CMPD 2014 CSR REPORT To promote social progress

by building a green homeland

CMPD 2014 CSR REPORT

*CMPD CSR Report Front Cover

Round shape symbolizes harmony and inclusiveness, and demonstrates CMPD’s strong will of carrying forward the broad mindset and great ambition of the century-old Merchants Group.

The organic interconnection of round shapes delivers a message that CMPD is determined to become an expert in city upgrading, so as to create infinite possibilities and youthful vigor for the cities. CMPD 2014 CSR REPORT

*CMPD CSR Report Front Cover

Round shape symbolizes harmony and inclusiveness, and demonstrates CMPD’s strong will of carrying forward the broad mindset and great ambition of the century-old China Merchants Group.

The organic interconnection of round shapes delivers a message that CMPD is determined to become an expert in city upgrading, so as to create infinite possibilities and youthful vigor for the cities. 2014 CMPD CSR REPORT 2014 CMPD CSR REPORT

Opening ChapterOpening Message from General Manager

CMPD has been committed to creating a We build green habitats for a better environment.The We ensure a “simple, warm and efficient” atmosphere past three decades have witnessed the birth and growth for the happiness of our employees.Following the sound living and working environment of the green mindset of CMPD. In addition to great leaps ideology of “happy in work & cheerful in life”, we have for the customers. This reflects not only forward from developing single buildings to communities fostered a “simple, warm and efficient” atmosphere for and then to green comprehensive complexes, we have our employees, and launched, among others, “Alpha Wolf our attitude to the great nature and also realized a fast transition from scattered to systematic Program”, “Ivy Program” and “New Voyage Program” to responsibilities for the society, but also our green technology application. Now, we have obtained a attract more talents. In 2014, we promoted engagement expectations for the future. well-rounded green habitat development and operation and satisfaction survey to help more employees feel a system, and received UN Habitat Business Award. In sense of belonging and value during work. In addition, 2014, we passed LEED certification for 12 projects and we initiated “Homes of Employees”, “Family Day”, “Bachelor accomplished green buildings of 1,554,000 m2. Club”, “Wed-in” and other programs to spread the message of “home is where the heart is”. We offer one-stop considerate services for customer The year 2014 marked the 30th anniversary of CMPD. satisfaction. Customer needs are our constant concern. We show loving care for greater social harmony. As In this year of great challenges, we pitched in and Over the years, we have integrated the resources and a corporate citizen concerned with people’s livelihood, registered an outstanding business performance of strengths of Customer Service Department, China we have vigorously fulfilled social responsibilities, and over RMB 50 billion amidst tough market conditions. Merchants Property Management and China Merchants conducted characteristic activities in respect of care for In this year, we blazed new trails and realized a Club in all projects and launched the one-stop service vulnerable groups, so as to promote social harmony and strategies layout of “30 cities over three decades”. system, so as to offer a better home for over 130,000 spread the warmth of “home” to more people. In 2014, In this year, we joined hands with China Merchants households. In 2014, based on Shekou, we set up we took part in “I·walk”, “spreading the warmth”, “Farewell, Bank and ushered in collaborative development of “community culture service”, “community health-care Roundworms”, “Free Lunch to Communities” and other “real estate sector” and “financial sector” of China service” and “community life service” systems; in the future, activities, and built up 30 Dream Centers to benefit 26,228 Merchants Group. Also in this year, we stood up to the we will put in greater efforts for our customers to enjoy children from rural areas. profound reconstructing of the real estate market and better “At Home” services. The first three decades have witnessed the great uplifted our service by multiple means to envelope We always stick to compliance management for expansion of CMPD; the next three decades will see our customers in a homelike atmosphere. stronger confidence from our shareholders.China greater achievements. Every employee will earnestly fulfill Established in Shekou as a product of reform, CMPD has shifted from scale- and speed- oriented extensive our mission of “building a green homeland and promoting thrives on the loving care of each family. After three economic growth to intensive economic growth which social progress” through arduous efforts, so as to leave decades of expansion, CMPD has grown from a small emphasizes quality and efficiency. The old days of rash more splendid chapters on China’s history of urban regional real estate company into a large-scale listed and rough real estate operations have gone for good. development. brand with a strong presence in 30 cities across China. Facing the new situation, we have identified the strategic Now, CMPD has owned over 16,000 employees, goal of “becoming a top-ranking expert in city upgrading”, served over 320,000 customers, and contributed over and begun to set foot in experiential complexes, themed China Merchants Property Development Co., Ltd. RMB 8 billion taxes. With a deep sense of mission and industrial clusters and healthy properties in addition to General Manager residential communities. In 2014, altogether 3,643,000 m2 responsibility, CMPD has been committed to creating HE Jianya a sound living and working environment for the was sold through contracts, representing a y-o-y growth of customers. This reflects not only our attitude to the 32.9%; the sales revenue exceeded the threshold of RMB great nature and responsibilities for the society, but 50 billion, and stood at RMB 51.05 billion after an 18.2% also our expectations for the future. y-o-y increase.

02 03 2014 CMPD CSR REPORT 2014 CMPD CSR REPORT

Opening ChapterOpening About this Report Contents

Dear readers, we are now presenting to you the 7th CSR report released by China Merchants 02 Message from General Manager Property Development Co., Ltd., as an objective, standard, transparent and comprehensive 42 CREATING ECONOMIC VALUE disclosure of our policies, management, actions and performance in sustainable development. 44 Sustainable and Stable Operation 04 About this Report 46 Compliance Management 48 Responsible Supply Chain 50 Win-win Cooperation Reporting Frame of the contents.CMPD engages TUV NORD 06 About Us 52 Service Economic Development for third-party evaluation on the Report. •• The report covers the period from For more information, please refer to January 1, 2014 to December 31, 2014, 06 Company Profile “Assurance Statement” (Page-76). and may use data from other important 10 Corporate Governance 54 INSPIRING EMPLOYEES’ years for enhanced comparability. Data Source MOTIVATION •• The performance indicators of this All data and information contained Three Decades of Commitment to 08 56 Guaranteeing Employees’ Rights and Interests Report relate to any entities of herein are from public data provided “Home Is Where the Heart Is” major influences on the sustainable by government departments, CMPD 59 Supporting Employee Development development of China Merchants formal documents, statistics reports and 62 Caring for Employees Property Development Co., Ltd., financial statements, as well as from the including all subsidiaries and branches sustainability practices of all business 11 2014Overview within the consolidated scope of entities which have been summarized PROMOTING SOCIAL HAPPINESS the 2014 financial statement. The and reviewed by CMPD CSR management 11 Key Performance 64 11 Honors boundaries of all material issues shall department. The unit of the financial data 66 Supporting People’s Livelihood refer to “CSR management”. herein is RMB unless otherwise noted. 68 Advocating Micro Public Welfare Basis and References Appellations 12 CSR Management 70 Paying Heed to Children’s Health The Report is compiled in compliance with For the convenience of expression and 72 Supporting Cultural Education prevalent standards about sustainability reading, China Merchants Property 12 CSR Culture disclosure in our industry, and highlights Development Co., Ltd. is also referred to as 12 CSR Organizational System the industry background and our “CMPD”, “the Company”, or “we/us” in this 13 Stakeholder Communication 74 Outlook characteristics. The references include: Report. 14 Materiality •• Global Reporting Initiatives (GRI) “Sustainability Reporting Guidelines Report Access and Extended 75 Third-party Appraisal (G4)” Core Reading 16 LEADING GREEN HABITAT •• International Standard Organization The report is available in hard copy and 18 Green Habitat Idea (ISO) “CSR Guidance” (ISO26000) PDF. The PDF version is prepared in 76 Assurance Statement •• HKEx “Environmental Social and Chinese and English. In case of minor 19 Integrating Green Idea into Management Governance Reporting Guidelines” (HK - disparities, the Chinese version shall 20 Pressing ahead with Green Practices ESG) prevail. 25 Advocating Green Lifestyle 78 Data •• Stock Exchange “Shenzhen 27 Jointly Building a Green Ecosphere Stock Exchange Social Responsibility As we expect the report to bring forth 29 Measuring Carbon Footprint Instructions to Listed Companies” new ideas, the overlaps in knowledge and topics with previous reports have been 80 Index Reliability Guarantee avoided as much as possible. Please visit the company’s official website (http:// 30 BUILDING CUSTOMERS' TRUST CMPD hereby represents that the Report www.cmpd.cn) or http://www.cninfo.com. contains no false representations, cn/ for our CSR reports of the previous 32 Committed to High-quality Projects 82 Feedback misleading statements or material years, so as to gain a more comprehensive 35 Enriching “At Home” Services omissions, and shall be liable for the view of CMPD’s CSR work. authenticity, accuracy and completeness 40 Attaching Importance to Customer Engagement

04 05 2014 CMPD CSR REPORT 2014 CMPD CSR REPORT

Opening ChapterOpening About Us

Company Profile 30 Cities

Headquartered in Shenzhen, China Merchants Property Development Co., Ltd. over

(hereinafter referred to as “CMPD”) is the HAERBIN real estate flagship of central-government- led China Merchants Group. Over the past Three Decades three decades,the company has extended its market reach to 30 cities nationwide. It was listed as A-Shares and B-Shares in Shenzhen Stock Exchange, with secondary listing in Singapore Exchange as B-Shares. In 2013, SHENYANG China Merchants Land Limited (HK. 0978), a subsidiary of CMPD, went listed on Hong Kong Exchanges and Clearing Limited. In 2014, 6.11 2 CMPD Layout million m of project resources were newly obtained in , , Shenzhen, DALIAN 1984 2010 and other core cities through bidding, Shenzhen Xiamen auction, transfer and acquisition, etc., where

the area attributable to the company reached YANTAI 2003 2011 2 4.66 million m . No major restructuring or Shanghai Wuhan, Zhenjiang

business integration was seen during the QINGDAO Guangzhou Qingdao report period. 2004 2012 Engaged principally in comprehensive real RIZHAO ,Tianjin Bijie, Harbin

estate development, the company extends ZHENJIANG ,Beijing Changzhou

its industrial chain also into property CHANGSHU XIAN 2005 2013 management, real estate agency, power NANJING JURONG Nanjing Kunming, Dalian supply and other supportive sectors, and SHANGHAI CHANGZHOU Ningbo, Nanning runs different types of commercial real SUZHOU 2007 Hangzhou, Yantai estate projects. Upholding the Idea of “home , is where the heart is”, the company has HANGZHOU Zhangzhou 2014 WUHAN integrated all service sectors and launched “At CHENGDU NINGBO Changshu, Rizhao Home” service brand. In virtue of integrated CHONGQING 2009 Xi’an, Jurong community resource development, perfect Chengdu Shenyang, Boao one-stop service system and professional service capacity, CMPD strives to fulfill its promises to the customers and the society. BIJIE

XIAMEN GUANGZHOU ZHANGZHOU KUNMING FOSHAN

NANNING SHENZHEN

ZHUHAI

BOAO

06 07 2014 年招商地产企业社会责任报告 2014 CMPD CSR REPORT 2014 CMPD CSR REPORT 2014 年招商地产企业社会责任报告

The past three decades have witnessed a business expansion of CMPD from Shekou Three Decades of Commitment to to 30 cities throughout China. The company has remained unswervingly committed to the mission of “building a green homeland and spurring social progress” in business operation and development. Arduous efforts have translated into great achievements. “Home Is Where the Heart Is” Relying on excellent services, CMPD has presented delicate works in a green way. Now, the company is aiming for greater progresses.

A New Decade First Decade of Second Decade Another Decade for Arduous of Innovation & of General Leap-Forward Efforts Transformation Expansion Development

The past three decades have witnessed the hard work and great wisdom of CMPD employees. In the future, 1984 1987 1989 1991 1993 1994 1997 1999 2000 2002 2005 2007 2009 2011 2013 we will carry forward the tradition with an unchanged Shekou Industrial Zone The company obtained China Merchants Jointly with its partners Shekou China In January, CMPD joined Shekou Industrial Zone Through demerger, CMPD Members Club The company invited Beijing, Shanghai and CMPD obtained State CMPD annual sales CMPD was upgraded to This year marked the 20th mindset of “home is where the heart is”. Based on “one real estate Company Grade- One real Hotel at Liuhua Rd., in Huiyang, the Merchants Port Service hands with CSCDC real estate company Shenzhen China was set up. Ogilvy & Mather (Hong Guangzhou regional Grade- one real volume exceeded the a level-one subsidiary of anniversary of the listing of orientation, two dimensions, three projects, four focal was officially set up estate Comprehensive Guangzhou marked the company invested and Co., Ltd. went listed Shekou in developing obtained State Grade- Merchants Property Kong) for brand survey, headquarters worked estate Development threshold of RMB 10 China Merchants Group CMPD. The company completed points and five capacities”, we will blaze new trails for staff housing Development first business expansion developed via multiple on Shenzhen Stock Shenzhen Haijing One Development Development Co., Ltd. established a systematic full steam ahead. A Qualification. The billion for the first time. and identified the goal an injection of equity interests with concerted efforts, so as to contribute more to an construction within Qualification upon beyond Shenzhen. stages the “Huiyang Exchange A- share Square, launching the Qualification and was and Shenzhen China brand communication three- tier management two Grade- one of “a sales volume of into Tonic Industries Holdings everlasting business and greater social progresses. the zone. It took approval of Shenzhen Danshui China and B- share markets. so- called “Shekou renamed to Shenzhen Merchants Venture Co., framework, advanced architecture qualifications ensure RMB 100 billion and a Limited which was then renamed the lead in national Municipal Government. Merchants Garden”. The Then, through assets Mode” which featured China Merchants Real Ltd. were established. 2001 the brand philosophy composed of “national a deepened national profit of RMB 10 billion”. to China Merchants Land Limited. commercialization sales performance was replacement, CMPD interaction between Estate Co., Ltd. of “Home is where the headquarters”, “regional strategic layout. The company aimed After three years of construction, Being market-oriented and seizing the “Customer service 2010 One Shenzhen China strategic opportunities of a new round reform of staff housing a success. went listed and became everyday life and center” was established heart is” and advocated headquarters” and to become a nationally the Sea World Complex was orientation 1990 Merchants Property 01 of reform and innovation and realized the “home the real estate flagship supportive industries. to promote “one- stop the Idea of green real “project companies” “Groundbreaking and internationally opened to the public. Shenzhen Development Co., Ltd. ownership scheme” The company of China Merchants service system”; property estate development. basically took shape. Ceremony of Sea leading developer China Merchants Real Estate Co., realized back-door step by step. put forward the Group. agency division was A “template for 2008 World and Sixty Major and comprehensive Ltd. officially started operation development policy of listing by swapping project development, Projects in Five Areas in operator of green as a real entity and became a 1992 1998 set up to engage in Two some assets of Shekou Shenzhen” was held in Building up core industries in two being “based in Shekou, 1995 the tertiary real estate production and The company’s communities. regional branch under CMPD. dimensions dimensions of “work” and “life” China Merchants Port 02 backed by China and The company was The successful running of market. operation planning” first exclusive head Shekou. The CMPD Sea 1986 oriented to the world”, split into Shekou Part of B shares went the first comprehensive Service Co., Ltd. with was established and office building- NH World Complex formed aiming to extend its Industrial Zone listed on Singapore community “Haiyue the equity interests improved on a constant E- Cool Building 3- an integral part of the Jingshan Villa was Property Management Exchange by means Garden” signaled the of Shenzhen China 1988 business reach beyond basis. was accomplished construction of new 2012 2014 Focusing on the development of Taizi Three developed and became Merchants Property Bay, Double Happiness Island and Shekou and Shenzhen. Company in charge of of SDR (Singapore initiation of large- scale and placed into use. Shekou. projects an internationalized 03 Cruise Homeport Network System Jingshan Villa was the management over Depository Receipts). commercial development Development Co., Additional A shares CMPD acquired This year marked the 30th community leased by fully taken by foreign all properties in Shekou The first CMPD overseas of CMPD. Ltd., Shenzhen China were launched and 70.18% equity in Tonic anniversary of CMPD. The foreigners on long- lessees, and became industrial zone, and financing platform was Merchants Power 2003 2006 enjoyed a groundswell Industries, a listed sales volume exceeded the Further uplifting our core term contracts. The Villa the most successful Staff Housing Company established. Supply Co., Ltd. and company on Hong threshold of RMB 50 billion, competitiveness by adjusting Major breakthroughs of enthusiasm. Four focal structure, making vigorous received kudos from a case on house leasing. in charge of housing Shenzhen China Great efforts were made Kong Stock Exchange, and the business performance were made in land Considerable uplifts points innovations, strengthening security adviser to US system reform and staff Merchants Water to build a professional and finished the saw continued growth. The 04 collaboration, reducing cost and reserve. Through were seen in asset size President. housing operation & Company which were creative industrial base building of an overseas company further identified its boosting efficiency. bidding and and anti-risk capacity. management in the owned by Shekou “NH E- Cool” which was listing platform. strategic orientation and made cooperation, altogether zone. Industrial Zone. reputed as the cradle material progresses in realizing Further enhancing five capacities, 2.17 million m2 of of creative industry in coordinated development with Five i.e., research & planning, systematic land were acquired capacities management, customer service, Shenzhen and China. the Group’s strategies. We have 05 in Beijing, Shanghai, market integration and staff cohesion. advanced steadily towards the Panyu in Guangzhou, goal of “becoming the best and Bagualing, industrial real estate developer & Baoan and Longgang operator and an expert in urban in Shenzhen. The upgrading in China”. company joined USGBC.

08 09 2014 CMPD CSR REPORT 2014 CMPD CSR REPORT

Opening ChapterOpening 2014 Overview

Corporate Governance Key Performance

The four-tier corporate governance system is composed of the authority, policy-making establishment, supervisory establishment and executive establishment which run independently in line with pertinent laws & regulations and Articles of Sales Revenue Sales Area Tax Contribution Customers of Residential Association and coordinate with each other. It enables sound governance competence, transparency and accountability, and Housing About ensures all businesses are conducted with honesty, integrity and efficiency. Million m2 RMB 51.05 Billion 3.643 RMB 8.06 Billion 130000 Households Service Items 18.2% 32.9% 3.4% 245 The General Meeting of Shareholders is the highest decision-making establishment, which practices voting Accumulated Input into Properties under Accomplished Green rights over the company's business Annual CO2 Reduction via “Customer Care Foundation” Management Buildings Green Buildings General Meeting of Shareholders policies, investment, financing, profit distribution and other major issues Million m2 Million m2 40 Million 27.926 1.544 tons according to the Rules of Procedure of 50889.9 the Shareholders’ Meeting. RMB Million in 2014 Board of Supervisors 18 39.6 % 65.6% 63.4%

Board of Directors The Board of Directors (BoD) is Strategy Committee responsible to the General Meeting of Shareholders, and exercises the Suppliers Employee Training Hours Investment in Social Welfare Participants in “I·walk” Compaigns Remuneration and decision-making power over the Examination Committee Investment Review company’s business operation. Under units hours people Committee 5699 1178 RMB 10.3 Million 25000 the BoD, there are Strategy Committee, Audit Committee Office Meeting Remuneration and Examination Suppliers Nationwide for Social Welfare Product Management Strategic Cooperation % Projects Launched Cities Involved Audit Department Committee Committee and Audit Committee 71 23.1 11 14 which offer professional supports for Cost Management BoD to make decisions. The company Committee follows “BoD Diversity Policy” where females account for 9% of all directors, Examination Committee and independent directors and Senior non-executive directors take up the Honors Management majority, so as to safeguard the rights Headquarters and interests of minority shareholders.

The Board of Supervisors is One of the five central real- estate companies Real Estate Developer with Greatest Risk- accountable to the General Meeting supported by SASAC resisting Capacity in China Strategic Development Department Green R&D and Application Center of Shareholders, and safeguards the Operation Management Center Cost Management Department Brand-Marketing Department Product Management Center Administration Department

Fund Management Center rights and interests of shareholders Legal Affairs Department

Finance Department and the company by reviewing the Top10 Listed Real Estate Companies in China Real Estate Model Brand for Sustainable Board Secretariat HR Department I Development in China

T Department company’s financial condition and overseeing the work performance of Top10 Valuable Real Estate Brands in China Most Honored China Corporate Citizenship the BoD and the management.

The Office Meeting carries out the “China’s Blue- Chip Real Estate Enterprise” China’s Best Employer BoD’s resolutions and exercises for ten straight years the power of business execution as authorized by the Articles of Association and the BoD.

10 11 2014 CMPD CSR REPORT 2014 CMPD CSR REPORT

Opening ChapterOpening CSR Management

Stakeholder Communication Effective CSR management is an important guarantee for an enterprise to realize sustainable development. We have continuously uplifted our capability in creating economic, social and environmental values, engaged with shareholders, Stakeholders’ supports and confidences greatly underpin our sustainable development. On a constant basis, we have improved governments, clients, employees, partners, environment and other stakeholders in an accountable manner, and promoted the dialogue mechanism to listen to the voice of our stakeholders and take proper actions to answer their expectations and sustainable development of enterprises and society. appeals.

Stakeholders Communication Channels Expectation for CMPD CMPD Response

Shareholders and ••Information disclosure ••Transparent financial disclosure ••Institutional system Improvement investors ••General meeting of shareholders ••Anti- corruption system buildng ••Timely, accurate and faithful information disclosure ••Annual corporate report ••Economic value creation ••Stable shareholder returns ••Roadshow

Standardized procedure and Government ••Routine report and communication ••Law- compliant business operation ••Boosting operational competence systematic management and regulatory ••Forum and exchange activities ••Exercising supervision policies ••Taking on affordable housing construction and other Dedicate Time is In line with the to duties & money & require of market authorities ••Driving local economy projects for people's well- being undertake efficiency is and customers responsibilities life ••Supporting social welfare ••Advocating green real estate Ideaand technology Work with Happy in Steady passion & development progress strive with work & Mutual cheerful in life with wolf spirit balanced respect& ••Carrying out social and public welfare activities strategy harmonious Diligent in win-win thinking & happy Customers ••Information disclosure via online ••Uplifting product quality ••Strengthening quality control in all dimensions People Orientation for sharing platform ••Optimizing customer service ••Improving actual measurement results & Customer Service Responsibility First Excellence CMPD Core CSR Culture ••Hotline ••Protecting customer privacy ••Setting up Cmpmc.com digital service platform for Values ••Satisfaction survey excellent services Win- win Carrying forward the humanistic ••Related activities CMPD Core care of century-old China Employees ••Employee representatives’ congress ••Safeguarding rights and interests ••Implementing Q12 training in an all- round way Values Merchants Group, CMPD has ••Regular training ••Equal opportunity ••Continuously forging a talent supply chain fostered a CSR culture where ••Performance evaluation ••Diversified development ••Initiating non-monetary incentive measures we adhere to the core value of ••Communication & exchange ••Work- life balance ••Setting up competency model “people-oriented, responsibility, activities excellence , win-win” in Partners ••Procurement ••Standardized procurement ••Safeguarding rights and interests of construction accomplishing the mission of ••Daily communication ••Promoting mutual- benefit and workers “To promote socialprogress by ••Comprehensive evaluation cooperation ••Clean procurement building a green homeland” ••Related training ••Advocating green real estate Ideaand technology under a “simplified, transparent development within the industry and efficient” atmosphere, so as to facilitate sustainable business Media ••Press conference ••Timely news release ••Timely and comprehensive information disclosure practices. ••CMPD website, Weibo and Wechat ••Transparent information disclosure ••Improving media communication mechanism ••Forum ••Interactive communication and ••Establishing forum, press conferences and other ••Reports exchange dialogue channels CSR Organiza- Environment ••Environmental information ••Promoting green building ••Green technology R&D, application and promotion Through the Strategy Committee, the Board of Directors tional System Leadership formulates related strategies and guidelines. disclosure development ••Practicing green office, advocating low- carbon lifestyle The Office Meeting works on specific action plans. We have established a CSR ••Communication with NGOs ••Saving resources and energy ••Launching “Green Habitat” initiative in communities organizational system featuring ••Reducing construction-induced ••Engaging in international environmental campaigns pollution CSR departments are set up to organize and coordinate the well defined rights and duties, Organizers CSR work of all departments and subsidiaries. vertical cooperation and highly ••Combating climate change efficient operation, and adopted Society ••Social and public welfare activities ••Driving local economy ••Supporting livelihood projects Specialized departments at the headquarters manage and the CSR ideology throughout all ••Volunteer service ••Supporting social welfare ••Planning and carrying out public welfare activities in practice related CSR issues according to their duties. production and operation links to ••Microblog, Wechat and other ••Advocating volunteering the spheres of environmental protection, culture & Executives All subsidiaries have personnel responsible for the promote CSR with well-planned platforms education and cares for children, etc. organization and implementation of CSR works. steps. ••Encouraging staff engagement in voluntary activities

12 13 2014 CMPD CSR REPORT 2014 CMPD CSR REPORT Opening ChapterOpening

LEADING GREEN HABITAT BUILDING CUSTOMERS' TRUST CREATING ECONOMIC VALUE

Materiality 1. Promoting green building development 9. Strengthening independent innovation 17. Anti-corruption system building 2. Saving resources and energy 10. Fostering quality culture 18. Reinforcing internal operation control 3. Comprehensive utilization of construction 11. Enhancing project quality control 19. Transparent financial disclosure wastes 12. Guaranteeing safe production 20. Cost reduction and efficiency To better understand the expectations and needs of the stakeholders and strengthen the pertinence of the report, we have 4. Combating climate change 13. Information communication service improvement improved the material issues determination process. By analyzing internal information and external stakeholder concerns, we 5. Bio- diversity protection during construction 14. Sales service 21. Safeguarding rights and interests of 6. Abating powder dust and noise pollution 15. Providing value-added service suppliers/contractors form a “bank of issues” to be discussed. Material issues are then identified via internal and external stakeholder investigation during construction 16. Customer privacy protection 22. Supplier CSR assessment and and disclosed in the report upon approval of the management and external experts. 7. National and international cooperation and examination exchange 23. Promoting healthy industrial competition 8. Encouraging public participation in 24. Driving local economy Materiality Assessment and Selection of Major Issues

ENHANCING EMPLOYEES’ MOTIVATION PROMOTING SOCIAL HAPPINESS Step 1 Step 2 Step 3 Step 4 25. Safeguarding basic rights and interests of 32. Growing together with lessees Identifying the Ranking the Reviewing the Reporting the employees 33. Supporting social and public welfare issues issues issues issues 26. Occupational health and safety 34. Advocating voluntary services 27. Democratic management and staff 35. Unimpeded community communication •• Review and approval •• Internal issues •• Impacts on CMPD •• Disclosing material engagement channels by external experts 28. Staff diversification and equal 36. Driving community development •• External issues •• Impacts on stakeholders •• Review and approval •• Issues in the report opportunities by the management 29. Career development 30. Staff training and capacity uplifting 31. Life-work balance

Instructions of Material Issues Material Determining Material issues refer to the topics of most importance to CMPD and our stakeholders. In this report, we will disclose top-ranking Bank of issues the material material issues in detail. issues chosen issues Influence Material Issues Corresponding G4 Indicators Page No. Internal External Information communication √ Local communities in Product and service labeling P40- 41 service which we operate Promoting green building √ Local communities in Energy, product service, exhaust gas discharge P18- 23 development which we operate Enhancing project quality control √ Local communities in Client health and safety; product and service labeling; P32- 33 which we operate compliance Supporting social and public √ Service targets of public Indirect economic impacts P68- 73 15 Importance to CMPD Business Importance 0.900 welfare welfare activities Materiality Matrix 22 13 33 11 1 0.800 18 Supplier CSR assessment and √ Upstream supply chain Supplier assessment P48- 49 We take “Importance review 24 20 0.700 to CMPD Business” Providing value-added service √ Local communities in Local communities P37- 39 and “Importance to 0.600 28 8 30 which we operate 36 9 Stakeholders” as two 32 17 21 Reinforcing internal operation √ / Governance P46 0.500 10 23 27 principal yardsticks, 31 2 29 control 0.400 34 26 6 and rank the issues and 7 Guaranting rights and interests of √ Upstream supply chain Supplier assessment P48 19 3 16 25 identify material ones 0.300 suppliers/contractors based on internal and Staff training and capacity √ / Training & education P59- 61 0.200 14 external investigation. 35 12 uplifting 0.100 4 5 Anti-corruption system building √ / Anti- corruption P47 0.000 0.000 0.100 0.200 0.300 0.400 0.500 0.600 0.700 0.800 0.900 Encouraging public participation √ Local communities in Local communities P26 in environmental protection which we operate Importance to Stakeholders Staff diversity and equal √ / Diversity and equal opportunity P57- 58 opportunities

14 15 17 2014 CMPD CSR REPORT2014 CMPD kwh Annual Annual saving of saving developed by green projects green by 51,043,000 12 LEED projects Advocating Green Lifestyle Lifestyle Green Advocating Ecosphere Building a Green Jointly Footprint Measuring Carbon • • • • • • Three Decades for Green Habitat Green Decades for Three ㎡

2 m Shekou comprehensive community. Now, Shekou Mode has Now, community. Shekou comprehensive 2 Accomplished of green buildings of green 1,554,000 been applied across the nation, and “green development” has become has become development” “green and the nation, been applied across carried on the mindset and have We pursuit of our people. a common of a eco-development the lifecycle throughout practices of green ecosphere a green with other parties create to project, and joined force and harmonious inhabiting environment. as a natural as well Implanting green genes into CMPD, and creating a comfortable and creating CMPD, into genes Implanting green customers for inhabiting environment consumption low- a thorough developed CMPD have decades, Over three the past of cities, understanding about the functions relationships and spatial in the whole construction process an active presence and maintained of 11km Green Habitat Idea Idea Habitat Green Integrating Green Idea into Management Practices with Green ahead Pressing • • • • • • LEADING GREEN GREEN LEADING HABITAT Green 16 2014 CMPD CSR REPORT2014 CMPD

Leadning Green Habitat 19 2014 CMPD CSR REPORT2014 CMPD Platform building Platform Some RMB 1.5 million was invested for green green for Some invested RMB 1.5 million was RMB save to Plaza Times of Shekou New renovation paid and was 0.6 million on electricity bill every year, years off in about 2.5 Promotion and rating Promotion Maintaining and managing domestic and overseas green green domestic and overseas Maintaining and managing forums habitat Formulating industrial standards and taking industrial standards partFormulating in major researches Integrating resources along green industrial chain along green resources Integrating Helping municipal branches build green management management build green Helping municipal branches capacity • • • • • • • • R&D and application Formulating strategies on green building, energy saving and emission reduction, saving energy building, on green strategies Formulating and uplifting products, in an all-round of green R&D and application pushing forward of the company manner the sustainable competitiveness Over RMB 8 million was invested to renovate NH renovate to invested Over RMB 8 million was and paid for purposes, green E-Cool Building 3 for years itself in five CSO Application Center Application Green Real Estate R&D and Real Estate Green Applying and promoting green technologies at different stages of local projects. Each branch has a green manager who green has a Each branch of local projects. stages different at technologies green and promoting Applying technologies of green and promotion local application coordinates Green-tech standard and innovation R&D and innovation standard Green-tech Facility and energy efficiency and energy R&D management Facility Optimizing green implementation scheme and formulating formulating scheme and implementation Optimizing green system and management organization application green Reinforcing green knowledge and finishing management, green Reinforcing sum-up in line with and experience application green-tech requirements related Green brand promotion and green marketing and green promotion brand Green • • • • • • • • • • branches Municipal Becoming a world-leading developer and operator of green communities of green and operator developer a world-leading Becoming estates real green and society through environment of economy, Realizing harmonious integration Headquarter - ment ment System Actions Manage Case Study Case Objective “Lifecycle” Cost Management of Green Buildings of Green Management Cost “Lifecycle” we have of our society, resources on the and economize homeland” green a “building fulfill the mission of better To architectures, green all new and renovated For of a project. the whole lifecycle throughout management cost implemented sound returns ensure so as to conserving in choosing energy- technologies, evaluated period are and payback cost budgeted benefits. and environmental optimal economic and realize investment incremental on green Integrating Green Idea into Management into Idea Green Integrating An additional cost of approximately RMB 10 million, of approximately additional cost An construction about 6% of the total for accounting energy-saving’s for Place byFraser incurred was cost, in six years sake and recovered Over the past three decades, CMPD has established a green mindset, practiced green architectures, developed green green developed architectures, practiced green mindset, CMPD has established a green decades, Over the past three and management operation well-developedgreen a Now, lifestyle. green a sustained benefits from and enjoyed communities with a Chief Sustainability company real estate became the first domestic company 2014, the In Feb. has taken shape. system real green the of promote extension constantly and sustainability with business operation integrate to so as (CSO), Officer business. estate Green·Life that a lifestyle to refers life,which Green is the people and the nature, concerns drive. of our green stage the advanced projects, housing green developing While our for lifestyle a green also advocate we and humanistic in a green live to customers atmosphere. Green·Architecture Green·Architecture to refers ·architecture,which Green is that environment an architecture is the consumption, comfortable low- and and elementary drive, stage of our green lifecycle low is embodied mainly through on resources such as saving consumption, environmental lightening and energy, and and building up a healthy burdens, comfortable environment. Idea Green Green Habitat Habitat Green community, which refers to a to which refers community, Green is ecologically that community environment stage of is the intermediate harmonious, the aid of advanced With drive. our green can closely we and methods, technologies with the nature, our living space combine and most efficient minimal ensure so as to and energy of resources consumption with the least impacts build up and to and low-carbon, healthy a convenient, comfortable living environment. Green·Community The essence of the “Green Habitat Idea” lies Idea” Habitat “Green of the essence The eco-civilization principles into in integrating house construction,seeking and the for harmonious co-existence realize to best way Thisa and nature. architecture of people, realize ambition of us to is an unvarnished a and create protection environmental mindset of this is a green sound lifestyle; men and nature”. between “harmony Green·Mindset CMPD has been a pathfinder, practicer and pacesetter of green living. The constructionThe and living. green of practicer and pacesetter CMPD has been a pathfinder, development decades’ birth mindset; the three green to a gave of Shekou first development comfortable low-consuption building envioronment, the minset into translated aftereards development” “Green low-carbon lifestyle. and healthy harmonious communities ecologically CSR fulfillment. to edge and the most direct our unique approach has become Green Habitat Idea Habitat Green 18 2014 CMPD CSR REPORT2014 CMPD

Leadning Green Habitat 21 on

10% kwh of

and water and water

tons of water is of water tons

2014 CMPD CSR REPORT2014 CMPD 20%

In January 1, 2014, NH E-Cool the highest national received building - for green award Building Three-star Green Label. Video Link Video From Sanyo Factory to NH E-Cool to Factory Sanyo From electricity is saved annually electricity annually is saved developed projects green by consumption by over over by consumption Green projects can reduce reduce can projects Green electricity consumption by over 873,740 51,043,000 http://v.youku.com/v_show/id_ XODgyNjE3NjA0.html saved annually by green green by annually saved developed projects an annual basis, as compared as compared basis, an annual projects. with conventional Environment Moisture-proof, Moisture-proof, dehumidifying and wardrobe sterilizing and shoes cabinet Kitchen waste processor In-door air purifier In-door air de- dusting appliance Solarwater hot system electricityElevator system feeding Water permeable Water ground collection Rainwater sorting Waste Constructed wetland impact Low development • • • • • • • • • • • Handy The project obtained National Three-star project obtained National The Certification Design Residence in Green to consideration 2014. Giving sufficient wind and sunlight sound, the thermal, the project has of the region, conditions community by a unique green become water- virtue system, of solar hot water and bidets, suites bathroom saving green permeable floors and other water technologies. CMPD Sea Club House, CMPD Sea House, Club Kunming Energy saving tips saving Energy efficiencyEnergy labeling Dual-control light switch Smart socket One- to access touch lighting interior meter Automatic system reading Communication network system Sensor switch for Sensor for switch public passage lighting reader RFID card facility Public system monitoring Property management system computer • • • • • • • • • • • Efficient Sun- shading system for for Sun- shading system doors and windows Double- soundproof glazed window Double- low-E glazed window soundproof typeNew- exterior window moisturizing material bathroom saving Water- and bidets suites Three- in-one(air hot water, conditioner, floor heating) radiant system lighting saving Energy- Tubular day-lighting system day-lighting Tubular Irrigation lighting PV-LED Basement system street hybrid Wind/solar lamp management Energy system • • • • • • • • • • • • The project obtained LEED-CSThe Gold in 2014. In line with Precertification evaluation domestic and overseas the project buildings, green for standards and rainwater has turned solar energy, very to good resources other natural in depth and implemented account, efficiencythe energy management. It is a perfect of efficiency, combination comfortableness and environmental friendliness. China Merchants (Shanghai) (Shanghai) Merchants China Project Healthy Healthy diatom ooze ooze diatom Healthy coating floor slab Acoustic Sound and isolation window ventilation noise abatement Vertical drainpipe temperature Constant system water hot- system air Fresh floor resistance Four- drain Natural ventilation and ventilation Natural in basement lighting Simulated environmental optimization Roof greening greening Vertical Sun-shading and rain- connective sheltering corridor • • • • • • • • • • • • Safe Green Building Green

Non-slippery floor Gas leakage alarm level Two- electricity leakage system protection phone Video In-door security system House alarm Emergency and broadcast music background setup CCTV camera lots Parking management system Security patrol system electronic Infrared alarm system fence

• • • • • • • • • • •

In- door In- Out- door Out- Case Study Case Case Study Case SHE&HE Green Habitat Technical System Technical Habitat SHE&HE Green NH E-Cool Building 3 has integrated NH E-Cool Building 3 has integrated energy for technologies 60 green over and saving water saving, material saving, It protection. the was environmental reconstructed project in China that first due Building Award, Green IHA received of up to rate saving energy overall an to of 50% and annual rate saving 65%, water electricity of 2.4 million kwh. saving NH E-Cool Building 3, Shekou Building NH E-Cool After years of operation and accumulation, CMPD has gradually formed an eco-friendly, efficient, low-carbon and convenient low-carbon convenient efficient, and an eco-friendly, formed CMPD has gradually and accumulation, of operation years After and good account to sources energy geothermal and other renewable By turning solar, technologies. of green system of buildings. low-carbon development has realized CMPD recycling, resource water promoting solar infiltration, rainwater modular vertical greening, processing, water reclaimed for constructed wetland adopted have We integrated is and analysis simulation Systematic projects. high-efficiency in many technologies green and other lighting heater, Water Land Saving, Saving, (Energy “4 savings Recycle)”, Reuse, “3 Rs (Reduce, realize so as to project planning and design, into of harmonious coexistence and achieve the whole lifecycle throughout protection and environmental Material Saving)” Saving, design. overall optimized with an the building and nature A reasonable layout has layout A reasonable a comfortable led to circle life “5 minutes” people can go to where shopping work, school, and entertainment within walking distance. lifestyle healthy This and life boosts work reduces efficiency, consumption oil traffic discharge, and waste sound community drives and development, live enables people to and in peace and work contentment. School within walking distance emission to the greatest extent, so as to so as to extent, the greatest emission to 2 Shekou Comprehensive Community and Community Shekou Comprehensive 2 Workplace within Workplace walking distance Shopping within walking distance circle circle emission reduction Environmentally friendly, friendly, Environmentally Energy saving, low carbon & low saving, Energy economical & highly efficient economical A comfortable “5 minutes” life life “5 minutes” A comfortable Comprehensive Community Development Community Comprehensive We adhere to the mindset and practice of “green and eco-friendly development” throughout throughout and eco-friendly development” “green and practice the mindset of to adhere We economize to among the employees office” “green of a project advocate and the lifecycle CO and reduce pollution abate on the resources, Pressing ahead ahead Pressing Practices with Green contribute more to a bluer sky and cleaner water. a bluer sky to and cleaner water. more contribute reasonable development, coordinated planning, “dynamic in the principle of Over the years, has maintained the company complementary development”, functionslayout, and ordered in the construction of 11kman active presence created the first comprehensive community development mode in China (“Shekou Mode”). mode in China (“Shekou communityMode”). development comprehensive the first created “TUS Park “The Hills”, including the nation, Shekou Mode has been applied across Now, which are communities and other comprehensive “LAVIE” Town”, Eco “Suzhou (Guangzhou)”, people-oriented with other industries, integrated and nature-friendly. well Entertainment within walking distance Extended Reading The Hills typified CMPD comprehensive communities, which integrate business center, center, business which integrate communities, HillsThe typifiedcomprehensive CMPD service apartments, primary middle schools and other supportive schools, facilities. 20 The comprehensive community community comprehensive The by store sets much development spatial and functional integration. in the whole living community With planning about overall make we view, area, the functiaons of the residential traffic area, recreation industrial area, medical system, greening system, and system, and education system solution for the comprehensive offer a the whole city. and even community 2014 CMPD CSR REPORT2014 CMPD

Leadning Green Habitat 23

2 m 3 2014 CMPD CSR REPORT2014 CMPD projects three-star green projects green for three-star for green 273,000

2 ) 2 12 2014 5 2013 Scale/Area (10,000 m Scale/Area 8 4.31 21.35 0.28 5.64 3.9 30.8 5.42 6.36 38.1 33.5 0.95 15.67 2012 11 2011 2 2010 NO.of 2014 LEED-CertifiedProjects NO.of Results ） 2 LEED-CS Gold Precertification LEED Three Stars LEED Three Stars LEED Three Stars Stars LEED Two Stars LEED Two Stars LEED Two Stars LEED Two Stars LEED Two Stars LEED Two Stars LEED Two Stars LEED Two 2014 155.4 unit: 10,000 m （ 2013 93.86 2012 28.73 Projects 2011 34.23 Green Rating Green In 2014, CMPD actually passed LEED certification for 19 projects, including 7 green projects currently under design and under design projectsIn currently green 2014, CMPD actually including 7 passed LEED certificationfor 19 projects, application. Shenzhen They are In 2014, CMPD passed certificationfor 7 LEED One-star table. not included in the above projects which are 7. 3 to MSD No. Taida Tianjing City and Bijie Garden Jinxiu Garden, Shopping Mall, 1. 2. 4.49 2010 Shanghai: China Merchants Group Center Center Group Shanghai: China Merchants Sea Club House D-D23,Kunming: G1-G31 Sea Club House Club Kunming: Shenzhen: Hilton Square Chuanwei World Shenzhen: Sea HillsThe Phase-5, 6, 7 Guangzhou: I Phase Park HillsThe Creative Guangzhou: Project Commercial I Phase Park HillsThe Creative Guangzhou: Project Office Yiyun Foshan: Huafu Yiyun Foshan: Gongguan Cadaques Zhangzhou: China Merchants Apartments Changshu: Taigongwang for green architectures. architectures. green for CMPD’s green practices have extended from single buildings to communities and communities single buildings to extended from practices have green CMPD’s m 3,736,800 of over an area By 2014, CMPD had reached the end of December complexes. It is the rational evaluation and authoritative certification that drives CMPD buildings to certification CMPD buildings drives and authoritative It that evaluation is the rational passed LEED certification Infor 12 2014, we standards. meet the highest environmental three-star”. “green of level the highest 3 reached where projects, 2014 LEED-CertifiedProjects Note: Area of Completed Green Green of Completed Area Buildings Disposingconstruction and domestic wastes Disposingconstruction wastes and domestic in strict with the government compliance requirements. Comprehensive use of resources through through use of resources Comprehensive of construction wastes. and reuse recovery Taking proper measure to minimize solid wastes, solid wastes, minimize to measure proper Taking mortar such as centralized mixing and reduced use of bagged cements. Do not burn any substances that may produce produce may that substances Do not burn any the smoke or dust at harmful gas, or poisonous construction site. Properly storing and covering any granular granular any and covering storing Properly the air; into ascend easy to are that materials in the shed with proper and cutting materials measures. dust-control Sprinkling water to lay the dust during dust- Sprinkling lay to water loading/unloading and operations, prone transportation. • • • • • • • • • • • • Construction Wastes Management Wastes Construction Dust and Airborne Contaminants Management Contaminants Dust and Airborne Noise Management Noise Sewage Management Sewage Finishing the installation of drainage and sewage sewage and drainage of installation the Finishing the commencement facilities before treatment up-to-standardof construction, ensure water to and no on site, water no accumulated discharge, overflow or blockage during drainage. construction Recycling sewage processed Setting reasonable constructionSetting timetable reasonable stages. different the noise limits at to according new noise-reduction promoting and Vigorously noise abate to vibration-damping technologies etc. engineering, during pile foundation the noises reduce to measures proper Taking and other noisy the mixer by generated machineries. • • • • • • • • • • Green Construction Green Biodiversity Protection Biodiversity Minimizing the Impacts of Construction Biodiversity protection is our major concern at each key link of operation. For instance, we attach great importance to great attach we instance, For each key link of operation. at is our major concern protection Biodiversity and construction, designing and carry during planning, and habitat vegetation out natural of original the protection eco-balance also highlight We our development. due to or destroyed bio-system degraded of any recovery rational the impacts on local minimize to of project development construction and transplanting, system during landscape water eco-environment. We have made explicit provisions over noise, exhaust gas, sewage and solid wastes generated in everyday life and life in everyday generated and solid wastes sewage gas, exhaust noise, over provisions made explicit have We of the influences and minimized resources soil and natural over measures also taken protective have We production. in strict municipal and with national and residents compliance on the communities dusts and construction wastes regulations. We have extended the connotation of green properties, and followed the Idea of environmental protection throughout throughout protection environmental the Idea of properties, and followed of green extended the connotation have We a rational over made in-depth with our partners, research have we Together of construction. the whole process comfortable and safe a clean, tidy, create to management on-site enhanced and continuously construction layout, site construction environment. 2014 CMPD CSR REPORT2014 CMPD 22

Leadning Green Habitat 25 2014 CMPD CSR REPORT2014 CMPD 70% 70% 85% 73.8% has registered an has registered has Ⅰ Ⅱ 38.8% Shenzhen CMPD Seaside City electricity of 70%. rate saving Shenzhen CMPD Seaside City an electricity of 73.8%. rate saving registered Upon retrofit, the underground parking corridors, lots, the underground Upon retrofit, lights with sensor-activated and other places staircases efficiencyover 85%. saving an energy of realized have and other places troughs the light Upon retrofit, an energy realized have lights manual-switch requiring efficiencysaving of about 70%. We have put the municipal water pressure to good account and good account to pressure put the municipal water have We the original upgrading superposed supply, pressure adopted pump with an energy-saving system secondary water pressurized electricity reduce to consumption. Continued efforts have been made in extensive application of application extensive been made in efforts have Continued each smartover control smartto place so as fixture, LED lighting sensors. in parking tube infrared LED fluorescent lots through Public Lighting Retrofit for Energy Energy Saving for Retrofit Lighting Public Secondary Water Supply Pump Retrofit for Energy Saving for Energy Retrofit Supply Pump Water Secondary Central Air-conditioner Water Pump Retrofit for Energy for Energy Saving Retrofit Pump Water Air-conditioner Central Community Energy Saving and Emission Reduction and Emission Saving Energy Community In South Area of Shenzhen CMPD Garden City, such In City, of Shenzhen CMPD Garden South Area power reduce to pumps water has enabled retrofit 38.8%. by consumption With VFD and temperature sensing technologies, the central air- the central sensing technologies, and temperature VFD With the cooling to pump operation can adapt its water conditioner energy. save so as to loads, Advocating Green Lifestyle Green Advocating has gained wide currency lifestyle among the idea of a green our employees, Through with environmental compliance Voluntary CMPD property public. and the general owners conservation the green, and low-carbon has also promoted lifestyle resource protection, city. of the sustainable and low-carbon development the into probed conservation have the sake of energy emission reduction,we and For effortsby means of and made constant of each project on its features based potential 2014 saw the year Shenzhen as an example, Taking (EMC). Management Contracting Energy 7.79 million kwh of electricity among all CMPD-managed properties saved with upgraded kwh and 2.939 million among commertial estates. technologies, real energy-saving

℃ energy energy Inputting of the total of the total total energy energy total consumption consumption consumption consumption For recording recording For Inputting each item of the energy of the energy For recording recording For consumptions consumption of consumption itemized energy energy itemized in winter. recording of recording ℃ Inputting daily meter readings readings meter meter readings readings meter Mainly for daily Mainly for at the branches at emission. 2 Heating, Heating, ventilation and air conditioning Electricity consumed power for Making full use of e-mails, office RTX reduce to tools messaging and other instant consumption. resource electric business and encouraging the use of paper in the workplace, Eliminating and files. documents newspapers the subscription of books, reduce to sharing files Setting up resource and magazines. the for trainings and organizing dispatch vehicle of overall Uplifting the competence . oil consumption reduce to drivers the frequency of business trips. and reducing Making full use of video conferences, for technologies 60 green over NH E-Cool Headquarters Building has integrated of the first prize In protection. 2013, it received and environmental saving energy two Three-star Certification”, “LEED and Award” Building Innovation Green “National building in China. green highest honors in the field of CECEP certified office appliances are preferred and shall be set to energy saving or to energy and shall be set preferred are CECEP certified appliances office use. mode before saving power on only part when there of the lights after use.Turning immediately lights off Turning in the office. employees fewer are than 26 no lower to Setting air conditioners Minimizing the use of air conditioner. in summer and no higher than 20 Encouraging employees to bring their own cups to meetings. The headquartersThe meetings. cups to bring their own to employees Encouraging pipe-in Minimizingbuilding is equipped with eight dispensers. the use of water disposable paper cups and bottled water. and sensor faucets for automatic and flush time rates flow Setting reasonable use. immediately after Turning off faucets flushing devices. 37.9% 25.4% 21.9% 14.8% Green Office Green on oil on water on paper architecture architecture Economizing Economizing Economizing Economizing Economizing Economizing on electricity Energy-saving Energy-saving Case Study Case Case Study Case Electricity consumed customers by Electricity consumed for services Based on the Guidance on Staff’s Green Conduct, we have launched “Green Giant” campaign, campaign, Giant” “Green launched Conduct,we have Green on Staff’s Based on the Guidance Also, under their noses. from little things right office practicing green suggesting employees and embedded the green meetings, efficient advocated out conventions, worked have we minds. in our employees’ development Idea of green We have applied a real-time energy efficiency monitoring & analysis system to the efficiencysystem energy & analysis monitoring applied a real-time have We and electricity water disclose and manage the building’s headquarters as to so building, those of to indicators energy the headquarters’ also compared have We consumptions. the society to its show so as to intervals, regular at its counterparts data historical and to In 2.2 million kwh 2014, the headquarters of saving. building saved in energy achievements of CO 2,193 tons reducing to equivalent power, Real-time Energy Efficiency Monitoring & Analysis System Applied to Headquarters to Applied Building System Efficiency & Analysis Real-time Energy Monitoring 3 m % water saving 41 Annual water water Annual rate Utilization non-conventional non-conventional 7000 % of rainwater and other of rainwater

saving Annual 75 electricity 2.2 saving rate saving million kwh General electricityGeneral 24 Green Performance of Performance Green Headquarters Building 2014 CMPD CSR REPORT2014 CMPD

Leadning Green Habitat 27 2014 CMPD CSR REPORT2014 CMPD Forum Themes Green Green Intelligence Transformation & Upgrading • • Kunming • • 2014 Green Homeland Green Towns and Cities Eco • • Shenzhen • • 2013 Green IndustryGreen Eco development • • Changzhou • • 2012 Green Habitat Green City Creative • • Zhenjiang • •

2011 Green Green Economy Harmonious Habitat • • Chengdu • • 2010 Green New City Green Low-carbon Development • • Guangzhou • • 2009 Milestones Green Green Development Municipal Renewal • • Shenzhen • • Going National Going National Green Forum, Green Journey Green Forum, Green 2008 Green Green Practices City Regeneration • • Shenzhen • • 2007 Green Building Green Circular Economy • • Shenzhen • • 2006 Green Green Community Harmonious Homeland • • Shenzhen • • 2005 Sustainable Development Ideaand Practices • Shenzhen • Case Study Case International Green Habitat Forum Forum Habitat Green International and drive the sustainable municipal development by green intelligence. This year’s forum forum year’s This intelligence. green by the sustainable municipal development and drive in meeting” “green sense a in real and realized neutral” “carbon the idea of also introduced forms”. “green 2004 Eleven years have passed since the first convening of the International Green Habitat Forum Forum Habitat Green of the International convening the first passed since have years Eleven changing The Forum”). Real Estate “International Green then in Shekou in 2004 (which was and the mindsets and practices, green of CMPD’s the evolvement manifested themes have platform built up a cooperation ideas, green advanced promoted itself has vigorously forum real estate for the sustainable impetus continued and offered spheres and green eco for development. Green Intelligence, Transformation & Upgrading & Upgrading Transformation Intelligence, Green Forum Habitat Green 11th International The —— 15, 2014, the 11th“International On November UNEP by co-sponsored Forum” Habitat Green Convention held in Kunming and CMPD was conference academic a non-profit As Center. year’s this global influences, of extensive “Green the theme around developed forum & Upgrading”, Transformation Intelligence, international promote with an aim to on green and cooperation exchange speed up the R&D and practices, technology Industry of Green establishment Association Jointly Building a Green Ecosphere a Green Building Jointly purposeFor the of sharing and concerted efforts all sides. from issues require Environmental enterprises, with the government, built up platforms have trans-boundary we cooperation, on new solutions and encourage work to associations and professional academic institutions drive. habitat green social participations extensive more in China’s We have encouraged encouraged have We and their families to employees “Shenzhen 100KM”, take part in in depth and advocate so as to real “green the Idea of breadth low-carbon lifestyle” estate, conducts green and promote among employees. The In as such communities identified have we Hills, efficiency for different energy enable house structures to an understanding of the air- efficiencyconditioner and cut the hours of use. CMPD has built the first to smart container hall” “green some environmental present sound, light, of wind, designs the public, to and water heat better enable them to so as to understand the Ideaand properties. practices green of Energy Efficiency Labeling Together with pertinent Together authorities, government sorted realized have we in 20 management waste including communities and City, Shenzhen Garden to enabled our customers waste putting of habit a develop bins through separate into campaigns. environmental taken part have in Earth We five for Hour campaign which saw years, straight active participation of the headquarters, municipal some 70 projects branches, and nearly and communities 10,000 property from owners 33 cities nationwide. equipped 21 projects have We in Shenzhen with used battery the batteries where bins, turned to collected are designated disposal centers the municipal government by further on a for treatment quarterly basis. Encouraging Public Participation in Environmental in Environmental Participation Public Encouraging Protection Case Study Case Case Study Case Supported by CMPD, the 6th IYSECC the 6th IYSECC Supported CMPD, by with the theme Smart Future Green Era, held in the Schoolwas of Environment, in July 2014. During University Tsinghua workshops session panels, main forums, 200 and story over sharing meetings, domestic and from representatives youth higher-education institutions overseas smart over insights city,energy shared entrepreneurship youth green reform, a has offered IYSECC and other hot spots. broad platform for youths to carry in a new smart to and ushered youths responsibilities forward era for platform broad challenges. and climate energy of addressing We have formulated the “Green Convention” with our property carried out garbage owners, Convention” “Green the formulated have We meets and other activities camp and held swap summer plants to green sorting, organized practice a low-carbon lifestyle. Joining Hands with Young Students for a Green Future a Green for Students Young Joining Hands with (IYSECC) Change and Climate Summit on Energy Youth 6th International ——The Extended Reading 26 “Shenzhen 100KM” is a hiking 100KM” activity“Shenzhen in www.doyouhike.net by organized on modern city calling each March, characters build strong to dwellers in this and challenge themselves Participated of hiking. special way 10,000 people every year, over by the activity successful has given publicity the Idea of environmental to also marked year This protection. the 13th Earth Also Hour movement. this “Lights-offcalled for One Hour”, by initiated was initiative worldwide (WWF) for Nature Fund Wide World individuals, in 2007, encouraging and governments communities, turn off lights for one businesses to 9:30 p.m. to p.m. 8:30 from hour, as a on the last Saturday in March, the to symbol of their commitment climate ponder over planet, and to of range change and a broad issues. environmental 2014 CMPD CSR REPORT2014 CMPD

Leadning Green Habitat 29 2014 CMPD CSR REPORT2014 CMPD tons Emissions: 2 57464.5 tons CO 87,100 57.637 million KWH Electricity Consumed for Real Estate System: System: Real Estate for Total Emissions Total 2 CO emissions and environmental pollution caused emissions and environmental The annual electricity consumption covers: electricity annual electricityThe covers: consumption areas of the headquarters in all office and municipal consumption public electricitybranches; in all properties consumption in Shenzhen; and public electricityunder CMPD management in 23 self-managed propertiesconsumption like Beijing Conrad, Hilton Shenzhen and China Merchants Palace, Shenzhen Fraser Tower. 2 2. 2 Emissions: 2 CO 22183.3 tons CO 2 22.25 million KWH Electricity Consumed for Real Estate System: System: Real Estate for emissions). The CO The emissions). 2 What do you think are the fundamental reasons for The Hills to Hills to The for reasons the fundamental think are do you What Business and win the UN Habitat its competitors stand out from Award? a new Hills,The CMPD has created of development estate real green Through local offer the environment, protect energy, business mode which helps save Nicholas You Nicholas You, former Senior Policy Consultant to UN-HABITAT Executive Director and Director Executive UN-HABITAT to Consultant Senior Policy former You, Nicholas times in has participated several Municipal Sports for Committee, World Chairman of Center NDRC Cooperation UNEP, co-hosted by which was Forum Habitat International Green CMPD. by and organized Group and China Merchants KWH emissions. Emissions: 2

2 7,408.7 tons for Real Estate Real Estate for CO System: 7,431,000 System: Electricity Consumed Interview Stakeholder Stakeholder emissions disclosed in this report, therefore, are calculated by by calculated are emissions disclosed in this report, therefore, data conversion the energy to electricity According consumption. 1 kwh of electricity can lead to the State, published by produced 0.997 kg of CO For real estate companies, the overwhelming majority companies, of internal estate real For (the consumption indirect sources from carbon emissions come of electricity CO lead indirectly to may by traffic. In The Hills, multiple energy-saving technologies have been applied for an overall energy saving rate of saving rate overall energy for an been applied have technologies The multiple energy-saving Hills, traffic. In by 65%. up to You’ve participated in International Green Habitat Forum for several times. Can you tell tell you Can times. several for Forum Habitat Green participated in International You’ve the most? you impressed of CMPD that Idea Habitat us one Green better on providing but they only focus the UN Habitat awards, for compete Chinese companies want to Many “no idea of The development. estate Unlike the point of sustainable real them, CMPD comes straight to houses. showed and Australia Canada from goes perfectly Investors of our world. with the leading trend cars” need for in India. their programs and to Canada this successful mode to Hills copy The to and wanted in interests great employment and integrate corporate mission with sustainability goals to fulfill CSR. The Hills features an features The Hills corporate mission with sustainability fulfill CSR. goals to and integrate employment and supportive area interaction and will attract between industries, the residential small and medium businesses work, can go to shopping and school, People boost local employment. so as to with considerable creativities, entertainment CO within a walking all reduce so as to distance, 1. Note Measuring Carbon Footprint Measuring Carbon real the pioneer in green As today. the whole world faces that change is a challenge Climate emission and efforts saving has injected in China, CMPD constant in energy development estate combat to carbon measurement emission scientific and has adopted the years, reduction over impacts through of our operations environmental minimize with an aim to change, climate and management. monitoring continued On May 5, 2014, on the great occasion of the 30th anniversary of CMPD, Ms. Benita Ms. of the 30th anniversary occasion of CMPD, 5, 2014, on the great On May purpose of this tripThe company. our visited UNEP-DTIE to Consultant Dreesen, interview to about our sustainability gain an understanding was CSO Hu Jianxin to and practices. strategies UNEP GI-REC blaze CMPD joined UNEP GI-REC in 2012 and began to impacts of urban environmental in abating new trails efficiency. and boosted costs reduced through development UNEP-SBCI member of real estate In 2010, CMPD became the first has joined hands then, the company Since UNEP-SBCI. buildings in China. green promote with SBCI to Allying Allying with Enterprises Collaborating with Collaborating CMPD’s Presence in Global Environmental Initiatives Initiatives in Global Environmental Presence CMPD’s In 2012, we joined hands with China Business News and set up the non-profit Green Green and set up the non-profit with China Business News joined hands In 2012, we industries different from enterprises Industry green famous pool together to Association first six The platforms. their resource based on protection environmental and promote In another 2014, etc. and Shenzhen Airlines, Ltd. Industrialmembers included IBM, Bank Co., enterprise of green a wider consensus reaching Association, joined the 7 enterprises strategies. We have partnered with have We academic domestic and overseas institutions and associations, UNEP-SBCI, including UNEP, fulfill to WWF, UNEP GI-REC and our mission of building a green social promoting homeland, depth. greater from progress Academic Institutions and Academic Associations Professional 13 Altogether Association. Green Industry Green 28 2014 CMPD CSR REPORT2014 CMPD enterprises have joined have enterprises

Leadning Green Habitat 31 2014 CMPD CSR REPORT2014 CMPD Customers Customers residential residential households Taking care of over of over care Taking 130000 2 m properties under CMPD management CMPD management 27,926,100 million Building Houses with Love

Altogether Altogether Care Funds Care 40

into Customer Customer into RMB Offering one-stop, thoughtful and comprehensive servicesfor comprehensive Offering and thoughtful one-stop, homelike warmth products our refined continuously have we decades, Over three the past improve to resources excellent and services, more and combined to strive every we little detail, Through the one-stop service system. and have in the pervasive our customers of home, warmth envelop 130,000 households. wonderfulover for experiences living offered you. home for building up a better to dedicated are we Wholeheartedly,

Committed to High-quality to Committed Projects Services Home” “At Enriching Engagement Importance Customer Attaching to • • • • • • 30

TRUST BUILDING CUSTOMERS' CUSTOMERS' BUILDING 2014 CMPD CSR REPORT2014 CMPD

Building Customers' Trust 33 % results 2.7 2014 CMPD CSR REPORT2014 CMPD y-o-y in field increase testing and measurement and measurement testing D – Do C - Check We implement “the product defects feedback “the product defects feedback implement We in Defective “Key Points formulate mechanism”, and check the product Inspection”, Design Product intervals. regular at of municipal branches design quality risk “quantities introduced have We leakage, over control effective ensure to assessment” cracking problems. and other common hollowing, “house inspection”, engage a third-party agency We for who conducts upon quality as a customer assessment delivery of a house. carry our projects in checks over out random We project construction uplift in China, to the overall way. quality in an effective We keep improving institutional guarantees institutional guarantees keep improving We Engineering on “Guidance establishing by “Manual on and Quality Management” Management of the Project Standardized engineering and require etc., Department”, during the be strictly to standard followed and uplift of construction ensure to process quality. the overall • • • • • • • • • • Preparing standard training materials, organizing the supervisor organizing training materials, and constructor standard to Preparing institutional documents. learn related testing and internalexternal and field learnOrganizing personnel to the excellent practices. measurement organizing testing and measurement; field the inspectionImproving for system inspections intervals. and summing up experiences at regular results in testing and measurement and including field assessment, Strengthening performance appraisal of municipal branches. Specifying the standards as well as penalty and bonus clauses for field testing and field as penalty as well and bonus clauses for Specifying the standards documents and contracts in bidding measurement learning and alignment Training inspection Strengthening and assessment Improving field testing and measurement performance testing and measurement field Improving supervisor and efforts joint of the developer, through constructer. and provisions Specifying standards P –Plan A - Ajust Across-the-board Quality Control Across-the-board Quality Control The overall planning strives for excellence, excellence, for planning strives overall The with human beings being the consistent main concern. kickoff required The meeting identifies high quality of ensure to standards projects. developed Early Intervention for of Property“Measures is issued New Projects” Management for a and ensure the procedure standardize to chain. product development complete We rank our contractors at regular regular at our contractors rank We excellent to them access intervals and give standards and management experiences etc. training, through is worked Report” Examination “Joint The projects we with quality issues, any For out. submit to contractor the general require and and plans, measures rectificative if rectify and improve to work stop even necessary. • • • • • • • • • • Field testing and measurement is an and measurement testing Field continuously important us to for tool 2012, Since project quality. improve engage a third- to begun have we partytesting and agency field for the quality monitor We measurement. of all projects in constructiondata the to and send timely feedbacks so as to construction workforce, and control continuous realize during the whole improvement of construction. Inprocess 2014, a 2.7% into translated work our hard y-o-ytesting and in field increase results. measurement Engineering project construction is of considerable dimensions and complex procedures. Through Through procedures. dimensions and complex projectEngineering construction is of considerable facilitated system, quality our control efforts over improvement seen constant have P-D-C-A, we product in breadth book, defect refined expended qualitycontrol of products, the standarization construction in the whole process materials over qualityand depth, and enhanced control construction services, after-sale offer to semi-manufactured so as to goods, materials, raw from the expectation of customers. beyound excellece and sharing information information experiences experiences Establishing Summing up standards, sharing standards, inspection Conducting regular reportsregular Process control control Process assessment and assessment and supervision, assessment Undergoing qualityUndergoing targets identifying identifying targets and targets Breaking down Breaking down taking concrete taking concrete steps at all levels at steps Making decisions, realization of quality targets. realization On-site management over any in- any over management On-site standards construction projects to ensure the construction ensure projects to Carrying out quality Offering supports technical technical & exchanges, & exchanges, competences uplifting specific Conducting training training Conducting system Setting up quality control quality control and procedures and procedures Refining system Refining system Quality Control System Quality Control Project Project branches Municipal Contractors departments Headquarters The headquarters identifies quality targets in the Project headquarters engages third-partyThe Kick-off quality in the identifies Notice, targets all in-construction quarterly over the country, agencies for projects across measurement new projects or those with For quality and control. monitoring for and establishes records timely assistance for workforce the headquarters will send professional notable problems, and supports. all levels, at be implemented them to quality for targets breakdown municipal branches The quality internal inspection reports. through and regular control process and realize of the headquarters as In as well line with the quality and municipal branches requirements the project departments conduct on-site the company, by stipulated the quality standards of quality in-construction targets realization the any ensure projects to over management efforts and supervisors. joint contractors with through CMPD product line covers residential buildings, industrial parks and commercial real estates. estates. real industrial parks and commercial buildings, residential CMPD product line covers needs in the of customer take full accounts we quality scrupulously by promises, Abiding quality control into punch and put more of project planning and engineering, whole process enable high-qualityso as to projects and lifestyle. consisting system quality control established a four-tier have we works, excellent present To so as to “contractors”, and departments” “project branches”, “municipal “the headquaters”, of basis. uplift on a constant the project quality control Committed to High- to Committed quality Projects Video The Houses We Lived In 32 http://v.youku.com/v_show/id_ XNjY2NDYwODgw.html 2014 CMPD CSR REPORT2014 CMPD

Building Customers' Trust 35

projects Offering Offering to about to residents services to services to residential residential communities 245 227 Offering services 530,000 2014 CMPD CSR REPORT2014 CMPD Extended Reading In 2012, we began to highlight began to In 2012, we servicecustomer at an earlier stage. Service original Customer The Center Customer into reorganized was Relation Management Department In Management Center. under Product services put customer in we this way, R&D with product positioning, range and design, and embedded the Idea of throughout oriented” customer “being chain the whole product development products with customers. integrate to Purple Maple: For top top Maple: For Purple It product line. targets the highest-level at customers. key “1+X” The manager system account enables one-stop VIP service in all dimensions. China Merchants Property Co., Ltd. Ltd. Property Co., China Merchants is ISO 9001 quality management ISO 14001 environmental system, and ISO OHSAS system management health and 18001 occupational certified system management safety Red Maple: For Red Maple: For product line. i-Dream It uplifting emphasizes servicepersonalized fixed and designating servicecustomer ambassador and steward each household. for Yellow Maple: For Maple: For Yellow Iti-Hope product line. bringing emphasizes surprises and sustained customers. to care “At Home” Service System Home” “At Green Maple: For Maple: For Green It product line. i-Love interaction emphasizes and with customers to responsiveness problems. Case Study Case Based on the rich experiences accumulated over years, we have integrated the resources the resources integrated have we years, over accumulated Based on the rich experiences Service of Customer Department,and strengths Property Management China Merchants service offer to brand Home” “At and launched Club in all our projects, and China Merchants our customers. a warm and placid home for Upholding the philosophy of “People Orientation & Customer Service First ”, CMPD has ”, Service & Customer Orientation First “People of Upholding the philosophy multi-dimensional effortsinjected continued in improving one-stop service in a bid system, homelike care offer to strive We experiences. customer needs and improve meet diverse to every and warmness through detail. “Four-color Maple” for Different Target Customers Customers Target Different for Maple” “Four-color that To service. go the extra mile for CMPD to for is a special campaign Actions” “Maple Leave deepened respective needs, further their identified have subdivided our customers, we end, “Red Maple”, “Green and offered production and management, on standard our research products. In 2014, service different options for Maple” “Purple and Maple” “Yellow Maple”, 3.0, Actions” Leave “Maple further and launched we service and standards, refined measures services to our customers Home” “At comprehensive and thoughtful one-stop, offer so as to service system. based on improved Enriching “At Home” Services Home” “At Enriching Protecting Rights Protecting of and Interests and Female Juveniles Employees Employment of any child labor of any Employment under the age of sixteen is strictly It is also not allowed prohibited. in employees female engage to particularly work tasks, strenuous or with unchanged postures, or high/ radioactive dusty, noxious, operations. temperature low Covering Employees Employees Covering with Insurances We have required all construction required have We buy social insurances to enterprises medical insurance, (endowment insurance, unemployment insurance, injuryemployment and insurance construction maternity insurance)for in line with pertinentworkers and municipal provincial national, all and cover regulations, and laws with accidental high risk employees & injurydeath insurance. Establishing strict set and contingency all subsidiaries to plans; requiring rules of operation system. up hidden danger examination personnel, related for tasks examination specific identifying Implementing system; safety carrying standards; examination and identifying out be checked, projects to identifying weekly inspection the project by and supervisor, daily inspection contractor general by projects. department, cross-inspection different between monthly and implementing major festivals, productionCarrying inspections safe before out regular and rectifications. inspections as hidden danger examinations ad hoc safety as well supervisor constructer, and developer, from managers by issues safety any depth in Analyzing plans and clear up such issues. rectification identify so as to the make better so as to the project, learn from we how improve meetings to Holding regular and uplift management. constructionsafety on-site institutional system Implementing the “responsibility system for safe production” at all levels, signing annual signing all levels, at production” safe for system “responsibility Implementing the and making an important contracts, responsibility safety evaluation, criteria in choosing, and punishing the constructionpraising companies. among our awareness the safety Carrying and raising education, management out safe and publicity. training safety and partners intensive employees through of construction, including plan the commencement Carrying before management out safety all for etc. learning, and work-team acceptance prototype on-site plan presentation, review, issues; checking during safety construction. against the prototype carefully involve that works • • • • • • • • • • • • • • • • Fulfilling Fulfilling responsibilities Safety publicity and implementation Making plans first Refining measures Strengthening and control management proper Taking actions in emergency Conducting in- depth analysis Continuously improving Optimizing management Paying Salaries in a Timely Timely Salaries in a Paying Manner ------Safe Construction Safe We have urged all contractors to open to all contractors urged have We workers;constructor for specific accounts is remuneration of the workers’ the payment prioritized. We have checked on a monthly basis the checked on a monthly have We salary and of all contractors payment the Office with assisted of Debt Repayment and inspection. investigation We have established the examination established the examination have We and contingency arrears wage for system salary worker striving rural plan for payment, deduction or delay. any prohibit to tion tion tion Con • • • Con Con After After struc • • • struc struc During Before Before Safeguarding Rights and Interests of Construction Workers of Construction Rights and Interests Safeguarding Establishing and Improving Safety Management System Safety Management Establishing and Improving The construction company shall arrange talks with the general contractor and labor contractor talks with the general shall arrange construction company The constructionworkersto equal treatment about offering a consensus reach so as to provider, contractors actions urge take proper and to their basic rights and interests, and safeguarding constructionworkers. for the responsibility fulfill their to We have implemented the “responsibility system for safe production” at all levels, and all levels, at production” safe for system “responsibility the implemented have We before timely prevention Through closed-loop construction risk control. kept improving after constructionresponse during improvement continued and construction, effective fire zero death, “zero the goal of effortstowards make arduous have construction, we safety major equipment zero accident, fire zero In registered 2014, CMPD accidents”. line-of-duty and zero accident injury. or severe death CMPD headquarters and all projects Management has established the Safety Committee along the compliance and law safety promote to production teams safe designated have the with all their strength safeguard and to development estates chain of real whole value and health of constructionsafety workers. % in safety in safety evaluation. evaluation. 8.3 y-o-y improvement y-o-y improvement 34 2014 CMPD CSR REPORT2014 CMPD

Building Customers' Trust 37 members nationwide took parttook in 188 activities organized 2014 CMPD CSR REPORT2014 CMPD 45000 CMPD Members Club, Sports Season, Water Sports Go! Go! Go! – Kids Carnival and Papa, Water SportsCMPD Members Season, Club, Characteristic Community Services Community Characteristic CMPD Members Club,Boy Scout, Care for the Hearing-impaired the Hearing-impaired for Care Scout, CMPD Members Club,Boy CMPD Members Club Since its founding in 2000, CMPD Members Club (hereinafter referred to as “the Club”) has “the Club”) as to Members in 2000, CMPD referred Club (hereinafter its founding Since of overall in virtue competence of its strong activities” care “customer systematic organized By now, of each household. requirement meet the specific to integration social resource a wide offer to and 2 major events 3 community festivals 5 brands, the Club has formed 70,000 families spectrum of over of characteristic the harmony services, to thus contributing in nearly 30 cities. With a focus on the culture of “families”, we have integrated excellent resources and launched resources excellent integrated have we “families”, of on the culture a focus With a collection services of thoughtful neighborhood build up a harmonious for happy and to value-added and professional extensive provide our property began to In 2014, we owners. health- “community service”, culture “community community service and set up in Shekou, systems. service” life “community and service” care Living with us Return Visit Identifying Problems Identifying Service Evaluation Paying Attention to to Attention Paying Needs Customer • • • Quality Inspection Rainbow Plan Member Activities • • • Contract Signing and Payment Contract Convenient Signing Procedures Signing Convenient Service Notification Service Attitude • • • • • • Move-in We have offered preferential policies preferential offered have We differences of price such as double return and conducted and extended warranty, product over and monitoring control service and price. quality, The “zero access fee” has enabled our fee” access “zero The and partners their sales cost lower to We also prices. advantageous offer services. them on after-sale subsidize All companies have tailored services tailored have companies All save needs to based on customer their time of looking service/goods for bargining prices, comparing providers, goods. and delivering First Visit First Project Experience Project Reception Reception Service Experience Public Notification Public • • • • Congratulatory Congratulatory Message Regular Return Visits Move-in Worriless Property Notice • • • • Save Time Save Trouble Save Money First Call First Maintaining a keen insight and deep thought into customer needs, needs, customer into and deep thought Maintaining a keen insight in house designing. experiences and taking of customer full account CRM Application Standard Language Standard House Acceptance House • • Maintenance Hotline Maintenance Manager Reception Guide Professional follow-up Telephone • • Customer ServiceCustomer Ambassador Standard ServicesStandard • • • • Ordering & Subscribing Ordering Habitat Design Habitat Congratulatory SMS Congratulatory Easy Procedures Easy Procedures Friends Friends Advertisements Network Activities • • Waiting for Move-in for Waiting • Home Mail from Online Interaction Experience Customer DeliverySimulated • • • • • Basic Information • • • • Launching campaigns for excellent services; all model projects from identifying excellent for Launching campaigns supervising and assistance of on-site offering the whole process municipal branches, standard blind spot” “no with all CMPD communities each project; cover striving to effortsservices unremitting and practices. through Optimizing customer service index in “Business Operation and Management Health “Business Operation serviceOptimizing customer in index the benchmark, making to adjustments and enhancing reasonable Index System”, service of customer and improvement. analysis competence Gradually realizing real-time management through ERP, Cmpmc.com and smart Cmpmc.com ERP, through management real-time realizing Gradually etc. technologies, Holding regular customer service meetings at all levels to identify our difficulties and identify service to customer all levels Holding regular meetings at each stage at focuses • • • • • • • We have optimized a series of background measures. a series of background optimized have We • Touched Surprised Pre-sales: Cheerful After-sales: After-sales: During-sales: Product Lifecycle Service Product Lifecycle Property Owners Property- owners- to-be We ensure ensure We all our can customers stable, enjoy and consistent extraordinary foreground services.

Maple Leave Actions Study Case Over the past nine years, we have engaged third-party satisfaction customer have for agencies we Over the past nine years, the to Thanks in 18 cites. programs 124 residential 2014 surveyThe involved survey. previous over the saw a 10% uplift figure year’s this effortsunremitting of CMPD employees, year. We have further refined our service measures and standards to address the greatest greatest the furtherto address our service have and standards refined measures We to services thoughtful attend More that stages. different at of our customers concerns of product designing,marketing, the whole process throughout provided details are minute after-sales serviceextraordinary an customers and property offer so as to management, expectation. beyond experience In Sept. 2014, the pilot program “At Home” was was Home” “At In Sept. 2014, the pilot program Through Garden. in Shenzhen Green initiated excellent platform, and efficient this intensive provide to pooled together service are providers and and tailor furniture designs decoration free our property for household appliances owners During time and troubles. their money, save to the program of implementation, the first month In and revenues. high reputations had received other into this program introduce we’ll the future, with customers more provide so as to projects, house solutions. comprehensive The “customer-oriented” Ideahas been embedded throughout the whole product been embedded Ideahas throughout “customer-oriented” The lifecycle. all stages of the at experience customer improve chain, so as to development Case Study Case Property for Owners Trouble and Time Money, Service Saves Home” “At % satisfaction. 10 uplift were seen uplift were in overall customer customer in overall 36 2014 CMPD CSR REPORT2014 CMPD

Building Customers' Trust 39 2014 CMPD CSR REPORT2014 CMPD Drawing Competition Competition Drawing PU Boyang House, of Magnificent A Proprietor Chengdu Interview Stakeholder Stakeholder What did you find attractive about Magnificent House? about Magnificent attractive find did you What that is and I must choose a famous developer concern. Buying house is a huge investment, my Quality is really services with poor estate torturousto live for would be image how it You can hardly confidence. worthy of my quality and sound services. CMPD means excellent me, In traffic House enjoys addition, Magnificent For decades. & Water and Emerald Street, Culture Tea supportive II, facilities like and improved IKEA Chain store convenience fun. shopping or for go for someplace to is always There Azure Complex. Dragon years? the past two over House with Magnificent experiences your were What and maintained at designed so carefully are landscapes green extensive The nice. is really environment The very attend often. busy at work and couldn’t I’m exceptional. also quite client activitiesThe are intervals.regular My a smiling face. kid wears and always mother very is in the Boy the Aged But my the University for much enjoys other activities build up body and Scout, museum visiting and many and has participated to camping, in outdoor saw traces my house which is on the first floor also satisfied with the property services. I’m year, views. Last enlarge leakage.of water daily reporting CMPD management learnt property this issue from by management department easy to I was very It’s the very was solved problem much impressed. The next day. and intervened personally. years. maintain the good work for to once or twice, but hard customer your impress Wang Rong, then Secretary of the CPC Shenzhen Municipal Committee and Li Jianhong, then Secretary and Li Jianhong, Rong, of the CPC Shenzhen Municipal Committee Wang the friends at talk with foreign had a cordial Group of China Merchants then President Sea World. Internationalized Services Internationalized The rich experiences gained through the construction of internationalized communities communities the construction of internationalized through gained rich experiences The facilities and services internationalized with areas equip our residential enabled us to have engaged have we Meanwhile, home. like at feel really residents which can make our foreign cultural East-West activities launched diverse and for organizations with international and invigorate nationalities among different communication promote as to so exchanges, the communities. Experiencing “Home Feeling” “Home “Home “Home Home Culture cleaning services building facilities Experiencing Providing trolleys trolleys Providing Environment” Installing mosquito lamps in public areas Installing additional body- Planning and holding Planning Offering gratis air-conditioner Offeringgratis ： Our Actions – Rainbow Plan Highlighting Highlighting “Home Safety ” “Home Pulverizing and processing cereals cereals and processing Pulverizing Offering bedding renewal, old-for- renewal, Offering bedding Integrating specialized resources for for resources specialized Integrating ： ： Free routine services are available, like services available, routine are Free ： ： Car Care Beddings Grain MillGrain Gathering Autumn repair and maintainance of the vehicles. and maintainance repair evening parties, garden visiting, folklore folklore parties, visiting, evening garden activities. experiencing trips and other exchange knife sharpening, clothing darning, hair cutting clothing darning, knife sharpening, meet. and swap new replacement, anti-acarid laundry, high-temp high-temp laundry, anti-acarid new replacement, and other services. rectification & grains, preparing nutritional diets and offering nutritional diets and offering preparing & grains, other services Bazaar is very inconvenient. is very inconvenient. owners for body building. body building. for owners Mosquitoes from green belts are an annoyance in summer an annoyance belts are green from Mosquitoes Problems Confronting CMPD Property CMPD Owners Confronting Problems of air conditioner filters, which leads to a greatly reduced living quality. living quality. reduced greatly to a which leads filters, of air conditioner Our property owners always take home a lot of bags after shopping, which Our take home a lot of bags after property shopping, always owners The original facilities can no longer meet the growing needs of our property facilities can no longer meet the growing original The Some property owners haven’t attached due importance cleaning attached regular to Some property haven’t owners Home Cultural Festival Festival Cultural Home Rainbow Plan To provide more convenient services and further convenient create more provide To with pervasive in 2014, we warmth, a living environment and introduced Festival Cultural launched the first Home “home is where characteristic services based on the Idea of held in April sessions were and third second The heart is”. 70 over than 10 cities for in more each time and October, nearly 50,000 clients. by attended and were projects, Rainbow Plan offers gratis value-addedCMPD in gratis the living standard servicesRainbow offers Plan to improve third-party Based on satisfaction areas. customer survey investigation, residential and on-site public facilities and spaces the and optimize upgrade special funds to appropriated have we basis. on a constant old communities invigorate so as to of some communities, Rainbow 56 Plan reached reached Plan communities. CMPD residential CMPD residential Home Cultural Festival Festival Home Cultural 38 2014 CMPD CSR REPORT2014 CMPD

Building Customers' Trust % 41 Nearly Complaint Complaint settlement subscribers entertained Cmpmc.com Repair requests 98.49 2014 CMPD CSR REPORT2014 CMPD 34541 47775 Video Kudos to CMPD http://v.youku.com/v_show/id_ XODgyNjAyOTky.html CMPM website CMPM CMPM app CMPM Cmpmc.com online platform Cmpmc.com Cmpmc.com offline platform Cmpmc.com zsjwy1872 WeChat account: account: WeChat service hotline “400” customer customer “400” Cmpmc.com Service Platform Cmpmc.com With such communication channels as the “400” customer service hotline, PCs, mobile apps and WeChat rolled rolled WeChat mobile apps and service customer PCs, hotline, “400” channels as the such communication With & repair services inquiry, premium like expenditure access to customers the online platformenables in one, activities cultural & without so much as housing management and leisure lodging, complaint maintenance, such planned service featuring account 11th, 2014, the CMPMWeChat On Nov. out of their doors. stepping product was marketing service and neighborhood communication sharing, functions access, as information our white-anytime and enjoy their demands easilyconvey may From then on, customers officially made public. services. glove the construction of a life for preparing are We as the pilot “Dao Jia Hui” named experiencehall Wan Clubhouse in Yong Jing at offline platform “whole- Shenzhen. Based on the business Idea of Dao hearted, whole-course homelike services”, “health home”, “sweet itself to Jia Hui will commit “children’s and community” “cultural & longevity”, “home and setup such functional as zones growth”, “handy services”, and “health center” experience”, the “Home is where the message that spreading interactions. cordial through heart is” Case Study Case In order to integrate and enrich our services, we have independently developed the Cmpmc. developed independently and enrich have our services, we integrate to In order pool third-party to us resources service which allows online/offline digital com platform vibe for considerate a more thus creating WeiCBD, and build a community-centered unimpeded and convenient more propertyproviding sharing among efficient and owners, services. communication At Evian Uptown, Foshan live an octogenarian live Foshan Uptown, Evian At Treating ill health. empty by beset nest couple our property management them like family, assumed some of voluntarily personnel have couple with the old chatting the filial duties, help during they can to and doing whatever and extendinggreetings visits, their frequent old couple The and best wishes on holidays. of their as a token letter a four-page wrote the kindness for of our staff who appreciation housekeepers”. nicknamed“outstanding were “Outstanding Housekeepers” at Evian Uptown Evian at Housekeepers” “Outstanding Case Study Case Day Owner 体验日 their future their future homes and Experience Experience to experience experience to Inviting owners owners Inviting turning a willing ear to their advice ear to letters by letter by Reporting a regular basis a regular Project status status Project project status on project status For the Company For WeChat Featuring Featuring as customer as customer services and Weibo and Weibo such functions neighborhood communications Greater overall innovation capacity: innovation overall Greater communication of advanced On the strength have and cloud service we technology platform, of amount a large and analyzed categorized needs, customers’ deep dive so as to information new market opportunitiesidentify and eventually customers. for situation a win-win create Service restructuring and upgrading: ServiceBusiness units other than the Customer Department understand contact, in a position to are new shape a brand into bringing and serve customers, loyalty. tocustomer service conducive system eye” survey Customer Customer Project status status Project satisfaction letters to enable to letters through through the “third defect identification defect identification service information service information Multi-channel, friendly sharing with customers service mode Cmpmc.com “Online + offline” + offline” “Online For customers For Whole- Center customers Customer Customer course,follow- Information Information up solutionsfor up solutionsfor Customer Information Center Information Customer service Higher complaint handling efficiency:Higher complaint enables fast Center Information Customer The various business to voice of customers’ transmission of persons appointment units and immediate whole-course, offering follow-up for responsible solutions. experience: customer Optimized visits to on timely follow-up laid stress have We and closed loop, an efficient developed customers, servicein turn based on established a batch system management delicacy and process management homelike and considerate, the sake of offering for smart services in time. of building Customer Customer information A total of 63 A total duty for timely duty for ambassador ambassadors on In order to respond to and resolve customers’ problems in a more timely manner and timely manner in a more problems customers’ and resolve to respond In to order a smart developed gradually have homelike services, we them with convenient, provide put was Center Information service On Sept. 10th, 2014, the Customer information mode. normal operation. into We have communicated with customers through multiple channels, heeded their voice their voice heeded multiple channels, through with customers communicated have We our service expectations their and demands into fully integrated with an open mindset, comfort, bring assurance, to and continued know, to their right respected & product line, services. and sincere professional with customers faithand trust to communications communications Attaching Importance to Attaching Engagement Customer

Total views via views Total WeChat in 2014 WeChat delivered in 2014 delivered Project status letters letters status Project

300000 250000 40 2014 CMPD CSR REPORT2014 CMPD

Building Customers' Trust 43 2014 CMPD CSR REPORT2014 CMPD RMB billion 8.06 Total tax contribution Total RMB billion Operating revenue Operating 43.39 Win-win Cooperation Cooperation Win-win Service Development Economic • • • • Three Decades of Stable Three Development 2 million m saleable area Contract-based Contract-based 3.643 Creating value for investors based on stable operation, based on stable operation, investors for value Creating cooperation and win-win management compliance Over the past three decades, we have upheld the way of business of upheld the way have we decades, Over three the past and opening-up, our time-honoredof reform as a pioneer and, brand 30 cities as per the development to extended our reach strategically the to China and oriented backed by “based in Shekou, policy of being of and an acuteawareness the ideology of stable operation Given world”. and integrity of compliance a culture developed have we risk prevention, enables the Mode”,which “Shekou The situation. a win-win and created and urban development, finance of industry, and interaction integration in estate of real development is leading the community comprehensive China. Sustainable and Stable Operation Sustainable and Stable Management Compliance Responsible Supply Chain • • • • • • CREATING ECONOMIC ECONOMIC CREATING VALUE Value 42 2014 CMPD CSR REPORT2014 CMPD

Creating Economic Value 45 2014 CMPD CSR REPORT2014 CMPD 0.62 0.69 3.13 1.66 2014 RMB 6.10 Earnings per share Interest expense per share expense Interest 0.90 0.85 4.54 2.45 2013 RMB 8.74 2012-2014 2012 0.87 0.65 3.64 1.93 RMB 7.09 Social contribution per share in per share Social contribution Social cost per share Tax contribution per share Tax Employee expense per share 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 10.00 Interest RMB 0 expense per share: RMB 0.62 per share: Social cost Social Earnings RMB 6.10 RMB 1.66 per share: per share: contribution YU Zhiyong Fund Manager at Rongtong Fund Management Co., Ltd., having been holding CMPD's stock for over ten years, full years, ten over for been holding CMPD's stock having Ltd., Management Co., Fund Manager Rongtong at Fund in CMPD. of confidence Social contribution per share Social contribution Interview Stakeholder Stakeholder What has impressed you most over so many years of cooperation with CMPD? of cooperation years so many most over you has impressed What in community Founded development. comprehensive capacity for CMPD’s by been deeply impressed I have mode the radical development CMPD has neither adopted and opening-up, of reform Shekou, the frontline the restructuring of of mass demolition and mass construction, nor taken attitude towards a wait-and-see construction, scientific planning and elaborate it through Shenzhen. Instead, Shekou a burgeoning by driven interactions among varioushas facilitated quarters, functions business districts, includingthe residential traffic thus building Shekou a picturesque into and other living amenities, educational facilities greening, system, community. residential the industrial ups and downs? CMPD which has undergone for expectation is your What markets estate real in terms of China’s development International for is still room experience suggests that there challenges that such enterprises the increasing can face down provided and especially the flagship enterprises, in risk management. It hope that CMPD will strike sincere a balance between and is my corporate development in the long run. risk management, and maintain stable growth Tax RMB 3.13 expense per share: Employee per share: RMB 0.69 contribution In 2014, our social contribution per shareamounted to RMB 6.10, lower than that of 2012 that than RMB 6.10, lower to In per shareamounted contribution 2014, our social of after a 50% equity the issuance by increase diluted was it that and 2013, on condition based on a y-o-y calculated growthif registered have would Such indicator dividend. stock the equity of 2013. + social welfare expense + Interest expense + Employee contribution + (Tax = Earnings per share per share Social contribution Note: equity / Closing total – social expense) investment 2014 2014 55.1 1517 2013 2013 55.0 1340 2012 2012 42.8 1092 (unit: RMB 100 million) Total assets Total (unit: RMB 100 million) Net profits profits Net 2014 2014 80.6 433.9 77.9 2013 2013 325.7 Social Contribution Per Share Per Social Contribution Business Performance 62.5 2012 2012 253.0 (unit: RMB 100 million) 100 RMB (unit: Operating revenue revenue Operating (unit: RMB 100 million) In 2014, we constantly strengthened our risk management & control and substantially and substantially & control our risk management strengthened constantly In 2014, we our business performance marching a result, is steadily As capacity. our operating enhanced practically of RMB 10 billion”, billion and a profit of RMB 100 revenue “a of the goal towards as Southeast China China, East regions strategic in such development balanced realizing and North China. were We RMB 50 billion in sales and overfulfilled the annual target. logged over In 2014, we and strength”, in overall company estate real SSE- and SZSE-listed Ten “Top as a ranked striding in a row, year the tenth for Blue-Chip Enterprise” Real Estate “China’s as a honored and a first-class urban company estate Chinese real Ten Top “becoming a the goal of towards expert”. upgrading Sustainable and Stable Operation and Stable Sustainable SZSE and HKSE encourage listed companies to make public their CSR practices and to companies listed SZSE and HKSE encourage in per share of social contribution disclosure Through in a timely manner. achievements the before our CSR performance quantified and presented our annual CSR report, have we shareholders, for the company by of the actual public a panorama created general value and the whole society. communities creditors, customers, employees, Total tax contribution Total

EVA: RMB billion 2.31 44 2014 CMPD CSR REPORT2014 CMPD

Creating Economic Value 47 2014 CMPD CSR REPORT2014 CMPD Contractual liability Contractual 2 Setting much store by anti-corruption by Setting much store the to and committed in procurement platform, construction of an honest purchasing 17 haveconcluded we the past year over on on Honest Cooperation Agreements detailed stipulations Procurementwith Strategic on honest actsof both sides and corresponding the purpose of self-disciplinepenalties for and partners.our of In addition, cooperation honest in the involved personnel are our procurement system. rotation regular Binding Code of Conduct Binding Code business integrity Advocating Advocating 1 We have continued to enhance the role of the Handbook for Employee Employee of the Handbook for the role enhance to continued have We and strictly to ethics, work conformed in boosting employees’ Compliance & procurement, invitation tender of the Handbook regarding provisions relevant is The management security. hospitality and information conflict of interests, first. interests and putting corporate ofcompliance an example set to required We are engaged in continual revision of the Administrative Rules for Legal Affairs as a Affairs Legal Rules for of the Administrative revision engaged in continual are We the construction of legal system. basis for in the Major Business of Real Risk Prevention the Handbook on Legal compiled have We Development. Estate inspection, legal work risk through & control legal risk prevention enhanced have We and summarywarning, of disputes. and analysis and operation and promoted the learningand use of law strengthened have We and training. legal research through law to decision-making according Supervision and handling complaint on business ethics education Enhanced Legal RiskLegal Management Anti-corruption 4 3 We have set up unimpeded complaint set up unimpeded complaint have We various stakeholders, channels for a whistle- mailbox, including a CCDI e-mailblowing all and a hotline, by accessed of which can be freely and every member of the company are our partners. Our employees any report to and protest encouraged irregularityviolation, or other acts the corporate jeopardize thatmay image. Business Ethics has always been a compulsory course forour management management been a compulsory forour course has always Business Ethics against guarding corruption, combatting a view to With training. business will organize we an honest culture, and promoting degeneration was training Last year’s basis each year. on a regular ethics training for (accounting 400 employees sessions and involved four divided into employees). 16.5% of the total Institutional management improvement Business risk prevention risk Legal warning culture Legal building We have made it clear that the entire Company should comply with the guiding principle of comply should Company entire the made it clear that have We and whole-course unified management, operation, “lawful with emphasis control legal risk prevention “ex-ante to which seeks recourse pattern of a work By dint on prevention”. placed great made have we if necessary”, remedies and ex-post if possible, and ongoing control the case of major irregularity over zero with system, in our legal risk prevention headway past year. Only by preserving moral integrity can we avoid temptation; only by purifying our thoughts only by temptation; avoid preserving can we Only by integrity moral anti-corruption Regarding as an important higher to approach purify our behavior. can we further run the have down on we bribery, clamped efficiency, governance corporate of the places and regulations the laws and strictly followed law, to according company personnel at and management Operation based. are and our investors the company where bribery the commercial for of Conduct and combatted the Code abided by have all levels case of commercial not a single a result, As and society. of the company sake of integrity the past year. bribery over has been recorded corruption or design of problems of problems identification identification and diagnosis/ Revision and /institutional development withinstitutional formulation of formulation internal by-laws by-laws internal Process streamlining streamlining Process correction Compliance Compliance Employees in charge of or in charge Employees ERP system ERP system optimization / optimization dedicated to internal control internal to dedicated execution /timely execution based approaches inspection /stronger ensuring compliance ensuring compliance through information- through control Overall Overall in internal in internal Establishment of Establishment improvement improvement Internal Control System Control Internal and Optimization of the and Optimization organizational guarantee organizational organizational structure / organizational Work Group for Construction Construction for Group Work Three lines of defense lines of Three evaluation Intensified rectification / rectification promotion of promotion improvement Internal control Internal control training /qualitytraining evaluation / defect evaluation construction through construction through Mass- building Effective Effective for timely for Control System Control /awareness /awareness participation integration of integration response to risks to response internal control / control internal risk management Leading Group for Construction Construction for Group Leading and Optimization of the Internal of the Internal and Optimization Stricter Internal Control Stricter Internal Organization: In 2014, we established a leading group and a work group for construction for group and a work established a leading group In 2014, we Organization: and evaluation construction through “promoting the principle of to Adhering Practice: With a prudent attitude and a strong sense of responsibility, we have developed and developed have we of responsibility, sense and a strong attitude a prudent With managed control, internal strengthened system, management the compliance implemented in compliance industrial be an striving exemplar to on bribery, legal risks down andclamped and business ethics. Compliance Management Compliance We have brought into full play the role of internal control in taking a notch, up management control of internal the role full play into brought have We simultaneous for nine initiatives and advanced system control the internal strengthened risks and foreseeable to orresponding thus preventing links, in various improvement on the interests and stakeholders’ requirements governance modern corporate satisfying of compliance. premise and optimization of the internal control system, and designated over 120 employees in 120 employees over and designated system, control of the internal and optimization control internal effective thus guaranteeing control, internal to of or dedicated charge lines of defense”. “three through such undertakings integrated as internal have we constructioncombining with evaluation”, inspection, optimization, compliance special audit and ERP system evaluation, control system control of the internal and implementation with design problems resolve striving to entities entities involving involving 16 11 Internal control control Internal Special audit and evaluation involving involving evaluation compliance inspection compliance 46 2014 CMPD CSR REPORT2014 CMPD

Creating Economic Value % 49 rate billion billion RMB 13.61 8.53 Strategic purchase purchase Strategic Value of local products of local Value 13.61 and services purchased: 2014 CMPD CSR REPORT2014 CMPD Exit of supplier examination Evaluation and Evaluation A B incentive C Recognition and Recognition D E Class of supplier Class We have offered more incentives to award-winning suppliers, including suppliers, award-winning to incentives more offered have We short-listing, preferential automatic of bid bond, the exemption partners, and public strategic into promotion payments, progress acknowledgement. We have entrusted professional consulting agencies with satisfaction consulting professional entrusted have We and property design marketing, survey management among engineering, of supply chain partnersvoice in an effortto heed the suppliers, and seek based onobjective survey development results. shared the visits to paid frequent have we In supplier examination, addition to our workplaces them to of key suppliers and invited senior management enhancing their capacity for thus constantly learning and sharing, for performance.responsibility Standard setting Standard Supplier Capacity Building Supplier Capacity growth supplier headway suppliers’ suppliers’ of new of new Enhancing Facilitating Facilitating satisfaction Stimulating Stimulating suppliers to suppliers to supplier Selection make greater greater make Based on independent evaluation by the units of finance, costs, procurement and projects, and projects, procurement costs, the units of finance, by evaluation Based on independent suppliers (Class E), ineligible blacklisted into suppliers (Class categorized our suppliers are suspended four have we A, B and C). suppliers (Classes Over eligible and the past year, D) partners supplier our requirements. meet strategic in China who fail to partnership national 50 of which were suppliers, with 71 brand strategic forged In 2014, we worth contracts purchase strategic executed we cooperation; regional in strategic involved of 8.53%. rate purchase a strategic RMB 1.12 billion, with A high-quality supply chain will have a profound bearing on the fulfillment of our goals. of our goals. bearing on the fulfillment A high-quality a profound supply chain will have their helped our suppliers enhance have a variety we of activitiesThrough and approaches, of the industry. future a win-win with themand created together grown competitiveness, : 2014 Partners Conference &Signing Ceremony of Agreement of of Agreement Ceremony &Signing Conference 2014 Partners Platform Purchasing with China Real Estate Cooperation We have inked with strategic suppliers the inked with strategic have We on Strategic on Honest Cooperation Agreements and penalties our requirements where Procurement of our the integrity to guarantee clearly specified are suppliers. assessment: Environmental If is engaged in production a new supplier per se, certification and its environmental will review we (waste wastes” “three of inspected its treatment In residues). the bidding gas and waste waste water, an forward to each supplier is required process, Report. Practice Green exhaustive Restraint mechanism Restraint : : Supplier Evaluation and Examination Supplier Evaluation Safeguarding Suppliers’ Rights and Interests Suppliers’ Safeguarding High threshold be voted new suppliers may initial evaluation, For will be evaluation Further “nay”. one merely by down the suppliers to ensure based on field investigation of the company. can meet the requirements Quality assurance bi- The party. a third to Snap check is entrusted for mechanism is piloted directional evaluation quality control. 2014 Partners Conference &Signing Ceremony of Agreement of of Agreement Ceremony &Signing Conference 2014 Partners Platform Purchasing with China Real Estate Cooperation In a bid to form a virtuous cycle of “routine procurement”, “annual cooperation” and “strategic “strategic and cooperation” “annual procurement”, “routine virtuous a form Into cyclebid a of right of the ERP system, by supplier evaluation conducted real-time have we procurement”, whole-course,practically realized close-looped (certification, management and evaluation a three- and developed types, and of various various levels of our suppliers at examination) making mode, supply chain management and cities) control (headquarters, regions tiered and standardized. efficient increasingly We have constantly improved the procurement management and bidding system, and bidding system, management the procurement improved constantly have We good partnershipmaintained and further with our suppliers, deepened strategic under a rigorous with outstanding partners development the sake of shared cooperation for capacity supply chain. of the the overall thus boosting system, supplier evaluation the and safeguarded the ideology of honest procurement followed consistently have We In 2014, we just and open manner. of suppliers in a fair, and interests rights fundamental new blaze to Platform Purchasing with China Real Estate agreement a cooperation signed So far, manner. in an honest and transparent project Internet-based procurement for trails our bid activities in the through been involved have number of enterprises an increasing platform. Responsible Chain Supply

%

About partners in China

standards by the quality, the quality, by 100 Conclusion of Honest Conclusion with strategic supplier with strategic

New suppliers selectedNew 2000 environment and safety and safety environment Procurement Agreement Agreement Procurement 48 2014 CMPD CSR REPORT2014 CMPD

Creating Economic Value 51 2014 CMPD CSR REPORT2014 CMPD LAVIE Classroom LAVIE Supporting the Development of Enterprises in of Enterprises Supporting the Development Industrial Clusters Guangzhou Panyu TUS Park Guangzhou Panyu Case Study Case Concerned with enterprises in industrial clusters, we have organized diversified activities diversified in organized have we in industrial with enterprises clusters, Concerned wisdom and experience their to share for such enterprises a platform an effortto provide development. their sustainable facilitate and to Case Study Case Corporate to Committed Park Business LAVIE Wisdom and Win-win CMPD by masterminded Classroom, LAVIE The officially launched in was Business Park, LAVIE are the Classroom modules of 2014. All March Tsinghua the quality of courses from introduced Programs Development Executive University (EDP), including Macro-economic Analysis, Business Operation, Capital for Planning Tax and and Outstanding Leadership, Remodeling, faculty by of the EDP who will conducttaught perspectives in-depth different from analysis with corporate problems on the common and managerial expertise the operating enhance so as to of enterprise development from response positive has received the Classroom the very beginning, From leaders. modules. pragmatic” “enlightening, the for enterprises Signing Ceremony of the design museum of the design Ceremony Signing Signing Ceremony of Strategic Cooperation Cooperation of Strategic Ceremony Signing CMPD and CMB between Agreement International Cooperation and Exchange Cooperation International Industry-finance Integration and Cross-boundary and Industry-finance Integration Cooperation Case Study Case Case Study Case cooperation marks CMPD’s new explorations into industrial synergy, aiming to realize realize aiming to industrial synergy, into new explorations marks CMPD’s cooperation and financial industries through estate real between cooperation and win-win interactions and sharing. pooling resource We have been proactively engaged in international cooperation and exchange, and worked and worked and exchange, cooperation engaged in international been proactively have We thus enhancing our enterprises, on a number of projects with world-leading together sustainable development. capacity for Taking communication and cooperation as important drivers of corporate development, development, as important of corporate and cooperation drivers communication Taking partnership harmonious and interactive engaged in and proactively forged have we with situation a win-win creating jointly platforms, and exchange establishing cooperation our stakeholders. Case Study Case collections as well as for features shows at other halls. After it opens at the end of 2016, it opens at After other halls. at shows features as for collections as well knowthe museum will serve to about Chinese global visitors as an important for platform China. enter to design international and for design We are proactively working oncustomized cooperation modes for partners modes for from cooperation working proactively oncustomized are We sharing the purpose of resource banking, media and other sectors design, for engineering, and mutual benefits. Win-win Cooperation Win-win CMPD and V&A Work Together on Design Museum Together Work V&A CMPD and On the afternoon of Jun. 17th. 2014 (GMT), and AlbertVictoria Museum (V&A)CMPD and on joint agreement a cooperation signed first large-sized design of China’s establishment museum, marking cooperation the inaugural and a British a Chinese enterprise between public institution. the museum will the agreement, to According in Shekou;CMPD is responsible be situated and and operation, museum development for its own to a special hall dedicated V&A for Strategic Cooperation between CMPD and CMB between Cooperation Strategic 2014 witnessed the conclusion November Agreement Cooperation of the Strategic the to According CMPD and CMB. between parties the two will conductagreement, financing, in-depth on credit, cooperation building, brand settlement, international industrialcluster development, customer services specialized and community finance, & finance estate real capital markets, for Such and training. consulting development, 50 2014 CMPD CSR REPORT2014 CMPD

Creating Economic Value % 53 Service customers million kwh Power supply Power 870 2014 CMPD CSR REPORT2014 CMPD 35,000 Customer satisfaction Customer 98.78 0.22 Supply Co., Ltd. Supply Co., China Merchants Merchants China (Shenzhen) Power Power (Shenzhen) 1.78 Bureau Guangzhou Power Supply Power 0.83 Bureau Shenzhen Shenzhen Average annual downtime per user annual downtime Average (unit: hour) Power Supply Power 100 Co., Ltd. Co., (Shenzhen) (Shenzhen) Power Supply Power China Merchants Merchants China 96.94 Bureau (unit: %) Guangzhou Power Supply Power Spurring Economic Development of Shekou of Shekou Development Spurring Economic Supply Power through 99.97 Relying on coastal resources of littoral cities, taking ocean culture up a notch, and building the most picturesque oceanview parlors the most picturesque and building oceanview taking up a notch, cities, culture ocean of littoral resources Relying on coastal Bureau Reliable and Stable Power Supply as a Guarantee of Economic of Economic Supply as a Guarantee Power Reliable and Stable Customers to Value Quality Services Bringing More Shenzhen Shenzhen Voltage eligibility Voltage Consistently oriented to customers’ needs, the company has optimized its business process, process, its business has optimized the company needs, customers’ to oriented Consistently supply and maintenance power itself to and dedicated concerns, top customers’ addressed local audit targeting it has conductedan energy Besides, of major events. on the occasion energy with in an effortto assist customers Hong Kong, with CLP Power together customers conservation creation. value and Ltd. Supply Co., Power (Shenzhen) Merchants China between Comparison in 2013). the city data Suppliers in China( bore and Major City-oriented Power As a hi-tech industry cluster, Shekou has placed strict requirements on power quality. quality. on power strict Shekou has placed requirements industry hi-tech a As cluster, China Merchants “Serving society with quality and efficiency”, of the ideology Following constantly and downtime reduce has managed to Ltd. Co., Supply (Shenzhen) Power of development economic living and people’s to contributing user experience, improved Shekou. production, the construction and standardized and of safe Owing the promotion to safety grid power of information-based the improvement and grid, of power renovation and an the board eligibility across 100% voltage recorded the company management, the guaranteeing of 0.22 hour per user in 2014, thus effectively annual downtime average of Shekou. development smooth economic Development Power Supply Power Shenzhen Nanhai E Cool Zhenjiang Nanshan Creative Industry Park eight industrial clusters eight ： Complete housing products + five commercial products commercial products housing five + Complete ： one benchmark + four features + 36 techniques features one benchmark + four ： CMG Global Resource Platforms CMG Global Resource resource financial + platform (Industrialresource platform) resource + customer platform Comprehensive production park Comprehensive living park Holographic + auxiliary and sports cultural products eco-park Low-carbon Shenzhen Guangming Science Park Qingdao LAVIE Business Park ctures Infrastru- Resources Two One parks Three Three systems platform Shenzhen TCL International E City Guangzhou Panyu TUS Park tions Institu- Promoting Integration of Industry, Finance and Finance of Industry, Integration Promoting Development Urban Comprehensive strategic cooperation with local governments; project development in alignment with city plans in alignment project development with local governments; cooperation strategic Comprehensive resources competitive of CMG’s on the strength and industrial and regions services customers for Financial • • We have constantly upgraded the development mode of Shekou, given full playto our full playto given mode of Shekou, the development upgraded constantly have We and layout, rational dynamic equilibrium through integration,realized in resource strength industry of sound interactions shape quarters, into bringing promoted residential and and steadily social ecosystem a feature-rich, and self-regulating mutually-sustaining and global city competitions. integration” “Shenzhen-Hong Kong towards advancing In of industry relationship the spatial and city. regulate us to requires Urban development with city efficiency, construction traffic and enhance industrial progress reconcile to order industry, a city model integrating management and implemented propounded have we and our and industrial strength By virtue and urban development. finance of CMG’sfinancial “three building to committed are we community development, comprehensive capacity for finance- through spurring and urban development and one platform” systems two parks, industryinteractions. • • Shenzhen Shekou Network Valley Guangzhou Jinshangu Creative Office Park Eight Endustrial Clusters of CMPD Endustrial Clusters Eight Service Economic Development Service Economic Smart park service system Smart service community system

2

8 clusters million m of industrial Extended Reading

Industrial clusters 2.96 Total construction area construction area Total 52 The integration of industry, finance finance of industry, integration The refers and urban development the functionalto and spatial of industrycombination and city. of industry the role Stressing as the of urban pillar and powerhouse of city and that development, of industrial as the cornerstone the to committed are we progress, in the improvement simultaneous city functions of urban industry, and ecosystem. 2014 CMPD CSR REPORT2014 CMPD

Creating Economic Value 55 2014 CMPD CSR REPORT2014 CMPD

Employees Care Association Care Members of Employee Members of Employee 1600 centralized training centralized Employees involved in involved Employees 1946 Three Decades of Shared Growth Decades of Shared Three Total Total employees 16,720 Shared growth of the company and employees based onthe based onthe and employees of the company growth Shared and “People-oriented Spirit” embodying two-pronged culture Spirit" "Wolf’s “people- of values based on the core decades, Over three the past integrated have we win-win”, excellence, responsibility, oriented, for employees, “respect defined the Spirit", with"Wolf’s “humanistic care” as excellence” to of employees and motivation employees, for care the starting and institutions and management, of our policies, point in the journey with and enthusiastic be driven to employees encouraged CMPD.

Guaranteeing Employees’ Rights and Interests Rights and Interests Employees’ Guaranteeing Supporting Development Employee Employees for Caring • • • • • • 54

MOTIVATION INSPIRING EMPLOYEES’ EMPLOYEES’ INSPIRING 2014 CMPD CSR REPORT2014 CMPD

Enhancing Employees’ Motiation 57 y-o-y y-o-y New hires increase32% increase: 8.48% increase: 307 712 2014 CMPD CSR REPORT2014 CMPD Internal promotions Video Can You Believe It? Campus Recruitment http://v.youku.com/v_show/id_ XODgyNjAzNjg0.html We offer a competitive salarycompetitive a featuring and benefits package, offer We annuities and supplementaryenterprise in medical insurance statutoryaddition to benefits. on a regular consulting seminars and on-site organized have We policies and knowledge the fundamental on spread basis so as to to a full sense of the benefits employees social security give to and entitled. which they are have we of employees, the sake of objective evaluation For examinations yearly and mid-year quarterly, conducted monthly, and performance. Employees competence based on their behavior, know during to the examinations. the rights and complain fully enjoy on open application based recruitment internal organized have We for employees. field playing a level and selection, providing thus We have rigorously conformed to relevant laws and regulations, and regulations, laws relevant to conformed rigorously have We and (permanent with all employees labor contracts concluded through and interests their rights probationary), and safeguarded strict performance of the contracts. • • • • • • • • • • Equal OpportunitiesEqual recruitment Transparent Transparent Fair treatment Fair Fair promotion Fair We respect the labor rights and development needs of each employee, and strive to create a create to and strive needs of each employee, respect and development the labor rights We of regardless and promotion training treatment, fair recruitment, for environment favorable and region. religion race, age, gender, 779 52% 1516 53.2% 2 2 2014 4% 11887 Holders of master’s Holders of master’s or higher degree 1.5% 2538 Over 50 years old Over 50 years 44% 15.3% Other subsidiaries and affiliates Other subsidiaries and affiliates 304 16720 30% 475 829 Bachelor’s degree degree Bachelor’s holders 52% 1430 30-50 years old 30-50 years 42.7% 2013 10577 4% 1883 44% 5.6% Junior college Junior college graduates 14719 743 Under Three Under Three decades old Commercial Commercial subsidiaries and affiliates Commercial subsidiaries and affiliates 36.6% 15.1% 598 773 437 Female 49% 2012 9821 Polytechnic school Polytechnic graduates Male 70% 7% 1633 0.4% 44% 12489 9.4% Property management subsidiaries and affiliates Property management subsidiaries and affiliates 3803 20.2% 8084 1 44% 2% 17% 2 1 1 4% 54% 64% 15% 985 Real estate Real estate subsidiaries and affiliates Real estate Real estate subsidiaries and affiliates Total employees of real estate estate of real employees Total subsidiaries and affiliates of property employees management Total subsidiaries and affiliates Total employees of commercial of commercial employees Total subsidiaries and affiliates subsidiaries of other employees Total and affiliates Total employees of CMPD employees Total Educational Attainment Gender and Age Structure Total employees Employees are the wealth of a company. Cherishing the value of all employees, we have have we of all employees, Cherishing the value of a company. wealth the are Employees and ground, playing a level and provide and interests their rights safeguard to strived supervision mechanism so that the employee and communication improved constantly contentedly. here they can work Guaranteeing Employees’ Employees’ Guaranteeing Rights and Interests Notes: of JV partners in not factored 1.Employees are (Shenzhen) China Merchants Ltd., Co., Property (Shenzhen) Consultants 2.Other include China Merchants subsidiaries and affiliates Ltd. Co., Properties Xin’an and Shenzhen China Merchants Ltd. Xinghua Industrial Shekou Holdings Co., Ltd., Supply Co., Power 1553 56 2014 CMPD CSR REPORT2014 CMPD

Enhancing Employees’ Motiation 59 project training centralized training centralized Cumulative hours of Cumulative 2014 CMPD CSR REPORT2014 CMPD 1946 1178 Employees involved in involved Employees 2 China Merchants Classroom Skill improvement course 31.95 Female 31.95 Other subsidiaries and affiliates Performance training for for training Performance New Hire Training Hire New Up-the-ladder Program Specialized Specialized Training Camp Practice the class at headquarters underachieving employees underachieving Re-growth Program Re-growth For Specialized Talentss Specialized For Male 2.32 2.50 Property management subsidiaries and affiliates CMPD talent development strategy development CMPD talent Ivy Program 39.83 1 Alpha Wolf Wolf Program Alpha Green Wolf Wolf Program Green Fresh graduate training graduate Fresh Class for future managers future Class for 39.83 Open course of generic skillsOpen course For Managerial Talents Real estate Real estate subsidiaries and affiliates New Voyage Program Wolf-learning Program Wolf-learning New manager development program New manager development Average hours of training per employee Average hours of training Senior manager development program Senior manager development Managerial expertise improvement class Managerial expertise improvement Talent Development Strategy Development Talent The enhancement of employees’ knowledge and skills is a basis of our competitiveness. In knowledge and skills is a basis of our competitiveness. of employees’ enhancement The building team boosted have we social environment, and changeable of a complicated face “learning in practice”, in action and growing the ideology of advocated spirit”, “wolf’s with the top-down and through cooperation platforms development employee and built diversified sessions training In cultivation. headquarters 2014, the 39 centralized systematic organized of duration training in 21 projects a cumulative in China, with involved employees 1,946 for up 23.15% y-o-y. 1,178 hours, projects training diversified tailor-made have we system, promotion In of ourdual-track light case analysis, advisor guidance, on-the-job rotation, including external courses, training, types of needs of different meet the training so as to home and abroad at and study tours employees. Supporting Employee Development Supporting Employee Inter-departmental communication In the end of each year, the middle or at head of departmentthe management, and of city-oriented representatives employee their share to together will gather companies plans, on the sustainabilityviews strategic development. building and employee team Women’s Day gifts Day Women’s Democratic Management Democratic Diversification Lunch-Break activities over at During the Lunch-Break 20 city-oriented in China, companies are employees of grassroots representatives notes lunch and compare have to invited In 65 of with the management. 2014, a total in involved were representatives employee such activities. Lecture on women’s health and nutrition on women’s Lecture We have constantly strengthened democratic management, set up the trade union at all union at trade set up the management, democratic strengthened constantly have We thus guaranteeing basis, on a regular congress tier-one and held employee companies In 2014, we employees. by and supervision” decision-making, management “democratic case of formally and zero agreement bargaining of the collective a 90% coverage registered about labor issues. complaint filed mechanism, communication the grassroots-leadership established and optimized have We Manager online”, “General and forum” “employee as the platforms such exchange provided meeting and other activities our where life democratic the Lunch-Break, and organized and transparent “simplified, thus realizing opinions, air their ideas and can freely employees organization. efficient” We have conducted diversified recruitment irrespective of gender, age, race and region. region. In and race age, of gender, irrespective recruitment conducted diversified have We female employees. of growth the specific activitiesto facilitate organized have we particular, %

% %

9 employees 40 Minority ethnic

Female employees employees Female 3.47 58 2014 CMPD CSR REPORT2014 CMPD the Board of Supervisorsthe Board Female employees among employees Female among the senior management

Enhancing Employees’ Motiation 61 2014 CMPD CSR REPORT2014 CMPD Extended Reading The “4.3.3 examination program” program” “4.3.3 examination The as indicators focuses on such key closely with corporate linked are or departmental Three goals. the tasks of the employees, core for performance of which accounts of 40%, 30% and 30% respectively is (the highest score score the total and 10 points), will be monitored each month. Through reviewed and decomposition indicator whole-course management, the to is conducive the program various smooth fulfillment of objectives. Alpha Wolf Program Wolf Alpha Wolf “Alpha The Program” manager the general targets of city- or project-oriented of the director companies, functional departments of the headquarters as other as well have, We senior managers. with China in cooperation Business International Europe implemented School, learning modes diversified stages of the the five across one-year program. Learning and growth program external personalized provides company The outstanding managers and employees. for training Capacity building program entitled are Outstanding managers and employees participate projectsto of the training in the brand company. ----- Participant of green wolf project in 2014 wolf project in green of Participant ----- Ivy Program junior for project training a As personnel from management various departments of the “Ivy Program” the company, eight has been held for 2006, recording times since out of 357 258 graduates participants and injecting the medium- blood into fresh management. level The families of 2013 “Best Manager” and “Three Self’s” “Three Self’s” and “Best Manager” of 2013 families The the year-end awarding to invited were laureates the honors. share ceremonyto Honor sharing Hall of Fame Family vacation program The column of “Hall of Fame” was launched at the official launched at was “Hall of Fame” of column The “Best Manager”, the charm of showcase to website laureates. of Merit” “Award and “Three-self’s” Outstanding managers and employees are entitled entitled are Outstanding managers and employees fund. the family vacation to Comment Examination and Incentive Examination combination combination of theory and practice, the stimulation of proactive thinking, the reshaping ofmy ideology, the method by which management can provide constant support for and enhance the competitiveness of the company and the employees, and the translation of management into productive force and demographic dividend.” Green Wolf Program Wolf Green “Green The Wolf Program”, project initiated a training grassroots in 2014 for has personnel, management transition the role facilitated of and skill improvement managers. newly promoted first session of the The successfully was program registering held in August, out of 39 35 graduates participants. “More than a tool for knowledge transfer, the training program, I believe, has benefited me in the In the hope of giving full scope to the talents, we have constantly rationalized the employee the employee rationalized constantly have we the talents, to In full scope the hope of giving to program” “4.3.3 examination set in motion the In mechanism. examination 2014, we thus effectively each month, tasks of our employees the performance core review of three various of goals and undertakings. the fulfillment promoting support mechanism in and the incentive of the promotion improved constantly have We Besides, performance attainment, and potential. based on employees’ system compensation development) career and work life, of respect (in non-monetary provided incentives have we outstanding employees. for Zero-distance communication with leaders Zero-distance communication Practice class at the headquarters class at Practice Talent Training Talent Specialized training camp training Specialized Strict military training For managerial talents For specialized talents For new hires With the aim of cultivating specialists and technical talents, we have launched the “up-the “up-the launched the have we talents, specialists and technical the aim of cultivating With their disciplinary enhance rapidly knowledge help our employees to and ladder program” practice Classroom, China Merchants camp, training the specialized skills, featuring technical course. the headquarters,class at and skill improvement With different training projects for employees at different rungs of the management ladder, ladder, rungs of the management at different for employees projects training different With leadership and bring up outstanding managerial talents employees’ improve aim to we learning modes. diversified through We have developed the “new voyage program”for fresh graduates and a training project for project for and a training graduates fresh program”for voyage “new the developed have We as quickly new working the as possible. help them adapt to environment to new hires immersion learning + job practice + advisor total “centralized Based on the mode of to is intended one year which lasts for program new voyage the customized guidance”, reserve and constantly employees to students from the transition over resilience facilitate of 85 fresh a total enrolled In 2014, the program company. the for cubs” “wolf and cultivate their career. injecting into an adrenaline graduates, 60 2014 CMPD CSR REPORT2014 CMPD

Enhancing Employees’ Motiation 63 2014 CMPD CSR REPORT2014 CMPD ------Wed-in Wed-in participant ------Family Family Day participant ------What is your impression about China Merchants’ employees? Merchants’ about China impression is your What reminded me my ear,it When the brand CMPD first came across China Geng, Yuan Group, of such big names as China Merchants Bank and ShekouMerchants CMPD is the most Industrial Zone. The and most trustworthy industry. estate admired brand in the real has put a crimp on the heart“Home is where is”, corporate culture, kept concerned, project our are as we as far and, turnover employee In unchanged. of addition, CMPD is a learningteam organization a management book every read to managers are senior which many real out from these two characteristics, CMPD has stood With week. companies. estate or ideal think is the mature do you what of Internet, In the era of CMPD? state integration. industry estate resource the real I believe for is a platform and advanced managerial the innovation CMPD should assimilate expertise of industry ahead of industrial benchmarks stay so as to up-market medium- to and attractive to trends consumers. Chief Advisor at Gallup with ten years’ experience in the US, involved in CMPD’s customer customer in CMPD’s in the US, involved experience Gallupyears’ at with ten Chief Advisor survey one engagement for and employee years satisfaction consecutive survey eight for year. Interview Stakeholder Stakeholder Comment WU Tao “The wed-in has indeed brought me many surprises. The romantic activities coupled with first-rate wedding wedding activities with first-rate romantic coupled The surprises. “The me many indeed brought has wed-in and love of the attentive I am fully aware modest expectations. my party and dinner far exceeded reception have the company.” of warmth who husband as a designer looked on my I Previously activity. such a great CMPD for thanks to “Many sense a better visit which givesme today’s by relieved I am totally However, overtime. work need to occasionally to CMPD.” off Hats dear. my done, Well families. more houses for better designing of CMPD and his mission of Case Study Case “Homes of Employees” at Grassroots Companies Grassroots at of Employees” “Homes RMB 12.677 invested have we & cheerful in work “happy in life”, of the ideology Following companies. 18 grassroots at “homes of employees” million in setting up the company, in line with the characteristics of the specific is designed Each home of employees star or the imagination-inspiring dance, yoga for mirror or the tree”, “mood featuringthe spend edify tastes, hobbies, todevelop of choice places are homes of employees map…The employee for Oftentimes as the venue chosen they are some qualityor take exercise. time the learning and discussions can be conducted and seminars so that in a casual training atmosphere. Wed-in China Merchants cookingChina Merchants competition Talent Romance bond Family Family Passion waking up early every morning. every waking up early Balancing Work and Life Work Balancing Helping Needy Employees Needy Helping If we have a happy workplace, we will look forward to to look will forward we workplace, a happy have If we Family Day Family Mini World Cup Based on the corporate culture, “Home is where the heart is”, the trade union of the the trade the heart“Home is where is”, culture, Based on the corporate as a Association headquarters Care has taken the lead in establishing the Employee and jointly cohesion corporate enhance needy employees, help out to humanistic platform a harmonious family. into build the company fund of RMB relief 1,600 members and raised had 2014, the association November of As injuriesor death, accidental fallen seriously ill or suffered members who have 330,000 for man- calamities, natural due to circumstances living in straitened families members’ and for made misfortunes or other incidents. have we balance, health and work-life and mental physical emphasis on employees’ Placing them and surround life colorfulorganized enrichactivities employees’ basis to on a regular of family. and affection with the warmth Consistently putting employees first and stressing harmonious management, we have been we have harmonious management, first and stressing putting employees Consistently and a variety a of sports care engaged in employee activities, create striving and cultural to & cheerful in work happy be to in life. cozy employees workplace for Caring for Employees for Caring

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Enhancing Employees’ Motiation 65 million 2014 CMPD CSR REPORT2014 CMPD 3 RMB for the Dream Center the Dream for Fund-raising by I·walk I·walk by Fund-raising million welfare activities welfare 10.3 Investments in social Investments Three Decades of Social Three Contribution projects 11 Public welfare welfare Public Over the past three decades, we have been looking for the breakthrough been looking the breakthrough for have we decades, Over the past three and livelihood people’s heed to paying with society, grow to points conducted unique brand have We social welfare. to contributing and healthy education cultural children, activities for in respect of care and societywarmth of family to the effortsto spreading devoting life, groups. vulnerable more Assuming the responsibility of a time-honored the responsibility Assuming and brand social progress promoting constantly Supporting People’s Livelihood Supporting People’s Welfare Public Micro Advocating Health of Children Care and Education Support Cultural for • • • • • • • • PROMOTING SOCIAL SOCIAL PROMOTING HAPPINESS social 64 2014 CMPD CSR REPORT2014 CMPD

Promoting Social Happiness 67 2 2 2 m m m commercial housing commercial under construction 2014 CMPD CSR REPORT2014 CMPD Area of pre-fabArea housing Area of completed affordable affordable completed of Area Designed construction area constructionDesigned area of old city renovation project of old city renovation 193,000 565,000 336,000 . 2 , brought , brought 2 , equivalent , equivalent 2 Public Welfare Housing Projects Housing Welfare Public Jinxiu Garden: the most beautiful affordable housing in Shenzhen In 2014, the pre-fab housing under construction registered an area of 565,000 m In an area 2014, the pre-fab construction housing under registered In 2014, the old city renovation project, which aims to promote reinvigoration of the old city reinvigoration promote project, which aims to In 2014, the old city renovation In 2014, the completed affordable commercial housing,with an area of 193,000 m an area housing,with commercial affordable In 2014, the completed • • • • • • Case Study Case benefit to 2,679 households. benefit and restructuring of the new city, recorded a designed construction area of 336,000 m construction a designed area recorded and restructuring of the new city, ofnew apartments 7,922 households. for Green Garden: Most Beautiful Affordable Housing in Shenzhen Housing in Garden: Most BeautifulGreen Affordable has embarked CMPD time, the present stubbornly high at are the housing prices Since and medium- the living challenges of low- resolve to help housing projects on affordable at 2014 marked the delivery which is located Garden year The of Green families. income Guanlan Sub-district, New District.Dashuikeng Community, Longguan Bordering Longhua Xikeng Reservoir on the east, on the north Green Expressway on the west, and hilly areas beautiful “most a picturesque scenery by as the is surrounded Garden and honored housing in Shenzhen”. affordable Sharing weal and woe with the city, we have been committed to old city renovation, pre-fab old city to renovation, been committed have we city, with the and woe Sharing weal been engaged in a have we Moreover, projects. estate sectorhousing and other public real cozy a living environment to create housing projects so as commercial number of affordable families. more for After construction Spacious house with country flavor new village office Brand road Neat Before construction Participating in “Happy Town” Project Town” “Happy in Participating Elderly woman’s cottage next a pig pen cottage to Elderly woman’s office village Dilapidated road Bumpy Echoing the national policies, we have unleashed the advantages of our specialties and of our specialties unleashed the advantages have we policies, the national Echoing participated and poverty projects in such renovation old city as indemnificatory housing, families. and medium-income of low- conditions living the better to contributing alleviation, villagers’ improve to project is intended Town" "Happy Yinlong Weining in 2011, the Initiated as community support and tourism as well agro/eco-tourism develop living conditions, and in turn build a well-managed, structure, economic the collective remodel facilities, ecosystem. industries and a compound with upgraded town sustainable happy of our specialties and taken unleashed the advantages have we years, Over the past three the project successfully has been Today, planning and construction. town of happy charge new look. and a brand infrastructures a As with upgraded adorning the town completed, start to returned businesses. their own have workers a number of migrant result, Supporting People’s Livelihood Supporting People’s 66 2014 CMPD CSR REPORT2014 CMPD

Promoting Social Happiness 69 2014 CMPD CSR REPORT2014 CMPD Video Extended Reading Asia-Pacific business school desert competition http://v.youku.com/v_show/id_ XODgyNjEwNzMy.html is a social welfare Dream Center The China by jointly promoted project Charitable Foundation Merchants Charitable and Shanghai Adream systematic Through Foundation. products of social welfare provision helped children have and services, we and of areas rural remote from the outer explore to workers migrant up new possibilities for world,opened and in turn ameliorated their lives, in China. educationalimbalance Mission completed Center Dream class of the Lively XIAO Li (alias), a student at Chongqing Youyang Sunshine Primary School Youyang at Chongqing a student XIAO Li (alias), ------Comment Asia-Pacific Business School DesertCompetition Asia-Pacific Center Dream Trekking through the desert sun through under the scorching Trekking SHANG Wenjie, a pop singer, was teaching at China’s China’s at teaching was a pop singer, Wenjie, SHANG Center” “Music Dream first always encourage us with smiles on their faces.” “At the Dream Center Classroom, our teachers never scold us. No matter whether our answers are correct or not, they “At the Dream Center Classroom, our teachers never scold us. No matter whether our answers are correct or not, The iWalk pedometer app has also found application for the 3rd Asia-Pacific business school business school Asia-Pacific the 3rd for application app has also found pedometer iWalk The is competition The title sponsor. desert in 2014 with CMPD as the exclusive competition business schools in the Asia-Pacific top from MBA teams for event experience a cultural in an effort the desert to identify days traverse in three expected to are Contestants region. and persistence teamwork, protection, “environmental of the ideology and implement surmounted contestants qualified of 545 a total competition, In year’s last responsibility”. making the 70kmstep-equivalent completed a race, difficulties and numerous donation of Sichuan Honghe Multimedia Classroom Center the Dream fund for social welfare the to Primary School. In 2014, a social welfare campaign entitled “Three decades, 30 Dream Centers” was jointly jointly was “Three Centers” 30 Dream decades, entitled campaign In 2014, a social welfare CMPD of December, As Charitable Foundation. CMPD and Shanghai Adream by initiated in Centers had built 30 Dream with the foundation, Ribbon in cooperation team, Green helping 26,228 Jiangsu etc., , Liaoning, Hubei, Chongqing, Sichuan, Guizhou, dignity and fun. with confidence, grow to areas rural from children 3.No. of walk calculated by APP by calculated of walk 3.No. 2.Daily walk people million million for the Dream

3 25,000 and China and raised public welfare fund of RMB Center ， The The campaign has attracted the participation of from 14 cities, 4.1,000 steps are equivalent equivalent are 4.1,000 steps of RMB 1 Charitable Merchants for will pay Foundation build Dream the money to children for classroom Center school. in mountain 1.Download I·walk APP I·walk 1.Download I·walk I·walk is a mass-participation fitness campaign jointly launched by CMPD, CMB and China is a mass-participationby CMPD, I·walk launched jointly fitness campaign we app, pedometer of iWalk the introduction Through Charitable Foundation. Merchants a and provided lifestyle, healthy green, promoted married with fitness, donation have love. spread to platform convenient As the name suggests, “micro public welfare” means the every that bit of contribution public welfare” “micro the name suggests, As engaged in establishing innovative proactively are the public good.We into will snowball life,thus and our daily communities in cities, welfare the seeds of social sow to platforms society. a better to our mites contributing based on an Internet have, we During the 30th anniversary of CMPD, of the founding by generated energy The pedometer”app. “I·walk outthe innovative rolled mindset, welfare “social the into converted will be correspondingly the app, by calculated walking,as Shanghai by - executed Charitable Foundation of China Merchants a donation fund”as construction the of for areas schools in mountainous - to Charitable Foundation Adream 33 8,000 subscribers from app had over of the end of 2014, the As classrooms. Center Dream countries. as nine foreign and municipalities as well provinces regions, autonomous Advocating Micro Public Welfare Public Micro Advocating Video I·walk http://v.youku.com/v_show/id_ XODgyNjAwMzU2.html 68 2014 CMPD CSR REPORT2014 CMPD

Promoting Social Happiness 71 2014 CMPD CSR REPORT2014 CMPD Extended Reading The Farewell Roundworms Program Program Roundworms Farewell The China by subsidized is exclusively and Charitable Foundation Merchants Ribbon the Green team by executed Propertyof China Merchants (Tianjin) In spring and autumn, the Ltd. Co., for treatment collective gave team infections in batches roundworm health knowledge and spread of Haidong and several tocitizens thousand primary school students poverty-ridden,from drought-hit in Minhe Hui and mountainous areas Qinghai. County, Autonomous Tu

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Subscription Roundworms" "Farewell signing Contract Contract Children taking drugs Children anti-parasitic In 2014, the Green Ribbon team of China Merchants Property (Tianjin) Co., Ltd. went all the went Property RibbonIn (Tianjin) Ltd. of China Merchants team 2014, the Green Co., dole out Qinghai to County, Autonomous Tu Gansu and Minhe Lanzhou, to Hui and way sports books, and packages, equipment stationery, breakfast healthy drugs, anti-parasitic has team the volunteer Over the past year, areas. schools in mountainous to other materials 88 schools. from 11,310 children reached We have developed a rigorous management scheme to ensure Public welfare resources can resources welfare Public ensure scheme to management a rigorous developed have We is open, transparent distribution process entire The needy places. to distributed be rationally and subject public scrutiny. to Tang Lei, a pop singer, was teaching children to to children teaching was a pop singer, Lei, Tang “lilac”) sing Ding Xiang Hua (literally “Spreading the Warmth” Program Warmth” the “Spreading “Love package” receivers package” “Love Playing with children on the snowfield with children Playing In 2014, the “Spreading The Warmth” program, jointly launched by CMPD and China Social launched by jointly program, Warmth” The “Spreading In 2014, the to 25 cities in China. During benefit the program, brought (CSWF), Foundation Welfare students to packages” “love send ten in the name of each new propertyCMPD will, owner, RMB 2.274 million for has raised the program Over year, the past areas. mountainous from 121 village schools. from 19,000 children The nutrition and health of children from resource-limited, poverty-stricken areas is a matter poverty-stricken is a matter resource-limited, areas from nutrition and health of children The mountainous from of children status on the development Based us. to concern of great “farewell, the warmth”, “spreading in such activities been engaged as have we areas, and wellbeing. the sake of their health for communities” lunch to “free and roundworms” Paying Heed to Children’s Health Children’s to Heed Paying Video Extended Reading Public Public welfare campaigns of the year - Spreading the warmth http://v.youku.com/v_show/id_ XNzIzNzk0NDgw.html The “Spreading The Warmth” program program Warmth” The “Spreading The Deng launched by Fei program, Lunch of Free and other volunteers an independent became Foundation, of CSWF on Oct. project social welfare it is committed present, 2012. At 23rd, mountainous from students helping to obtain fundamental to areas learning and living for better materials growth. and healthy 70 2014 CMPD CSR REPORT2014 CMPD

Promoting Social Happiness 73 2014 CMPD CSR REPORT2014 CMPD 2014 College Art Week “Creativity Show Time” Show “Creativity Week Art2014 College You started cooperation with CMPD as early as the social welfare social as the welfare with CMPD as early started cooperation You please you Could communities”. lunch to “free entitled program us the story?tell of 2011, CMPD Shekou City Garden During the Mid-Autumn Festival held an eight-day charityCenter bazaar and raised nearly RMB 80,000. “free the volunteers, Lunch with the support of CMPD and Free Later, a number of charity also organized program communities” lunch to as volunteers. property involved bazaars with many and children owners program the warmth” “spreading CMPD has engaged itself in the opinion? is your What this year. the engagement of such a socially for grateful cannot be more We It hope that both is my as CMPD. company estate real responsible the from children more to the warmth” “spread to sides can endeavor people and more is limited,so individual strength all, After rural area. a better andcontribute to in the program enterprises should get involved society. Director of Journalist Department, Phoenix Weekly, renowned as the “King of Social Welfare Welfare “King of Social as the renowned Weekly, of JournalistDirector Department, Phoenix lunch “free supported 2011, CMPD has frequently him in the in China. Since Campaigns” the “spreading on the In together sides worked 2014, the two program. communities” to program. warmth” Maker Faire - the world’s largest largest - the world’s Maker Faire festival and DIY technology creative Interview Stakeholder Stakeholder Spurring the Development of Creative Culture of Creative Development Spurring the DENG Fei Creativity is the source of charm and vitality. Through a series of activities, we have provided provided have a series of activities, we Through of charm vitality. and is the source Creativity the public, to experience creative brought population, the creative for a sharing platform culture. of creative the development andspurred CMPD Creative Festival CMPD Creative Boys and girls focused on the games focused and girls Boys Game analysis via a large Go board Game via a large analysis Popularizing the Go Culture Popularizing Launch ceremony of the National Children’s Go Tournament Go Children’s of the National Launch ceremony Duel between Chinese and Korean masters of Go masters Duel Chinese and Korean between The “CMPD Cup” National Children’s Go Tournamentserves as a platform to popularize the popularize to as a platform Tournamentserves Go Children’s National Cup” “CMPD The their talents. showcase Go-loving to children and for generation game among the younger 16 from In the participation attracted 3,000 contestants 2014, the 4th tournament of over of its kind standing out among competitions of host cities. of the influence in terms cities, We have inherited the cultural heritage of a time-honored brand, laid stress on the influence influence on the heritage of a time-honored the cultural laid stress inherited brand, have We driver as a major development cultural to and referred on people, exercises which culture and the inheritance promoted have a series of activities, we Through of social progress. and rendered industries, of creative the development spurred of Gopopularization culture, support undertakings. and educational cultural to moral social harmony, of the game of Go (personal friendship, advantages the five Given the to of Go the popularization hope that culture and longevity),we epiphany integrity, social progress. to will contribute generation younger and Card CMPD and the Board launched by jointly Tournament, Team Go China-Korea The of Sport administration of the General held in 2011, has been Center Games Administrative let more In to staged in Hangzhou. order was the 4th tournament Last year, times. four for a at Go board via a large a game analysis organized we people understand the game of Go, human beings acted and the plaza as the stones famed business plaza in Hangzhou where the duel between Meanwhile, game analysis. to traditional as opposed flooring as the board host of visitors. toa broadcast live leaders was team Chinese and Korean Supporting Cultural Education Supporting Cultural 72 2014 CMPD CSR REPORT2014 CMPD

Promoting Social Happiness 75 2014 CMPD CSR REPORT2014 CMPD Real Estate Chamber of Commerce Chamber Real Estate NIE Meisheng, Founding President of China of China President Founding NIE Meisheng, YIN Gefei, Vice Director of China WTO Tribune WTO Director of China Vice Gefei, YIN ------The CSR report shows the gratifying fact that CMPD has grown into a powerfully- into fact CMPD has grown that CSR reportgratifying the The shows who just turned 30 in 2014. citizen sharp-eyed, responsible built, far-sighted the report phased CSR practice, and culture strategies, CMPD’s to a window As and rich contents data, full and accurate structure, logical boasts an explicit the integration In particular, development. corporate running the gamut of service chain supply mobile Internet in the era, revamp architecture, of green issues and other hot-button mass-participationmanagement, in social welfare and depth of the the breadth increases sustainable development regarding and innovation, advances, CMPD’s report fully manifest as to such an extent to building a green by social progress promote “To in meritorious achievements the well-designed report Besides, written was a global lens. through homeland” with colorful warm style and interspersed cases and such in an accessible, a readers giving “comment”, and interview” “stakeholder modules as interesting walks with all candid communication to commitment CMPD’s to seat row front caring and harmonious a more homes and creating “building cozier and of life be the detailed it would improvement, for room If is any there society”. of performancecomparison international with industrial peers and advanced In short, be a first-class to company. of its determination as a showcase enterprises the report by as evinced has filled me the capability development of sustainable future. in CMPD’s with confidence The CMPD CSR Report 2014 is a vow on stakeholder engagement, a panorama CMPD CSR Report a panorama The engagement, on stakeholder 2014 is a vow by social progress promote “To of and an elaboration industry, estate of real aspects: It First, stand out in the following manages to homeland”. building a green of of the requirements reference With standards. with international compliance “leading Sustainability the perspectives of Reporting from it has, Guidelines (G4), “enhancing value”, economic “creating trust”, “building customers’ habitat”, green introduced systematically social happiness”, “promoting and motivation” employees’ practices and achievements as corresponding ideology of CSR as well CMPD’s of the It a detailed account issues. has given material Second, the past year. over about such key and verse issues and gone on chapter of material selection process buildings”, of green the development “promoting as of industrial interest topics “information and of projects” and control management process “enhancing the striking indicating characteristics of CSR performance services”, communication appraisal”. your practice, “our the reporting mode of Third, company. estate a real by of of the appraisal concentrations presents interview” “stakeholder module of The property and partners, owners implying CMPD’s CSR performance investors, from expectationsconcerns. and stakeholders’ earnest and respect for to activeresponse Third-party Appraisal 2 2 2 Objectives of 2015 Beijing engaged in such projects as indemnificatory housing, old city renovation and Beijing engaged in such projectsrenovation old city as indemnificatory housing, livelihood poverty support to alleviation people’s and enhancing of local communities, development economic promote to Continuing of 8.8% rate localization with a procurement localization, and procurement employment of employees engagement and calling for campaigns, social welfare organizing Proactively 6.67 million; fund input: RMB 17; social welfare campaigns: Estimated as volunteers. activities: 1,100 hours of volunteer duration Deepening government cooperation, optimizing industrial layout, and boosting local optimizing industrial layout, cooperation, Deepening government economy and control, internal compliance-based strengthening promoting operation, Consistently corruption sparingcombat no effortto responsible building a Extending supply chain management, the ideology of CSR to industrial and development interaction supply chain, and promoting and workable a livable living creating estate, real green developing Constantly office and green operation of green the ideology implementing and environment, conservation of energy and emission the fulfillment for Reducing carbon footprint reduction targets green benchmark five and developing get LEED certificationfor 14 projects, Striving to projects building projects: 1.86 million m green of completed Area needs customers’ and satisfying quality the system, management improving Constantly offerings with premium of new constructions: 5.75 million m projects: 45; area New investment 88 points 100%; result: measurement: of on-site Coverage 2014 from points satisfaction: up four Customer up 9.3% y-o-y 85 points, result: examination Construction safety projects indemnificatory including real estate public sector housing Being five engaged in of 352,000 m with an area housing, and low-rent manner, and tangible in an orderly management corporate democratic Promoting level a diversified, and providing rights and interests, legitimate employees’ safeguarding field playing the performance examining of training, scheme, management the training Streamlining and optimizing the incentive-constraint mechanism concerned passion and romance, the perspectives of family bond, from care Enhancing employee and life work and balancing employees’ talent, and 210 local laborers graduates 230, including 50 fresh New hires: RMB capital input: hours per employee; 45 90%; duration: training: of employee Coverage 24 million • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • trust value social Leading Leading Building Creating Creating economic economic happiness customers’ customers’ Enhancing Promoting Promoting motivation employees’ employees’ green habitat green Responsibilities Despite the considerable uncertainties in 2015, the real estate market, on the whole, will will market, on the whole, uncertainties estate the considerable Despite the real in 2015, consistently we will context, directions. In such a in different steadily grow to continue new industry estate in China’s real and position ourselves guidelines for the national follow out new development will work we blueprint, In line with our strategic of reform. wave and keep enhancing our opportunities, tasks, various to do justice seek new growth modes, development, urban economic to contributions make greater striving to competence, core and social harmony. amelioration environmental Outlook 74 2014 CMPD CSR REPORT2014 CMPD

End of Report 77 2014 CMPD CSR REPORT2014 CMPD ：CHENG Ming Authorized person Date : 2015.3.9

:SONG Haining 2015.3.9 ： Suggest further improve social responsibility management system, make CSR work more make CSR work more system, management improve social responsibility Suggest further by which stated promise direction, and object, future developing faith, The position, idea, The report take “Home is where the heart is” as theme, reveal CMPD CSR idea, practice, CMPD CSR idea, practice, is where the heart is” as theme, reveal The report take “Home Suggest reveal the performance information more comprehensively, in order to improve the in order to improve the more comprehensively, Suggest reveal the performance information Suggest reveal more data information on climate change, supplier chain social responsibility change, supplier chain social responsibility Suggest reveal more data information on climate The activity outside information reveal; The revealed information is clear, easy-understand and available; is clear, The revealed information survey. Determining material aspects through stakeholder Suggestion for Improvement improvement suggestion on CSR practice we had following and evaluation, Through assurance and management: · organized and systematic; · report balance; · and contribution on CSR. management in order to reflect the effort Special Statement This statement excluding: · · Mengniu Company. Statement of Independence and Competence TUV NORD Group is the world’s leader in inspection, testing and verification, operating in more management includes which services providing and world the throughout countries than 70 systems and product certification; environmental, quality, social and ethical auditing and training; report assurance. environmental; social responsibility and sustainability TUV Asia Pacific Ltd. affirms its’ independence from Mengniu Company and confirms that there is no conflicts of interest with the organization or any of its subsidiaries and stakeholdersperforming when the assurance of the Report. TUV Asia Pacific Ltd. was not involved in any manner when the latter was preparing the report. with Mengniu Company, leader Team Date · · result and typical cases from 6 field, which is responsibility management, Leading green habitat, promoting enhancing employees motivation, economic value, creating trust, building customers social happiness. · Note: when there is a conflict between Chinese and English edition, please refer to the Chinese edition prevail . ） Refer to GRI Sustainability Reporting Guideline(G4) on balance, comparability, accuracy, accuracy, Refer to GRI Sustainability Reporting Guideline(G4) on balance, comparability, Assurance address is in No.3 Building, Nanhai E Cool Park, No.6 Xinghua Road, Shekou, E Cool Park, No.6 Xinghua Road, Shekou, Assurance address is in No.3 Building, Nanhai Review the document information which provide by CMPD; Review the document information which provide Interview the person who collected the report information; verify the data and information through sampling the relatedwebsites and media reports, View Assurance methodology; AA1000AS (2008) Refer to procedure. TUV NORD CSR report assurance management Assurance activity is based on We evaluate the collection, analysis, aggregation of the information and data. evaluate the collection, analysis, aggregation We Assurance Conclusion social & sustainability the of view objective and appropriate an provide Report CSR CMPD TUV NORD The data in report is reliable and objective, programs and performances in 2014. didn’t find the system error or substantial error.Which meets the disclosure requirement of G4 core option. Assurance Methodology Assurance process including following activities: · · · method; · and give the evaluation; reliability, timeliness, clarity, · · CMPD is responsible for the collection, analysis, aggregation and presentation of information aggregation and presentation of information CMPD is responsible for the collection, analysis, responsibility in performing this work (assurance of the report) is TUV NORD’s within the Report. in the scope of engagement in accordance with terms of reference agreed with CMPD. CMPD is the intended users of this statement. the data and information provided in the report that This statement is based on the assumption is complete and true. This report is the seventh CSR report for CMPD, and it’s the first assurance. CMPD to invite the third party give independent time for Assurance Scope and information key performance, for accuracy and reliability the revealed report The management system which happened in 2014. · And we didn’t The headquarter and Shenzhen Branch located there. Nanshan District, Shenzhen. of Projects. visit other branch, Subordinate units or the site · Assurance of the Report was done on 09-10.02.2015. Assurance Statement of Corporate Social Responsibility Report of Corporate Social Responsibility Assurance Statement China of management commissioned by the has been NORD’) (‘TUV Ltd. Asia Pacific TUV independent an out carry to short) for (‘CMPD’ Ltd Co., Development Property Merchants for short Report (‘report’ assurance of the 2014 Corporate Social Responsibility Assurance Statement Assurance 76 2014 CMPD CSR REPORT2014 CMPD

End of Report 79 2014 CMPD CSR REPORT2014 CMPD

645 2014 2014 2014 6.10 1178 2012 38.33 3.94 247 918 13.33 2012 2012 221.8 1092.0 7 253.0 350 62.5 7.09 59 530 957 8.74 2013 2013 2013 350 918 7.09 2012 2012 2012 (in RMB) (hour) Green Ribbon volunteers Green Social per share contribution training of employee Duration 2013 35.61 3.97 283 957 14.62 2013 2013 400.0 1340.4 10 325 .7 530 77.9 8.74 20 11 2014 2014 2014 80.6 4.26 2014 34.9 4.26 307 1178 17.39 2014 2014 1030.0 1516.9 11 433.9 645 80.6 6.10 71 10 3.97 77.9 2013 2013 2013 7 62.5 2012 2012 2012 3.94 Social welfare projects Social welfare Tax contribution Tax (in RMB 100 million) satisfaction Employee (point) 2014 2014 2014 34.9 433.9 1030.0 2013 2013 2013 35.61 400.0 325 .7 Performance indicator Performance Female employees (%) employees Female Employee satisfaction (point) Employee Promoted employees Promoted Duration of employee training (hour) training of employee Duration Employee turnover (%) turnover Employee 2012 2012 2012 221.8 253.0 38.33 ） Performance indicator Performance Performance indicator Performance Investments in social welfare campaigns (in RMB 10,000) (in RMB campaigns in social welfare Investments Total assets (in RMB 100 million) Total Social welfare projects Social welfare Operating revenue (in RMB 100 million) revenue Operating Green Ribbon volunteers Green Tax contribution (in RMB 100 million) contribution Tax Social contribution per share (in RMB) (in per share Social contribution Strategic partners in the countryStrategic % Inspiring Employees’ Motivation Inspiring Employees’ Social Happiness Promoting Creating Creating Value Economic (in RMB 10,000) (in RMB 100 million) Female employees employees Female in social Investments campaigns welfare Operating revenue Operating （ 2014 2014 27.27 2792.61 8 0 28.73 2012 2081.8 50.95 8 247.52 2012 1748.81 800 100 18.5 2013 2013 2000 ) ) 2 2 0 2012 2012 1748.81 (in 10,000 m (in 10,000 m Area of propertiesArea under management Area of three-starArea projects green 5 18.5 93.86 2013 3123.25 65.23 11 274.06 2013 2000 1000 100 2014 2014 2014 1800 87.37 155.4 12 27.27 155.4 2014 5104.3 87.37 13 365 2014 2792.61 1800 100 2013 2013 2013 1000 93.86 65.23 ) 2 ) 2 ) 800 2 2012 2012 2012 28.73 50.95 (in 10,000 tons) (in 10,000 m Customer care fund care Customer (in RMB 10,000) Area of completed green green of completed Area building projects consumption water overall Yearly products reduction of green ) 2 2 13 12 2014 2014 2014 5104.3 5 11 2013 2013 2013 3123.25 8 8 Performance indicator Performance of LEED certification as receivers Projects Area of completed green building projects 10,000 m (in green completed of Area Yearly overall power consumption reduction of green products (in reduction of green consumption power overall Yearly 10,000 kwh) Area of three-star of projects (in 10,000 m Area green Yearly overall water consumption reduction of green products (in reduction of green consumption water overall Yearly 10,000 tons) 2012 2012 2012 2081.8 Performance indicator Performance (in 10,000 households) housing customers residential Current Customer care fund (in RMB 10,000) care Customer Area of properties (in 10,000 m Area under management Projects delivered for evaluation (%) evaluation for delivered Projects Contract-based saleable area: 3.643 million m saleable area: Contract-based (in 10,000 kwh) Yearly overall power consumption consumption power overall Yearly products reduction of green Leading Green Habitat Green Leading (in 10,000 households) Current residential housing residential Current customers Projects as receivers of LEED of LEED receivers as Projects certification Data Building Customers’ Trust Building Customers’ 78 2014 CMPD CSR REPORT2014 CMPD

End of Report 81 2014 CMPD CSR REPORT2014 CMPD P24- 26 ， P25- 26 P25 P24- 26 ， ， ， P20- 21 P25 P25 ， ， ， Page P19 P29 P21 P19- 22 P21- 22 P19- 21 P29 P21 P22 or violation No environment-related irregularity during the reporting period P33- 34 P33- 34 or voluntary against regulations No violation the impact of products guidelines regarding and services on health and safety P35- 38 P36 P32- 36 or regulations against laws No violation or use of products the provision regarding and services P44 P44- 45,P52- 53 P44- 45,P52- 53 P47 P48 P48- 49 P49 P47 P47 P47 P56- 57 P56- 57 P56- 57 P59 P59- 61 P59- 61 P57- 58 P57- 58 P58 P58 P66- 73 Indicator No. DMA habitat green Leading G4- EN7 DMA G4- EN27 DMA Building customers’ trust G4- EN19 DMA G4- EN29 DMA G4- PR1 G4- PR2 DMA G4- PR5 DMA G4- PR9 G4- EC1 G4- EC7 G4- EC8 G4- SO8 DMA G4- EN33 G4- EC9 DMA G4- SO4 G4- SO5 DMA G4- LA1 G4- LA2 DMA G4- LA9 G4- LA10 G4- LA12 G4- LA13 G4- LA16 G4- HR4 G4- EC7 Specific Standard Disclosures Standard Specific Material Aspect Energy Energy Products and Services and Products Exhaust Gas Discharge Client Health and Safety Client Compliance Product and ServiceProduct Labeling Compliance Performance Economic Indirect Impacts Economic Suppliers’Environmental Assessment Suppliers’Environmental Procurement Anti-corruption Employment Training & education Training Diversity and Equal Opportunity and Equal Diversity Equal pay for men and women for pay Equal Mechanism for complaint about labor issues complaint Mechanism for Freedom of assembly and association and of assembly and association Freedom bargaining collective Indirect Impacts Economic Section Leading green green Leading habitat Building trust customers’ Creating Creating value economic Enhancing employees’ motivation Promoting Promoting social happiness P56 ， P80- 81 P44 P35 ， P46- 47 ， ， ， P9 P30 P24 P24 ， ， ， P76- 77 ， ， Page P2- 3 P2- 3 P6- 7 P6- 7 P6- 7 P6- 7 P6- 7 P6- 7 P6- 7 P56 P56- 58 P48- 49 P6- 7 P2- 3 P28 P28 P14- 15 P14- 15 P14- 15 P14- 15 P14- 15 P14- 15 P14- 15 P12- 13 P12- 13 P12- 13 P12- 13 P4 P4 P4 P82 P4 P76- 77 P10 P10 P12 P47 P47 General Standard Disclosures General Standard Section Message from General Manager, Three Decades of Development Three General Manager, Message from Message from General ManagerMessage from About us About About us About About us About About us About About us About About us About About Us, Building Customers’ Trust, Creating Economic Value, Enhancing Value, Economic Creating Trust, Building Customers’ Us, About Motivation Employees’ Opportunity Equal Motivation/ andDiversity Enhancing Employees’ Enhancing Employees’ Motivation/ Equal Opportunity Equal Motivation/ andDiversity Enhancing Employees’ Creating Economic Value/ Responsible Supply Chain Value/ Economic Creating About us About Message from General Manager, Leading Green Habitat/ Green Office, Building Office, Green Habitat/ Green Leading General Manager, Message from Services Home” “At Enriching Trust/ Customers’ Leading Green Habitat/ Jointly Building a Green Ecosphere Building a Green Jointly Habitat/ Green Leading Leading Green Habitat/ Jointly Building a Green Ecosphere Building a Green Jointly Habitat/ Green Leading CSR Management/ Materiality CSR Management/ Materiality CSR Management/ Materiality CSR Management/ Materiality CSR Management/ Materiality CSR Management/ Materiality CSR Management/ Materiality CSR Management/ Stakeholder Communication CSR Management/ Stakeholder CSR Management/ Stakeholder Communication CSR Management/ Stakeholder CSR Management/ Stakeholder Communication CSR Management/ Stakeholder CSR Management/ Stakeholder Communication CSR Management/ Stakeholder About this ReportAbout About this ReportAbout About this ReportAbout Feedback About this Report, Assurance Statement, Index this Report,About Statement, Assurance Statement Assurance About Us/ Corporate Governance Corporate Us/ About About Us/ Corporate Governance Corporate Us/ About CSR Management, Leading Green Habitat/ Green Office, Creating economic Creating Office, Green Habitat/ Green Leading CSR Management, Compliance value/ trustworthinessto organizational relating Affairs Reporting or illegal acts of immoral Indicator No. Strategy and Analysis Strategy G4- 1 G4- 2 Organizational Profile Organizational G4- 3 G4- 4 G4- 5 G4- 6 G4- 7 G4- 8 G4- 9 G4- 10 G4- 11 G4- 12 G4- 13 G4- 14 G4- 15 G4- 16 Identified Material Aspects Identified Material and Boundaries G4- 17 G4- 18 G4- 19 G4- 20 G4- 21 G4- 22 G4- 23 Stakeholder Engagement Stakeholder G4- 24 G4- 25 G4- 26 G4- 27 Report Profile G4- 28 G4- 29 G4- 30 G4- 31 G4- 32 G4- 33 Governance G4- 34 G4- 38 Ethics and IntegrityEthics G4- 56 G4- 57 G4- 58 GRI G4 Content Index GRI G4 Content Index 80 2014 CMPD CSR REPORT2014 CMPD

End of Report The CMPD CSR ReportThe on 2014 is printed It is suggested paper. environment-friendly the Report share you that with others after promote in an effortreading it, to finish you text The resources. of limited the recycling copyrighted. report the in are illustrations and collection or copying, unauthorized Any liability. will incur corresponding adaptation

Cut off along this line Good □ Poor Poor Very Very poor Very Very poor □ □ □ Very Very poor □ Poor Poor Very Very good Poor Poor □ Average Average □ □ Poor Poor □ □ Average Average Good Average Average □ □ □ Average Average □ Good Good □ □ Good Very Very good □ □ Very Very good Very Very good □ □ Very Very good □ Very Very poor □ Poor Poor □ Addr.: Building No.3, Nanhai E Cool Park, No.6 Xinghua Road, Shekou, Shekou, Xinghua Road, No.6 Park, Nanhai E Cool Building No.3, Addr.: Nanshan District, Shenzhen, Guangdong Province Tel:+86(0)755-26818600 Email: [email protected] http://www.cmpd.cn Website: +86(0)755-26819680 Fax: Average Average Very Very poor Feedback □ structure of the Report:3.The of the Report: layout 4.The of the Report: readability 5.The 1.Your overall impression of the Report: impression overall 1.Your Dear reader, unavoidable taking or omissions are the report. errors for time reading Since you Thank and suggestions so as to comments looking your are to forward we in report preparation, report. our improve constantly choice) of your (please tick in the box Multiple choice: □ in the report:contained information quality2.The of CSR-related Open-ended question: tasks? CSR-related CMPD’s suggestions for your are What 1. 2.In aspect what does the report need improvement? the report? learned from you have information kind3.What of CSR-related in the report? has not been covered information kind4.What of CSR-related 82 2014 CMPD CSR REPORT2014 CMPD

End of Report China Merchants Property Development Co., Ltd. Addr.: Building No.3, Nanhai E Cool Park, No.6 Xinghua Road, Shekou, Nanshan District, Shenzhen, Guangdong Province Tel.: +86(0)755-26818600 Fax: +86(0)755-26819680 Website: http://www.cmpd.cn Official WeChat Two- Official Microblog Two- dimensional Code of dimensional Code of CMPD CMPD