate has frozen certain bank accounts of Shum Yip Terra and Wuhan Terra. As at 30 June 2017, the balance of the frozen bank accounts of Wuhan Terra amounted to RMB549,162,000, whereas the frozen bank accounts of Shum Yip Terra have been fully released. Such balance had been accounted for in the balance of restricted cash of the Company.
In the year 2016, Wuhan Terra and the three ex-members of management of Wuhan Terra were prosecuted by the People’s Procuratorate for the offences of bribery by organization and offering bribes to organization (the “Litigation”). As at 31 December 2016, a provision in the amount of RMB542,413,000 had been made in the accounts of the Group in respect of the Litigation.
The People’s Court of Jianli County of Hubei Province handed down its first-instance judgment in respect of the Litigation on 28 September 2017. Wuhan Terra and the three ex-members of management of Wuhan Terra were found guilty and were convicted of the offence of bribery by organization. Wuhan Terra was ordered to pay a total of RMB557,412,970 (an illegal gain of RMB542,412,970 and a fine of RMB15,000,000), and each of the three ex-members of management of Wuhan Terra was sentenced to imprisonment for one and a half year.
Wuhan Terra filed an appeal against the judgment in respect of the Litigation on 9 October 2017.
The Litigation is still under appeal as at the Latest Practicable Date.
Save as disclosed above, at the Latest Practicable Date, no member of the Group was engaged in any litigation or arbitration of material importance and no litigation or claim of material importance was known to the Directors to be pending or threatened against any member of the Group.
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7. DIRECTORS’ SERVICE CONTRACTS
As at the Latest Practicable Date, none of the Directors had entered, or proposed to enter, into a service contract with any member of the Group which is not expiring or determinable by the Group within one (1) year without payment of compensation (other than statutory compensation).
8. EXPERTS AND CONSENTS
The following are the qualifications of the experts who have given a statement, an opinion or a letter contained in this circular:
Name Qualification
KPMG Certified Public Accountants CBRE Property Valuer PwC Certified Public Accountants
Subject to the disclaimers set out in Appendix II and Appendix IV to this circular, each of the above experts has given and has not withdrawn its written consent to the issue of this circular with the inclusion of its statement as set out in this circular and references to name in the form and context in which it appears in this circular.
As at the Latest Practicable Date, none of the above experts had any shareholding directly or indirectly in any member of the Group nor any right (whether legally enforceable or not) to subscribe for or to nominate persons to subscribe for securities in any member of the Group, nor did any of them have any interest, directly or indirectly, in any asset acquired or disposed of by or leased to any member of the Group or proposed to be acquired or disposed of by or leased to any member of the Group since 31 December 2016, being the date to which the latest published audited financial statements of the Company were made up.
9. GENERAL
(a) The registered office of the Company is at 8th Floor, New East Ocean Centre, 9 Science Museum Road, Tsim Sha Tsui, Kowloon, Hong Kong.
(b) The share registrar and transfer office of the Company is Tricor Standard Limited at Level 22, Hopewell Centre, 183 Queen’s Road East, Hong Kong.
(c) The company secretary of the Company is Mr. LEE Ka Sze, Carmelo. He is a solicitor of the High Court of Hong Kong.
(d) Unless otherwise stated, the English text of this circular shall prevail over the Chinese text in the case of inconsistency.
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10. DOCUMENTS AVAILABLE FOR INSPECTION
Copies of the following documents will be available for inspection during normal business hours from 9:00 a.m. to 5:00 p.m. (except Saturdays, Sundays and public holidays) at the principal place of business of the Company in Hong Kong at 8th Floor, New East Ocean Centre, 9 Science Museum Road, Tsim Sha Tsui, Kowloon, Hong Kong from the date of this circular up to and including 11 December 2017:
(a) the articles of association of the Company;
(b) the annual reports of the Company for the three financial years ended 31 December 2014, 2015 and 2016 respectively;
(c) the interim report of the Company for the six months ended 30 June 2017;
(d) the financial information of Hengda Real Estate in the form as set out in Appendix II of this circular;
(e) the report on unaudited pro forma financial information of the Group, the text of which is set out in Appendix III of this circular;
(f) the Valuation Report in the form as set out in Appendix IV of this circular;
(g) the written consents referred to in the section headed “Experts and Consents” in this appendix;
(h) the material contracts referred to in the section headed “Material Contracts” in this appendix; and
(i) this circular.
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