Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
Full Text of 2015 Semiannual Report
Announcement No.: [CMPD] 2015－064
Section One Important Notice, Contents and Interpretation
Important Notes:
Board of Directors, Board of Supervisors, Directors, Supervisors and Officers of the Company hereby guarantee the Report as truthful, accurate, complete, and free from any fault record, misleading statement or major omission and bear joint and several liabilities. The seventh interim meeting of the 7th BOD in 2015 reviewed and approved 2015 Semiannual Report and abstracts and all directors attended the meeting. The legal representative Sun Chengming, Chief Financial Director Wu Zhenqin and Manager of Finance Department Li Shifang hereby state that: the financial statements under the Report are authentic and complete. During the reporting period, the Company will not distribute any cash bonus, bonus shares or convert capital reserve to share capital. The Report is made in Chinese and English. In case of any discrepancy, the Chinese version shall prevail. The Report involves future plan and other forward-looking statements, and does not constitute substantial commitment for the investor against the Company. Investors shall be aware of investment risks. Contents
Section One Important Notice, Contents and Interpretation ...... 1 Section Two Company Profile ...... 3 Section Three Summary of Financial Data and Financial Index ...... 5 Section Four Directors' Report ...... 7 Section Five Important Events...... 30 Section Six Capital Changes and Shareholders' Information ...... 42 Section Seven Information about the Company's Directors, Supervisors, and Officers ...... 46 Mr. Liu Wei resigns his his position of vice-general manager of the Company as a result of job transfer...... 48 Section Eight Financial Report ...... 48 The semi-annual Financial Report of the Company has not been audited...... 48 Section Nine Contents of Reference Files ...... 209
1 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
Abbreviation and Interpretation
Unless otherwise stated, the meanings of following abbreviations in this report are as follows: Item means Interpretation
SASAC means State-owned Assets Supervision and Administration Commission of State Council CSRC means China Securities Regulatory Commission SSE means Shenzhen Stock Exchange The Company and Company means China Merchants Property Development Co., Ltd. China Merchants Group means China Merchants Group Co., Ltd. China Merchants Shekou means China Merchants Shekou Industrial Zone Holdings Co., Ltd. Dafeng International means Dafeng International Limited Liability Company Full Space Investment Limited means Full-space Investment Limited Co., Ltd. Zhangzhou Development Zone means China Merchants Zhangzhou Development Zone Co., Ltd. China Merchants (Shenzhen) means China Merchants (Shenzhen) Power Supply Co., Ltd. Power Supply China Merchants (Shenzhen) means China Merchants (Shenzhen) Property Development Co., Ltd. Property CMOCTPM means Shenzhen CMOCTPM Co., Ltd. CMPI means China Merchants Property Investment Co., Ltd. CMLL means China Merchants Land Limited
2 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
Section Two Company Profile
I. Company profile
Chinese name in full: 招商局地产控股股份有限公司 (Chinese name in short: 招商地产) English name in full: CHINA MERCHANTS PROPERTY DEVELOPMENT CO., LTD. (English name in short: CMPD_ Legal representative: Sun Chengming Stock Listing Exchange of the Company: SZSE, Secondary stock listing exchange of the Company: SGX Stock short name: ZSDC, ZSJB Stock code: 000024, 200024
II. Contact person and contact information
Secretary of the Board of Directors: Liu Ning Representatives for Securities Affairs of the Company: Chen Jiang Contact address: Building 3, Nanhaiyiku, No. 6, Xinghua Road, Shekou, Nanshan District, Shenzhen City Post code: 518067 Tel: 0755-26819600 Fax: 0755-26818666 E-mail: [email protected]
III. Others
1. Contact information
Registered address of the Company: Building 3, Nanhaiyiku No. 6, Xinghua Road, Shekou, Nanshan District, Shenzhen City Office address of the Company: Building 3, Nanhaiyiku, No. 6, Xinghua Road, Shekou, Nanshan District, Shenzhen City Post code: 518067 Website: http://www.cmpd.cn E-mail: [email protected]
2. Information disclosure and designated place
China Securities Journal, Securities Times, Shanghai Securities News, Securities Daily and Hong Kong Commercial Daily Internet website to disclose information selected by CSRC: http://www.cninfo.com.cn
3 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
Location to prepare and store annual report of the Company: secretariat of Board of Directors of the Company
3. Change of registration
1. Date of initial registration: September 19, 1990 2. Place of initial registration: Shenzhen 3. Registered Number of Business License of the Corporate Legal Entity: 440301503287841 4. Registered number for taxation: SSDZ 440300618845136 5. Organization code: 61884513-6 6. Changes of main business and previous dominant stockholders since company’s listing
The company’s predecessor is ―CHINA MERCHANTS SHEKOU PORT SERVICE CO., LTD.‖, mainly engaged in port business. On June 7, 1993, the Company’s A shares and B shares were traded on SSE.
From 1998 to 1999, the Company changed its own port-related assets with equity of China Merchants (Shenzhen) Property, China Merchants (Shenzhen) Power Supply, etc. under China Merchants Shekou, holding 70% of respective accumulative equity transferred from above companies.
On July 21, 2000, the Company changed its name to ―CHINA MERCHANTS SHEKOU HOLDINGS CO., LTD.‖
On July 13, 2001, the Company changed its own remaining port-related assets with 25% of equity of China Merchants (Shenzhen) Property, China Merchants (Shenzhen) Power Supply, etc. under China Merchants Shekou. On June 24, 2004, the Company changed its name to ―CHINA MERCHANTS PROPERTY DEVELOPMENT CO., LTD.‖, becoming a listed company mainly engaged in real estate development and management.
Since the Company’s listing, the dominant stockholders did not change.
4. Other relevant information
Accounting Firm appointed by the Company Name: Shinewing Certified Public Accountants (Special Ordinary Partnership) Address: 8/F, Block A. Fu Hua Mansion, No.8, Chaoyangmen Beidajie, Dongcheng District, Beijing Signed CPA: Guo Jinlong Wang Yaming
4 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
Section Three Summary of Financial Data and Financial Index
I. Main accounting data and financial index
No retroactive adjustment or restatement of accounting data for previous years due to change in accounting policies and correction of accounting errors Unit: yuan Increase or decrease Main Accounting Data Reporting period Amount of last year of the end of this reporting period compared with the Operating incomes 17,973,948,437.46 16,047,155,730.99 12.01 % same period of Net profits attributable to the listed company 2,145,502,164.69 1,785,434,748.85 previous year20.17 % shareholders Net profit attributable to shareholders of listed company after deducting non-recurring profits and 1,977,585,479.54 1,842,876,971.45 7.31 % losses Net cash flows from operating activities -7,361,095,087.22 -7,332,324,397.12 -0.39 %
Basic earnings per share (Yuan/share) 0.83 0.69 20.29 %
Diluted earnings per share (Yuan/share) 0.83 0.69 20.29 %
Weighted average rate of return on equity (％) 6.76 % 6.53 % Increased 0.23 percent
End of reporting Year-on-year increasepoint End of previous year period or decrease
Total assets 168,809,263,726.54 151,692,365,118.58 11.28 %
Net assets attributable to the listed company 32,777,691,121.78 31,094,416,110.82 5.41 % shareholders
II. Data differences due to differences in Chinese and overseas accounting standards
Unit: yuan
Net profits attributable to the listed company Net assets attributable to the listed company
shareholders shareholders End of reporting Reporting period Amount of last year End of previous year period
By International Financial 2,145,502,164.69 1,785,434,748.85 34,117,520,350.78 32,434,245,339.82 Reporting Standards By Chinese accounting 2,145,502,164.69 1,785,434,748.85 32,777,691,121.78 31,094,416,110.82 standard Difference between domestic and foreign - - 1,339,829,229.00 1,339,829,229.00 accounting standards Including: adjustment of - - 1,339,829,229.00 1,339,829,229.00 goodwill value
5 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
There is no deviation of net profit of listing Company’s shareholders calculated as per International Financial Reporting Standards and Chinese Accounting Standards. Main reasons for the adjustment of Description of Deviation the net profit of listing Company’s shareholders subject to International Financial Reporting Standards between Domestic and are: in accordance with Chinese Accounting Standards and relevant regulations, for equity investment Foreign difference caused by business merger of the same control, the capital reserve shall be adjusted, while the Accounting Standards goodwill against merger caused by International Financial Reporting Standards shall be separately listed as assets.
III Items and amount of extraordinary profit or loss
Unit: yuan
Amount from beginning of year to end Items of extraordinary profit or loss of reporting period
Losses and profits on disposal of non-current assets 141,917.96
Government subsidies 6,716,629.90
Profit or loss acquired by outward entrusted loan 6,562,957.96
Other non-operating incomes and expenditures except the foregoing items 3,147,300.31
Other profit or loss items recognized by CSRC 275,247,008.70
Affected amount of minority interest income -43,272,269.14
Affected amount of income taxes -80,626,860.54
Total 167,916,685.15
Note 1: the long-term equity investment after change in control of Shenzhen Overseas Chinese Town Co., Ltd. (OCT) by the Company is measured by fair value. The equity fair value was mainly inventory evaluation appreciation. From January to June 2014, based on the ratio of actual carried-forward inventory area in the total salable area of inventory to be carried forward on the date of control right change of OCT, the appreciation of long-term equity investment acknowledged by assessed appreciation subject to corresponding written off is RMB 16,539,852.23. Note 2: The Company acquired control over Beijing Guangying Residential Property Development Limited and consolidated the financial statements on May 01, 2015. Its identifiable net assets was measured as per the fair value by the Company on the date of control right change and the investment income of RMB 432,538,803 was included due to inventory evaluation appreciation. In May and June 2015, based on the ratio of actual carried-forward inventory area in the total salable area of inventory to be carried forward on the date of control right change, the inventory evaluation appreciation subject to corresponding written off is RMB 152,529,191.21. Due to control right change, other owners' equity in connection with the previously held equities transferred and included in the investment income is RMB 11,777,249.14.
6 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
Section Four Directors' Report
I. Summary
Analysis of market situation
In the first half of 2015, the economic operation in China is slow and stabilized, the policy environment of real estate market was further eased. In an overall trend of low opening and high going, the sales volume of commercial houses is RMB 3.4 trillion in the first half year with year-on -year growth of 10.0%. The favorable situation of the sales failed to fully reach the upstream development and investment links. In the first half year, RMB 4.4 trillion of development investment in real estate industry was completed in China, with the year-on-year growth of 4.6% and the rate of growth was slower.
From January to June, the new construction area for housing in China was 670 million m2 with the year-on-year growth of 15.8%, which meant that the real estate market was still at the de-stocking stage in the first half year. The inter-regional and inter-city differentiation is more obvious from the perspective of the quantity and price of sales of commercial housing. While sales in the first and second-tier core cities were quickly warming up, the de-stocking process of the third and fourth-tier cities was relatively slow due to high inventory level. In the first half year, as the value increasing of former Haishekou Free Trade Area fueled a high rebound of sales quantity and price of the overall real estate market in Shenzhen, a place with abundant reserves of the Company.
Generally, main real estate companies all kept sales high in the first half year. However, as the industry is more prudent on the manner of acquiring land resources before development, optimized asset-heavy strategy is adopted universally, and the asset- light strategy mode is being probed. With the tendency of "Mass Venturing and Innovation", lots of Internet companies focusing on exploiting new values of upstream and downstream industry chains in real estate industry are established, which further expand the way of thinking in transformation of traditional real estate companies.
Operating and management conditions of the Company
In the context of gradually recovering of national real estate market in the first half of 2015, the Company drove the improvement of marketing management through "Five Strong Steps", that is, strong steps to analyze customers' effective demands, to enhance user experience and creation, to construct marketing channel, to reform the marketing mechanism and to build marketing team. Moreover, through launching the first real estate mobile Internet, which is the first matrix member marketing service own-media platform in China, the Company made a firm step toward internal resources integration and Internet-based process to help effectively improve the overall marketing capacity and performance. During the reporting period, the Company accumulatively achieved a contracted sales area of 1,566,600 m2 with a year-on-year growth of 29.60 %; the contracted sales amount of RMB 20.56 billion with a year-on-year growth of 14.86 %.
7 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
With a structure of obvious inter-city differentiation, the Company focused on supplementing the project resources of strategically important cities with a moderate and prudent attitude for acquiring lands. During the reporting period, an area of 988,300 m2 in cities like Shanghai was supplemented as the project resources, wherein the interest area is 503,100 m2. Meanwhile, we are also actively tracking the high-quality projects in Shenzhen, Beijing, Guangzhou, Xiamen, etc.
In the respect of project management, the Company continued to perfect operational "lighting" guide to take lighting warm control from seven dimensions, i.e., progress, quality, safety, marketing , cost, customer service, efficiency and monitored the process of lighting,, which effectively improve the overall control ability of the projects.
During the reporting period, the Company continued to strengthen the implementation of product R&D and standardization, optimized standardization product line based on market demands and creatively put forward the product design concept of "Two Children House". The implementation of relevant standardization product in cities like Nanjing had been well received by our customers.
Under the complicated market situation, the Company vigorously developed direct financing channels, actively supplemented high quality capital resources and ensure to meet the capital demands of operating activities. Since the beginning of this year, the Company grasped the favorable time window of cutting bank reserve requirement ratio and lowering interest rate and successfully issued three-year medium-term notes in two tranches with a total amount of RMB 3 billion at an interest of 4.55% and 4.12% respectively. CMLL, a holding subsidiary of the Company, successfully issued the 290 billion dollars convertible bonds with a nominal annual interest rate of 0.5%, which further effectively lowered the cost of funds of the Company. In recent years, both the interest rate and exchange rate market greatly fluctuated due to the economic situation changes at home and abroad and the effect of policy adjustment of national currency and foreign exchanges. This puts forward higher requirements for reasonable matching between monetary assets and monetary liabilities of capital-intensive real estate companies and the Company will pay close attention to market changes and strengthen risk prevention.
During the reporting period, the Company further refined the business strategy of ―One Foundation, Two New Paths, Three Fertile Lands‖ and launched the decomposition of functional strategy, regional strategy, city company strategy and specialized subsidiary-strategy of the Company to form a headquarter to optimize the top design, create specialized platform and actually implement the risk management and control. The regional management headquarters should play a proper role in decision-making, strengthen the platform relay. All city companies should ensure a sustained growth in effective business and profits. All specialized subsidiary-strategies should reinforce the links of value chain and create complete strategy system where the value of asset-heavy business is increased by operation service. All companies will work together to promote the achievement of strategic targets of the Company.
During the reporting period, the Company mainly focused on retirement, medical treatment, culture, science and technology, consumption of imports, enhanced the study and practices of innovative business related to the above fields, actively developed strategic partners and promoted the model study and implementation of projects
8 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd. of the themed industrial parks, healthy aging life industry, mobile Internet smart cities, etc. Meanwhile, we also smoothly implemented the combination of industry and finance and the combination of industry and the Internet, realized the effective coincidence of real estate business and financial capital and accelerated the promotion and application the online service platform on the Internet, such as http://www.cmpmc.com/, Investment Fair, etc. Furthermore, the Company preliminarily established a risk investment system with the combination of industry and the Internet and strove to inject new vigor into strategic transformation of the Company.
In the face of transformation, in addition to self-thinking and efforts, China Merchants Group, the actual controller of the Company, launched consolidation of the Company with China Merchants Shekou, striving to build a broader platform combining the flagship company of real estate sector of China Merchants Group with core assets from the perspective of resources integration and coordinated development during the reporting period. We are now processing the related work in an orderly manner and will release the announcement and resume trading after performing the appropriate procedures.
The comprehensive strength and brand value of the Company has been widely recognized by the market. During the reporting period, the Company won the ―2015 TOP 10 Shanghai and Shenzhen Listed Real Estate Companies with Comprehensive Strength‖, ―TOP 10 Companies with Sound Finance‖, ―TOP 10 Companies with Wealth Creation Ability‖ and ―TOP 10 Companies with Investment Value‖ which was jointly evaluated and selected by the Enterprise Institute of Development Research Center of the State Council, Real Estate Institute of Tsinghua University and China Index Academy; ―2014 – 2015 Most Admirable Companies in China‖ that is evaluated and selected by the Economic Observer; ―2015 TOP 100 Companies with Capital Brand Value‖ that is jointly evaluated and selected by China Association for Public Companies, SIPF, Securities Association of China and Asset Management Association of China, ―2014 TOP 30 Real Estate Listed Companies in China‖ and ―TOP 100 Excellent Real Estate Companies in China‖ that is evaluated and selected by Guandian New Media, ―Gallup Global Most Devoted Organizations‖ that is evaluated and selected by Gallup Inc., ―2015 TOP 100 Companies with Capital Brand Value‖ that is evaluated and selected by China Center for Market Value Management, ―Golden Bee Companies‖ and ―Golden Bee • Sustainable Development Prize‖ that is evaluated and selected by WTO Economic Herald of the Ministry of Commerce and ―China Blue Chip Enterprise Award in Real Estate‖ that is the evaluated and selected by The Economic Observer. The operation and management performance of the Company is fully affirmed by the outside.
Operational environment forecast and business concepts of the Company
Currently, as the national economy is at a critical stage of adjusting structure and transferring mode, the pain of structure adjustment is still lasting. The new power can hardly offset the effect caused by the decrease of traditional power, so that the pressure of the economic downturn is high. In this context, a stable and wide policy environment of real estate market is basically established, which will promote the consistent and steady recovery of real estate market in the second half year.
The top priority of our work in the second half year is to strive to achieve the annual sales target. Based on the implementation of "Five Strong Steps" in marketing, the Company will ensure the improvement of the
9 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd. marketing capability of companies of all cities, continue to organize crossover marketing, take advantage of the resources integration force of "CM companies", thus helping to realize the sales target.
While high quality resources should be continuously obtained from multiple channels, the resources in strategically important cities, especially Shenzhen, Beijing and other key cities should be further effectively configured. Furthermore, the Company will steadily undertake overseas expansion and focus on countries and regions with great economic development potential and along the line of "One Belt and One Road".
Efforts will be made to realize new breakthrough in transformation development. The Company will continuously improve structural layout and major commercial project promotion of the first and second-tier cities and constantly promote the construction of asset-light platforms, such as operation service platform of parks and real estate fund management platform with combination of industry and finance. In addition, the Company will energetically develop the cooperation in real estate finance fields, explore the possibility and feasibility of securitization of remnant assets, vitalize remnant assets as soon as possible to improve efficiency of operation and management.
At the same time of carrying out normal production and operation, the Company will fully cooperate to promote the integration of the real estate sector of China Merchants Group, profoundly consider and develop development strategy and target for the new company to accelerate the realization of the integration effects of "1 + 1 > 2".
II. Analysis of main business
In the first half of 2015, the total operating income of the Company reached RMB 17.974 billion, and the net profit attributable to shareholders of listed companies was RMB 2.146 billion. In operating income, the sales income of real estate is RMB 16.448 billion with a carried-over area of 1,329,500 m2; the investment property rental income is RMB 542 million with a total rental area of 4,997,500 m2; the income of park power supply is RMB 306 million with the sale of 372,310,000 kWh. Property management income is RMB 428 million with property area of 23.01 million m² at the end of June.
III. Main business structures
Industrial division of main businesses Unit: RMB 10,000 Increase or Percentage decrease of increase or Year-to-year Gross the decrease of Operating increase/decrease By industry Operating costs profit operating gross incomes of the operating margin costs margin income compared over last to previous year year Real estate development 1,644,830 1,080,761 23 % 12 % 16 % -3 and sales
10 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
Rental property 54,179 27,177 44 % 19 % 19 % 3 management
Power supply in the park 30,607 24,009 21 % 3 % 3 % 0
Property management 42,838 40,036 1 % -8 % -4 % -3
Hotel management 17,490 19,503 -17 % 39 % 8 % 28
Real estate agency 5,056 4,317 9 % 117 % 38 % 74
Others 2,395 2,848 -44 % 70 % 40 % -8
Note 1: Due to the changes of carried-over distribution for real estate projects, the unit costs of the Company’s carried-over projects declined slightly in the first half of 2015, mainly including more carried-over projects with low land price. Meanwhile, due to may rigid demand projects, the unit sales price of carried-over projects also went down, and the carried-over average price declined faster than the unit cost, leading to the year-on-year decrease of the gross profit margin of real estate development and sales; Note 2: As the renting rate increased, the gross profit margin for rental of investment property rental had a year-on-year increase; Note 3: Due to the rapid growth of management costs, such as the labor costs of property management, the gross profit margin of property management went down; Note 4: Main business of hotels of the Company includes Hilton Nanhai Hotel, Beijing Conrad Hotel & Resorts, Haitao Hotel and Zhangzhou Meillen Health Resort. The occupancy rate of the above hotels needs to be improved. However, due to the higher pre-operating costs for hotels, the gross margin is negative, but the gross margin has been greatly improved year on year. The NCF (net cash flow) gradually becoming positive.
Regional division of main business Unit: RMB 10,000
Percentage increase or Year-to-year Year-to-year decrease of Operating Gross profit increase/decrease increase/decrease By regions Operating costs incomes margin (%) of the operating of the operating gross margin income (%) cost (%) over the same period of last year South China 796,888 438,850 31 % -22 % -28 % 1
North China 202,802 158,423 11 % 43 % 92 % -21
East China 561,164 421,595 17 % 132 % 119 % 5
Central China 236,541 179,783 16 % 20 % 14 % 3
Note 1: The gross margin is derived from income minus operating costs and business taxes and surcharges
Note 2: Because the gross margin of the rigid demand products for carried-over projects is low in north China, and the added value of amortization evaluation for Beijing Guangying Zhenyuan resulted in the decrease of the gross margin decrease of RMB 152 million, the gross margin declined greatly in north China.
Year-on-year changes of the main financial data
Unit: RMB 10,000
11 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
Increase and Items of financial December 31, June 30, 2015 decrease Main cause of changes liabilities 2014 (±%) Prepayment 231,925 361,919 -36 % Decrease of land prepayment
The increase of payable intercourse funds of Other receivables 1,309,421 894,186 46 % joint ventures and associated companies
Short-term loans 66,136 388,690 -83 % Payment of short-term debt
The increase of the payable project funds Notes payable 13,584 4,734 187 % settled with bills
The payment of employees’ salaries Payroll payable 22,855 39,875 -43 % un-accrued at the end of last year
Tax payable 137,932 313,369 -56 % The payment of unpaid taxes
Interests payable 30,595 19,214 59 % Increase of borrowings
Non-current liabilities due The increase of long-term bank loans due 879,100 597,010 47 % within one year within one year
Issuing the medium term notes and Bonds payable 542,823 301,808 80 % convertible bonds
The increasing payables by transferring the Long-term payables 357,506 10,435 3,326 % rights and interests of subsidiary companies
Deferred income tax The fair-value adjustment of assets by 43,387 3,582 1,111 % liabilities corporate merger January - June January - June Increase and Items of profit or loss Main cause of changes 2015 2014 decrease(±%) Financial expenses 45,574 32,610 40 % Year-on-year increase of interest expense
Assets impairment losses -122 89 -237 % The reversal of bad debt provision
The original holding shares shall be remeasured at the fair value on the date of Investment income 49,311 14,332 244 % the changes of control right of the newly-added subsidiary companies. January - June January - June Increase and Cash flow items Main cause of changes 2015 2014 decrease(±%) Sub-total of cash inflows Consolidation of newly-added subsidiaries' 69,561 2,059 3,278 % from investing activities cash at the beginning of period
Sub-total of cash outflows The increasing investment spending of joint 49,632 8,627 475 % from investing activities ventures and associated enterprises
The increased net cash of investment Net cash flows from 19,929 -6,568 403 % subsidiaries is greater than the increased investing activities investment spending
Sub-total of cash inflows 1,719,393 997,697 72 % The increase of bank loans and bonds from financing activities
12 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
Net cash flows from The year-on-year increase of bank loans and 791,331 173,756 355 % financing activities bonds are more than that of return loans
IV. Analysis of Core Competitiveness
1. Strong China Merchants and more collaboration
China Merchants Group owns a number of outstanding companies, including China Merchants Holdings (International) Co., Ltd., China Merchants Ships Co., Ltd., China Merchants Roads Co., Ltd., China Merchants Bank Co., Ltd., China Merchants Securities Co., Ltd., and China Merchants Capital for Direct Investment Fund Management Platform. In recent years, China Merchants Group, specialized in industrial and financial field, vigorously promotes the combination of industry and finance. Through the effective interaction between capital and industry, it gives play to synergy benefits so as to develop by leaps and bounds. On the base that the Group vigorously practiced the strategy of synergetic development and innovative development, the Company and counterparts strived to exploit the opportunity of synergetic cooperation. So far, a solid strategic cooperation alliance has been built in project cooperation, financial innovation, brand linkage, etc. In the future, the Company will further strengthen industrial and financial combination to realize the resource sharing win-win situation and mutual development.
2. First-class capability of urban development, upgrading and operation
Having been developed in Shekou for 30 years, China Merchants Shekou Industrial Zone has become an excellent domestic park operator by accumulating abundant experiences and capabilities in first-class development, operation and upgrading of parks. The experiences of "30 years and 30 cities" in property development and operation enable the CMPD y to become a leading company of comprehensive development of property. In effective combination with such experiences, the Company has become a top service supplier in urban development, upgrading and operation.
3. Abundant property assets and land resources of FTA and FTA policy on try prior to implementation
In December 2014, Qianhai & Shekou area was officially designated as Guangdong FTA. In July 2015, the Construction Implementation Plan on China (Guangdong) Pilot FTA was formally issued, proposing to give priority to developing the strategic emerging service industries such as finance, modern logistics, information service and technology service in Qianhai & Shekou area, and build an experimental and demonstrative window for Chinese financial industry open to the world, an important base of world service trade and an international hub port. As the largest main body of development and construction in the Qianhai & Shekou FTA, the Company and China Merchants Shekou possess plenty of business assets in Qianhai & Shekou, covering the office buildings, shopping malls, apartments, factories, etc. ensuring the possession of stable operation and management income, as well as the asset appreciation generated by the development of FTA. The Company will comply with the FTA policy advantage to reasonably plan the development pace of the plenty of land resources to be developed in the FTA (except as the properties which have been constructed) and industry development path, realizing the innovation and promotion of a multi-level value.
13 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
V. Analysis of Investment Situations
1. Foreign equity investment
(1) External investment
The Company holds 3,646,889,329 outstanding shares of China Merchants Land Limited(CMLL)(0978.HK), the holding subsidiary of the Company, without holding shares of other listed companies.
(2) Equity of financial enterprise held
Not applicable
(3) Security investment
Not applicable
2. Consigned financing, investment in derivatives and consignment loan
(1) Status of consigned financing
Not applicable
(2) Investment in derivatives
Not applicable
(3) Status of consignment loan
Not applicable
3. Utilization of raised fund
Within five years as of June 30, 2015, the Company has no fund-raising situations by publicly issuing shares.
4. Analysis of main subsidiaries and equity participation companies
Unit: RMB 10,000
Company Type of Industr Main Registere Total Net Operatin Operatin Net name enterpris y product or d capital assets assets g incomes g profit profit e service China Subsidiar Real Commercia 300,000 2,463,72 1,152,19 163,041 73,548 58,19 Merchants y estate l residential 6 7 4 (Shenzhen) building Property
14 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
Development Co., Ltd.
China Subsidiar Real Commercia 20,000 915,080 282,756 59,216 37,358 28,02 Merchants y estate l residential 1 Property building Investment Co., Ltd.
China Subsidiar Public Power 5,700 371,128 149,199 30,976 6,564 4,413 Merchants y utility supply in (Shenzhen) the park Power Supply Co., Ltd.
Shanghai Subsidiar Real Commercia 3,000 175,919 64,973 129,297 49,519 37,16 Fengyang Real y estate l residential 2 Estate building Development Co., Ltd.
Guangzhou Subsidiar Real Commercia 10,000 265,566 31,017 88,347 25,552 19,23 Wanshang Real y estate l residential 3 Estate Co., Ltd. building
Fujian Subsidiar Real Commercia 5,000 233,338 69,103 102,448 38,615 28,99 Zhonglianshen y estate l residential 3 g Real Estate building Co., Ltd.
China Subsidiar Real Commercia 20,000 1,030,88 94,585 62,277 29,572 22,27 Merchants y estate l residential 9 2 (Guangzhou) building Property Development Co., Ltd.
Beijing Subsidiar Real Commercia 1,515 436,204 22,250 72,473 23,102 17,46 Guangying y estate l residential 4 Residential building Property Development Limited
China Subsidiar Real Commercia 3,000 36,076 20,985 147,578 27,123 21,18 Merchants y estate l residential 5 (Suzhou) building Magnificent House Development
15 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
Co., Ltd.
Shanghai CM Subsidiar Real Commercia 3,000 52,228 20,997 72,090 18,209 13,66 Hongfa y estate l residential 6 Property Co., building Ltd.
5. Description of key projects not invested by the raised fund
(1) Equity investment During the reported period, there were 13 newly increased real estate project subsidiaries; the newly increased investment amount is RMB 971,360,000; the investment situations are as follows: Unit: RMB 10,000 Proportion of Actual Registered rights and Company name investment Business scope capital interests of amount the Company Xiamen Jinghucheng Real Estate Development 10,000 95 % 9,500 Real estate development Co., Ltd.
Beijing Guangying Residential Property 1,515 34 % 515 Real estate development Development Limited
China Merchants (Shanghai) Baoxin Property 6,000 51 % 3,060 Real estate development Co., Ltd.
China Merchants (Suzhou) Ruiying Property 40,000 51 % 20,400 Real estate development Development Co., Ltd.
China Merchants (Suzhou) Mancheng Property 3,000 100 % 3,000 Real estate development Development Co., Ltd.
China Merchants (Chongqing) Yicheng Property 2,700 100 % 2,700 Real estate development Development Co., Ltd.
China Merchants (Chengdu) Boshi Property 40,000 51 % 20,400 Real estate development Development Co., Ltd.
Shenzhen Zhaopingruisheng Investment 20,000 51 % 10,200 Investment in industry Holdings Co., Ltd.
Xiamen Zhaogang Real Estate Development Co., 1,000 60 % 600 Real estate development Ltd.
Foshan Evian Guanyuan Property Development 1,050 100 % 1,050 Real estate development Co., Ltd.
Nanjing Zhaopinglisheng Investment Co., Ltd. 10,000 51 % 5,100 Investment in industry
China Merchants (Nanjing) Zhaosheng Property 20,000 100 % 20,000 Real estate development Development Co., Ltd.
16 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
Tiansheng investment co., LTD USD 100 100 % 611 Investment in industry
(2) During the reported period, accumulated investments of major projects are as follows: Unit: RMB 10,000
Investment Accumulated Total planned amount input amount Project name investment during the as of the end Project progress Project earnings amount reporting of reporting period period Shenzhen Imperial Park 886,837 22,885 310,159 Main body construction Not yet carried over Phase I
Shenzhen Pingshan Garden 302,634 15,642 245,480 Main body construction Not yet carried over City
Zone I, II, IV and V have Gross margin in this period Shenzhen Yihai been completed and the 735,678 25,576 452,418 has reached RMB -178.87 City main body of Zone III and million VI is under construction.
Jingshan The Gross margin in this period Ninth in 292,370 4,515 231,625 Completed has reached RMB 514.29 Shenzhen million
Gross margin in this period Shenzhen Jinxiu 107,117 1,630 83,569 Completed has reached RMB 31.47 Kwun Town million
Phase-IV and Phase-VIII Gross margin in this period Guangzhou have been completed, and 398,447 15,918 377,007 has reached RMB 256.02 Jinshan Valley the main bodies of the rest million are under construction.
Phase-I has been completed; part of Phase-II Gross margin in this period Donghuicheng in 289,176 7,476 188,702 has been completed; the has reached RMB 258.75 Guangzhou main body of Phase-III is million under construction.
Foshan Park 1872 241,783 8,896 179,506 Main body construction Not yet carried over
Evian Riviera in 226,175 8,224 132,610 Main body construction Not yet carried over Foshan
Foshan Evian 199,561 7,068 120,097 Main body construction Not yet carried over Kingbay
Foshan Evian Main body construction of 135,468 6,871 63,624 Not yet carried over Mansion Phase-I
17 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
Evian International in 89,261 5,406 46,698 Main body construction Not yet carried over Foshan
Gross margin in this period Evian Buena Phase-I and Phase-II have 206,677 7,382 164,632 has reached RMB 12.49 Vista in Foshan been completed. million
Foshan Evian 205,315 6,108 82,840 Main body construction Not yet carried over Property Center
Phase-I has been completed; part of Phase-II Gross margin in this period Zhangzhou 349,353 17,870 189,537 has been completed; the has reached RMB 125.26 Cadaques main body of Phase-III is million under construction.
Gross margin in this period Xiamen Hyde 233,354 7,457 221,442 Completed has reached RMB 42.89 Park million
Phase-I and Phase-II have Gross margin in this period Xiamen Sea May been completed, and the 256,949 7,422 205,716 has reached RMB 383.75 Flower main body of Phase-III is million under construction.
Phase-I to Phase-III have Beijing Xicheng Gross margin in this period been completed, and the Homeland and 507,456 12,154 405,559 has reached RMB 13.6 main body of Phase-IV is Longyuan million under construction.
Gross margin in this period Beijing Park 1872 448,505 7,177 393,633 Completed has reached RMB 73.33 million
Phase-I has been Gross margin in this period Tianjin Beacon completed, and the main 512,700 23,435 295,737 has reached RMB -6.16 Hill body of Phase-II is under million construction.
Gross margin in this period Tianjin Diamond Phase-I to Phase-V have 359,494 9,141 338,331 has reached RMB 4.94 Hill been completed million
Phase-I has been Gross margin in this period Tianjin Evian completed, and the main 41,757 9,133 48,694 has reached RMB 24.52 County body of Phase-II is under million construction.
Beacon Hill in Main body construction of 975,539 11,794 304,133 Not yet carried over Harbin Phase-I and Phase -II
18 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
Phase-I has been Gross margin in this period Harbin Notting completed, and the main 311,787 15,676 180,329 has reached RMB -3.72 Hill body of Phase-II is under million construction.
Orchid Valley in 128,518 8,417 87,742 Main body construction Not yet carried over Dalian
Phase-I has been Gross margin in this period Qingdao Hyde completed, and the main 45,201 6,056 43,560 has reached RMB 34.07 Garden body of Phase-II is under million construction.
Phase-I has been Gross margin in this period Qingdao LAVIE completed, and the main 140,367 4,745 98,664 has reached RMB 7.87 Commune body of Phase-II is under million construction.
Maerbeila of 308,068 4,646 147,374 Main body construction Not yet carried over Yantai Merchants
Rizhao Leyden Main body construction of 493,351 9,918 193,880 Not yet carried over Town Phase-I
Gross margin in this period Head Garden in 187,254 12,491 122,094 Main body construction has reached RMB Shanghai 494,820,000
Phase-I and Phase-II have Shanghai Gross margin in this period been completed, and the Sheshan 308,041 10,871 289,854 has reached RMB -39.59 main body of Phase-III is Longyuan million under construction.
China Merchants Gross margin in this period Haiting in 166,326 7,322 160,019 Completed has reached RMB 530,000 Shanghai
Magnificent Gross margin in this period Times in 146,328 5,498 133,428 Completed has reached RMB 184.62 Shanghai million
Phase-I has been Suzhou Gross margin in this period completed, and the main Magnificent 148,119 6,435 129,879 has reached RMB 276.22 body of Phase-II is under House million construction.
Phase-I to Phase-VII have been completed, and the Gross margin in this period Suzhou Small 485,432 22,970 456,602 main bodies of Phase-VIII has reached RMB 17.69 Stone City and Phase-IX are under million construction.
19 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
Phase-I has been Gross margin in this period completed, and the main Suzhou Yishanjun 174,038 22,556 128,934 has reached RMB 68.79 body of Phase-II is under million construction.
Suzhou Evian 162,401 14,343 117,990 Main body construction Not yet carried over Riviera
Gross margin in this period Changzhou Phase-I has been 300,031 15,564 134,191 has reached RMB 46.07 Garden City completed. million
Nanjing Magnificent 335,945 11,056 264,658 Main body construction Not yet carried over House
Phase-I and Phase-II have Gross margin in this period Throne Bay in been completed, and the 621,044 18,601 478,900 has reached RMB -4.92 Zhenjiang main body of Phase-III is million under construction.
Wuhan Jiangwan 358,575 11,957 186,638 Main body construction Not yet carried over International
Moshui Lake, 923,480 32,069 476,759 Main body construction Not yet carried over Wuhan
Wuhan Gross margin in this period Magnificent 99,183 62 95,356 Completed has reached RMB 8.59 House million
Evian Uptown in Main body construction of 425,234 7,912 100,864 Not yet carried over Chengdu Phase-I
Magnificent Gross margin in this period House in 275,371 5,711 298,615 Completed has reached RMB 71.8 Chengdu million
Phase-I has been completed, and the main Gross margin in this period Chongqing Land 1,281,749 20,247 525,918 bodies of Phase-II and has reached RMB -10.59 Mark Riverside Phase-III are under million construction.
Chongqing Evian 333,988 13,491 135,103 Main body construction Not yet carried over Bay
Chongqing Park Main body construction of 1,179,807 8,257 421,278 Not yet carried over Avenue Phase-I
Phase-I has been Gross margin in this period Chongqing 425,195 16,131 305,019 completed; part of Phase-II has reached RMB 87.93 Garden City has been completed; the million
20 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
main body of Phase-III is under construction.
Zone A has been completed Gross margin in this period Bijie Garden City 280,578 23,659 140,935 and Zone B is under has reached RMB 76.76 construction. million
Kunming Sea 320,099 17,694 66,428 Main body construction Not yet carried over Club House
VI. Explanation of the Board of Directors and Board of Supervisors on the Non-standard Audit Report" for reporting period by the accounting firm
Not applicable
VII. Description of the Board of Directors on the "Non-standard Audit Report" of the Previous Year
Not applicable
VIII. Performance of Profit Distribution during Reporting Period
The Company held the annual general meeting of stockholders of 2014 on May 7, 2015, approving the 2014 profit distribution plan:
The statutory surplus reserve of RMB 112,712,864.73 is withdrawn based on 10% of the net profit of RMB
1,127,128,647.31 of the parent company;
Based on total equity stock of 2,575,950,754 at the end of the year, paying out RMB 3.20 cash dividend (including tax) per 10 shares, that is, paying out RMB 824,304,241.28 cash dividend.
The remaining undistributed profit RMB 4,797,962,659.92 was carried over to the next year;
The Company was not going to conduct capital stock increasing from public reserve funds in this year.
Details are contained in the Announcement on Implementation of 2014 Profit Distribution Plan published in China
Securities Journal, Securities Times, Shanghai Securities News, Securities Daily, Hong Kong Commercial Daily and CNINFO
(http://www.cninfo.com.cn) by the Company on May 15, 2015. Until the report disclosure date, the above plan of dividend distribution has been completed.
IX. Proposal for profit distribution and for converting capital reserve to share capital for the reporting period
The Company will not distribute profits and covert capital reserves for share capitals in the middle of 2015.
21 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
X. Registration form of reception of research, communication, interview, etc. during the reporting period
Category of Main discussion points and Reception time Reception place Reception way Reception object reception object information provided
INDUSTRIAL SECURITIES, Telephone January 04, 2015 Shenzhen Institution investors Haitong Securities, communication Pacific Insurance, New China Asset
Zeal Asset January 05, 2015 Shenzhen Field research Institution investors ① Introduction of the Management business condition of the Telephone ② January 06, 2015 Shenzhen Individual investors Individual investors Company; Discussion on communication industrial development; ③ Telephone Provision of declared January 06, 2015 Shenzhen Institution investors Orient Securities communication information and the project brochure of the Company; Citic-prudential Fund, PINGAN ④ Visit to the on-sale January 07, 2015 Shenzhen Field research Institution investors Securities, Ping An buildings of the Company of China Asset and provision of sales Management brochure.
Ping An of China Telephone January 08, 2015 Shenzhen Institution investors Asset Management, communication GF Securities
Telephone January 09, 2015 Shenzhen Individual investors Individual investors communication
SHENYIN & Telephone WANGUO January 11, 2015 Shenzhen Institution investors communication SECURITIES, BOSERA FUNDS
Telephone January 12, 2015 Shenzhen Institution investors GF Securities communication
January 13, 2015 Shenzhen Strategic Meeting Institution investors Guosen Securities
January 14, 2015 Beijing Strategic Meeting Institution investors Deutsche Bank AG
January 14, 2015 Shanghai Strategic Meeting Institution investors UBS Securities
SINOLINK January 15, 2015 Shenzhen Strategic Meeting Institution investors SECURITIES
Telephone January 15, 2015 Shenzhen Individual investors Individual investors communication
January 16, 2015 Chongqing Field research Institution investors Deutsche Bank AG
22 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
CITIC Securities, Telephone January 16, 2015 Shenzhen Institution investors SINOLINK communication SECURITIES
Telephone January 19, 2015 Shenzhen Individual investors Individual investors communication
HUA January 21, 2015 Shenzhen Field research Institution investors INSURANCE, etc.
Telephone Credit Suisse January 22, 2015 Shenzhen Institution investors communication Founder Securities
BOCI Securities, CHINA January 23, 2015 Shenzhen Field research Institution investors MERCHANTS FUND, AIA China, China AMC
Telephone First Shanghai January 23, 2015 Shenzhen Institution investors communication Securities
January 26, 2015 Shenzhen Field research Institution investors China AMC
Telephone January 27, 2015 Shenzhen Individual investors Individual investors communication
SHENWAN January 28, 2015 Shenzhen Field research Institution investors HONGYUAN SECURITIES
Telephone January 29, 2015 Shenzhen Individual investors Individual investors communication
Telephone January 29, 2015 Shenzhen Institution investors Libang Investment communication
Telephone February 04, 2015 Shenzhen Individual investors Individual investors communication
February 05, 2015 Shenzhen Field research Institution investors Galaxy Securities
Telephone Orient Securities, February 09, 2015 Shenzhen Institution investors communication GF Securities
Telephone China Investment February 11, 2015 Shenzhen Institution investors communication Securities
Telephone February 13, 2015 Shenzhen Individual investors Individual investors communication
Telephone February 25, 2015 Shenzhen Institution investors GF Securities communication
Telephone Ping An of China February 26, 2015 Shenzhen Institution investors communication Asset Management
23 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
Telephone February 28, 2015 Shenzhen Individual investors Individual investors communication
Telephone February 28, 2015 Shenzhen Institution investors Kingdon Capital communication
Telephone March 02, 2015 Shenzhen Institution investors GF Securities communication
Telephone March 03, 2015 Shenzhen Individual investors Individual investors communication
Shenwan Hongyuan Securities, CICC, Telephone March 09, 2015 Shenzhen Institution investors Pingan Securities, communication China Galaxy Securities, and Haitong Securities
GF Securities, Telephone Galaxy Securities, March 10, 2015 Shenzhen Institution investors communication Guotai Junan Securities, etc.
Telephone Pacific Asset March 10, 2015 Shenzhen Institution investors communication Management
Telephone March 10, 2015 Shenzhen Individual investors Individual investors communication
Telephone March 11, 2015 Shenzhen Individual investors Individual investors communication
PINGAN Securities March 12, 2015 Beijing Strategic Meeting Institution investors etc.
Telephone March 12, 2015 Shenzhen Individual investors Individual investors communication
Telephone March 13, 2015 Shenzhen Individual investors Individual investors communication
Telephone March 13, 2015 Shenzhen Institution investors Yuanta Securities communication
China Merchants Securities, Telligent March 16, 2015 Shenzhen Field research Institution investors Capital Management
Telephone March 17, 2015 Shenzhen Individual investors Individual investors communication
March 17, 2015 Shenzhen Telephone Institution investors Pacific Asset
24 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
communication Management
Telephone March 18, 2015 Shenzhen Institution investors GTJA communication
Telephone March 22, 2015 Shenzhen Individual investors Individual investors communication
Telephone March 23, 2015 Shenzhen Institution investors GTJA communication
March 24, 2015 Shenzhen Field research Institution investors Shinhan Investment
China Securities, China AMC, March 25, 2015 Shenzhen Field research Institution investors Huatai Asset Management and GR Asset
Telephone March 25, 2015 Shenzhen Institution investors GF Securities communication
Telephone March 25, 2015 Shenzhen Individual investors Individual investors communication
March 27, 2015 Shenzhen Field research Institution investors Huatai Securities
Telephone March 30, 2015 Shenzhen Individual investors Individual investors communication
March 31, 2015 Shenzhen Field research Institution investors Samsung Securities
Shenwan Telephone Hongyuan March 31, 2015 Shenzhen Institution investors communication Securities, Yuanta Securities
Telephone March 31, 2015 Shenzhen Individual investors Individual investors communication
Telephone CICC, Pingan April 01, 2015 Shenzhen Institution investors communication Securities
Telephone April 01, 2015 Shenzhen Individual investors Individual investors communication
China AMC, Galaxy Securities, CICC, Industrial Securities, GF Telephone April 02, 2015 Shenzhen Institution investors Securities, Orient communication Securities, Guotai Junan Securities, CITICS, Shenwan Hongyuan
25 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
Securities, Haitong Securities, Pingan Securities, China Investment Securities
Jefferies, Credit Telephone April 03, 2015 Shenzhen Institution investors Suisse Founder communication Securities
Telephone April 03, 2015 Shenzhen Individual investors Individual investors communication
Telephone April 07, 2015 Shenzhen Individual investors Individual investors communication
Pacific Asset Telephone Management, Ping April 07, 2015 Shenzhen Institution investors communication An Asset Management
Telephone April 08, 2015 Shenzhen Individual investors Individual investors communication
Telephone April 09, 2015 Shenzhen Individual investors Individual investors communication
Telephone April 09, 2015 Shenzhen Institution investors GF Securities communication
Telephone April 10, 2015 Shenzhen Individual investors Individual investors communication
Telephone April 13, 2015 Shenzhen Individual investors Individual investors communication
Telephone April 14, 2015 Shenzhen Individual investors Individual investors communication
Telephone April 15, 2015 Shenzhen Individual investors Individual investors communication
Telephone April 16, 2015 Shenzhen Individual investors Individual investors communication
Telephone April 17, 2015 Shenzhen Individual investors Individual investors communication
Telephone April 20, 2015 Shenzhen Individual investors Individual investors communication
Telephone April 21, 2015 Shenzhen Individual investors Individual investors communication
April 22, 2015 Shenzhen Telephone Individual investors Individual investors
26 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
communication
Telephone April 23, 2015 Shenzhen Individual investors Individual investors communication
Telephone April 24, 2015 Shenzhen Individual investors Individual investors communication
Guotai Junan Telephone Securities, April 27, 2015 Shenzhen Institution investors communication Industrial Securities
Telephone April 28, 2015 Shenzhen Individual investors Individual investors communication
Telephone April 29, 2015 Shenzhen Individual investors Individual investors communication
UBS Securities, April 30, 2015 Hong Kong Strategic Meeting Institution investors etc.
Telephone May 04, 2015 Shenzhen Individual investors Individual investors communication
Telephone May 05, 2015 Shenzhen Individual investors Individual investors communication
May 06, 2015 Nanning Field research Institution investors Gao Hua Securities
Telephone May 06, 2015 Shenzhen Individual investors Individual investors communication
May 07, 2015 Shenzhen Field research Institution investors Credit Suisse
Telephone May 07, 2015 Shenzhen Individual investors Individual investors communication
May 08, 2015 Hong Kong Strategic Meeting Institution investors Citi, etc.
Telephone May 10, 2015 Shenzhen Individual investors Individual investors communication
Telephone May 11, 2015 Shenzhen Individual investors Individual investors communication
Telephone May 12, 2015 Shenzhen Individual investors Individual investors communication
Telephone May 13, 2015 Shenzhen Individual investors Individual investors communication
Telephone May 14, 2015 Shenzhen Individual investors Individual investors communication
Telephone May 14, 2015 Shenzhen Institution investors GF Securities communication
27 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
Telephone May 15, 2015 Shenzhen Individual investors Individual investors communication
Telephone May 18, 2015 Shenzhen Individual investors Individual investors communication
Telephone May 19, 2015 Shenzhen Individual investors Individual investors communication
Telephone May 20, 2015 Shenzhen Individual investors Individual investors communication
Telephone May 20, 2015 Shenzhen Institution investors GTJA communication
Telephone May 21, 2015 Shenzhen Individual investors Individual investors communication
Telephone May 22, 2015 Shenzhen Individual investors Individual investors communication
Telephone May 25, 2015 Shenzhen Individual investors Individual investors communication
Telephone May 26, 2015 Shenzhen Individual investors Individual investors communication
Telephone May 27, 2015 Shenzhen Individual investors Individual investors communication
Telephone May 28, 2015 Shenzhen Individual investors Individual investors communication
Morgan Stanley, May 29, 2015 Beijing Strategic Meeting Institution investors etc.
Telephone June 01, 2015 Shenzhen Individual investors Individual investors communication
Telephone June 02, 2015 Shenzhen Individual investors Individual investors communication
Telephone June 03, 2015 Shenzhen Individual investors Individual investors communication
Telephone June 04, 2015 Shenzhen Individual investors Individual investors communication
Telephone June 05, 2015 Shenzhen Individual investors Individual investors communication
Telephone June 08, 2015 Shenzhen Individual investors Individual investors communication
Telephone June 09, 2015 Shenzhen Individual investors Individual investors communication
28 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
Telephone June 10, 2015 Shenzhen Individual investors Individual investors communication
Telephone June 11, 2015 Shenzhen Individual investors Individual investors communication
Telephone June 12, 2015 Shenzhen Individual investors Individual investors communication
Telephone June 15, 2015 Shenzhen Individual investors Individual investors communication
Telephone June 16, 2015 Shenzhen Individual investors Individual investors communication
Telephone June 17, 2015 Shenzhen Individual investors Individual investors communication
Telephone June 18, 2015 Shenzhen Individual investors Individual investors communication
Telephone June 19, 2015 Shenzhen Individual investors Individual investors communication
Telephone June 22, 2015 Shenzhen Individual investors Individual investors communication
Telephone June 23, 2015 Shenzhen Individual investors Individual investors communication
Telephone June 24, 2015 Shenzhen Individual investors Individual investors communication
Telephone June 25, 2015 Shenzhen Individual investors Individual investors communication
June 26, 2015 Hong Kong Strategic Meeting Institution investors Citigroup, etc.
Telephone June 26, 2015 Shenzhen Individual investors Individual investors communication
Telephone June 29, 2015 Shenzhen Individual investors Individual investors communication
Telephone June 30, 2015 Shenzhen Individual investors Individual investors communication
29 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
Section Five Important Events
(I) Corporate governance
In compliance with the Company Law, Securities Law and other securities regulations, the Company constantly improves the corporate governance and internal control system, deeply carries out governance activities and promotes its governance level. Based on the favorable corporate governance, the Company establishes a trust and win-win relationship with a large number of investors.
During reporting period, the holding shareholders and actual controller of company strictly fulfill their commitments all the time and support the sound development of company.
The corporate governance structure is sound; and the General Meeting of Stockholders, Board of Directors and Board of Supervisors are in the standardized operation and perform function and power in accordance with stipulations of laws and regulations as well as Articles of Association of company.
The Company discloses information timely and fairly in strict compliance with the principle of disclosing authentic, accurate and complete information. Awarded the title of excellent company in assessment of information disclosure of 2014
(Class A) by Shenzhen Stock Exchange, the Company adheres to linkage of the information disclosure of CMLL (0978.HK), ensuring the timely access to and consistency of the information of investors from Shenzhen and Hong Kong market.
II. Major lawsuit and arbitration
The Company was free from significant lawsuit and arbitration during reported period.
III. Query from the media
The Company was free from media query during reported period.
IV. Bankruptcy reorganization
Not applicable
V. Asset transactions
1. Purchase of assets
Not applicable
30 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
2. Sales condition of assets
Not applicable
3. Combination of enterprises
On May 01, 2015, the Company obtained majority voting rights in the board of directors of Beijing Guangying Residential Property Development Limited, thus having control over such company. The control right was included into the consolidation scope of the consolidated statements after being altered. On June 30, 2015, the Company has control over Xiamen Jinghucheng Real Estate Development Co., Ltd. by increasing capital and share. Details for the above consolidation matters are stated in the Notes to the Financial Statements "VII. Change in Consolidation Scope".
VII. Implementation of stock option incentive and the impact
On September 17, 2014, the Company conducted the 11th interim meeting of the 7th BOD in 2014 and the 22nd meeting of the 7th BOS, reviewed and adopted the Proposal on Change of Incentive Objects and Granting Quantities for Plan of Initial Granting of Stock Options; the meeting also reviewed and adopted the Proposal on Determination of Related Matters for Plan of Initial Granting of Stock Option, and the BOD determined to grant 23.2283 million shares of stock option to 143 incentive objects on September 18, 2014, with exercise price as RMB11.24 /share. On December 12, 2014, the Company completed the registration of initial stock option granting, stock option short name: China Merchants JLC1, Code: 037036. The exercise price of the stock option granted in the incentive plan was adjusted to RMB 10.92/share since completion of equities distribution of 2014. So far, the Company has not yet executed rights during the first exercise period of stock option. For details about stock option incentive plan, please see Notices on China Securities Journal, Securities Time, Shanghai Securities News, Hong Kong Commercial Daily, Securities Daily and http://www.cninfo.com.cn/.
VII. Material related transactions
1. Related transaction related to normal operation
During the reporting period, as approved by the 16th Meeting of the 7th Board of Directors, the Company established the following leasing transaction with China Merchants Shekou: The Company and part of its subsidiaries in Shenzhen leases the land use right of operation sites from China Merchants Shekou, with the total rental of RMB 3.7820 million for the reporting period, accounting for 13.09% of the amount of similar transactions; China Merchants Property Investment, a wholly-owned subsidiary of the Company, leases the land use right and top head estates of the 1st, 2nd, 5th and 6th building of Property in Huajian area of Shekou (Shenzhen ) owned by China Merchants Shekou, with the total rental of RMB 10.6544 million for the reporting period, accounting for 36.88 % of the amount of similar transactions; China Merchants (Shenzhen) Property, a wholly-owned subsidiary of the Company, releases land use right and superstructures estates of the 3rd building of Property in Huajian area of Shekou (Shenzhen ) owned by China Merchants Shekou, with the total rental of RMB 2.6636 million for the reporting period, accounting for 9.22 % of the amount of similar transactions;
31 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd. affiliated companies including China Merchants Shekou lease the rental properties including New Era Plaza of the Company with the total rental of RMB 7.5995 million for the reporting period, accounting for 1.40 % of the amount of similar transactions.
2. Related transaction of asset acquisition and sale
Not applicable
3. Important related transactions with joint investments
Reviewed and approved on the 18th Interim meeting of the 7th BOD in 2014, China Merchants (Chengdu) Beihu Land Ltd. (―China Merchants Beihu‖), China Merchants (Shenzhen) Property Investment Co., Ltd. and China Merchants Kunlun Capital Co., Ltd. (―China Merchants Kunlun‖), which are subsidiaries of the Company, jointly acquire 100 % shares rights and creditors’ rights of all shareholders of Chengdu China MCC5 Wentou Land Ltd. As of the end of the reporting period, China Merchants Beihu, China Merchants Property Investment and Ganzhou Yuankang Investment Partnership (hereinafter referred to as "Ganzhou Yuankang", the executive partner of China Merchants Kunlun, in place of China Merchants Kunlun in project acquisitions upon establishment of the Auction Consortium) have jointly acquired 100% equities and all creditor's rights of shareholders of Chengdu China MCC5 Wentou Land Ltd., among which, China Merchants Beihu and China Merchants Investment respectively acquired 31% and 20% of the equities and creditor's rights of shareholders of Chengdu China MCC5 Wentou Land Ltd. China Merchants Beihu and China Merchants Property Investment pay a total of RMB 906 million with respect to such acquisition respectively as per the equity ratio and the ratio of creditor's rights ratio. The Company and China Merchants Kunlun Capital Co., Ltd. are controlled by China Merchants Group and transactions stated above constitute related party transactions.
Disclosure: For the detailed disclosure of the above said transaction, please refer to http://www.cninfo.com.cn.
4. Current associated rights of credit and liabilities
As of June 30, 2015, main current funds between the Company and related parties include: Unit: RMB 10,000
Beginn i n g Whether Balan
there is Amount ce at b Category of non-operati incurre the a Related party Relationship credits and Reason ng d in the end of l debts occupation current the a of funds or period perio n not d c e Balanc e
China Ocean Shipping Agency Under Accounts Current No - 821 821 Shenzhen common receivable account
32 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
ultimate control
Foshan Merchants Longyuan Real Other Current 67,36 Joint venture No 67,369 - Estate Co., Ltd. receivables account 9
China Merchants Shekou Industrial Controlling Accounts Current No 255,394 -254,009 1,385 Zone Holdings Co., Ltd. shareholder payable account
Under China Merchants Zhangzhou common Current 50,50 Other payables No 38,000 12,500 Development Zone Co., Ltd. ultimate account 0 control
Under Shenzhen China Merchants common Current 33,19 Other payables No 81,106 -47,916 Financial Service Co., Ltd. ultimate account 0 control
Under Ganzhou Yuankang Investment common Current 21,31 Other payables No - 21,312 Partnership ultimate account 2 control
Current 20,58 Shanghai Ledu Property Co., Ltd. Associates Other payables No 24,601 -4,019 account 2
Under Dafeng International Limited common Current 13,18 Other payables No 20,995 -7,808 Liability Company ultimate account 7 control
Tianjin Xinghai Real Estate Current 10,60 Associates Other payables No 10,608 - Development Co., Ltd. account 8
Shanghai New South Mountain Current Associates Other payables No 4,488 4,125 8,613 Real Estate Development Co., Ltd. account
Non-controlli ORIENTURE HOLDINGS Current ng Other payables No - 7,789 7,789 COMPANY LIMITED account shareholder
Tianjin Munanqiushi Industrial Current Associates Other payables No 1,700 - 1,700 Co., Ltd. account
China Merchants Shekou Industrial Controlling Current Other payables No 16 267 283 Zone Holdings Co., Ltd. shareholder account
China Merchants Overseas Chinese Current Associates Other payables No 47,972 -47,972 - Town account
As of June 30, 2015, related parties have provided the following bank loan guarantees for the Company and the Company's subsidiaries:(Unit: RMB)
33 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
Names of related parties The guaranteed Amount of guarantee
Long-term loan guarantee
China Merchants Group Co., Ltd. The Company RMB 5,500,000,000
China Merchants Shekou Industrial Zone The Company RMB 1,394,200,000 Co., Ltd.
China Merchants Shekou Industrial Zone China Merchants (Shenzhen) Property RMB 500,000,000 Co., Ltd. Development Co., Ltd.
China Merchants Shekou Industrial Zone Wuhan Aoming Property Development Co., RMB 287,000,000 Co., Ltd. Ltd.
China Merchants Shekou Industrial Zone Beijing Conrad Property Development Co., RMB 105,560,000 Co., Ltd. Ltd.
China Merchants Shekou Industrial Zone Shenzhen Shekou Seaworld Hotel RMB 230,300,000 Co., Ltd. Management Co., Ltd.
China Merchants Shekou Industrial Zone Shenzhen Jinyurongtai Investment RMB 470,500,000 Co., Ltd. Development Co., Ltd.
China Merchants Shekou Industrial Zone Shenzhen Merchants Construction Co., Ltd. RMB 50,000,000 Co., Ltd.
China Merchants Shekou Industrial Zone Foshan Merchants Real Estate Co., Ltd. RMB 249,000,000 Co., Ltd.
China Merchants Group (Hongkong) Co., Eureka Investment Company Ltd. USD 1,039,000,000 Ltd.
5. Other major affiliated transactions
See other related transaction occurred during the reporting period in notes to financial statements.
VIII. Occupation of non-operating funds of the listed company by controlling shareholders and their related parties
Not applicable
IX. Important contract and its performance
1. Description on trust, contracting and lease matters
No major items of collocating, contracting and leasing other corporate assets have occurred during the reporting period.
34 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
2. Guarantee
Unit: RMB 10,000
External guarantee of the Company (excluding guarantee for the subsidiaries)
Disclosure date of Whether Name of Actual occurrence Actual Completing announcement Guarantee Type of guaranteed for guaranteed date (agreement guarantee Guarantee period fulfillment regarding limit guarantee related party object date) amount or not guarantee limit (yes or no)
From the day the mortgage bank released Since the day the Mortgaged Phased joint loans to the day the Real None mortgage bank 661,188.14 No No house owner 661,188.14 guarantee Estate ownership released loans certificate is issued for house buyers
November 03, 2011 14,700 March 15, 2012 1,002.47 Two years from the date No Yes China Several after the expiration date Merchants March 20, 2012 19,110 May 18, 2012 9,465.09 liability of the loan term No Yes Guangming Guaranty specified in loan Science Park March 18, 2014 4,900 June 12, 2014 3,381 contract. No Yes
China Merchants Two years from the date Several Group Industrial when debt performance November 14, 2014 9,800 March 31, 2015 490 liability No Yes Park (Qingdao) period under the loan Guaranty Development contract expires Co., Ltd.
Guarantee for the subsidiaries
Disclosure date Whether Name of Actual occurrence Actual Completing of announcement Guarantee Type of guaranteed for guaranteed date (agreement guarantee Guarantee period fulfillment regarding limit guarantee related party object date) amount or not guarantee limit (yes or no)
Including:
US$30 China 30 days from the date million US$30 million Merchants when debt (equivalent (equivalent to (Shenzhen) March 19, 2013 June 11, 2013 Several performance period No Yes to RMB RMB 183.408 Power Supply liability agreed under the loan 183.408 million) Co., Ltd. Guaranty contract expires million)
China Two years from the date September 26, 2014 50,000 September 26, 2014 49,980 No Yes Merchants when the period of debt
35 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
(Shenzhen) performance by the Property debtor which is agreed Development under the master Co., Ltd. contract expires
China Merchants (Harbin) Jiatian March 18, 2014 12,500 November 27, 2014 12,500 No Yes Property Development Co., Ltd.
Shenzhen Jinyurongtai Investment March 10, 2015 25,000 March 18, 2015 25,000 No Yes Development Co., Ltd.
Beijing Conrad Property May 15, 2012 30,000 May 15, 2012 15,834 No Yes Development Co., Ltd.
Shenzhen Vanke Binhai Property December 26, 2013 40,000 December 06, 2013 20,000 No Yes Co., Ltd.
China Merchants (Guangzhou) June 25, 2014 60,000 April 23, 2014 28,700 No Yes Property Development Co., Ltd.
China Merchants (Foshan) June 25, 2014 12,000 April 30, 2014 11,940 No Yes Xincheng From the effective date High-tech Co., of contract till two years Ltd. from the date when all loans under Credit
Foshan Kaida Agreement are due Town Investment September 29, 2014 60,000 September 26, 2014 14,950 No Yes Development Co., Ltd.
36 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
Foshan Shunde Evian Zhenyuan September 29, 2014 22,000 September 29, 2014 5,445 No Yes Property Co., Ltd.
From the effective date of guarantee contract till the date when China Merchants Commercial goes through security guarantee procedures, with China Merchants Shenzhen China Bank as mortgagee, Merchants of No.1, No.2 and Business January 13, 2015 15,300 December 23, 2014 12,495 No.3 buildings No Yes Development (specific names Co., Ltd. subject to the real estate ownership certificate issued by related authorities) of Shenzhen Haishang Shijie Plaza-Chuanqian Plaza which it is legally entitled to own or dispose of.
Shenzhen Shekou Seaworld Hotel December 26, 2013 25,500 October 22, 2013 23,970 No Yes Management Co., Ltd. Two years upon the China period of performance Merchants of all guaranteed debts (Nanjing ) March 05, 2014 60,000 August 26, 2013 60,000 expires from the No Yes Property effective date of Development guarantee contract Co., Ltd.
Nanjing China Merchants March 05, 2014 17,000 January 27, 2014 16,700 No Yes Ruisheng Property Co.,
37 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
Ltd.
Nanjing China Merchants Ruisheng March 05, 2014 58,000 January 27, 2014 57,700 No Yes Property Co., Ltd.
Shenzhen Jinyurongtai Investment June 25, 2014 25,000 June 27, 2014 22,050 No Yes Development Co., Ltd.
US$60 The period from the million US$60 million effective date of Huitai (equivalent (equivalent to guarantee contract to the Investment Co., April 18, 2015 March 03, 2015 No Yes to RMB RMB 366.816 date when borrowers Ltd. 366.816 million) repay all debts under million) the loan contract
Total corporate guarantee amount is RMB 11,078,130,900
(1) Illegal external guarantee of the Company
The Company was free from illegal guarantee during the reported period.
3. Other important contracts
The Company has successively signed loan contract with Agricultural Bank of China, China Construction Bank, Bank of Communication and China Merchants Bank; as of the end of the reported period, total amount of line of credit equals to RMB 81.5 billion.
4. Other major transactions
Not applicable
X. Existing commitments made by the Company or shareholder holding 5% and above in/before the reporting period
Commitment Commitment Commitments Commitment content Commitment time Performances party term
Commitment of China After reform of non-tradable shares, land Till two years During the December 9, 2005 equity division Merchants and other high-quality assets will be after the reporting
38 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd. reform Shekou continued to be input to support the shareholder no period, Company development. longer holds the commitments shares of the have been Company strictly fulfilled.
Not to (directly or indirectly) engage in or develop any businesses or projects with business scopes similar to the Company; not to establish, develop, participate in or assist in any enterprises with any direct or Till two years Till two years indirect competition with the Company for after the after the Other commitments China the China Merchants Group and the shareholder no shareholder no for non-majority Merchants related parties or on behalf of any third March 19, 2008 longer holds the longer holds the shareholders Shekou parties; not to engage in or participate in shares of the shares of the (directly or indirectly in) activities that Company Company compete with the Company by taking advantages of the information obtained from the Company; and not to have any other competing behaviors that infringe or may infringe the Company interests.
WHEREAS, the convertible bonds to be issued by CMPD in public in 2015 are required for issuance of convertible bond During the this time, as the holding stockholder of reporting CMPD, China Merchants Shekou makes a China period, Commitment made commitment: where the Company and Long-term Merchants March 11, 2015 commitments in IPO/refinancing investors suffer losses arising out of the effective Shekou have been violation of laws and rules including the strictly matter of leaving non-disclosed land idle fulfilled. during the reporting period by CMPD, the committing party shall undertake the corresponding liability for damage.
Has the commitment performed in a Yes timely manner
XI. Employment and dismissal of the accounting firm
As approved in the annual general meeting of shareholders of the Company of 2014, the Company continues to employ Shinewing Certified Public Accountants (Special Ordinary Partnership) as the external audit institution of Company of 2015.
39 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
XII. Punishment and rectification
Not applicable
XIII. Risk disclosure on delisting violating laws and rules
Not applicable
XIV. Other important events
Major asset restructuring China Merchants Group, the practical controller of the Company, is planning for the major assets restructuring involving unprecedented matters which is associated with the Company. The shares of the Company were continually suspended from April 3, 2015. China Merchants Group is actively promoting the consolidation of the Company with China Merchants Shekou Industrial Zone Holdings Co., Ltd. (a holding company of the Company, originally named "China Merchants Shekou Industrial Zone Co., Ltd."). As of the disclosure date, the proposed plan is that China Merchants Shekou will merge the Company and apply to Shenzhen Stock Exchange for listing. Document on Application for Cancellation of Issuing of Convertible Bonds of the Company The Company, upon approval by the third extraordinary general shareholders' meeting 2014, proposed to apply to China Securities Regulatory Commission for the issuance of RMB 8 billion's convertible bonds and authorized the board of directors to submit the Report on Applying for the Issuance of Convertible Bonds By China Merchants Property Development Co., Ltd. and other application documents in December 2014 and obtained the CSRC No.141796 Notice on Acceptance of the Administrative License Application by China Securities Regulatory Commission. Whereas China Merchants Group is discussing and working on the major assets restructuring plan to advance the integration of the Company and the Shekou Industrial Zone, the issuance of convertible bonds is not applicable. Approved in the 6th Temporary Conference of the 7th Board of Directors of the Company in 2015, the Company has applied to China Securities Regulatory Commission for withdrawal of the documents on applying for the public issuance of convertible bonds in 2014 . The Company has received the Notice on Review Termination of the Administrative Licensing Application by China Securities Regulatory Commission ([2015] No.131) before the report disclosure date. Pursuant to the applicable provisions in Article 20 of the Regulation on Procedure Implementation of the Administrative Licensing by China Securities Regulatory Commission, China Securities Regulatory Commission decided to terminate the review for the above administrative license application. Phase II medium-term notes of 2015 issued by the Company The matter on issuance of the debt financing instruments no less than RMB 5 billion by the Company has been approved at the Second Extraordinary General Meeting of 2014 on October 24，2014, for which details are contained in the Notice on the Resolution at the Second Extraordinary General Meeting of 2014 by China Merchants Property Development Co., Ltd. (Announcement No. [CMPD] 2014-070) published in China Securities Journal, Shanghai Securities News, Securities Times, Securities Daily, Hong Kong Commercial Daily and CNINFO (http://www.cninfo.com.cn) by the Company on October 25, 2014. On December 15, 2014, the Company received the Notice of Registration Acceptance (Z.S.X.Z. [2014] No. MTN458) issued by National Association of Financial Market Institutional Investors (NAFMII), agreeing to accept the registration of medium-term notes with a registered amount of RMB 5 billion. The registration limit shall be effective within 2 years from the date of issuance of the Notice of Registration Acceptance by NAFMII.
40 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
The Company successfully issued the phase II medium-term notes of 2015 on July 9, 2015, for which details are contained in the Notice on the Resolution at the Second Extraordinary General Meeting of 2014 by China Merchants Property Development Co., Ltd. (Announcement No. [CMPD] 2015-052) published in China Securities Journal, Shanghai Securities News, Securities Times, Securities Daily, Hong Kong Commercial Daily and CNINFO (http://www.cninfo.com.cn) by the Company on July 14, 2015.
41 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
Section Six Capital Changes and Shareholders' Information
I. Changes in equity
Unit: share
Prior to this change Changes (+/-) in this time After this change
Shares converted Stock Dividend Quantity Proportion from Others Subtotal Quantity Proportion issue stock reserved funds
I. Shares with trading 1,337,166,996 51.91 % 9,975 9,975 1,337,176,971 51.91 % limited conditions
1. Share held by the state
2. Shares held by 1,040,128,975 40.38 % 1,040,128,975 40.38 % state-owned corporate
3. Other domestic-held 380,487 0.02 % 9,975 9,975 390,462 0.02 % shares
Including: shares held by domestic corporate
Shares held by 380,487 0.02 % 9,975 9,975 390,462 0.02 % domestic natural person
4. Share held by foreign 296,657,534 11.51 % 296,657,534 11.51 % capital
Including: shares held by 296,564,159 11.51 % 296,564,159 11.51 % overseas corporate
Shares held by 93,375 0 % 93,375 0 % foreign natural person
II. Shares without trading 1,238,783,758 48.09 % -9,975 -9,975 1,238,773,783 48.09 % limited conditions
1. Ordinary shares in RMB 1,026,426,357 39.85 % -9,975 -9,975 1,026,416,382 39.85 %
2. Domestically-listed shares held by foreign 212,357,401 8.24 % 212,357,401 8.24 % investors
3. Overseas-listed shares held by foreign investors
4. Others
42 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
III. Total shares 2,575,950,754 100 % 2,575,950,754 100 %
During the reporting period, the officers of the Company have left the Company and part of officers have increased stocks of the Company through the secondary market; and according to related stipulations, Shenzhen Branch of China Securities Depository and Clearing Corporation Limited (CSDC) has increased the restricted stocks held by corresponding senior managers, which has caused changes to the limited and unlimited stocks of the Company.
II. Number of shareholders and shareholding status
Unit: share
Total number of common shareholders as of 98,350 (A-shares: 87,713, B-shares: 10,637) the end of the reporting period
Information of shares held by the top ten shareholders
Quantity of Pledged or frozen Quantity of shares held at Increase/decreas Quantity of status Name of Nature of the Shareholdin held the end of e during this restricted shareholders shareholder g ratio un-restricte Shareholdin Quantit this reporting reporting period share held d share g status y period (%)
China Merchants State-owned 1,040,128,97 1,040,128,97 40.38 % None None None None Shekou corporate 5 5
Full Space Overseas Investment 5.48 % 141,216,075 None 141,216,075 None None None corporate Limited
China Merchants Overseas Securities (HK) 2.92 % 75,241,545 36,468 73,863,367 1,378,178 None None corporate Co., Ltd.
FOXTROT Overseas INTERNATIONA 1.61 % 41,580,000 None 41,580,000 None None None corporate L LIMITED
ORIENTURE Overseas INVESTMENT 1.55 % 39,904,717 None 39,904,717 None None None corporate LTD
GOLDEN CHINA Overseas 1.03 % 26,487,893 None None 26,487,893 None None MASTER FUND institutions
National Social Domestic Security Fund 118 non-state-owne 0.86 % 22,189,608 5,053,220 None 22,189,608 None None Portfolio d corporate
Invesco Great Wall Domestic 0.58 % 15,000,052 11,999,980 None 15,000,052 None None Selective Blue non-state-owne
43 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
Chip Share d corporate Securities Investment Funds
Fullgoal Tianbo Domestic Innovative Theme non-state-owne 0.54 % 13,849,442 -4,950,558 None 13,849,442 None None Stock Fund d corporate
GREENWOODS Overseas CHINA ALPHA 0.51 % 13,031,565 None None 13,031,565 None None institutions MASTER FUND
Shareholding status of top ten un-restricted shareholders
Quantity of held unrestricted share Class of shares Name of shareholders as of the end of the reporting period Class of shares Quantity
GOLDEN CHINA MASTER FUND 39,904,717 B share 39,904,717
National Social Security Fund 118 Portfolio 22,189,608 A share 22,189,608
Invesco Great Wall Selective Blue Chip Share A share 15,000,052 15,000,052 Securities Investment Funds
Fullgoal Tianbo Innovative Theme Stock Fund 13,849,442 A share 13,849,442
GREENWOODS CHINA ALPHA MASTER B share 13,031,565 13,031,565 FUND
Rongtong New Blue Chip Securities Investment A share 12,000,056 12,000,056 Funds
NORGES BANK 11,641,091 B share 11,641,091
Invesco Great Wall Domestic Needs Growth No A share 10,490,450 10,490,450 Two Shares Securities Investment Funds
National Social Security Fund 413 Portfolio 10,000,000 A share 10,000,000
National Social Security Fund 101 Portfolio 8,736,473 A share 8,736,473
1. China Merchants Shekou and its subsidiaries - FOXTROT INTERNATIONAL LIMITED and ORIENTURE INVESTMENT LTD are Persons Acting in Concert; GOLDEN CHINA MASTER FUND and GREENWOODS CHINA ALPHA MASTER FUND are Persons Acting in Concert. Dafeng International, a Statement on related relationship and acting in subsidiary of China Merchants Shekou, has entrusted 73,863,367 shares of the concert of the above-mentioned shareholders Company to China Merchants Securities (Hongkong) Co., Ltd. 2. Both the Invesco Great Wall Blue-chip Stock Securities Investment Fund and the Invesco Great Wall Domestic Demand Growth No. 2 Stock Securities Investment Fund are run by the same funds management company.
III. Changes in the Controlling Shareholder or Actual Controllers
During the reporting period, there is no change in controlling shareholder or actual controller of the Company.
44 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
On June 26, 2015, the Company was renamed China Merchants Shekou Industrial Zone Holdings Co., Ltd. Block Diagram of Property and Control Relations between the Company and Actual Controller is as follows:
State-owned Assets
Supervision 100 % and
AdministrationChina Commission Merchants of
State CouncilGroup 100 % 40.38 % China Merchants C Shekou 100 % hi 2.87 % na Dafeng M er Internationa100 % ch Orienturel Holdings Co. Ltd an ts 5.48 % 100 % Pr Full Space Investment Limited op er ty 1.61 % 100 % Foxtrot International Limited De ve lo 1.55 % 100 % p Orienture Investment Limited m en t C o., IV. Stock OverweightLt Plan Proposed or Implemented by Shareholders of the Company and Persons Acting in Concertd. during the Reporting Period
During the reporting period, the shareholders of the Company and persons acting in concert have not proposed or implemented the stock overweight plan.
45 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
Section Seven Information about the Company's Directors,
Supervisors, and Officers
I. Changes in ownership of directors, supervisors and officers
Number of shares Number of increased Number of decreased Number of shares Position held at the beginning shares held during shares held during held at the end of the Name Title status of the period (share) current period (share) current period (share) period (share) A share B share A share B share A share B share A share B share
Sun Chairman Incumbent Chengming
Fu Incumbent Vice-chairman Gangfeng
Yang Incumbent Vice-chairman Tianping
Managing Incumbent He Jianya 187,306 187,306 Director
Hu Yong Director Incumbent
Director and Incumbent Wu Chief 7,500 7,500 Zhenqin Financial Director
Chen Gang Director Incumbent
Independent Incumbent Chai Qiang director
Liu Independent Incumbent
Hongyu director
Lu Independent Incumbent
Weixiong director
Independent Incumbent Zhang Wei director
Chairman of Incumbent Hua Li Board of Supervisors
Liu Incumbent Supervisor Qingliang
Huang Incumbent Supervisor Junlong
46 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd. Employee Incumbent Chen Yan Supervisor
Employee Incumbent Chen Qing Supervisor
Deputy Incumbent Yang General 100,192 49,500 100,192 49,500 Zhiguang Manager
Chief Green Incumbent Hu Jianxin Low-carbon 38,600 38,600 Officer
Deputy Incumbent Zhu General 41,500 8,375 33,125 Wenkai Manager
Deputy Incumbent Meng Cai General 108,523 108,523 Manager
Deputy Incumbent Zhang Lin General 18,300 17,250 18,300 17,250 Manager
Wang Chief Incumbent 30,000 30,000 Zhengde Economist
Deputy Incumbent He Fei General 3,000 3,000 Manager
Deputy Incumbent Wang Xi General 10,000 10,000 Manager
Secretary of Incumbent Liu Ning the Board of 20,251 20,251 Directors
Former Quitted Deputy Liu Wei 9,900 9,900 General Manager
Total -- -- 507,321 124,501 10,000 - 8,375 - 508,946 124,501
47 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd. II. Personnel changes of directors supervisors and officers
Mr. Liu Wei resigns his his position of vice-general manager of the Company as a result of job change.
Section Eight Financial Report
The semi-annual Financial Report of the Company has not been audited.
Unit in statements in financial notes: RMB
48 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd. Financial Statements
Consolidated Balance Sheet June 30, 2015 Prepared by: China Merchants Property Development Co., Ltd. Unit: yuan Balance at the end of Item Note Beginning balance the period Current assets: Monetary fund VI. 1 23,752,513,388.51 22,983,386,443.02 Financial assets measured at fair value with changes included in profits and losses Notes receivable VI. 2 13,120,000.00 4,390,000.00 Accounts receivable VI. 3 75,738,101.42 68,311,944.30 Prepayments VI. 4 2,319,248,549.47 3,619,194,870.49 Interests receivable VI. 5 17,574,533.16
Dividends receivable VI. 6 64,195,980.00
Other receivables VI. 7 13,094,208,594.56 8,941,860,794.39 Inventories VI. 8 112,708,539,725.92 101,018,636,735.26 Divided into assets held for sale
Non-current assets due within one year
Other current assets VI. 9 4,014,013,467.72 3,550,695,892.97 Total current assets 155,994,956,360.76 140,250,672,660.43
Non-current assets:
Available-for-sale financial assets
Held-to-maturity investment
Long-term accounts receivable VI. 10 1,197,613,748.94
Long-term equity investments VI. 11 2,016,904,362.05 1,905,735,901.68 Investment property VI. 12 5,340,268,772.92 5,447,243,949.46 Fixed assets VI. 13 1,785,900,854.51 1,845,537,869.92 Construction in progress VI. 14 80,437,759.42 84,973,050.61 Engineering material
Liquidation of fixed assets
Intangible assets VI. 15 503,207,197.99 511,546,467.17 Development expenses
Goodwill VI. 16 159,560,861.23 159,560,861.23 Long-term deferred expenses VI. 17 248,867,341.99 247,265,491.47 Deferred income tax assets VI. 18 1,336,712,299.28 1,239,828,866.61 Other non-current assets VI. 19 144,834,167.45
Total non-current assets 12,814,307,365.78 11,441,692,458.15
Total assets 168,809,263,726.54 151,692,365,118.58
The Notes are the integral part of the financial statement, and the financial statement is signed by the following persons
Legal representative: Sun Chengming Accounting supervisor: Wu Zhenqin Legal representative of the accounting firm: Li Shifang
49 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd. Consolidated Balance Sheet (Continued) June 30, 2015 Prepared by: China Merchants Property Development Unit: yuan Co., Ltd. Balance at the end of Item Note Beginning balance the period Current liabilities:
Short-term loans VI. 20 661,360,000.00 3,886,900,000.00 Financial liabilities measured at fair value with changes included in current profits and losses Notes payable VI. 21 135,838,559.70 47,344,138.00 Accounts payable VI. 22 11,398,328,029.62 15,213,477,059.40 Account received in advance VI. 23 44,331,491,628.00 35,599,290,811.40 Payroll payable VI. 24 228,547,487.17 398,745,343.32 Tax payable VI. 25 1,379,322,049.30 3,133,693,418.62 Interests payable VI. 26 305,950,402.18 192,136,769.30 Dividends payable VI. 27 118,244,875.70 160,730,318.08 Other payables VI. 28 12,994,818,432.01 11,782,505,874.39 Divided into liabilities held for sale
Non-current liabilities due within one year VI. 29 8,790,998,800.00 5,970,100,938.48 Other current liabilities VI. 30 3,450,912,959.45 3,729,367,673.26 Total current liabilities 83,795,813,223.13 80,114,292,344.25
Non-current liabilities:
Long-term loans VI. 31 28,108,117,424.75 24,666,515,200.02 Bonds payable VI. 32 5,428,232,355.96 3,018,076,924.57 Long-term payables VI. 33 3,575,058,351.11 104,353,146.52 Long-term remuneration payable
Special payables:
Estimated liabilities
Deferred income VI. 34 8,001,340.28 6,526,053.33 Deferred income tax liabilities VI. 18 433,869,872.83 35,822,337.24 Other non-current liabilities VI. 35 61,341,172.42
Total non-current liabilities 37,614,620,517.35 27,831,293,661.68
Total liabilities 121,410,433,740.48 107,945,586,005.93
Owners' equity:
Share capital VI. 36 2,575,950,754.00 2,575,950,754.00 Other equity instruments
Capital reserve VI. 37 8,891,695,526.72 8,529,757,654.36 Less: treasury stocks
Other comprehensive income VI. 38 79,040,568.71 78,901,353.52 Special reserves
Surplus reserve VI. 39 1,246,228,257.72 1,246,228,257.72 Undistributed profit VI. 40 19,984,776,014.63 18,663,578,091.22 Total owners' equity attributable to parent 32,777,691,121.78 31,094,416,110.82 company Minority shareholders' equity 14,621,138,864.28 12,652,363,001.83
Total shareholders' equity 47,398,829,986.06 43,746,779,112.65
Total liabilities and shareholders' equity 168,809,263,726.54 151,692,365,118.58
50 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd. Consolidated Balance Sheet of Parent Company June 30, 2015 Prepared by: China Merchants Property Unit: yuan Development Co., Ltd. Balance at the end of Item Note Beginning balance the period Current assets: Monetary fund 6,548,407,550.60 8,893,516,594.16 Financial assets measured at fair value with changes included in profits and losses Notes receivable
Accounts receivable
Prepayments
Interests receivable 13,695,834.47 25,144,020.00 Dividends receivable 2,096,966,208.84 2,037,168,805.28 Other receivables XVI. 1 24,687,852,992.53 29,205,557,475.48 Inventories
Divided into assets held for sale
Non-current assets due within one year
Other current assets
Total current assets 33,346,922,586.44 40,161,386,894.92 Non-current assets:
Available-for-sale financial assets
Held-to-maturity investment
Long-term accounts receivable 3,241,036,294.96
Long-term equity investments XVI. 2 9,047,225,858.39 8,926,259,288.07 Investment property
Fixed assets 1,014,639.49 1,153,721.49 Construction in progress
Engineering material
Liquidation of fixed assets
Intangible assets
Development expenses
Goodwill
Long-term deferred expenses
Deferred income tax assets
Other non-current assets
Total non-current assets 12,289,276,792.84 8,927,413,009.56 Total assets 45,636,199,379.28 49,088,799,904.48
51 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd. Balance Sheet of Parent Company (continued) June 30, 2015 Prepared by: China Merchants Property Unit: yuan Development Co., Ltd. Balance at the end of Item Note Beginning balance the period Current liabilities: Short-term loans 50,000,000.00 3,275,000,000.00 Financial liabilities measured at fair value with changes included in current profits and losses Notes payable 37,059,280.36
Accounts payable 173,765,648.91 320,143,894.81 Account received in advance
Payroll payable -420,070.35 9,402,578.82 Tax payable 29,133,542.72 656,908.61 Interests payable 207,280,933.56 139,423,235.44 Dividends payable
Other payables 13,504,078,979.52 14,165,111,926.02 Divided into liabilities held for sale
Non-current liabilities due within one year 2,592,610,800.00 4,012,581,100.00 Other current liabilities
Total current liabilities 16,593,509,114.72 21,922,319,643.70 Non-current liabilities:
Long-term loans 11,173,809,920.00 9,695,442,200.00 Bonds payable 1,000,000,000.00
Long-term payables
Long-term remuneration payable
Special payables:
Estimated liabilities
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 12,173,809,920.00 9,695,442,200.00 Total liabilities 28,767,319,034.72 31,617,761,843.70 Owners' equity:
Share capital 2,575,950,754.00 2,575,950,754.00 Other equity instruments
Capital reserve 8,080,172,222.38 8,077,543,540.86 Less: treasury stocks
Other comprehensive income
Special reserves
Surplus reserve 1,195,276,864.72 1,195,276,864.72 Undistributed profit 5,017,480,503.46 5,622,266,901.20 Total shareholders' equity 16,868,880,344.56 17,471,038,060.78 Total liabilities and shareholders' equity 45,636,199,379.28 49,088,799,904.48
52 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
53 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd. Consolidated profit statement January - June 2015 Prepared by: China Merchants Property Development Co., Ltd. Unit: yuan Amount of current Amount of the same Item Note period period of last year I. Total operating income 17,973,948,437.46 16,047,155,730.99 Including: operating income VI. 41 17,973,948,437.46 16,047,155,730.99 II. Total operating cost 14,998,019,532.62 12,845,676,701.45 Including: operating cost VI. 41 11,986,510,250.36 10,391,068,273.47 Operating taxes and surcharges VI. 42 1,950,243,032.76 1,614,019,700.29 Sales expenses VI. 43 334,261,066.67 281,938,248.45 Administrative expenses; VI. 44 272,488,851.73 231,659,798.70 Financial expenses VI. 45 455,736,062.10 326,102,386.55 Assets impairment losses VI. 46 -1,219,731.00 888,293.99 Add: income from changes in fair value(―-‖indicates the loss) Investment profit (―-‖ indicates the loss) VI. 47 493,114,654.44 143,318,415.51 Including: investment income from VI. 47 42,235,644.34 143,318,415.51 affiliated enterprises and joint ventures III. Operating profit (“-” indicates the loss) 3,469,043,559.28 3,344,797,445.05 Add: non-operating income VI. 48 27,355,516.15 35,496,879.63 Including: gains from disposal of VI. 48 150,369.00 14,184.22 non-current assets Less: non-operating expenditure VI. 49 17,349,667.98 21,725,415.49 Including: loss from disposal of VI. 49 8,451.04 175,062.57 non-current assets IV. Total profit (“-” indicates the total loss) 3,479,049,407.45 3,358,568,909.19 Less: income tax VI. 50 1,090,902,279.86 964,496,768.41 V. Net profit (―-‖ indicates the net loss) 2,388,147,127.59 2,394,072,140.78 Net profits attributable to the parent company 2,145,502,164.69 1,785,434,748.85 shareholders Gain and loss of minority shareholders 242,644,962.90 608,637,391.93 VI. After-tax net of other comprehensive 187,243.03 incomes After-tax net of other comprehensive incomes 139,215.19 owned by the owner of the parent company (I) Other comprehensive incomes that cannot be classified into profit and loss in the future 1. Re-measurement of changes in net liabilities or net assets in defined benefit plan 2. Share in other comprehensive incomes that cannot be reclassified into profit and loss in investee by equity method (II) Other comprehensive incomes that 139,215.19 would be classified into profit and loss in the future
54 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd. 1. Shares in other comprehensive incomes that can be reclassified into profit and loss in investee by equity method in the future 2.Loss and profit of change in fair value of available-for-sale financial assets 3. Loss and profit of available-for-sale financial assets of held-to-maturity investments 4. Effective part of hedge profit and loss of cash flow 5. Translation difference in the foreign 139,215.19 currency financial statement 6. Others
Net of tax from other comprehensive incomes 48,027.84 owned by minority stockholders VII. Total comprehensive income 2,388,334,370.62 2,394,072,140.78 Total consolidated income attributable to the 2,145,641,379.88 1,785,434,748.85 shareholder of the parent company Total consolidated income attributable to 242,692,990.74 608,637,391.93 minority shareholders VIII. Earnings per share:
(I) Basic earnings per share 0.83 0.69 (II) Diluted earnings per share 0.83 0.69
55 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd. Profit Statement of Parent Company January - June 2015 Prepared by: China Merchants Property Development Co., Unit: yuan Ltd. Amount of the Amount of current Item Note same period of period last year I. Operating income XVI. 3 6,240,000.00 500,000.00 Less: operating cost XVI. 3 1,228,912.37 1,057,252.16 Operating taxes and surcharges 1,119,189.10 2,240,568.26 Sales expenses
Administrative expenses; 20,395,505.54 20,151,253.94 Financial expenses -16,619,737.45 83,121,614.09 Assets impairment losses
Add: income from changes in fair value(―-‖indicates the loss) Investment profit (―-‖ indicates the loss) XVI. 4 218,361,212.94 53,839,437.84 Including: investment income from affiliated XVI. 4 69,929.10 -359,190.17 enterprises and joint ventures II. Operating profit (―-‖ indicates the loss) 218,477,343.38 -52,231,250.61 Add: non-operating income 1,040,500.16
Including: gains from disposal of non-current assets Less: non-operating expenses 2,000.00
Including: loss from disposal of non-current assets Ⅲ. Total profit ("-"indicates the total loss) 219,517,843.54 -52,233,250.61 Less: income tax
IV. Net profit (―-‖ indicates the loss) 219,517,843.54 -52,233,250.61 V. After-tax net of other comprehensive incomes
(I) Other comprehensive incomes that cannot be classified into profit and loss in the future 1. Re-measurement of changes in net liabilities or net assets in defined benefit plan 2. Share in other comprehensive incomes that cannot be reclassified into profit and loss in investee by equity method (II) Other comprehensive incomes that would be classified into profit and loss in the future 1. Shares in other comprehensive incomes that can be reclassified into profit and loss in investee by equity method in the future 2.Loss and profit of change in fair value of available-for-sale financial assets 3. Loss and profit of available-for-sale financial assets of held-to-maturity investments
56 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd. 4. Effective part of hedge profit and loss of cash flow
5. Translation difference in the foreign currency financial statement 6. Others
VI. Total Comprehensive Income 219,517,843.54 -52,233,250.61 VII. Earnings per share (I) Basic earnings per share (II) Diluted earnings per share
57 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd. Consolidated Cash Flow Statement January - June 2015 Prepared by: China Merchants Property Development Co., Ltd. Unit: yuan Amount of current Amount of the same Item Note period period of last year I. Cash flows from operating activities: Cash received from sales of commodities and 22,919,760,919.87 18,355,477,590.23 provision of services Refunds of taxes and levies
Cash received from other operating activities VI. 51 4,950,861,844.21 3,871,017,979.61 Sub-total of cash inflows from operating activities 27,870,622,764.08 22,226,495,569.84 Cash paid for purchasing goods and services 20,261,758,470.60 20,625,105,111.33 Cash paid to and for employees 1,161,424,042.43 854,694,963.32 Payments of taxes 6,010,179,943.53 5,455,155,348.46 Other cash paid relating to operating activities VI. 51 7,798,355,394.74 2,623,864,543.85 Sub-total of cash outflows from operating activities 35,231,717,851.30 29,558,819,966.96 Net cash flows from operating activities -7,361,095,087.22 -7,332,324,397.12 II. Cash flows from investing activities:
Cash received from withdrawal of investments
Cash received from returns on investments 65,195,980.00 20,548,073.61 Net cash received from disposal of fixed assets, 174,843.10 46,854.00 intangible assets and other long-term assets Net cash received from disposal of subsidiaries and other business units Other cash received relating to investing activities VI. 51 630,235,033.61
Sub-total of cash inflows from investing activities 695,605,856.71 20,594,927.61 Cash paid to acquire fixed assets, intangible assets & 12,390,482.84 27,602,326.34 other long-term assets Cash paid to acquire investments 483,925,736.00 58,671,105.19 Net cash received from payment of subsidiaries and other business units Cash payments relating to other investment activities
Sub-total of cash outflows from investing activities 496,316,218.84 86,273,431.53 Net cash flows from investing activities 199,289,637.87 -65,678,503.92 III. Cash flows from financing activities:
Cash received from capital contribution 889,181,567.06 52,690,666.19 Including: cash from the investment of minority 889,181,567.06 52,690,666.19 shareholders of the subsidiaries Cash received from borrowings 13,555,217,307.88 9,924,282,155.82 Cash from issue of bonds 2,749,531,871.47 Other cash received relating to financing activities
Sub-total of cash inflows from financing activities 17,193,930,746.41 9,976,972,822.01 Cash repayment for debts 7,149,750,641.35 6,715,774,121.48 Cash paid for distribution of dividends and profits or 2,130,870,039.43 1,522,713,038.14 payment of interests Including: dividends and profits paid by 161,873,738.11 232,862,000.00
58 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd. subsidiaries to minority shareholders Other cash payments relating to financing activities 922,920.00
Sub-total of cash outflows from financing activities 9,280,620,680.78 8,239,410,079.62 Net cash flows from financing activities 7,913,310,065.63 1,737,562,742.39 IV. Influence of exchange rate change on cash and cash 27,172,033.42 10,709,264.21 equivalents V. Net increase of cash and cash equivalents 778,676,649.70 -5,649,730,894.44 Add: balance of cash and cash equivalents at the 22,947,760,259.27 24,235,680,921.50 beginning of period VI. Balance of cash and cash equivalents at the end of VI. 51 23,726,436,908.97 18,585,950,027.06 period
59 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd. Cash Flow Statement of Parent Company January - June 2015 Prepared by: China Merchants Property Development Unit: yuan Co., Ltd. Amount of current Amount of the same Item Note period period of last year I. Cash flows from operating activities:
Cash received from sales of commodities and 6,245,000.00 500,000.00 provision of services Refunds of taxes and levies -
Cash received from other operating activities 40,879,009,183.66 5,154,554,447.21 Sub-total of cash inflows from operating activities 40,885,254,183.66 5,155,054,447.21 Cash paid for purchasing goods and services -
Cash paid to and on behalf of employees 30,224,753.14 36,214,887.14 Payments of taxes 4,140,137.42 4,271,957.18 Other cash paid relating to operating activities 36,733,046,791.70 7,456,488,650.15 Sub-total of cash outflows from operating activities 36,767,411,682.26 7,496,975,494.47 Net cash flows from operating activities 4,117,842,501.40 -2,341,921,047.26 II. Cash flows from investing activities:
Cash received from withdrawal of investments -
Cash received from returns on investments 11,048,172.61 216,213,570.06 Net cash received from disposal of fixed assets, - intangible assets & other long-term assets Net cash received from disposal of subsidiaries and other business units Other cash received relating to investing - activities Sub-total of cash inflows from investing activities 11,048,172.61 216,213,570.06 Cash paid to acquire fixed assets, intangible 9,448.00 20,880.00 assets and other long-term assets Cash paid to acquire investments 269,633,231.99 88,671,105.19 Net cash received from payment of subsidiaries - and other business units Cash payments relating to other investment 2,780,870,504.49 - activities Sub-total of cash outflows from investing activities 3,050,513,184.48 88,691,985.19 Net cash flows from investing activities -3,039,465,011.87 127,521,584.87 III. Cash flows from financing activities:
Cash received from capital contribution -
Cash received from borrowings 2,050,000,000.00 4,917,261,400.00 Cash from issue of bonds 1,000,000,000.00 - Other cash received relating to financing activities Sub-total of cash inflows from financing activities 3,050,000,000.00 4,917,261,400.00 Cash repayments of amounts borrowed 5,215,972,250.00 3,158,976,000.00 Cash payments for interest expenses and 797,121,299.64 674,974,230.45 distribution of dividends or profit Other cash payments relating to financing 457,078,758.74 - activities Sub-total of cash outflows from financing activities 6,470,172,308.38 3,833,950,230.45 Net cash flows from financing activities -3,420,172,308.38 1,083,311,169.55 IV. Influence of exchange rate change on cash and -3,314,224.71 -11,144,685.25
60 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd. cash equivalents V. Net increase of cash and cash equivalents -2,345,109,043.56 -1,142,232,978.09 Add: balance of cash and cash equivalents at the 8,893,516,594.16 6,296,121,745.68 beginning of period VI. Balance of cash and cash equivalents at the end 6,548,407,550.60 5,153,888,767.59 of period
61 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd. Consolidated Statement of Owners' Equity Changes January - June 2015 Prepared by: China Merchants Property Development Co., Ltd. Unit: yuan Current year Total shareholders' equity attributed to parent company Minority Item Less: Other General Total owners' Undistributed shareholders' Share capital Capital reserve treasury comprehensive Surplus reserve risk equity profit equity stocks income provisions I. Balances at the end of previous year 2,575,950,754.00 8,529,757,654.36 78,901,353.52 1,246,228,257.72 18,663,578,091.22 12,652,363,001.83 43,746,779,112.65
Add: profit or loss from accounting policy changes
Fund for corrections of errors of previous period
Corporate merge under common control
Others
II. Balances at the beginning of this year 2,575,950,754.00 8,529,757,654.36 78,901,353.52 1,246,228,257.72 18,663,578,091.22 12,652,363,001.83 43,746,779,112.65
III. Increased/decreased amount this year (“-” indicates decrease) 361,937,872.36 139,215.19 1,321,197,923.41 1,968,775,862.45 3,652,050,873.41
(I) Total comprehensive income 139,215.19 2,145,502,164.69 242,692,990.74 2,388,334,370.62
(II) Capital paid in and reduced by shareholders 373,715,121.50 1,845,471,167.44 2,219,186,288.94
1. Ordinary share invested by shareholders 49,615,778.95 1,739,195,664.69 1,788,811,443.64
2. Capital invested by other equity instruments holders 308,053,942.66 106,275,502.75 414,329,445.41
3. Amounts of share-based payments recognized in shareholders' equity 16,045,399.89 16,045,399.89
4. Others
(III) Profit distribution - -824,304,241.28 -119,388,295.73 -943,692,537.01
1. Appropriation to surplus reserves
2. Appropriation of general risk reserves
3. Distribution to owners (or shareholder) -824,304,241.28 -119,388,295.73 -943,692,537.01
4. Others
(IV) Internal carried-forward of shareholders’ equity -
1. Capital reserves transferred to share capital
2. Surplus reserves transferred to share capital
3. Surplus reserves for making up losses
4. Others
(V) Special reserve -
1. Withdrawn amount of this year
2. Utilization amount of this year
(VI) Others -11,777,249.14 -11,777,249.14
IV. Balance at the ending of this year 2,575,950,754.00 8,891,695,526.72 79,040,568.71 1,246,228,257.72 19,984,776,014.63 14,621,138,864.28 47,398,829,986.06
62 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd. Consolidated Statement of Owners' Equity (continued) January - June 2015 Prepared by: China Merchants Property Development Co., Ltd. Unit: yuan 2009 Total shareholders' equity attributed to parent company Minority Item Less: Other General Total owners' Undistributed shareholders' Share capital Capital reserve treasury comprehensive Surplus reserve risk equity profit equity stocks income provisions I. Balances at the end of previous year 1,717,300,503.00 8,458,826,075.70 78,901,353.52 1,133,515,392.99 15,336,958,642.03 12,191,665,237.52 38,917,167,204.76 Add: profit or loss from accounting policy changes
Fund for corrections of errors of previous period
Corporate merge under common control
Others
II. Balances at the beginning of this year 1,717,300,503.00 8,458,826,075.70 78,901,353.52 1,133,515,392.99 15,336,958,642.03 12,191,665,237.52 38,917,167,204.76
III. Increased/decreased amount this year (“-” indicates decrease) 858,650,251.00 70,931,578.66 112,712,864.73 3,326,619,449.19 460,697,764.31 4,829,611,907.89
(I) Total comprehensive income 4,263,636,555.36 1,246,213,906.48 5,509,850,461.84
(II) Capital paid in and reduced by shareholders 929,581,829.66 439,818,386.34 1,369,400,216.00
1. Ordinary share invested by shareholders 1,360,260,617.14 1,360,260,617.14
2. Capital invested by other equity instruments holders -
3. Amounts of share-based payments recognized in shareholders' equity 9,113,603.33 9,113,603.33
4. Others 920,468,226.33 -920,442,230.80 25,995.53
(III) Profit distribution 112,712,864.73 -937,017,106.17 -1,225,334,528.51 -2,049,638,769.95
1. Appropriation to surplus reserves 112,712,864.73 -112,712,864.73
2. Appropriation of general risk reserves
3. Distribution to owners (or shareholder) -824,304,241.44 -1,225,334,528.51 -2,049,638,769.95
4. Others
(IV) Internal carried-forward of shareholders’ equity 858,650,251.00 - 858,650,251.00
1. Capital reserves transferred to share capital 858,650,251.00 -858,650,251.00
2. Surplus reserves transferred to share capital
3. Surplus reserves for making up losses
4. Others
(V) Special reserve
1. Withdrawn amount of this year
2. Utilization amount of this year
(VI) Others
IV. Balance at the ending of this year 2,575,950,754.00 8,529,757,654.36 78,901,353.52 1,246,228,257.72 18,663,578,091.22 12,652,363,001.83 43,746,779,112.65
63 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd. Statement of Equity Changes of Parent Company Owner January - June 2015 Prepared by: China Merchants Property Development Co., Ltd. Unit: yuan Current year Other Item Less: treasury Special Undistributed Total owners' Share capital Capital reserve comprehensiv Surplus reserve stocks reserves profit equity e income 2,575,950,754.0 8,077,543,540.8 1,195,276,864.7 17,471,038,060.7 I. Balances at the end of previous year 5,622,266,901.20 0 6 2 8 Add: profit or loss from accounting policy changes
Fund for corrections of errors of previous period
Others
2,575,950,754.0 8,077,543,540.8 1,195,276,864.7 17,471,038,060.7 II. Balances at the beginning of this year 5,622,266,901.20 0 6 2 8 III. Increased/decreased amount this year (“-” indicates 2,628,681.52 -604,786,397.74 -602,157,716.22 decrease) (I) Total comprehensive income 219,517,843.54 219,517,843.54
(II) Capital paid in and reduced by shareholders 2,628,681.52 2,628,681.52
1. Ordinary share invested by shareholders
2. Capital invested by other equity instruments holders
3. Amounts of share-based payments recognized in shareholders' 2,628,681.52 2,628,681.52 equity 4. Others
(III) Profit distribution -824,304,241.28 -824,304,241.28
1. Appropriation to surplus reserves
2. Distribution to shareholders -824,304,241.28 -824,304,241.28
3. Others
(IV) Internal carried-forward of shareholders’ equity
1. Capital reserves transferred to share capital
2. Surplus reserves transferred to share capital
3. Surplus reserves for making up losses
4. Others
(V) Special reserve
1. Withdrawn amount of this year
2. Utilization amount of this year
(VI) Others
2,575,950,754.0 8,080,172,222.3 1,195,276,864.7 16,868,880,344.5 IV. Balance at the ending of this year 5,017,480,503.46 0 8 2 6
64 Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd. Statement of Equity Changes of Parent Company Owner (continued) January - June 2015 Prepared by: China Merchants Property Development Co., Ltd. Unit: yuan 2009 Other Item Less: treasury Special Undistributed Total owners' Share capital Capital reserve comprehensiv Surplus reserve stocks reserves profit equity e income 1,717,300,503.0 8,927,054,193.0 1,082,563,999.9 17,159,074,056.0 I. Balances at the end of previous year 5,432,155,360.06 0 0 9 5 Add: profit or loss from accounting policy changes -
Fund for corrections of errors of previous period -
Others -
1,717,300,503.0 8,927,054,193.0 1,082,563,999.9 17,159,074,056.0 II. Balances at the beginning of this year 5,432,155,360.06 0 0 9 5 III. Increased/decreased amount this year (“-” indicates 858,650,251.00 -849,510,652.14 112,712,864.73 190,111,541.14 311,964,004.73 decrease) (I) Total comprehensive income 1,127,128,647.31 1,127,128,647.31
(II) Capital paid in and reduced by shareholders 9,139,598.86 9,139,598.86
1. Ordinary share invested by shareholders
2. Capital invested by other equity instruments holders
3. Amounts of share-based payments recognized in shareholders' 9,113,603.33 9,113,603.33 equity 4. Others 25,995.53 25,995.53
(III) Profit distribution 112,712,864.73 -937,017,106.17 -824,304,241.44
1. Appropriation to surplus reserves 112,712,864.73 -112,712,864.73
2. Distribution to shareholders -824,304,241.44 -824,304,241.44
3. Others
(IV) Internal carried-forward of shareholders’ equity 858,650,251.00 -858,650,251.00
1. Capital reserves transferred to share capital 858,650,251.00 -858,650,251.00
2. Surplus reserves transferred to share capital
3. Surplus reserves for making up losses
4. Others
(V) Special reserve
1. Withdrawn amount of this year
2. Utilization amount of this year
(VI) Others
2,575,950,754.0 8,077,543,540.8 1,195,276,864.7 17,471,038,060.7 IV. Balance at the ending of this year 5,622,266,901.20 0 6 2 8
65 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
I. Company profile
China Merchants Property Development Co., Ltd (hereinafter referred to as the Company and the Group when the subsidiaries are referred to), originally named China Merchants Shekou Holdings Co., Ltd and founded in
Shenzhen, China, September 1990, is a joint venture through restructuring of China Merchants Shekou Port Service Co., Ltd by China Merchants Shekou Industrial Zone Holdings Co., Ltd. (hereinafter referred to China Merchants Shekou).
In February 1993, the Company issued 27,000,000 Class A shares by way of public offering within the territory of People's Republic of China and 50,000,000 Class B shares outside the territory of People's Republic of China as approved by SFBF (1993) No. 358 Document issued by the General Office of the People’s Government of Shenzhen. This made the total shares of the Company aggregate to 210,000,000 shares. A share and B share issued by the Company were listed on the Shenzhen Stock Exchange in June 1993.
In July 1995, part of B shares of the Company was listed on the Singapore Stock Exchange in the form SDR (Singapore Depository Receipts).
In June 2004, the Company was renamed as China Merchants Property Development Co., Ltd. As of December 31, 2004, the total shares of the Company aggregated to 618,822,672 shares through dividend payout and distribution from 1994 to 2004.
On January 18, 2006, the scheme of split structure reform of Class A shares was adopted at relevant shareholder’ meetings of the Company, namely each holder of outstanding Class A shares of the Company can acquire two Class A shares and cash of RMB 3.14 from non-outstanding shareholders for every 10 outstanding Class A shares he or she held. After the implementation of the scheme, the total shares of the Company remained unchanged.
As approved by Doc.No.67 (ZJFZ[2006]) of China Securities Regulatory Commission, on August 30, 2006, the Company preferably placed the full amount to the shareholders of the original A share who waive part of 15,100,000 convertible bonds (with the par value of RMB100 for each) of the Company which was distributed by the way of public offering to institutional investors offline at fixed prices. This part of convertible bonds of the Company was listed on Shenzhen Stock Exchange for trading from September 11, 2006 (―China Merchants Convertible Bond‖ for short) and these bonds were converted into shares on March 1, 2007.
On May 25 2007, the China Merchants convertible bond stopped trading and converted, the non-converted bonds were repurchased by the Company. As result, the Company had a total of 15,093,841 convertible bonds with the par value of RMB 1,509,384,100 converted to 115,307,691 shares; the remaining non-converted 6,159 bonds with the par value of RMB
66 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
615,900 were repurchased by the Company. As result, the total shares of the Company aggregated to 734,130,363 shares.
As approved by Doc.No.299 (ZJFXZ [2007]) of China Securities Regulatory Commission, the Company issued 110,736,639 non-public shares to China Merchants Shekou (the shareholder of the Company) on September 19, 2007. After this issuance, the total shares of the Company aggregated to 844,867,002 shares.
On March 17, 2008, the Scheme of Profit Distribution and Capitalization from Capital Public Reserve for 2007 was reviewed and adopted at the annual shareholder meeting in 2007, in which the Company made a profit contribution for every 10 shares with 3 shares based on 844,867,002 shares in total on December 31, 2007 and every 10 shares were distributed with 2 shares from capitalization of capital public reserve. After this distribution and conversion, the total shares of the Company aggregate to 1,267,300,503 shares.
As approved by Doc.No.989 (ZJXK [2008]) of China Securities Regulatory Commission , the Company publicly issued 450,000,000 shares to the shareholders of the original A share on November 26, 2008, of which China Merchants Shekou purchased 279,349,288 shares. After this issuance, the total shares of the Company aggregated to 1,717,300,503 shares.
On April 14, 2014, the Scheme of Profit Distribution and Capitalization from Capital Public Reserve to Capital Stock 2013 was reviewed and adopted at the annual shareholder meeting in 2013, in which every 10 shares were distributed with 5 ordinary shares from capitalization from capital public reserve based on the total 1,717,300,503 share at the end of 2013 . After this, a total of 858,650,251 shares were added and the total shares of the Company aggregated to 2,575,950,754 shares.
As of June 30, 2015, the total shares of the Company aggregated to 2,575,950,754 shares, of which there were 1,337,176,971 shares with trading limited conditions (accounting for 51.91% of total shares) and 1,238,773,783 shares without trading limited conditions (accounting for 48.09% of total shares).
The Company is a property development company, mainly engaging in the property development, operation and management and utilities (power) supply services.
The controlling shareholder of the Company is China Merchants Shekou, and the ultimate controller is China Merchants Group. The Shareholder's General Committee is the Company's organ of authority and shall exercise decision right of such major events as preparation of operational guideline, financing, investment, profit distribution, etc. The Board of Directors is accountable to the Shareholder's General Committee and shall exercise the rights of
67 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB) management and decision-making; the management is liable for the organization and implementation of decisions of Shareholder's General Committee and Board of Directors, and organization of production, operation and management of the Company.
II. Scope of consolidated financial statements
The consolidated financial statements of the Group involve 191 companies such as the Company and China Merchants Real Estate (Shenzhen) CO., LTD. Compared to last year, 11 companies including China Merchants (Shanghai) Baoxin Property Co., Ltd. are added due to establishment, as well as 2 companies including Beijing Guangying Residential Property Development Limited due to combination of enterprises not under the common control.
For details, see Note ―VII Change in consolidation scope‖ and ―VIII Rights and interests in other parties‖.
III. Formulation basis of financial statements
The financial statements were prepared on the basis of going-concern assumption, actual trades, Enterprise Accounting System issued by the Ministry of Finance as well as accounting policies and accounting estimates based on Note IV "Significant Accounting Policies and Accounting Estimates".
IV. Significant Accounting Policies and Accounting Estimates
1. Statement for Compliance with Enterprise Accounting System
The financial statements prepared by the Company fully comply with Accounting Standards for Business Enterprise and demonstrate truly and completely the financial status of the Company and the Group, operating performance and cash flow.
2. Accounting period
The fiscal year of the Group runs from January 1 to December 31 of each calendar year.
3. Functional Currency
Except as the overseas operational entity in the Note of "53.(2) under VI.", the Company and other subsidiaries recognize RMB as their functional currency.
68 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
4. Accounting methods for corporate merger under the same control and not under the same control
The assets and debts acquired by the Group (as the merging party) through merging with other enterprises under common control shall be measured as per the book value of the merged party in the consolidated financial statements of the ultimate controller on the day of merger. The difference between the book value of net assets acquired and the book value of the combination paid is used to adjust the capital reserves, and the retained earnings are adjusted in case of insufficient capital reserves.
Regarding combination not under common control, the recognizable assets, liabilities and contingent liabilities of the seller are measured upon fair value on the purchase day. The merger cost is the sum of cash or the fair value of non-cash assets, issued or borne debts and issued equity securities paid by the Group for acquiring the control over the acquiree on the purchase day and all of the expenses incurred to the Group directly relevant to the merging. In case of merging by step, the merger cost is the sum of the cost of every single transaction. Where the merger cost is more than acquired definable net assets fair proportion of the acquiree, the balance is recognized as goodwill. Where the merger cost is less than acquired definable net assets fair proportion of the acquiree, the definable assets, debts, fair value of contingent liabilities and the fair value of the non-cash assets or issued equity securities as merger consideration are rechecked first, and in case the merger cost is less than acquired definable net assets fair proportion of the acquiree after recheck, the balance is included in current nonrevenue receipt.
5. Preparation method of consolidated financial statements
The Group incorporates all of the subsidiaries and structured entities under its control into the consolidated financial statements.
For any difference occurring in accounting policies and accounting periods between the Company and its subsidiaries when preparing consolidated financial statements, necessary adjustments shall be made based on accounting policies and periods of the Company.
All transactions, significant balances and unrealized gains within the consolidation range are reduced in the preparation of consolidated financial statements. For the subsidiaries, the proportion of ownership equity not belonging to the parent company, current net profits and losses, other comprehensive income and the proportion of the total comprehensive income belonging to minority shareholder are included in ―Equity for minority shareholder‖, ―Profits and losses for minority shareholder‖, ―Other comprehensive income for minority shareholder
69 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
―and ―Total comprehensive income for minority shareholder‖ respectively in the consolidated financial statements.
For the subsidiaries under common control merged by the Group, the operation results and cash flow of such subsidiaries are incorporated into the consolidated financial statements from the beginning of the current period in which the merger is carried out. When preparing the comparative consolidated financial statements, the relevant items in the financial statements of the last year are adjusted based on the assumption that the reporting entity exists since the ultimate controller has obtained the controlling right
For the subsidiaries not under common control merged by the Group, the operation results and cash flow of such subsidiaries are incorporated into the consolidated financial statements from the day of the Group acquiring the control over the subsidiary. In preparation of consolidated financial reports, financial statements of subsidiaries shall be adjusted based on the fair value of recognizable net assets, liabilities and contingent liability defined on the purchasing date.
Where the Group disposed part of long-term equity investment in the subsidiaries without losing control over of such subsidiaries, in the financial statements, the balance between the income from disposal and the net assets proportion of the subsidiaries entitled by the disposed long-term equity investment and continually calculated from the purchase day or day of merger is adjusted as the capital stock premium of the capital public reserve and retained earnings is adjusted in case of the capital public reserve not enough for deduction.
Where the Group lost the control over the invested party for such reason as disposing partial equity investment, the remaining equity was re-measured as per the fair value of such equity on the day of losing controlling right when preparing the consolidated financial statements. The balance between the sum of the consideration from the disposal of equity and the fair value of the remaining equity and the net assets proportion of the subsidiaries entitled by the disposed long-term equity investment and continually calculated from the purchase day or day of merger is included in the investment income for the period and the goodwill is deducted. Other consolidated income related to the equity investment of the original subsidiary shall be transferred into current investment profit and loss upon losing control.
Where the Group lost control over a subsidiary through multiple transactions and step-by-step disposal of the equity of the subsidiary, and such multiple transactions to a package deal, the multiple transactions shall be deemed one transaction in which the control in the subsidiary was lost; however, the balance between the disposal price and the net assets proportion of the subsidiaries entitled by the disposed long-term equity investment prior losing
70 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB) control over the subsidiary was recognized as other comprehensive income and was transferred to the profits and losses of current period at the time of losing control.
6. Classification of joint arrangement and accounting methods for joint operation
The joint arrangement of the Group includes joint operation and joint venture. For jointly operated projects, the Group as a partner recognizes the assets and debts it holds independently and proportionally as well as recognizes the income and expenses as agreed. Where purchase and sale of an asset during joint operation does not constitute a business, only the part in the profits and losses from the transaction belonging to other partners is recognized.
7. Cash and cash equivalent
Cash in the Cash Flow Statement refers to cash in hold and deposits which can be used for payment at any time. Cash equivalents in the Cash Flow Statements refer to short-lived (generally not more than 3 months) and highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value.
8. Foreign currency transaction and foreign currency statement translation
(1) Foreign currency transactions
The transactions denominated in foreign currency of the Group are converted in the initial recognition at the rate which is approximate to the spot exchange rate on the transaction day, which shall be the spot exchange rate of the beginning of the month when the transaction occurs.
At the balance sheet date, the monetary items denominated in foreign currency are translated to RMB at the spot exchange rate at the balance sheet date, and the balance between the spot exchange rate at the balance sheet date and the rate in the initial recognition or on the last balance sheet date is included in current profits and losses except for 1) the balance from exchange of specific borrowings that is capitalized and included as part of the cost qualifying asset; 2) the balance from exchange of hedge instrument adopted for evading the exchange risks that is treated according to hedge accounting; 3) the balance from exchange arising from the foreign currency non-monetary items available for sale (e.g. the stock) and that arising from the change in the book value of the monetary items available for sale except for amortized cost is recognized as other comprehensive income.
Non-monetary items of foreign currency measured by historical cost still adopt spot exchange rate of transaction date for conversion with functional currency amount unchanged.
71 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
As for the foreign currency non-monetary items measured by fair value, the spot exchange rate on the date when the fair value is confirmed is adopted for conversion. The amount differences between functional currency amount after conversion and the original functional currency amount, processed as fair value changes (including change in exchange rate), are recognized into current profits and losses or recognized into other comprehensive incomes.
(2) Foreign currency financial statement translation
For the purpose of preparing the consolidated financial statements, the foreign currency statements for overseas business will be converted into RMB, that is all assets and liabilities in the balance sheet will be converted as per the exchange rate near to spot exchange rate on the balance sheet date; the shareholders’ equity except for ―undistributed profit‖ will be converted as per the spot exchange rate when it is incurred; all items in the income statement and those reflecting the incurred amount of profit distribution will be converted as per the spot exchange rate on transaction date; undistributed profit at beginning of the year should be the undistributed profit at the end of last year after translation; undistributed profit at end of the year will be calculated as per various items of profit distribution after translation, and; difference between assets & liabilities after translation and total amount of shareholders’ equity will be listed separately, as the translation difference in foreign currency statements, under the shareholders’ equity in the balance sheet.
Cash flow of foreign currency and overseas subsidiaries will be converted as per the exchange rate near to spot exchange rate on the date when cash flow is incurred; amount of cash and cash equivalents affected by exchange rate changes will be listed separately, as the adjusting item, under ―influence of exchange rate changes on cash and cash equivalent‖ in the cash flow statement. Financial assets and liabilities are adopted under the asset and liability in the balance sheet
9. Financial assets and liabilities
The Group recognizes one item of financial asset or financial liability when it becomes a party of any financial instruments contract.
(1) Financial assets
1） Classification, recognition basis and measurement method of financial assets
The financial assets of the Group are divided into the following categories in accordance with investment purposes and economic substance: the financial assets at fair value through
72 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB) profit or loss; held-to-maturity investments, loans and receivables; and available-for-sale financial assets.
The financial assets that are measured by fair value and the changes are recognized into current profit or loss include trading financial assets and the financial assets that are measured by fair value and the changes are recognized into current profit or loss when they are initially recognized. The financial assets meeting any of the following conditions can be classified as trading financial assets by the Group: they are acquired for the purpose of selling in the near future; they are derivative instruments, other than the designated derivative instruments which are effective hedging instruments, or derivative instruments to financial guarantee contracts, and the derivative instruments which are connected with the equity instrument investments for which there is no quoted price in the active market, of which the fair value cannot be reliably measured, and which should be settled by delivering the said equity instruments. The financial instruments meeting any of the following conditions can be designated, when they are initially recognized, as financial assets which are measured at their fair value and of which the variation is recognized into the current profits and losses: the designation can eliminate or obviously reduce the discrepancies in the recognition or measurement of relevant gains or losses arisen from the different measurement basis of such financial assets; mixed instrument containing one or more embedded derivative instruments is designated, unless the embedded derivative instrument does not significantly change the cash flow of the mixed instrument, or the derivative instruments embedded in similar mixed instruments shall obviously not be separated from the relevant mixed instruments; mixed instrument containing the embedded derivative instruments which need to be split but could not be separately measured as of the acquisition date or subsequent balance sheet dates. Such financial assets designated by the Group currently only include the call option of convertible bond. For such financial assets, fair value is adopted for subsequent measurement. Variations of fair value are recognized in the fair value variation profits and losses; interest or cash dividends acquired during the asset holding period are recognized as investment income; and the difference between its fair value and initial recognition amount shall be recognized as investment profits and losses upon disposal, and fair value variation profits and losses shall be adjusted simultaneously.
Held-to-maturity investment refers to non-derivative financial assets which have fixed due date and fixed or confirmed recovery amount and which the Group is determined and able to hold till maturity. As to held-to-maturity investment, effective interest method is adopted for subsequent measurement as per amortized cost. The profit or loss occurred by amortization, impairment or derecognition are all recognized into current profit or loss.
Receivables refer to non-derivative financial assets which have no quotation in active market and fixed or determined recovery amount. Effective interest method is adopted for
73 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB) subsequent measurement as per amortized cost. The profit or loss occurred by amortization, impairment or derecognition are all recognized into current profit or loss.
Available-for-sale financial assets are those non-derivative financial assets that are designated as available-for-sale at initial measurement or are not classified in any of the three preceding categories. For this kind of assets, the equity instrument investment with no price in active market and its fair value not reliably measured and the derivative financial assets linked with the equity instrument and settled through the delivery of the equity instrument are subsequently measured as per the cost; those with quotation in active market and the fair value reliably measured are measured as per the fair value and the changes in fair value are included in other comprehensive income. Fair value is adopted for subsequent measurement for such financial assets. In addition to exchange gains or losses generated from impairment loss and foreign currency financial assets, changes in fair value of available-for-sale financial assets will be directly included in shareholder' equity and the accumulative amount of the changes in the fair value that is originally directly included in equity shall be transferred in current profit or loss upon the derecognition of the financial assets. For the available-for-sale liability instruments, the interest is calculated with actual interest rate during the holding period, together with the cash dividend of the available-for-sale equity instrument investments shall be recognized into current profits and losses as investment incomes when the invested company distributes the dividend. The investments in equity instruments not quoted in an active market and whose fair value cannot be reliably measured is subsequently measured based on the cost.
2） Recognition basis and measurement method for financial asset transfer
Where a financial asset satisfies any of the following requirements, the recognition shall be terminated: (1) the contractual rights for collecting the cash flow of the said financial asset are terminated; (2) the said financial asset has been transferred with almost all risks and remunerations thereof transferred to the transferee; (3) the said financial asset has been transferred and the Group gives up the control over the financial assets even though it neither transfers nor retains almost all risks and remunerations thereof.
Where the Company neither transfers/retains almost all risks and remunerations in connection with the financial assets nor gives up the control over the financial assets, it shall recognize related financial assets as well as related financial liabilities according to its continuing involvement in the transferred financial assets.
If the overall transfer of financial assets meets the conditions for derecognition, the balance between the following two amounts shall be recognized into current profits and losses: (1) book value of transferred financial assets; (2)the sum of the consideration received from the transfer
74 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB) and the accumulative amount of changes in the fair value that is originally and directly recognized into other comprehensive income.
If the partial transfer of financial assets does not meet the conditions of derecognition, the overall book value of transferred financial assets between derecognition and non-derecognition shall be amortized based on relative fair value. The balance between following two amounts shall be recognized into current loss and profit; (1) the sum of the consideration received from the transfer and the accumulative amount of changes in fair value that shall be amortized for derecognition and recognized into other comprehensive income and (2) the balance of the amortized of the aforesaid carrying amount.
3） Financial asset depreciation test and accounting methods
The Group examines the book value of other financial assets except those which are measured at their fair value and of which the variation is recorded into the profits and losses of current period on each balance sheet date and accrues the provisions for impairment if any objective evidences prove the impairment of the financial assets.
In case of impairment of financial assets measured by amortized cost, the impairment provision of assets is accrued based on the shortfall of book value over its present value (excluding future credit losses that have not been incurred). The formerly recognized impairment shall be reversed and recognized into the current profit or loss if there is objective evidence showing that the financial assets are recovered and it objectively has relations with the items happened after the impairment is recognized.
If there is impairment loss of available-for-sale financial assets, the accumulated loss due to the decline of fair value that is previously and directly included in the owners' equity shall be transferred and recognized into impairment loss. As for available-for-sale debt instruments with impairment affirmed, the fair value has been increased in the subsequent accounting period and objectively has relations with the items happened after the recognition of former impairment, the formerly recognized impairment shall be reversed and recognized into the current profit or loss. As for available-for-sale debt instruments with impairment affirmed, the increased fair value in the subsequent accounting period shall be directly included in the shareholder's equity.
(2) Financial liabilities
1） Classification, recognition basis and measurement method of financial liabilities
75 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Financial liabilities are divided into the following categories at the initial recognition: the financial liabilities that are measured by fair value and whose changes are included in current profit or loss, and other financial liabilities.
For the financial liabilities measured with fair value and the changes recognized into current profit or loss including trading financial liabilities and the financial liabilities that are measured with fair value and the changes recognized into current profit or loss on initial recognition, fair value is adopted for subsequent measurement; and all profits or losses from change in fair value as well as dividend and interest income relevant to such financial liabilities shall be recognized into current profits and losses.
Other financial liabilities adopt effective interest method for subsequent measurement according to amortized cost.
2） Derecognition of financial liabilities
All of or part of the current obligations of financial liabilities have been canceled. Derecognize the financial liabilities or part with obligations being derecognized. The balance between partial book value and the consideration paid shall be included in the current profit or loss.
10. Provision for bad debts of accounts receivable
The following standards shall be followed to determine the provision for bad debts of accounts receivable: debt unit cancellation, bankruptcy, insolvency, serious shortage of cash flow, production halt due to serious natural disaster and failure to pay back debts within foreseeable times; the debt unit fails failure to perform its obligations three (3) years after due; and other conclusive evidences showing that such debt cannot or is unlikely to be withdrawn.
Possible bad debt losses are accounted by allowance method with separate impairment test or that by portfolio taken at the end of the year, and provision for bad debts are accrued are included in current profits and losses. For accounts receivable with conclusive evidence showing that such accounts receivable cannot be recovered, such accounts receivable are included into bad debt losses with the approval from the Group's management and bad debt reserves are offset.
(1) Receivables of individual account with significant amount and accrued provision for bad debt
Judgment basis or amount Receivable more than RMB 5 million shall be deemed as a
76 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB) standard for significant single significant single account amount Individual impairment test will be made on the financial assets with significant single account. Financial assets with no impairment in Accounts receivable with separate impairment test are included into financial assets portfolios significant single amount and with similar characteristics of credit risk for impairment test. accrued method for provision of Receivables with impairment recognized after individual testing are bad debts by single account no longer included into financial assets portfolios with similar characteristics of credit risk for impairment test.
(2) Receivables for which the bad debts reserve is withdrawn based on the credit risk feature portfolio
Basis for portfolio determination
The portfolios are classified according to the credit risk features of the debtors and include mainly the receivables confirmed as not to be depreciated by independent test (including the single significant or Portfolio 1 insignificant receivable from the associated parties of the Group, government agencies and the joint venture, such as reserve funds and deposits). Such receivables are least impossible to become bad debts This portfolio includes receivables except for Portfolio 1 and the receivables for which single bad debts reserve is withdrawn. When Portfolio 2 withdrawing the bad debts reserve for the receivables of this portfolio, the Group adopts aging analysis method in combination with the past experience in this regard. Accrued method for provision of bad account by portfolio
Portfolio 1 No provision for bad debts
Portfolio 2 Aging analysis
1) Provisions for bad debts can be accrued with aging analysis method and the accruing proportion is as follow:
Aging Accruing rate of account Accruing rate of other receivables receivable (%) (%) Within 6 months 2 2 (inclusive) From 6 to 12 months 5 5
77 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Aging Accruing rate of account Accruing rate of other receivables receivable (%) (%) 1-2 years 20 20 2-3 years 50 50 Over 3 years 100 100
(3) Receivables for which single amount is insignificant but the bad debts reserve is withdrawn independently
Reason for bad debt provision by The single amount is insignificant and there is evidence showing that single account it is possible not to recover contractual cash flow. Method to charge provision for The provision for bad debts is accrued based on the balance of the bad debt present value of future cash flow lower than the book value balance.
11. Inventories
The inventories of the Group include mainly property development products, raw materials, commodity stocks, low-value consumables and others.
The property development products include the properties under construction (including the land to be developed) and as-built properties (including the leased property available for sale). Actual costs of real estate development products include land-transferring cost, supporting infrastructure cost, construction & installation cost, loans before completion of the development projects and other relevant cost during development. Actual costs of delivered real estate development products are determined by specific identification of costs.
Actual cost accounting is adopted for construction contract, including direct costs and indirect costs from contract signing to completion of the contract and related to fulfillment of the contract. The net amount after the offset of accumulated cost and accumulated recognized gross profits (loss) for the properties under construction and the settlement is listed as net amount after offset in the balance sheet. Where the sum of accumulated cost and accumulated recognized gross profits (loss) for the properties under construction is more than the settlement, the balance is listed as inventories; where the latter is more than the former, the balance is listed as account received in advance.
Travel expenses, tender expenses, etc. for construction contract signing can be separately distinguished and reliably calculated. For contracts probably to be concluded, expenses are recognized into contract cost upon receiving the contract; otherwise, expenses are recognized into current profits or losses.
78 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
One-off amortization method is adopted for receipt of low-value consumables and other inventories.
The ending inventory is measured by the cost and net reliable value whichever is lower. When the net reliable value of the property development product is less than the cost, the inventory devaluation provision shall be withdrawn. Net reliable value refers to the amount of the predicted sale price less predicted as-built cost and expenses arising from sale and taxes during normal production and operation process. Estimates of net realisable value are based on the most reliable evidence available at the time the estimates are made and take into consideration the purpose for which the inventory is held and the influences of events occurring after the balance sheet day.
After the accrual of devaluation provision for inventory, where affecting factors for former write-down of inventory value has disappeared, the write-down amount shall be recovered and reversed in the formerly accrued depreciation provision , and reversed amount shall be included in current profit or loss.
12. Long-term equity investments
The long-term equity investment of the Group includes mainly the investment to the subsidiaries, associated enterprises and joint ventures.
The basis for the Group to define joint control is that all participating parties or the combination of the parties control the arrangement jointly and the policies relevant to the activities of the arrangement must be agreed by such parties.
The Group will be generally deemed to have significant impact on the invested entity if the Group holds 20% (inclusive) to 50% of voting right of an invested entity directly or indirectly through its subsidiaries. Where the Group holds less than 20% of voting right of an invested entity, the Group’s significant impact on the invested entity will depend on whether the Group has its representative in the Board of Director or any similar organ of power of the invested entity, whether the Group participates in the formulation of financial and operation policies of the invested entity, whether the Group has important deals with the invested entity, whether the Group dispatches management personnel to the invested entity or whether the Group provides the invested entity with key technical data.
Any entity under the control of the Group is the subsidiary of the Group. The long-term equity investment acquired through merging with an enterprise under common control, the book value of net asset of the acquiree in the consolidated financial statements of the ultimate
79 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB) controller on the day of merger is taken as the initial investment cost of the long-term equity investment. Where the book value of net asset of the acquiree on the day of merger is negative, the cost of the long-term equity invest is recognized as zero.
Where the long-term equity investment is acquired thorough merging with an enterprise not under common control, the merger cost is taken as initial investment cost. The merger cost is the fair value of the assets given, debt occurred or borne and equity securities issued by the Group for acquiring the controlling right of the acquiree on the day of merger
Aside from the above long-term equity investment acquired by the merger of enterprises, long-term equity investment acquired by cash payment adopts the actual paid purchase amount as the investment cost; long-term equity investment acquired by issuance of equity securities adopts the fair value of issued equity securities as the investment cost; long-term equity investment invested by investors adopts the value reached in the investment contract or agreement as the investment cost.
The investment of the Group to the subsidiaries is calculated with cost method, and equity method is applied for joint ventures and associated enterprises.
For the long-term equity investment with cost method applied for subsequent measurement, in case investment is added, the book value of the long-term equity investment cost is added with the fair value of additional investment cost and resulting transaction expenses. The cash dividend or profit distributed by an invested entity is recognized as current return on investment based on the distributed amount.
For the long-term equity investment with equity method applied for subsequent measurement, the book value of the long-term equity investment is increased or decreased with the change in the ownership equity of the invested entity. The proportion of net profit or loss of the invested company to be enjoyed or assumed by the Group is confirmed by taking the fair value of recognizable assets of the invested company upon obtaining the investments as the base, and offsetting the proportion of internal transaction profits and losses occurring between the associated enterprises and joint ventures which is due to the investing enterprise according to shareholding proportion and adjusting the net profit of the invested unit.
For disposal of long-term equity investment, the difference between the book value and the actual received payment shall be recognized into current income. For the disposal of the long-term equity investments which are calculated with equity method and recognized into the owner equity due to the changes in owner equity other than the net profits and losses of the
80 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB) invested company, the part initially recognized into the owner equity shall be carried over to current income and losses in corresponding proportion.
Where losing joint control over or significant impact on the invested entity is a result of such fact as disposing partial equity investment, the remaining equity is calculated as the finance asset available for sale and the balance between the fair value and the book value of the remaining equity on the day of losing joint control or significant impact is included in current profits and losses. For other comprehensive income of the original equity investment recognized with equity method, the basis same as that of the invested entity directly disposing relevant asset or debts is applied for accounting when the equity method is ceased to be used.
Where losing control over the invested entity is a result of disposing partial long-term equity investment and the Group has a common control over or have significant impact on the invested entity by using the remaining equity, the equity method is applied, the balance between the book value and disposal consideration of the disposed equity is included in the return on investment, and the remaining equity is adjusted as if it was calculated with equity method since the acquiring of such equity. In case the Group cannot have a common control over or have significant impact on the invested entity by using the remaining equity, regulations for financial assets available for sale are applied and the balance between the book value and disposal consideration of the disposed equity is included in the return on investment, and the balance between the fair value and book value of the remaining equity on the day of losing control is included in current profits and losses.
13. Investment property
The investment property of the Group includes the leased land use right, the land use right it is entitled to for assignment after appreciation, the leased properties and the properties it holds for sale. Cost model is applied for measurement.
The investment property of the Group is amortized with the average service life method. Estimated service life, net residual value rate and annual amortization rate of investment property are as follows:
Estimated residual Annual depreciation rate Type Asset class Depreciation years value rate (%) (%) Determined as per Land use Remaining service life of —— 0 calculation of depreciation rights land use right year Houses and 30 years or duration of land Steel structure 5 ≥3.17 buildings use whichever is shorter
81 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Reinforced 25 years or duration of land cement 5 ≥3.8 use whichever is shorter structure Brick-concrete 20 years or duration of land 5 ≥4.75 structure use whichever is shorter
14. Fixed assets
The Group's fixed assets are tangible assets that: (i) are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; (ii) have useful lives more than one year; and (iii) have unit value more than RMB 5,000.
The fixed assets can be recognized only when their economic interests may flow into the Group and their costs can be reliably measured. Fixed assets of the Group are classified as houses and buildings, machines and equipment, transportation equipment, office facility, etc.
All fixed assets, apart from those fixed assets that have been depreciated and accrued but are still in use and those lands that are transferred into fixed assets separately according to actual values, are depreciated and accrued by the Group. The average service life method is applied for accrual of depreciation. The classification, depreciation years, estimated net residual value rate and depreciation rate of fixed assets are as follows:
Estimated Annual Type Asset class Depreciation years residual value depreciation rate (%) rate (%) 30 years or duration of land ≥3.17 Steel structure 5 use whichever is shorter Houses and Reinforced cement 25 years or duration of land ≥3.8 5 buildings structure use whichever is shorter Brick-concrete 20 years or duration of land ≥4.75 5 structure use whichever is shorter Plant —— 5 to 20 years 5 4.75-19 equipment Passenger car 5 5 19 Vehicles for 11.88-19 Transportati 5 production 5 to 8 years on equipment Auxiliaries of 19 5 vehicles 5 Office Instruments 5 5 19 equipment Office goods 5 5 19
82 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Estimated Annual Type Asset class Depreciation years residual value depreciation rate (%) rate (%) Computer 5 3 to -10 years 9.5-31.67 equipment Furniture and 5 5 19 appliances Others 5 to -10 years 5 9.5-19
The Group shall check the useful life of fixed assets, expected net salvage value and depreciation method not later than the end of the year. Any change will be disposed as accounting estimation change.
15. Construction in progress
The constructions in progress shall be transferred into the fixed assets based on the estimated value since the date when they are in the intended use state, according to project budget, cost or actual cost of the project, etc., and be withdrew and depreciated since the next month. The estimated value then is adjusted according to the actual cost after the completion settlement has not been handled.
16. Borrowing costs
The borrowings used for fixed assets, investment property and inventories needing more than 1 year to construct or product for intended use or sale are capitalized after the capital is paid, borrowings are obtained and the construction or production begins, and are ceased to be capitalized after the intended use or sale of the same is available. The subsequent borrowings are in included in current profits and losses. If the asset in conformity with capitalization conditions suffers abnormal disruption during the process of purchase and construction or production, and the duration of the disruption exceeds three (3) consecutive months, the capitalization of borrowing costs shall be suspended until the purchase and construction or production activity of the asset resumes.
In the property development project of the Group, the construction or production necessary for intended use or sale of the assets mean that the land use right required for the construction has been obtained and the construction (such as the pile foundation works or other substantial construction works) has commenced; the asset available for intended use or sale mean the return receipt of final acceptance records of the property project is received and the delivery conditions has been met.
83 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
In the case of loan specially borrowed for the acquisition and construction or production of assets conforming to capitalization conditions, the capitalized amount is equal to actual interests of the loan specially borrowed minus the interest income of the borrowed capital that has not been used in the bank deposit or the income from temporary investment from the actual interests incurred in the current period of specially borrowed capital. The interest amount of general loan to be capitalized is calculated by multiplying the weighted average of the part of aggregate assets expenditure in excess of the special loan expenditure of assets by the capitalization rate of utilized general loan. The capitalization rate is determined on the basis of weighted average interest rate of general loans.
17. Intangible assets
The intangible assets of the Group include the land use right and software acquired for the construction of self-used properties. The land use right acquired for daily operation is calculated as the inventory. Intangible assets are measured at actual cost upon acquisition, where, the actual cost of intangible assets purchased consists of the actual payment and relevant expenses; and the cost input by the investors in intangible assets is determined in accordance with the value stipulated in the investment contract or agreement; unless the contract or agreement stipulates that the value is not fair, then the actual cost is measured at the fair value.
Land use right is amortized averagely according to transfer term counted from transferring date; software and other intangible assets shall be amortized averagely according to the shortest term among anticipated service life, beneficiary years stipulated in contract and valid terms formulated by law. Amortized amount is included in relevant asset cost and current profit or loss by beneficiaries. Estimated service life and amortization method of intangible assets with limited service life are recheck at the end of each year, treatment of changes in accounting estimates is adopted for any change.
18. Impairment of non-financial asset excluding goodwill
When the Group found that there was an indication of impairment of long-term equity investment, investment property, fixed assets, project under construction, and intangible assets with limit service life on each balance sheet date, the Group conducted impairment test. The intangible assets with uncertain service life shall be tested in impairment at the end of the year, no matter whether there is any sign of impairment.
The recoverable amount of assets should be estimated on a single asset basis, or the recoverable amounts of a single asset cannot be estimated, it is allowed to estimate the recoverable amount of the asset group to which they said asset belongs. The recoverable amount
84 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB) is determined to be the fair value of the asset or asset group with the disposal expense deducted or the present value of estimated cash flow of the asset or asset group, whichever is higher. If the book value of the asset is more than the recoverable amount, the difference will be recognized as the impairment loss; and once the impairment loss is recognized, it shall not be reversed in the later accounting periods.
19. Goodwill
The balance of the equity investment costs or consolidation costs not under the same control greater than the fair value of the share of net assets or recognizable net assets of the invested unit or seller acquired from enterprise consolidation is recognized as goodwill.
Goodwill related to the subsidiary is separately listed on the consolidated financial statements; goodwill related to the associated enterprises and joint ventures is included in the book value of long-term equity investment.
Impairment test is carried out for goodwill at the end of the year, no matter whether there is any sign of impairment. The goodwill was, together with the related asset group or combination of asset groups, subject to the impairment test. That is, the book value of goodwill was reasonably apportioned to the asset group or combination of asset groups which benefit from the synergy of business merger from the purchase date. If the recoverable amount of the asset group or combination of asset groups of goodwill with apportionment is less than its book value, the related impairment loss shall be recognized. Impairment loss is firstly amortized to the book values of goodwill in asset group or asset group portfolio, and then deducted for the carrying value of other assets in according to the percentage occupied of other assets (except goodwill) in the asset group or asset group portfolio.
20. Long-term deferred expenses
The long-term unamortized expenses of the Group include the improvement expenditure of fixed assets under operating lease and other expenses with a benefit period over 1 year. Such expenses were amortized averagely in the benefit period. Where the long-term deferred expenses fail to benefit the subsequent accounting periods, all amortized value that has not been amortized yet shall be transferred to the current profits and losses.
21. Employee remuneration
The remuneration of employees in the Group includes short-term remuneration, welfare after dimission, dismissal welfare and other long-term welfare.
85 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
The short-term remunerations mainly include the employee’s salary and welfare expense of employee. The actual short-term remunerations shall be recognized as the debt during the accounting period when the employees provide service and included in current profits and losses or related asset costs according to the benefit object.
The welfare after demission mainly includes the basic endowment insurance premium and unemployment insurance expense and is classified into the defined contribution plan and the defined benefit plan according to the risk an obligation undertaken by the Company. For the defined contribution plan, the sinking fund deposited to an independent entity for the service provided by employee in the accounting period on the balance sheet date is recognized as the debt and included in current profits and losses or related asset costs according to the benefit object. There is no defined benefit plan in the Company.
When the Group cannot unilaterally withdraw the dismissal welfare provided for the plan on the cancellation of labor relationship or layoff proposal, or recognize the cost or expense involved with the recombination of dismissal welfare or payment of such dismissal welfare (whichever is earlier), the employee’s remuneration incurred by the dismissal welfare is recognized as the debt and included in current profits and losses or related asset costs.
22. Estimated liabilities
When the businesses related to contingencies like external guarantee and pending actions or arbitrations conform to the following conditions at the same time, they will be recognized as the debt by the Group: the obligation is the current obligation undertaken by the Group; the implementation of such obligation may probably cause the outflow of economic interests from the Group; and the amount of that obligation can be measured reliably.
23. Share payment
The equity-settled share-based payment to exchange the provision of service by employees is measured by the fair value of the equity instrument conferred to the employees on the grant date. Where it is exercisable upon finishing the service within the waiting period or satisfying the regulated performance conditions, based on the optimal estimation of the exercisable equity instrument quantity within the waiting period, the fair value amounts are included in relevant cost or expense after calculation by the method of line, with relevant capital surplus increased.
24. Recognition and measurement of income
The operation income of the Group mainly include the sales revenue, lease revenue and property management revenue of real estate development products, utilities (electric power
86 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB) supply) revenue and construction contract revenue and revenue recognition policies are as follows:
1） The revenue of real estate development products are recognized under the following conditions:
A. Seller and Purchaser sign the sales contract and file a record in the land department;
B. The revenue of real estate development products are completed and are qualified in acceptance;
C. The Company has received full house-purchase price or obtained the right of collecting the full purchase price (e.g. the written commitment letter for releasing mortgage payment from bank);
D. The formalities of property delivery are handled or the customers are deemed to accept the property according to the terms in the purchase contract.
2） Lease revenue: the lease revenue of investment property is recognized as the lease revenue by the method of line according to rent agreed in the contract or agreement over the lease term.
3） Utilities revenue: when electric power supply service has been provided and its relevant economic benefit has obtained by the Company, meanwhile, relevant revenue and cost can be measured reliably, the realization of utilities revenue is recognized.
4） Property management revenue: when property management service has been provided and its relevant economic benefit has obtained by the Company, meanwhile, relevant revenue and cost can be measured reliably, the realization of utilities revenue is recognized .
25. Government subsidies
Government subsidies refer to monetary assets and non-monetary assets acquired without any charge from the government. Government subsidies can only be recognized upon meeting the condition that the Company meets all conditions of government subsidy and is able to receive the government subsidy.
If government subsidies are monetary assets, it shall be calculated according to the received; if the government subsidy is distributed subject to fixed quota standard or if there is definite evidence showing that it is in conformity with relevant requirements of the financial support policies, it shall be calculated according to the receivable amount; and if the
87 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB) government subsidy is non-monetary assets, it shall be measured at the fair value; and if the fair value fails to be obtained reliably, it shall be calculated according to nominal amount (RMB 1).
Government subsidies in relation to assets are recognized as deferred income and allocated equally within the service life of relevant assets, which will then be included in current profit or loss. Government subsidies relevant with incomes and that are used to make up future expenses or losses will be recognized as deferred income and recognized into current profits and losses within the recognition period of relevant expenses; government subsidies used to make up incurred relevant expenses or losses are included into current profits or losses directly.
26. Deferred income tax assets and deferred income tax liabilities
Deferred income tax assets and deferred income tax liabilities are measured in accordance with the tax base of assets and liabilities and difference of its book value (temporary difference). Deferred income tax assets shall be recognized based on the deductible losses of the income tax payable in the following year in accordance with the tax law. A deferred tax liability shall not be recognized if the temporary difference arises from the initial recognition of goodwill. The deferred income tax assets and liabilities shall not be recognized to the extent that the temporary difference arises from the initial recognition of an asset or liability in a transaction which contains both of the following characteristics (i): the transaction is not a business combination and (ii) at the time of the transaction, it affects neither accounting profit nor taxable profit (or deductible loss). At the balance sheet date, the deferred income tax assets and deferred tax liabilities shall be measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, according to the requirements of tax laws.
Deferred tax assets are recognized with a limit of the future taxable income which is likely to be used by the Group for deducting any deductible temporary difference, deductible loss and tax deduction.
27. Leasing
The leasing business of the Group is operating lease.
The rent paid by the Group as the Lessee in the operating lease is included in related asset costs or current profits and losses by the method of line over the lease term.
28. Change in significant accounting policies and accounting estimates
(1) Significant changes in accounting estimates
88 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
The Company approved the Proposal for Alteration of Accounting Estimation on Fixed Assets at the 18th Interim Meeting of the 7th Board of Directors on December 27, 2014, allowing to include at a time the fixed assets with the unit value not more than RMB 5,000 into the current cost, for which the depreciation calculation by year is not required. Such matter is executed as of January 1, 2015. The Company adopts the prospective application.
V. Taxation
1. Main taxes and tax rates
Taxes Tax calculation basis Tax rate Enterprise income tax Note1 Taxable income Note 1 Sales revenue of real estate and property Business tax 5 % lease revenue Commodity sales revenue and power Value-added tax 17 % supply revenue Sales revenue of real estate - sum of As per 30%-60% of progressive Land value increment tax deductible items tax rate of super-rate Transfer amount of land use rights and Deed tax 3 % property
70% of original value of the property or rent Housing property tax 1.2 % or 12 % revenue Note 2 City maintenance and Business tax (or paid value added tax) 1%-7% construction tax Education surtax Business tax (or paid value added tax) 3 %
Note 1: The profit tax rate of the Company’s subsidiary in Hong Kong is 16.5% as per the Inland Revenue Ordinance of Hong Kong and the profit tax rate of the Company and other subsidiaries in the Chinese Mainland is 25%.
Note 2: The housing property tax is paid according to 70% of initial book value of assets and specified tax rate for the fixed assets like house and rental property of the Company and the subsidiaries in Shenzhen, and the new houses are exempted from the housing property tax three years after the houses are filed a record in the tax authority; the housing property tax of the subsidiaries in the other place shall be paid according to the local regulations.
VI. Notes to Major Items in Consolidated Financial Statement
With respect to the following data disclosed in the Financial Statements, unless otherwise stated, "the beginning of the year" refers to January 1, 2015; "the end of the period" refers to
89 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
June 30, 2015; "this period" refers to the period between January 1, 2015 to June 30, 2015, and the "previous year" refers to the period between January 1, 2014 to December 31, 2014. The currency unit is RMB.
1. Monetary fund
Balance at the end of the Balance at the beginning of Item period the year Cash 289,924.34 372,572.19 Bank deposit 19,039,335,443.97 19,547,572,224.50 Other monetary fund 4,712,888,020.20 3,435,441,646.33 Total 23,752,513,388.51 22,983,386,443.02 Including: total amount deposited 1,882,938,967.60 920,105,484.28 in the foreign countries
Note: The balance of housing sales amount received in advance which is regulated under the Regulatory
Measures on Pre-sale Funds in the other monetary fund is RMB 4,686,811,540.66; the restricted monetary fund's is RMB 26,076,479.54.
2. Notes receivable
(1) Category of notes receivable
Balance at the end of the Balance at the beginning of the Item period year Bank acceptance bill 13,120,000.00 4,390,000.00 Total 13,120,000.00 4,390,000.00
3. Accounts receivable
(1) Types of accounts receivable
Balance at the end of the period Book balance Provision for bad debts Type Proportion Proportion Book value Amount Amount (%) (%) Accounts receivable of individual account with significant amount and 6,974,970.60 7.50 6,974,970.60 100.00 accrued provision for bad debts Receivables of individual account with insignificant amount 5,872,817.05 6.31 5,872,817.05 100.00 but accrued for provision of bad debts Accounts receivable with provision for bad debts withdrawn based on the credit risk
90 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Balance at the end of the period Book balance Provision for bad debts Type Proportion Proportion Book value Amount Amount (%) (%) feature portfolio Portfolio 1 36,827,991.84 39.59 36,827,991.84 Portfolio 2 43,346,034.72 46.60 4,435,925.14 10.23 38,910,109.58 Subtotal of portfolio 80,174,026.56 86.19 4,435,925.14 5.53 75,738,101.42 Total 93,021,814.21 100.00 17,283,712.79 75,738,101.42
Continued:
Amount at the beginning of the year Book balance Provision for bad debts Type Proportion Proportion Book value Amount Amount (%) (%) Accounts receivable of individual account with significant amount and 6,974,970.60 8.17 6,974,970.60 100.00 accrued provision for bad debts Receivables of individual account with insignificant amount but 5,872,817.05 6.88 5,872,817.05 100.00 accrued for provision for bad debts Accounts receivable with provision for bad debts withdrawn based on the credit risk feature portfolio Portfolio 1 33,254,915.38 38.96 33,254,915.38 Portfolio 2 39,250,012.81 45.99 4,192,983.89 10.68 35,057,028.92 Subtotal of portfolio 72,504,928.19 84.95 4,192,983.89 5.78 68,311,944.30 Total 85,352,715.84 100.00 17,040,771.54 68,311,944.30
1） Accounts receivable which single amount is significant and bad debts reserve is withdrawn at the end of period
Balance at the end of the period Company name Provision for bad Accruing Reason for Accounts receivable debts proportion (%) accruing Customer I 6,974,970.60 6,974,970.60 100.00 Unrecoverable Total 6,974,970.60 6,974,970.60
2） Accounts receivable with bad debts provisions accrued by aging analysis method in the portfolio
Aging Balance at the end of the period
91 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Provision for bad Accruing Accounts receivable debts proportion (%) Within one year 38,880,242.91 864,467.12 2.22 1 to -2 years 680,085.13 136,017.03 20.00 2 to -3 years 700,531.40 350,265.71 50.00 Over 3 years 3,085,175.28 3,085,175.28 100.00 Total 43,346,034.72 4,435,925.14 10.23
(2) Provision for bad debts withdrawn and returned back (or taken back) in this period
Provision for bad debts withdrawn in this period is RMB 362,533.28; bad debts reserve returned back or taken back in this period is RMB 119,592.03.
(3) Top five arrears balance of accounts receivable by the end of the period
Proportion in total ending Ending balance of Balance at the end Company name Aging balance of provision for bad of the period accounts debts receivable (%) Within one Customer I 9,148,304.51 9.84 182,966.09 year Within one Customer II 8,210,200.80 8.83 year Customer III 6,974,970.60 Over 3 years 7.50 6,974,970.60 Customer IV 4,472,118.20 Over 3 years 4.81 4,472,118.20 Within one Customer V 4,433,375.91 4.77 year Total 33,238,970.02 35.75 11,630,054.89
4. Prepayments
(1) Aging of prepayments
Balance at the end of the period Balance at the beginning of the year Item Proportion Proportion Amount Amount (%) (%) Within one year 2,317,508,059.28 99.92 3,618,208,580.30 99.97 1 to -2 years 1,246,080.00 0.06 119,980.00 0.01 2 to -3 years 494,410.19 0.02 866,310.19 0.02 Total 2,319,248,549.47 100.00 3,619,194,870.49 100.00
(2) Top five prepaid balance of accounts receivable by the end of the year:
Proportion in total Balance at the end of the Company name Aging ending balance of period prepayment(%) Supplier I 1,520,000,000.00 Within one year 65.54
92 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Proportion in total Balance at the end of the Company name Aging ending balance of period prepayment(%) Supplier II 602,000,000.00 Within one year 25.96 Supplier III 123,250,000.00 Within one year 5.31 Supplier IV 28,119,489.00 Within one year 1.21 Supplier V 10,124,928.06 Within one year 0.44 Total 2,283,494,417.06 98.46
5. Interests receivable
(1) Classification of interests payable
Balance at the end of the Balance at the beginning of Item period the year Fixed-term deposits 7,070,231.80 Entrusted loan 1,367,282.91 Others 9,137,018.45 Total 17,574,533.16
6. Dividends receivable
(1) Details of dividends receivable
Balance at the end of the Balance at the beginning of Invested company period the year Shanghai Ledu Property Co., Ltd. 40,195,980.00 Shenzhen TCL Opto-electronic Tech 24,000,000.00 Co., Ltd. Total 64,195,980.00
7. Other receivables
(1) Classification of other receivables
Ending amount Book balance Provision for bad debts Type Proportion Proportion Book value Amount Amount (%) (%) Other receivables of individual account with significant 11,270,000.00 0.09 11,270,000.00 100.00 amount and accrued for provision for bad debts Other receivables of individual
93 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Ending amount Book balance Provision for bad debts Type Proportion Proportion Book value Amount Amount (%) (%) account with insignificant amount and accrued for provision for bad debts Other accounts receivable withdrawn provision for bad debts based on credit risk feature combination Portfolio 1 13,057,467,043.73 99.53 13,057,467,043.73 Portfolio 2 50,118,811.68 0.38 13,377,260.85 26.69 36,741,550.83 Subtotal of 13,107,585,855.41 99.91 13,377,260.85 0.10 13,094,208,594.56 portfolio Total 13,118,855,855.41 100.00 24,647,260.85 13,094,208,594.56
Continued:
Amount at the beginning of the year Book balance Provision for bad debts Type Proportion Proportion Book value Amount Amount (%) (%) Other receivables of individual account with significant amount 11,270,000.00 0.13 11,270,000.00 100.00 and accrued for provision for bad debts Other receivables of individual account with insignificant 13,313.37 3,994.01 30.00 9,319.36 amount and accrued for provision for bad debts Other accounts receivable withdrawn provision for bad debts based on credit risk feature combination Portfolio 1 8,913,924,206.56 99.40 8,913,924,206.56
94 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Amount at the beginning of the year Book balance Provision for bad debts Type Proportion Proportion Book value Amount Amount (%) (%) Portfolio 2 42,763,207.56 0.47 14,835,939.09 34.69 27,927,268.47 Subtotal of 8,956,687,414.12 99.87 14,835,939.09 0.17 8,941,851,475.03 portfolio Total 8,967,970,727.49 100.00 26,109,933.10 8,941,860,794.39
1） Other receivables of individual account with significant amount and accrued for provision for bad debts at the end of the period
Balance at the end of the period Accruing Company name Other Provision for Reason for proportion receivables bad debts accruing (%) Huizhou Taitong Real Estate 11,270,000.00 11,270,000.00 100.00 Unrecoverable Investment Co., Ltd Total 11,270,000.00 11,270,000.00
2） Other receivable with provisions of bad debts accrued by aging analysis method in the portfolio
Balance at the end of the period Aging Provision for bad Accruing Other receivables debts proportion (%) Within one year 31,574,724.09 799,547.63 2.53 1 to -2 years 4,697,705.45 939,541.10 20.00 2 to -3 years 4,416,420.04 2,208,210.02 50.00 Over 3 years 9,429,962.10 9,429,962.10 100.00 Total 50,118,811.68 13,377,260.85 26.69
(2) Bad debts reserve withdrawn and returned back (taken back) in this year
Provision for bad debts withdrawn in this period is RMB 16,150.28; bad debts reserve returned back or taken back in this period is RMB 1,478,822.53.
(3) Classification of other receivables by nature
Book balance at the Fund nature Ending book value beginning of the year Current account transferred from 5,408,708,454.44 4,782,132,352.57 shareholder in subsidiary Current account of associated enterprise 4,822,943,433.01 977,673,455.25 Imprest 927,277,452.60 865,536,014.75 Cash deposit and pledge 919,473,770.91 1,712,390,760.99 Earnest money for cooperation 876,322,790.20 602,933,039.29 Others 105,982,349.58 27,305,104.64 Tax rebate payment 58,147,604.67
95 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Book balance at the Fund nature Ending book value beginning of the year Total 13,118,855,855.41 8,967,970,727.49
Other accounts receivable at the end of the year increased by RMB 415,088,510,000 than the beginning of the year, with an increase rate of 46.29 % due to the prepaid land funds.
(4) Other accounts receivable in top five based on year-end balance collected from arrear party:
Proportion Ending in total balance ending Balance at the end of Company name Fund nature Aging balance of of the period provision other for bad receivables debts (%) Beijing Yalindong Real Current account of Within Estate 1,203,130,596.01 9.17 associated enterprise one year Development Co., Ltd. Current account transferred from 2 to -3 Company II 1,140,000,000.00 8.69 shareholder in years subsidiary Beijing Yalinxi Real Estate Current account of Within 1,038,744,000.00 7.92 Development associated enterprise one year Co., Ltd. Current account transferred from Within Company IV 1,023,137,822.69 7.80 shareholder in one year subsidiary Over 3 Current account 367,021,018.01 2.80 transferred from years Company V shareholder in 1 to -3 464,598,452.93 3.54 subsidiary years Total 5,236,631,889.64 39.92
8. Inventories
(1) Classifications of inventories
Balance at the end of the period Item Devaluation Book balance Book value provision Cost of real estate 102,285,837,168.87 490,895,505.03 101,794,941,663.84 development Real estate development 11,086,986,092.03 187,025,082.29 10,899,961,009.74 product Raw material 5,598,880.06 121,581.66 5,477,298.40
96 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Balance at the end of the period Item Devaluation Book balance Book value provision Low-price consumables 8,201,153.94 41,400.00 8,159,753.94 Total 113,386,623,294.90 678,083,568.98 112,708,539,725.92
Continued:
Balance at the beginning of the year Item Devaluation Book balance Book value provision Cost of real estate 89,269,182,505.62 528,579,913.07 88,740,602,592.55 development Real estate development 12,450,610,550.75 186,041,798.10 12,264,568,752.65 product Raw material 7,371,922.75 7,371,922.75 Low-price consumables 6,256,448.97 162,981.66 6,093,467.31 Total 101,733,421,428.09 714,784,692.83 101,018,636,735.26
The inventory at the end of the period increased by RMB 1,168,990,300,000 than the beginning of the year, with an increase rate of 11.57 % due to the real estate project of the Group.
(2) Inventory composition
Amount at the Increase of this Decrease of this Amount at the end Item beginning of the period period of the period period Cost of real estate 89,269,182,505.62 22,406,134,853.05 9,389,480,189.80 102,285,837,168.87 development Real estate development 12,450,610,550.75 9,515,928,329.44 10,879,552,788.16 11,086,986,092.03 product Raw 7,371,922.75 16,726,404.38 18,499,447.07 5,598,880.06 material Low-price 6,256,448.97 10,111,195.37 8,166,490.40 8,201,153.94 consumables Total 101,733,421,428.09 31,948,900,782.24 20,295,698,915.43 113,386,623,294.90
A. Property projects under construction
Estimated Estimated time of total Commencement Beginning Balance at the end Project name completion investment date balance of the period of next (RMB phase 10,000) Beijing Xicheng Homeland and May 2013 Feb. 2017 161,143 331,761,127.45 397,061,554.08 Longyuan Beijing Park January 2006 December 212,765 13,664,595.65 19,681,825.52
97 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Estimated Estimated time of total Commencement Beginning Balance at the end Project name completion investment date balance of the period of next (RMB phase 10,000) 1872 2015 Beijing Guangying July 2013 Feb. 2016 474,209 3,555,835,295.41 Zhenyuan Note 1 Tianjin Moti December August 2012 336,994 1,942,897,727.70 2,139,879,065.89 Garden 2015 Tianjin August May 2014 233,677 1,664,794,978.36 1,716,755,128.48 Yonghaiyuan 2016 Harbin Notting December April 2013 77,448 417,466,046.36 596,719,552.36 Hill 2015 Beacon Hill in May 2014 Jun. 2016 275,002 996,801,309.48 1,179,651,235.45 Harbin Diamond Hill Plaza of Mar. 2015 July 2018 229,867 562,479,863.84 Shenyang Orchid Valley in December July 2013 129,972 782,338,145.47 892,084,923.65 Dalian 2015 Yantai Merchant August Jun. 2014 578,060 461,520,676.50 510,442,850.49 East Coast 2016 Yantai China December Merchant West May 2014 182,927 594,362,574.05 726,791,275.18 2017 Coast Qingdao Hyde May 2013 Jun. 2017 49,905 606,867,492.26 250,799,138.82 Garden Qingdao LAVIE September April 2012 140,367 518,059,485.68 381,638,596.59 Commune 2019 Rizhao Leyden August Jun. 2014 183,654 912,702,949.70 865,307,359.80 Town 2016 Shanghai China Merchants May 2011 July 2015 39,333 327,851,154.90 380,564,203.23 Haiwan Garden Sheshan August Longyuan Project October 2010 132,395 1,018,900,771.99 1,108,871,457.89 2016 in Shanghai Head Garden in May 2006 July 2015 79,831 1,274,672,206.47 621,548,748.78 Shanghai Phase I of Shanghai Garden Mar. 2015 Mar. 2017 184,161 1,170,342,147.62 City Nanjing Evian December August 2014 151,400 662,921,300.07 753,081,328.84 County 2015 Nanjing Magnificent December 2012 July 2015 323,423 2,619,284,586.06 2,639,786,699.40 House Nanjing Fangshanli October 2014 Jun. 2016 75,055 356,149,325.62 431,871,520.89 Garden Evian Riviera in January 2015 October 136,500 738,004,931.01
98 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Estimated Estimated time of total Commencement Beginning Balance at the end Project name completion investment date balance of the period of next (RMB phase 10,000) Naning 2017 Orchid Valley in October April 2015 68,875 274,536,276.96 Nanjing 2017 Throne Bay in November May 2011 621,044 2,125,278,500.58 2,265,166,070.46 Zhenjiang 2015 Zhenjiang Evian September July 2014 193,063 240,628,200.95 340,554,308.38 Uptown 2016 Changzhou Park November Feb. 2013 108,614 1,134,843,521.43 795,322,198.94 1872 2015 Changshu November Jun. 2014 159,434 852,189,554.31 1,042,967,486.41 Xicheng Garden 2015 Suzhou November Magnificent Mar. 2013 27,211 1,198,208,447.53 116,255,951.47 2016 House Suzhou December Jun. 2013 71,516 662,293,393.57 665,396,162.18 Yishanjun 2015 Suzhou Small August Mar. 2010 163,194 1,150,455,971.39 1,283,739,602.89 Stone City 2015 Suzhou Evian November Feb. 2014 184,495 1,104,232,661.19 1,208,707,107.25 Riviera 2015 Suzhou Zhuyuan Mar. 2015 May 2017 122,947 778,934,566.54 Road project Suzhou Science December and Technology Mar. 2015 70,041 301,274,754.17 2016 City Project Hangzhou Magnificent May 2014 April 2016 136,176 1,008,682,215.82 1,083,319,456.47 House Hangzhou November Mar. 2014 265,743 1,903,307,211.89 1,977,063,049.41 Kingbay 2016 Ningbo Park July 2014 Mar. 2016 384,688 2,543,063,760.07 2,795,314,233.28 1872 Xiamen Magnificent Mar. 2014 Jun. 2016 101,006 796,816,368.04 847,366,969.71 House Xiamen Sea May December March 2011 269,298 612,580,190.75 277,988,193.42 Flower 2016 Holiday 365, Jun. 2010 July 2015 37,298 133,525,527.09 19,040,520.46 Zhangzhou Zhangzhou August May 2010 229,313 1,277,717,672.53 994,829,692.03 Cadaques 2015 Land Plot 1872A November Mar. 2012 369,791 1,284,084,823.48 1,593,441,109.50 of Park, Wuhan 2015 Land Plot 1872 B August October 2014 227,607 676,535,803.13 802,874,229.27 of Park, Wuhan 2015 Land Plot 1872C August October 2014 314,888 61,044,729.94 209,056,920.93 of Park, Wuhan 2015
99 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Estimated Estimated time of total Commencement Beginning Balance at the end Project name completion investment date balance of the period of next (RMB phase 10,000) Glory of the City, October May 2014 335,829 1,746,814,179.73 1,924,809,608.23 Wuhan 2016 Xi’an Evian October September 2014 138,455 541,490,612.80 653,084,791.48 Qujiang 2016 Chongqing Land October May 2011 420,970 2,828,918,135.31 2,993,582,727.82 Mark Riverside 2015 Chongqing November August 2011 160,430 1,254,938,677.85 1,002,981,773.01 Garden City 2015 September Chongqing Evian May 2014 107,924 628,825,958.94 726,678,615.40 2015 Chongqing Central Park July 2014 May 2016 520,957 3,025,832,005.41 3,114,368,954.67 Project Evian Uptown in August Feb. 2014 118,837 425,799,461.39 536,464,853.17 Chengdu 2016 Chengdu Merchants January 2015 May 2017 113,143 536,446,092.29 Magnificent House Bijie China Merchants April 2012 Mar. 2017 181,167 532,279,432.91 741,341,041.40 Garden City Yunnan December January 2013 244,289 1,354,648,970.66 1,537,805,559.86 Haigongguan 2015 December Kunming Kingbay May 2015 251,520 278,034.06 2018 Nanning Kingbay July 2014 Mar. 2016 151,109 854,730,395.09 959,056,043.43 Evian October International in Feb. 2013 89,261 412,924,897.45 513,050,521.31 2015 Foshan Foshan Evian November October 2013 208,043 687,319,284.40 1,146,341,205.34 Property Center 2016 Evian Buena September December 2010 130,083 454,370,725.05 695,226,184.61 Vista in Foshan 2015 Foshan Park September 2013 Feb. 2016 261,701 1,706,096,128.86 1,819,749,644.62 1872 Foshan Kingbay Mar. 2014 Mar. 2016 215,572 758,826,483.42 1,262,720,633.90 Foshan Evian Feb. 2014 Mar. 2016 106,107 344,782,063.71 503,090,175.03 Mansion Evian Riviera in November April 2014 159,809 568,241,550.30 1,049,750,972.50 Foshan 2015 Guangzhou Jinshan Valley September July 2009 315,955 1,037,816,619.77 1,226,024,868.01 and Creative 2015 Park Wanbo Mansion September August 2014 238,545 1,574,263,261.28 1,649,669,202.07 in Guangzhou 2016
100 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Estimated Estimated time of total Commencement Beginning Balance at the end Project name completion investment date balance of the period of next (RMB phase 10,000) Donghuicheng in October Mar. 2012 276,969 1,539,701,580.31 1,136,896,752.24 Guangzhou 2015 Zhuhai Yishui August April 2014 169,425 670,638,863.80 808,508,810.80 Yun'an 2016 Sanya Haitang January Bay Qingtian January 2013 208,088 184,170,478.62 214,753,474.74 2016 Town Shenzhen TBD TBD TBD 278,385,884.46 281,943,647.36 Yuercun Project Shenzhen One September November 2011 735,678 2,060,034,689.63 1,819,698,724.56 City Project 2016 Renovation of Sanlian Village TBD TBD TBD 83,450,363.05 103,129,234.52 of Shenzhen Shenzhen Xiyong TBD TBD TBD 5,727,898.28 6,877,771.08 Project Shenzhen November Pingshan Garden April 2013 321,816 2,200,442,700.46 2,443,188,805.94 2015 City Shenzhen Jun. 2013 Mar. 2016 211,046 1,269,675,944.66 1,441,285,580.71 Prince’s Building Shenzhen Sea July 2013 Feb. 2016 1,203,461 8,045,513,371.93 8,257,780,179.28 World Residence Shenzhen August August 2015 24,013 85,082,840.38 79,234,991.28 Chuantou Plaza 2016 Shenzhen August Merchants Plaza Feb. 2015 3,887 9,491,032.46 10,400,109.45 2015 Club Shenzhen Sea August May 2013 113,969 302,471,062.30 286,369,855.90 World Museum 2016 Municipal Works December of Shenzhen Sea July 2013 7,541 25,283,531.16 29,517,651.14 2015 World Others Note 1,528,913,322.00 48,683,968.05 Total 73,296,407,415.29 82,873,138,622.61
Note 1: As of June 30,2015, the Company held 34% equity of Beijing Guangying Residential Property Development Limited and had control over such company in the current period, thus including such company into the consolidation scope and acquiring the Beijing Guangying Zhenyuan project.
Note 2: others stand for the developed commodities which the projects of Xiamen Hyde Park, Evian County in Tianjin and Magnificent House in Chengdu are transferred into upon completion in the current period.
101 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
B. As of June 30, 2015, the Group’s land reserve area is 5,180,400 m2, and land cost is RMB 19,412,698,546.26.
Estimated Estimated Scheduled time of total Beginning Balance at the end Project name commencement completion investment balance of the period time of next (RMB phase 10,000) Tianjin August 2015 May 2017 188,061.84 1,244,160,000.00 1,244,970,999.00 Yonghaiyuan Beacon Hill in May 2016 Jun. 2018 742,758.00 2,176,227,707.50 2,176,227,707.50 Harbin Land Plots 3-7 December of Harbin September 2015 194,317.00 405,446,215.43 319,725,971.98 2016 Notting Hill Yantai China November Merchant West Feb. 2018 307,373.14 832,919,800.00 832,919,800.00 2020 Coast Rizhao Leyden August 2015 July 2017 346,253.00 1,030,525,477.63 1,126,070,100.00 Town Baoshan Garden December Feb. 2016 327,419.06 1,604,825,500.00 City of Shanghai 2017 October Nanjing Yanziji October 2015 171,859.00 1,228,973,612.55 556,308,317.80 2019 Orchid Valley in Feb. 2016 August 2018 196,943.00 645,030,686.67 Nanjing Nanshan, Zhenjiang Mar. 2016 Jun. 2017 52,855.65 61,688,493.41 65,237,845.13 Creative Industry Park Phase II of Suzhou Ruiying November 2015 May 2018 169,946.00 1,000,967,031.21 Zhuyuan Road Project Zhangzhou Feb. 2016 August 2018 253,423.00 958,930,000.00 959,029,800.00 Banshan Laidun Town of Zhangzhou November 2015 July 2017 90,684.77 494,474,703.34 Property Land Plot C of October Wuhan Moshui Mar. 2016 314,887.53 1,165,000,000.00 1,032,195,259.59 2017 Lake Land Plot B of Wuhan Moshui January 2016 April 2018 227,606.56 265,602,240.90 265,602,240.90 Lake Xi’an Evian October October 2015 160,265.00 427,089,500.00 453,670,055.12 Qujiang 2017 Evian Uptown in May 2016 July 2018 306,397.16 516,798,812.93 520,088,880.92 Chengdu Chengdu Central Huacheng May 2016 May 2018 364,061.00 1,393,759,007.14 Project
102 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Estimated Estimated Scheduled time of total Beginning Balance at the end Project name commencement completion investment balance of the period time of next (RMB phase 10,000) Yunnan December November 2015 102,228.00 341,064,823.18 344,152,198.15 Haigongguan 2016 Chongqing July 2015 July 2018 682,294.00 1,227,830,000.00 1,267,946,308.86 Central Park Plot Banan Land Plot October September 2015 208,549.00 752,112,428.94 752,112,428.94 of Chongqing 2016 Chongqing Jinxinghui October 2015 July 2017 82,700.00 376,531,118.70 Project Foshan Evian December Mar. 2016 37,494.00 222,746,891.47 133,500,447.46 Mansion 2017 Evian Riviera in September January 2016 63,630.01 675,617,296.70 333,536,302.20 Foshan 2017 Foshan Evian July 2015 January 2017 112,368.18 646,179,914.45 Guanyuan Bo’ao Big Lake Mar. 2017 January 2020 312,854.00 856,186,960.65 867,635,921.20 of Hainan Others 1,583,854,829.04 Total 15,972,775,090.33 19,412,698,546.26
Note 1: Others stand for the projects which have been transferred into those under construction, including the projects of Noble Hill in Suzhou, Diamond Plaza in Shenyang, Foshan Kingbay, Evian Buena Vista in Foshan, etc.
C. Real estate development products are as follows:
As-built date Debit in this Credit in this Project name of the last Initial amount Ending amount period period phase Beijing Park July 2014 127,081,879.73 45,798,014.17 81,283,865.56 1872 Beijing Xicheng September 87,892,147.13 4,295,294.36 83,596,852.77 Garden 2010 Beijing Park July 2013 15,333,804.36 8,108,770.27 7,225,034.09 Lounge Beijing Guangying April 2015 1,319,147,101.38 564,003,708.86 755,143,392.52 Zhenyuan Tianjin Star City July 2014 853,731,221.06 42,652,065.72 811,079,155.34 Tianjin Magnificent October 2012 165,621,697.18 500,867.30 166,122,564.48 House Tianjin Beacon August 2014 195,506,331.33 150,979,123.97 44,527,207.36 Hill Tianjin Evian April 2015 4,922,143.84 406,907,035.94 142,734,641.67 269,094,538.11 County No. 36, Xikang November 1,907,351.03 1,907,351.03
103 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
As-built date Debit in this Credit in this Project name of the last Initial amount Ending amount period period phase Road, Tianjin 2009 Harbin Notting July 2014 224,268,028.86 100,989,649.06 123,278,379.80 Hill Qingdao LAVIE Jun. 2015 292,388,927.41 221,405,993.67 42,296,971.34 471,497,949.74 Commune Qingdao Hyde April 2015 487,625,796.89 336,914,221.56 150,711,575.33 Garden Shanghai China Merchants Jun. 2014 504,936,620.47 96,455,047.53 408,481,572.94 Haiwan Garden Shanghai Sheshan August 2014 1,513,603,886.28 16,296,044.38 504,709,394.68 1,025,190,535.98 Longyuan Head Garden in January 2015 41,490,196.98 762,211,801.13 706,722,313.55 96,979,684.56 Shanghai Shanghai Hongqiao August 2014 515,254,589.35 478,126,371.00 37,128,218.35 Mansion Nanjing Purple December 2013 909,258,053.07 12,609,172.68 36,936,910.38 884,930,315.37 Mountain No.1 Throne Bay in July 2014 310,466,183.72 85,180,299.30 225,285,884.42 Zhenjiang Changzhou China Merchants April 2015 487,179,470.12 305,508,947.06 181,670,523.06 Garden City November Suzhou Kingbay 102,623,803.98 -8,958,394.53 59,053,220.04 34,612,189.41 2014 Suzhou Evian December 2009 5,767,993.29 925,730.41 4,842,262.88 Town Suzhou Small December 2014 41,942,730.24 -4,948,998.08 28,879,100.60 8,114,631.56 Stone City Suzhou Magnificent April 2015 1,138,781,958.13 1,118,388,434.03 20,393,524.10 House Suzhou May 2015 813,687,941.43 786,016,473.28 27,671,468.15 Yishanjun Cadaques, Mar. 2015 83,949,754.05 447,924,598.50 320,384,298.67 211,490,053.88 Zhangzhou Xiamen May Jun. 2015 287,960,383.03 441,989,508.10 475,695,745.03 254,254,146.10 Flower Xiamen Hyde Jun. 2015 169,710,108.52 844,400,058.01 50,060,503.69 964,049,662.84 Park Zhangzhou China Merchants Jun. 2013 23,445,031.68 1,192,662.59 1,688,114.46 22,949,579.81 Garden City Sunshine Garden, Jun. 2006 2,656,378.89 2,656,378.89 Zhangzhou Golden Triangle Commercial December 2004 1,439,657.00 1,439,657.00 Apartment, Zhangzhou Zhangzhou Mar. 2015 14,278,323.16 141,912,159.96 673,651.24 155,516,831.88 Holiday 365
104 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
As-built date Debit in this Credit in this Project name of the last Initial amount Ending amount period period phase Land Plot 1872A December 2014 758,150,521.52 -48,780,932.65 499,964,875.96 209,404,712.91 of Park, Wuhan Wuhan Magnificent May 2014 51,216,792.74 12,394,444.70 38,822,348.04 House Chongqing China Merchants Feb. 2015 382,159,020.02 497,380,618.49 580,851,721.48 298,687,917.03 Garden City Chongqing September 118,443,940.57 6,868,017.52 111,575,923.05 Jiangwancheng 2013 Chongqing Land April 2014 93,090,462.64 6,010,838.07 37,277,500.21 61,823,800.50 Mark Riverside China Merchants (Chengdu) April 2015 355,823,057.12 402,899,160.32 335,258,632.66 423,463,584.78 Magnificent House Chengdu September International 26,305,882.29 56,792.00 26,362,674.29 2012 East City Bijie China Merchants December 2014 544,559,000.19 237,258,734.54 307,300,265.65 Garden City Evian Riviera in July 2014 407,845,490.21 46,044,987.74 311,332,470.68 142,558,007.27 Foshan Evian Town in September 79,494,610.27 19,694,114.42 59,800,495.85 Foshan 2012 Evian Uptown in Jun. 2013 95,098,057.68 41,006,589.22 54,091,468.46 Foshan Evian Buena September 133,271,625.41 57,271,163.25 76,000,462.16 Vista in Foshan 2014 Guangzhou Jun. 2013 263,092,732.45 141,330,012.38 121,762,720.07 Jinshan Valley Guangzhou September 419,333,557.52 54,960,933.63 364,372,623.89 Creative Park 2014 Donghuicheng in Jun. 2015 115,393,572.10 557,814,348.54 552,599,047.71 120,608,872.93 Guangzhou Zhuhai Garden January 2014 490,453,093.68 603,355.87 218,910,662.63 272,145,786.92 City Shenzhen Gorgeous October 2010 1,063,834.85 1,063,834.85 Garden China Merchants (Shenzhen) Jun. 2013 20,277,468.26 11,080,743.62 9,196,724.64 Green Garden Shenzhen Yihai August 2014 490,192,890.17 494,133,607.86 657,451,206.15 326,875,291.88 City Shenzhen China Merchants Guan January 2012 71,702,381.86 38,602,276.01 33,100,105.85 Garden Shenzhen August 2012 1,714,823.10 -4,781.47 1,719,604.57 Kingbay Shenzhen Woods Jun. 2013 72,246,159.69 23,610,685.70 48,635,473.99 Apartment
105 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
As-built date Debit in this Credit in this Project name of the last Initial amount Ending amount period period phase Jingshan The Ninth in Jun. 2014 619,489,489.36 532,880,135.89 86,609,353.47 Shenzhen Shenzhen Jinxiu Jun. 2014 80,330,997.10 14,776,585.34 65,554,411.76 Kwun Town Sea World December 2014 77,717,929.82 -3,393,807.64 74,324,122.18 Riverside Shenzhen December 2014 56,576,597.22 5,469,291.19 62,045,888.41 Central Plaza Sea World December 2014 42,825,888.41 1,982,041.41 44,807,929.82 Public Space Shenzhen September Huanchuan 83,769,461.86 25,843,250.64 109,612,712.50 2013 Plaza Others 1,533,987.00 1,533,987.00 Total 12,450,610,550.75 9,515,928,329.44 10,879,552,788.16 11,086,986,092.03
(3) Provision for inventory devaluation
Increase in current Decrease in current period Balance at the period Balance at the Item beginning of the Counting end of the Write-back or Other year and Others period write-off transfer out drawing Cost of real estate 528,579,913.07 37,684,408.04 490,895,505.03 development Real estate development 186,041,798.10 37,684,408.04 36,701,123.85 187,025,082.29 product Raw material 121,581.66 121,581.66 Low-price 162,981.66 121,581.66 41,400.00 consumables Total 714,784,692.83 37,805,989.70 36,701,123.85 37,805,989.70 678,083,568.98
Note 1: The estimated sale price applied to calculate net realizable value of inventory is divided into the presold and unsold parts, the estimated sale price of the presold part is confirmed according to the actual contracting price, and the estimated sale price of the unsold part according to the recently average contracting price or sale price of similar products.
Note 2: Qingdao Zhongrunde Auto Trade Co., Ltd., a subsidiary of the Company, has its phase II of Qingdao LAVIE community project be carried over in advance upon completion in the current period, and the falling price reserves of RMB 37,684,408.04 of Phase II transferred into the developed commodities as development cost, and the accrued impairment loss of RMB 2,030,650.10 written off as a result of carryover of sales ratio.
106 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Note 3: Shanghai Jingyuan Property Development Co., Ltd., a subsidiary of the Company, writes off the accrued impairment loss of RMB 34,670,473.75 as a result of carryover of sales ratio in the current period.
(4) Accumulative capitalized interest payments in real estate development costs are RMB 2,943,166,308.40, including the interest payments of RMB 789,183,253.10 included in real estate development costs for this period.
(5) Inventory used as mortgage is listed as follows.
Including: Lending long-term loan Borrower Loan amount Collateral institution amount due within one year Qingdao LAVIE Commune (Phase Qingdao I) site (corresponding land use Zhongrunde right certificate number: QFDQSZ Bank 133,000,000.00 133,000,000.00 Auto Trade Co., No. 20081844) and project under Ltd. construction (ownership certificate number: QFDJS No. 201274753) Qingdao LAVIE Commune (Phase II) site (corresponding land use Qingdao right certificate number: QFDQSZ Zhongrunde Bank 71,800,000.00 29,800,000.00 No. 201013560) and project under Property Co., construction (corresponding Ltd. ownership certificate number: JZ No. 370200201316034) Land use right (corresponding land Tianjin CM use right certificate: JZ No. Taida Investment Bank 68,000,000.00 1,200,000.00 114051200160, No. Co., Ltd. 114051300109, and No. 11405130007) Harbin Yinkai Beacon Hill project in Harbin Real Estate under construction (corresponding Bank 200,000,000.00 Development ownership certificate No.: HFJSZ Co., Ltd. No. 1410000033) Harbin Notting Hill site China Merchants (corresponding ownership (Harbin) Jiatian certificate No.: HGY (2014) No. Property Bank 250,000,000.00 10000012) and project under Development construction (corresponding Co., Ltd. ownership certificate No.: HFJSZ No. 1410000036) China Merchants Changshu Taigongwang Garden (Changshu) Project site (corresponding land Bank 198,700,000.00 2,800,000.00 Xicheng Real certificate No.: CGY (2014) No. Estate Co., Ltd. 13137) Ningbo Jiangwan 3#-1 Site for Ningbo Park 1872 Property Project (corresponding land Bank 45,000,000.00 15,000,000.00 Development certificate No.: YGY (2014) No. Co., Ltd. 0101150) China Merchants Land use right of CY-07 plot & Jiaming Bank 130,000,000.00 [JCGY (issued in 2014) No. (Beijing) 00178], Land use right of CY-10
107 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Including: Lending long-term loan Borrower Loan amount Collateral institution amount due within one year Property plot [JCGY (issued in 2014) No. Development 00179] Co., Ltd China Merchants Certificate of land use right of (Chongqing) Chongqing Evian Bay Jiangwan Pvian Property Bank 100,000,000.00 15,000,000.00 (Land Certificate No: 202 D Development certificate of real estate, 2014 Zi Co., Ltd. No.00548) Total 1,196,500,000.00 196,800,000.00
9. Other current assets
Item Balance at the end of Balance at the Nature the period beginning of the year Amount withhold Provisional tax 4,003,623,269.15 3,535,041,730.18 for tax Other expenses Others 10,390,198.57 15,654,162.79 prepaid Total 4,014,013,467.72 3,550,695,892.97
10. Long-term accounts receivable
(1) Long-term accounts receivable
Balance at the beginning of Balance at the end of the period Range the year of Item Impairment Book Impairment Book discount Book balance Book value provision balance provision value rate Long-term accounts 1,197,613,748.94 1,197,613,748.94 receivable Note Total 1,197,613,748.94 1,197,613,748.94
Note: long-term receivables at the end of the period are entrust loans provided by the Company and subsidiaries for associates and joint ventures, of which details are contained in the Note of " (II) 4. Inter-bank lending of affiliated parties under X".
1.
108 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
11. Long-term equity investments
Increase or decrease in this period Profit and Depreciation Balance at the loss on Other Profit or cash Balance at the Other Withdrawing reserves at Invested company beginning of the Additional Negative investments comprehensive dividend end of the equity depreciation Others the end of year investments investment confirmed income declared to be period change reserves this period with equity adjustment distributed method I. Joint ventures Shenzhen Dehan Investment 12,723,194.94 -581,130.58 12,142,064.36 Development Co., Ltd. Shenzhen Yihaicheng Property Management Co., Ltd Note 1 China Merchants (Foshan) Longyuan
Property Development Co., Ltd Note 1 Shenzhen CMOCTPM 3,958,043.25 354,757.67 -1,000,000.00 3,312,800.92 Co., Ltd Shanghai FTZ Pushen 13,137,162.77 -4,393,349.26 8,743,813.51 Property Co., Ltd. Ningbo Dingfeng Real Estate Development 38,899,500.00 -467,453.90 38,432,046.10 Co., Ltd.Note 3 Beijing Yalindong Real Estate 26,000,000.00 -275,745.46 25,724,254.54 Development Co., Ltd. Note 4
Beijing Yalinxi Real Estate Development 24,000,000.00 -148,182.10 23,851,817.90 Co., Ltd. Note 5 Beijing Guangying Residential Property 16,274,321.30 -16,274,321.30 Development Limited
109 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Increase or decrease in this period Profit and Depreciation Balance at the loss on Other Profit or cash Balance at the Other Withdrawing reserves at Invested company beginning of the Additional Negative investments comprehensive dividend end of the equity depreciation Others the end of year investments investment confirmed income declared to be period change reserves this period with equity adjustment distributed method Note 2 II. Affiliated enterprises China Merchants Overseas Chinese 576,229,417.22 36,100,012.04 -397,719,804.44 214,609,624.82 Town Guangzhou Panyu Innovation Science 309,970,191.37 -4,634,137.64 305,336,053.73 Park Co., Ltd. Huizhou Taitong Real Estate Investment Co., Ltd Note 1 Shanghai New South Mountain Real Estate 113,571,029.74 5,514,648.20 119,085,677.94 Development Co., Ltd. China Merchants Guangming Science 162,076,268.45 537,383.00 162,613,651.45 Park China Merchants (Beijing) Tianping 2,518,100.23 6,859.43 2,524,959.66 Property Co., Ltd. Tianjin Xinghai Real Estate Development 104,129,413.64 104,129,413.64 Co., Ltd. Shanghai Ledu 183,105,407.55 2,126,494.33 185,231,901.88 Property Co., Ltd. Jones Tech Limited 73,165,485.47 -5,748,194.49 67,417,290.98 Holly Profit Limited 86,781,997.45 -6,096,838.10 80,685,159.35 Station Fortune 88,618,103.34 726,909.05 89,345,012.39 Limited
110 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Increase or decrease in this period Profit and Depreciation Balance at the loss on Other Profit or cash Balance at the Other Withdrawing reserves at Invested company beginning of the Additional Negative investments comprehensive dividend end of the equity depreciation Others the end of year investments investment confirmed income declared to be period change reserves this period with equity adjustment distributed method Chief Master Limited 44,355,471.92 -801,039.38 43,554,432.54 TCL Opto-electronic Tech (Shenzhen) Co., 114,397,235.92 8,988,117.11 123,385,353.03 Ltd. Tianjin Munanqiushi 16,999,378.42 -129.11 16,999,249.31 Industrial Co., Ltd. China Merchants Zhangzhou Development Zone South Taiwu Industrial 2,450,000.00 -51,712.08 2,398,287.92 Park Property Management Service Co., Ltd.Note6 Nanjing Aojian Property Co., Ltd. 6,030,000.00 6,030,000.00 Note 7 Nanjing Shizhaoquansheng 14,700,000.00 14,700,000.00 Property Co., Ltd. Note 8 Guangzhou Liansen Real Estate Co. ,Ltd 68,000,000.00 -2,810,954.24 65,189,045.76 Note 9 Guangzhou Lianzhou Real Estate Co., Ltd 68,000,000.00 -2,383,785.68 65,616,214.32 Note 10 Chengdu China MCC5 Wentou Land Ltd Note 235,846,236.00 235,846,236.00 11
Total 1,905,735,901.68 483,925,736.00 42,236,850.11 -398,719,804.44 -16,274,321.30 2,016,904,362.05
111 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Note 1: the long-term equity investments with the calculated book value depreciated to zero due to equity method applied are as follows:
Invested company Shareholding ratio Investment cost Accrual equity method adjustment Foshan Merchants Longyuan Real Estate Co., 50 % 50,000,000.00 -50,000,000.00 Ltd. Huizhou Taitong Real Estate Investment Co., 49 % 25,484,900.00 -25,484,900.00 Ltd Shenzhen Yihaicheng Property Management 50 % 500,000.00 -500,000.00 Co., Ltd
Note 2: Beijing Guangying Residential Property Development Limited was changed into a subsidiary in the current period. See Seven 1, Corporate merger not under the common control.
Note 3: On February 4, 2015, the company and Ningbo Global Properties Co., Ltd., Shanghai Shimao Co., Ltd signed an agreement propose to increase investment in Ningbo Dingfeng Real Estate Development Co., Ltd., which now has a registered capital up to RMB 125 million, of which RMB 38.8995 million was from the company and RMB 1.3995 million is included as the capital reserve of Ningbo Dingfeng Real Estate Development Co., Ltd. in a ratio of 30%.
Note 4: On February 11, 2015, China Merchants (Beijing) Property Development Co., Ltd., a subsidiary of the company, and Beijing Resources Shuguang Real Estate Development Co., Ltd, Shenzhen New Alliance Investment Management Co., Ltd, Zhichang (Beijing) Enterprise Management Co., LTD jointly invested to set up Beijing Yalindong Real Estate Development Co., Ltd with a registered capital of RMB 100 million, of which RMB 26 million is from China Merchants (Beijing) Property Development Co., Ltd. in a equity share of 26%.
Note 5: On February 11, 2015, China Merchants (Beijing) Property Development Co., Ltd., a subsidiary of the company, and Beijing Resources Shuguang Real Estate Development Co., Ltd, Shenzhen New Alliance Investment Management Co., Ltd, Zhichang (Beijing) Enterprise Management Co., LTD jointly invested to set up Beijing Yalinxi Real Estate Development Co., Ltd with a registered capital of RMB 100 million, of which RMB 24 million is from China Merchants (Beijing) Property Development Co., Ltd. in a equity share of 24 %.
112 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Note 6: On February 26, 2015, China Merchants Property Management Co., Ltd., a subsidiary of the Company, and China Merchants Zhangzhou Development Zone Co., Ltd. jointly invested to set up China Merchants Zhangzhou Development Zone South Taiwu Industrial Park Property Management Service Co., LTD. with a registered capital of RMB 5 million of which RMB 2.45 million is from China Merchants Property Management Co., Ltd. in a equity share of 49 %.
113 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Note 7: On January 30, 2015, China Merchants (Nanjing ) Property Development Co., Ltd., a subsidiary of the company, and Shenzhen New Alliance Investment Management Co., Ltd, Nanjing Aohe Real Estate Development Co., Ltd., Nanjing Bozhixing Investment Management Co., Ltd. jointly invested to set up Nanjing Aojian Property Co., Ltd. with a registered capital of RMB 100 million, of which RMB 6.03 million is from China Merchants (Nanjing ) Property Development Co., Ltd. in a equity share of 6.03 %.
Note 8: On January 27, 2015, China Merchants (Nanjing ) Property Development Co., Ltd., a subsidiary of the company, and Shanghai Qingyu Investment Management Co., Ltd. jointly invested to set up Nanjing Shizhaoquansheng Property Co., Ltd. with a registered capital of RMB 30 million, of which RMB 14.7 million is from China Merchants (Nanjing ) Property Development Co., Ltd. in a equity share of 49 %.
Note 9: On May 5, 2015, Guanhua Port Trade (Shenzhen) Co., Ltd., a subsidiary of the company, and Shenzhen New Alliance Investment Management Co., Ltd., China Resources Land One Two Three Four (Shenzhen) Operation and Management Co., Ltd. jointly increased investment in Guangzhou Liansen Real Estate Co.,Ltd, with an increased amount of RMB 19 million and a registered capital increased to RMB 200 million, of which RMB 68 million is from Guanhua Port Trade (Shenzhen) Co., Ltd. in a shareholding ratio of 34%.
Note 10: On May 5, 2015, Guanhua Port Trade (Shenzhen) Co., Ltd., a subsidiary of the company, and Shenzhen New Alliance Investment Management Co., Ltd., China Resources Land One Two Three Four (Shenzhen) Operation and Management Co., Ltd. jointly increased investment in Guangzhou Lianzhou Real Estate Co.,Ltd, with an increased amount of RMB 19 million and a registered capital increased to RMB 200 million, of which RMB 68 million is from Guanhua Port Trade (Shenzhen) Co., Ltd. in a shareholding ratio of 34%.
Note 11: On June 18, 2015,China Merchants (Chengdu) Beihu Land Ltd. and China Merchants (Shenzhen) Property Investment Co., Ltd., two subsidiaries of the company, and Ganzhou Yuankang Investment Partnership Co., Ltd. jointly acquired from Chengdu Mass Media Group 49% of the shares of Chengdu China MCC5 Wentou Land Ltd, which has a registered capital of RMB 943,762,448.98, of which RMB 143,357,516.00 is from China Merchants (Chengdu) Beihu Land Ltd. in a shareholding ratio of 15.19% and RMB 92,488,720.00 is from China Merchants (Shenzhen) Property Investment Co., Ltd. in a shareholding ratio of 9.80% and RMB 235,846,236.00 is from the company in a shareholding ratio of 24.99%.
114 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
12. Investment property
(1) Investment property of cost measurement model
Houses and Item Land use rights Total buildings I. Original carrying value 1. Beginning balance 4,615,710,249.78 2,481,288,278.48 7,096,998,528.26 2. Increase of this period 14,267,764.89 964,385.00 15,232,149.89 (1) Outsourcing 964,385.00 964,385.00 (2) Carried over from inventory/fixed 14,267,764.89 14,267,764.89 assets/ intangible assets (3) Other increases (4) Increase of corporate combination 3. Decrease of this period 29,696,745.23 5,178,522.26 34,875,267.49 (1) Disposal 29,696,745.23 5,178,522.26 34,875,267.49 (2) Carried over to inventory/fixed assets/ intangible assets (3) Other decreases 4. Ending balance 4,600,281,269.44 2,477,074,141.22 7,077,355,410.66 II. Accumulative depreciation and amortization 1. Beginning balance 1,333,537,147.48 316,217,431.32 1,649,754,578.80 2. Increase of this period 79,099,717.40 32,057,102.86 111,156,820.26 (1) Withdrawing or amortization 79,099,717.40 32,057,102.86 111,156,820.26 (2) Carried over from inventory/fixed assets/ intangible assets (3) Other increases (4) Increase of corporate combination 3. Decrease of this period 22,251,945.50 1,572,815.82 23,824,761.32 (1) Disposal 22,251,945.50 1,572,815.82 23,824,761.32 (2) Other transfer-out (3) Other decreases 4. Ending balance 1,390,384,919.38 346,701,718.36 1,737,086,637.74 III. Provision for impairment 1. Beginning balance 2. Increase of this period (1) Withdrawing (2) Carried over from inventory/fixed assets/ intangible assets (3) Increase of corporate combination 3. Decrease of this period (1) Disposal (2) Carried over to inventory/fixed assets/ intangible assets 4. Ending balance
115 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Houses and Item Land use rights Total buildings IV. Book value 1. Ending book value 3,209,896,350.06 2,130,372,422.86 5,340,268,772.92 2. Beginning book value 3,282,173,102.30 2,165,070,847.16 5,447,243,949.46
(2) Investment property without proper certificate of title
Item Book value Reasons for uncompleted property right certificate China Merchants Plaza 1,131,793,562.41 Chuanqian Plaza 368,760,320.78 Chuanwei Plaza 348,303,872.19 Chuanhou Plaza 347,128,654.75 Maillen Apartment 242,733,150.80 Refined decoration club in Zone 46,503,031.25 D, Zhangzhou Cadaques Handling ownership certificate Stores at exhibition area of 29,209,352.19 Zhangzhou Cadaques The Hills Garden (Phase II) 22,507,921.87 Zhangzhou Cadaques C3 11,797,161.23 Shopping Street Golden Triangle Commercial 462,561.23 Apartment Crape Myrtle Garden (Phase I) 35,089,782.24 Main body of culture and sports 13,308,916.22 center For the property premise is obtained Asian plant 6,690,052.19 under operating lease, relevant Swimming pool in culture and ownership certificate cannot be issued 1,334,948.24 sports center for the property. New Energy Dormitory 406,760.46 Duty free building 53,809.91 Negative 1st F to 8th F and 10th 47,617,137.30 F of Peninsula Tower Wal-Mart 44,095,584.57 Jingshan Villa (Phase VIII) 35,945,080.24 (#145-#180) Beike Venture Building 19,494,496.44 No.5 building of Jingshan No ownership certificate obtained for 14,245,449.31 Apartment historical reasons and the missing of source material Store at Spring Plaza 4,378,568.99 No. 50 ~ 52 buildings of Mid 3,073,084.59 Ocean View Villa Store in Lanxi Valley 2,204,546.68 Nanyou Plant 184,618.31 Bayview Court 84,169.83 Store in Mountain of Flowers and 870,933.30 It is a temporary building, and Fruit ownership registration cannot be Rose Garden warehouse 34,220.84 issued before reconstruction as per
116 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Item Book value Reasons for uncompleted property right certificate urban planning. Total 2,778,311,748.36
13. Fixed assets
(1) Statement of Fixed Assets
Item Houses and Plant Transportation Office Total buildings equipment equipment equipment I. Original carrying value 1. Beginning 1,772,678,440.90 277,121,588.54 110,000,582.97 188,287,473.96 2,348,088,086.37 balance 2. Increase of 9,263,858.07 45,150.00 2,790,317.60 3,959,697.37 16,059,023.04 this period (1) Purchasing 470,000.00 17,000.00 2,308,617.60 3,042,176.00 5,837,793.60 (2) Carried-over from construction under construction (3) Increase of corporate 481,700.00 530,888.37 1,012,588.37 combination (4) Carried-over 8,790,008.07 26,926.00 8,816,934.07 from other titles (5) Other 3,850.00 28,150.00 359,707.00 391,707.00 increases 3. Decrease of 94,384.50 697,420.00 19,540,504.61 20,332,309.11 this period (1) Disposal or 696,420.00 365,346.88 1,061,766.88 discard as useless (2) Decrease of corporate combination (3) Transfer-in investment property (4) Carried over 53,942.50 15,769,362.04 15,823,304.54 to other titles (5) Other 40,442.00 1,000.00 3,405,795.69 3,447,237.69 decreases 4. Ending 1,781,942,298.97 277,072,354.04 112,093,480.57 172,706,666.72 2,343,814,800.30 balance II. Accumulated depreciation 1. Beginning 181,402,782.79 156,796,801.96 59,611,684.11 104,738,947.59 502,550,216.45 balance 2. Increase of 36,421,723.41 12,084,977.50 7,221,112.73 13,629,250.24 69,357,063.88 this period (1) Withdrawing 36,421,723.41 12,054,691.32 7,182,978.13 13,235,826.23 68,895,219.09 (2) Increase of corporate 38,134.60 269,048.29 307,182.89 combination
117 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Item Houses and Plant Transportation Office Total buildings equipment equipment equipment (3) Carried-over
from other titles (4) Other 30,286.18 124,375.72 154,661.90 increases 3. Decrease of 64,249.09 661,599.00 13,267,486.45 13,993,334.54 this period (1) Disposal or 661,599.00 266,014.84 927,613.84 discard as useless (2) Decrease of corporate combination (3) Transfer-in investment property (4) Carried over 49,633.85 12,035,282.69 12,084,916.54 to other titles (5) Other 14,615.24 966,188.92 980,804.16 decreases 4. Ending 217,824,506.20 168,817,530.37 66,171,197.84 105,100,711.38 557,913,945.79 balance III. Provision for
impairment 1. Beginning
balance 2. Increase of
this period (1) Withdrawing (2) Increase of corporate combination 3. Decrease of
this period (1) Disposal or
discard as useless (2) Decrease of corporate combination 4. Ending
balance IV. Book value 1. Ending book 1,564,117,792.77 108,254,823.67 45,922,282.73 67,605,955.34 1,785,900,854.51 value 2. Beginning 1,591,275,658.11 120,324,786.58 50,388,898.86 83,548,526.37 1,845,537,869.92 book value
(2) Fixed assets without proper certificate of title
Reasons for uncompleted property Item Book value right certificate Zhangzhou Maillen Health Resort 113,123,723.76 Shenzhen Sea World Hilton Hotel 617,412,203.57 New property, in progress… Office at 26th F of China Merchants 19,984,213.49 Plaza
118 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Mawan Transformer Substation 16,212,291.60 building Phase I club of Zhuhai Merchants 7,597,842.35 Garden City Haitao Hotel 701,070.92 The third transformer station (civil Ownership certificate can be issued after 6,312,370.66 works) rectification or improvement on relevant Civil works for CEEG’s third cable construction application formalities 1,391,309.24 project House ownership certificate cannot be Maillen Club 15,971,590.79 issued for relevant policy reasons of local government sectors Part transformer station warehouse For property premise is land of lease, and distribution substation of China 4,566,663.13 house ownership certificate cannot be Merchants Power Supply issued. It is a temporary building and Substation and underground tank in 926,153.01 unqualified in handling ownership Zones 34 and 35 of Huangjintai registration. Total 804,199,432.52
14. Construction in progress
(1) Breakdown of construction in progress
Balance at the end of the period Balance at the beginning of the year Item Impairmen Impairmen Book balance Book value Book balance Book value t provision t provision Transformer 77,501,716.0 77,501,716.0 77,450,226.1 77,450,226.1 station project 3 3 2 2 Reconstructio n of plant in 2,936,043.39 2,936,043.39 2,936,043.39 2,936,043.39 Zone 34 Reconstructio n of 4,586,781.10 4,586,781.10 Zengcheng Training Base 80,437,759.4 80,437,759.4 84,973,050.6 84,973,050.6 Total 2 2 1 1
(2) Change of significant construction in progress
Balance at the Increase in Decrease in current period Balance at the Project name beginning of current Transfer-in Other end of the the year period fixed assets decreases period Qianhai 110KV Mawan 66,795,305.56 51,489.91 66,846,795.47 Transformer Station Reconstruction of Zengcheng 4,586,781.10 2,894,327.60 7,481,108.70 Training Base Reconstruction of 2,936,043.39 2,936,043.39
119 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Balance at the Increase in Decrease in current period Balance at the Project name beginning of current Transfer-in Other end of the the year period fixed assets decreases period plant in Zone 34 Total 74,318,130.05 2,945,817.51 7,481,108.70 69,782,838.86
(Continued)
Includin Proportio g: n of amount Capitalizat accumulat Accumula Projec of ion rate of ive ted Project t capitaliz interest for Capital Budget engineerin amount of name Progre ed current sources g capitalized ss (%) interest period investmen interest in (%) t in budget current (%) period Qianhai 110KV Self 135,000,000. Mawan 61.89 90.00 financi 00 Transforme ng r Station Reconstruct ion of Self Zengcheng 7,481,108.70 100.00 100.00 financi Training ng Base Reconstruct Self 1,457,485,20 ion of plant 0.20 financi 0.00 in Zone 34 ng 1,599,966,30 Total 8.70
15. Intangible assets
(1) Details of intangible assets
Item Land use rights Software Total I. Original carrying value 1. Beginning balance 543,856,173.97 7,638,448.00 551,494,621.97 2. Increase of this 600,000.00 600,000.00 period (1) Purchasing 600,000.00 600,000.00 (2) Increase of corporate combination (3) Other increases 3. Decrease of this 15,120.00 15,120.00 period (1) Disposal
120 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Item Land use rights Software Total (2) Decrease of corporate combination (3) Other decreases 15,120.00 15,120.00 4. Ending balance 543,856,173.97 8,223,328.00 552,079,501.97 II. Accumulated amortization 1. Beginning balance 34,974,403.61 4,973,751.19 39,948,154.80 2. Increase of this 8,016,064.10 923,205.08 8,939,269.18 period (1) Withdrawing 8,016,064.10 923,205.08 8,939,269.18 (2) Increase of corporate combination (3) Other increases 3. Decrease of this 15,120.00 15,120.00 period (1) Disposal (2) Decrease of corporate combination (3) Other decreases 15,120.00 15,120.00 4. Ending balance 42,990,467.71 5,881,836.27 48,872,303.98 III. Provision for impairment 1. Beginning balance 2. Increase of this period (1) Withdrawing (2) Other increases 3. Decrease of this period (1) Disposal (2) Other decreases 4. Ending balance IV. Book value 1. Ending book value 500,865,706.26 2,341,491.73 503,207,197.99 2. Beginning book 508,881,770.36 2,664,696.81 511,546,467.17 value
16. Goodwill
(1) Original value of goodwill
Balance at the Increase in Decrease in Balance at the Invested company beginning of the current period current period end of the period year China Merchants Land 159,560,861.23 159,560,861.23 Limited Total 159,560,861.23 159,560,861.23
121 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
(2) The Group determines the difference between the expected present value of future cash flow of goodwill asset group and book value of such group as the impairment loss of the group. Goodwill impairment did not occur after impairment test.
17. Long-term deferred expenses
Balance at the Amortization Other Balance at the Increase in Item beginning of of the current decreases of end of the current period the year period this period period Improvement expenditure of rented 189,219,274.40 21,062,800.51 11,224,148.01 199,057,926.90 fixed assets for operation Others 58,046,217.07 12,070,933.64 18,061,315.62 2,246,420.00 49,809,415.09 Total 247,265,491.47 33,133,734.15 29,285,463.63 2,246,420.00 248,867,341.99
18. Deferred income tax assets and deferred income tax liabilities
(1) Non-offset deferred income tax assets
Balance at the end of the period Balance at the beginning of the year Deductible Deductible Item Deferred income Deferred income temporary temporary tax assets tax assets difference difference Provision for assets 20,317,546.60 5,079,386.65 19,921,208.20 4,980,302.05 impairment Withdrawing increment tax 3,381,600,633.20 845,400,158.30 3,019,735,278.84 754,933,819.71 on land value Assets 1,831,111,563.40 457,777,890.85 assessment 1,803,423,651.65 450,855,912.91 appreciation note 1 Others 141,507,365.65 35,376,841.42 88,547,416.00 22,136,854.00 Total 5,346,849,197.10 1,336,712,299.28 4,959,315,466.44 1,239,828,866.61
Deferred income tax assets increased by RMB 96.8834 million, with an increase rate of 7.81 %, mainly from investment property investment, mainly as a result of the deductible temporary difference that comes from withholding of the land value increment tax.
Note 1: In 2014,China Merchants (Shenzhen) Property Investment Co., Ltd., a subsidiary of the Company, set up five subsidiaries: CMBC Sci-tech Building, Phase II of CMBC Sci-tech Building ,Garden City Digital Building, Shekou Garden City Commercial Center, and New Times Plaza with the assets owned by China Merchants (Shenzhen) Investment Co., Ltd., and the income taxes arising therefrom will be deducted in a deferred manner from the newly
122 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB) accrued depreciations during subsequent operation periods of such newly established companies. So the Company included them in the deferred tax assets.
(2) Non-offset deferred income tax liabilities
Balance at the end of the period Balance at the beginning of the year Item Taxable Deferred Taxable Deferred temporary income tax temporary income tax difference liabilities difference liabilities Undistributed profits 825,902,463.88 47,944,520.63 644,221,885.52 35,822,337.24 of invested company The fair-value adjustment of assets 1,543,701,408.79 385,925,352.20 by enterprise merger Total 2,369,603,872.67 433,869,872.83 644,221,885.52 35,822,337.24
Note 1: The fair-value adjustment of assets obtained through enterprise merger is the taxable temporary difference in the current period that results from the asset evaluation increment upon acquisition of Beijing Guangying Residential Property Development Limited.
(3) Unconfirmed details of deferred income tax assets
Balance at the end of the Balance at the beginning of the Item period year Deductible temporary difference 940,561,786.22 520,839,909.32 Deductible losses 3,911,649,292.05 3,001,387,433.54 Withdrawing increment tax on 701,035,574.42 60,715,506.25 land value Total 4,912,926,584.52 4,223,262,917.28
(4) Unrecognized deductible losses of deferred income tax assets will be expired at the end of following years:
Year Balance at the end of Balance at the Remarks the period beginning of the year 2015 17,196,247.51 17,196,247.51 2016 164,439,209.37 164,439,209.37 2017 552,233,100.29 581,372,066.72 2018 465,208,916.08 620,681,602.32 2019 1,465,950,361.37 1,617,698,307.62 2020 1,246,621,457.43 Total 3,911,649,292.05 3,001,387,433.54
19. Other non-current assets
Balance at the end of the Balance at the beginning of Item period the year Right of conversion to convertible 144,834,167.45 bonds Total 144,834,167.45
123 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Redemption right of convertible bonds is the right enjoyed by CMLL, the subsidiary of the Company, in the capacity of bond issuer to redeem the bonds in advance, see Note 1 of “VI. 32. Bonds payable”.20. Short-term loans
(1) Classification of short-term loans
Loan type Balance at the end of the Balance at the beginning of the period year Guaranteed loan Note1 50,000,000.00 650,000,000.00 Credit loans 611,360,000.00 3,236,900,000.00 Total 661,360,000.00 3,886,900,000.00
Note 1: China Merchants (Shenzhen) Construction Co., Ltd., a subsidiary of the Company, borrowed a total of RMB 50,000,000 from the bank at the end of the period, which is guaranteed by China Merchants Shekou.
21. Notes payable
Type of notes Balance at the end of the Balance at the beginning of the period year Bank acceptance bill 11,474,672.15 15,573,202.50 Commercial acceptance bill 124,363,887.55 31,770,935.50 Total 135,838,559.70 47,344,138.00
Amount of the payable bill at the end of the period is increased by RMB 88.4944 million (186.92%), mainly include the 6-month commercial acceptance bills issued to the construction contractor in the current period. The due and unpaid payable note at the end of the period is RMB 7,179,500.
22. Accounts payable
(1) Accounts payable
Balance at the beginning of the Item Balance at the end of the period year Payment of construction 9,096,602,808.14 8,862,113,986.73 Land cost 1,467,389,923.22 4,886,745,741.64 Equity acquisition cost 455,793,894.81 Warranty fund 502,241,985.00 794,692,588.57 Others 332,093,313.26 214,130,847.65 Total 11,398,328,029.62 15,213,477,059.40 Including: more than 1 year 1,407,833,217.95 1,503,999,912.80
(1) Significant accounts payable with age of more than one year
Reasons for Balance at the end of the Company name outstanding or period non-carryover
124 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Reasons for Balance at the end of the Company name outstanding or period non-carryover Payment for China Merchants (Shenzhen) 159,837,631.08 Unsettled for the project Plaza Payment for Beijing Park 1872 Project 143,168,881.76 Pre- carried-over cost: (Phase III) Pre-settled project payment under the 142,915,273.93 Unsettled for the project Beijing Conrad Hotel & Resorts project Payment for Shenzhen Woods Apartment 79,305,709.75 Unsettled for the project Project Payment for Beijing Park 1872 Project 78,910,728.29 Pre- carried-over cost: (Phase II) Engineering payment of Nanjing Purple 55,289,254.40 Settlement not yet due Mountain No.1 Foshan Jiulongcang Evian Buena Vista 47,032,765.82 Settlement not yet due Phase I project payment Presettlement warranty payment for Meiyue Real Estate Shenzhen Green Garden 36,675,862.18 Unsettled for the project Project Project Payment for Zhangzhou Exhibition 30,568,346.10 Unsettled for the project Area Apartment Zhangzhou Exhibition Area Apartment 27,965,563.33 Unsettled for the project Project Payment Payment for Foshan Xinjie Evian Uptown 27,779,216.32 Unsettled for the project Project (Phase I) Land price due by Shanghai Fengyang to the People’s Government of Yanghang Town, 19,982,218.60 Unsettled for the project Baoshan District, Shanghai City Payment for Foshan Xinjie Evian Uptown 18,018,068.20 Unsettled for the project Project (Phase III) Project Payment due by Tianjin Zhangsheng to China Construction Third Engineering 17,734,311.24 Unpaid Division CO., Ltd. Fails to meet terms of Nantong Construction General Contracting 17,481,353.61 settlement for warranty CO., Ltd. payment Fails to meet terms of Payment for Shanghai Royal Sea Villa 17,311,822.64 settlement for warranty Project payment Payment for Foshan Evian Uptown Project 16,636,499.25 Unsettled for the project (Phase II) Payment for Shenzhen Chuanwei Plaza 16,228,819.30 Unsettled for the project Project Payment for Shenzhen Chuanhou Plaza 15,887,944.16 Unsettled for the project Project Fails to meet terms for Zhongtian Construction Group Co., Ltd. 15,747,008.70 settlement of warranty payment Fails to meet terms for Guanlan A909-0097 (Guanyuan) Project 15,521,377.49 settlement of warranty Payment payment
125 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Reasons for Balance at the end of the Company name outstanding or period non-carryover Fails to meet terms for Payment for Evian Town Project in Foshan 15,383,534.44 settlement of warranty (Phase I) payment Payment for Zhangzhou Holiday 365 14,802,245.46 Pre- carried-over cost: Project (Phase I) Fails to meet terms of Payment for Shenzhen Kingbay Project 14,620,445.00 settlement for warranty payment Payment for Beijing Park 1872 Project 14,349,444.21 Pre- carried-over cost (Phase I) Zhuhai Jiancheng Constructional 13,192,300.20 Unsettled for the project Engineering Co., Ltd. Payment for Shanghai Sheshan Longyuan 12,385,771.93 Unsettled for the project Project Payment for Zhangzhou Meillen Health 12,035,320.58 Pre- carried-over cost: Resort Project Fails to meet terms of Payment for Shenzhen Evian County 10,317,411.51 settlement for warranty Project (Phase III) payment Progress Payment for expected project visual 10,209,234.67 Unsettled for the project progress due by Shanghai Minsheng Third Construction Engineering Co., Ltd of 9,963,648.94 Unsettled for the project China Construction Second Engineering Bureau Fails to meet terms of Warranty payment of Chongqing 9,428,497.06 settlement for warranty Jiangwancheng project payment Tianjin Songjiang Tuanbo Investment Fails to meet terms of 8,957,522.87 Development Co., Ltd. payment Third Construction Engineering Co., Ltd. Balance of project of China Construction Second Engineering 8,846,267.18 settlement Bureau Fails to meet terms of Payment for Evian Town Project in Foshan 8,118,339.48 settlement for warranty (Phase II) payment Zhangzhou Real Estate Cadaques Phase I 7,053,721.78 Pre- carried-over cost Project Payment Fails to meet terms of Payment for Shenzhen Lanyuan Project 7,032,669.43 settlement for warranty payment Fails to meet terms of Payment for Suzhou Shuanghu Project 6,854,339.59 settlement for warranty payment Fails to meet terms of Payment for Evian Town Project in Foshan 6,053,515.08 settlement for warranty (Phase IV) payment Fails to meet terms of Shenzhen Real Estate Orchid Valley 5,867,345.77 settlement for warranty Project (Phase I) payment Payment for Evian Town Project in Foshan 5,510,529.99 Fails to meet terms of
126 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Reasons for Balance at the end of the Company name outstanding or period non-carryover (Phase III) settlement for warranty payment Fails to meet terms of Zhuhai Yuanfeng Garden City project 5,499,520.17 settlement for warranty payment payment Nantong Second Construction and other Fails to meet terms of contractors employed by Tianjin Real 5,310,518.20 settlement for warranty Estate payment The Third Construction Engineering Co., Ltd of China Construction Third 5,138,739.27 Pre- carried-over cost Engineering Bureau Fails to meet terms of Project payments for other old real estate 5,028,108.42 settlement for warranty buildings in Shenzhen payment Total 1,221,957,647.38
23. Account received in advance
(1) Account received in advance
Balance at the end of the Balance at the beginning of Item period the year Total 44,331,491,628.00 35,599,290,811.40 Including: more than 1 year 5,412,875,335.21 4,411,610,430.80
Note: deferred revenue is mainly presale payment, and non-carried-over deferred revenue with age of more than one year is presale payment for properties that are not completed and accepted.
(2) Presale payment in deferred revenue
Amount at the Scheduled Presale Amount at the end of Project name beginning of the completion proportion the period period time (%) Beijing Guangying 3,685,686,480.00 2016 77.08 Zhenyuan project Beijing Park 1872 32,184,389.00 128,418,004.00 2015 99.00 Beijing Park Lounge 5,882,759.00 22,606,271.00 2017 99.00 Beijing Xicheng Garden 167,045.00 2017 100.00 Tianjin Beacon Hill 771,132,889.01 411,402,611.75 Completed 90.00 Tianjin Evian County 108,975,294.00 263,907,134.00 Completed 68.97 Tianjin Magnificent 491,379.00 443,409.00 Completed 99.31 House Tianjin Yonghaiyuan 552,153,504.15 230,583,050.08 2016 16.15 Tianjin Diamond Hill 394,926,059.92 444,019,034.52 Completed 99.19 Beacon Hill in Harbin 703,563,119.00 389,398,545.00 2016 10.64 Harbin Notting Hill 68,920,316.68 44,781,812.94 2015 22.72
127 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Amount at the Scheduled Presale Amount at the end of Project name beginning of the completion proportion the period period time (%) Orchid Valley in Dalian 437,535,366.00 133,735,308.00 2015 100.00 Yantai China Merchant 72,175,518.00 28,669,149.00 2017 26.68 West Coast Qingdao LAVIE 92,981,739.00 86,089,259.00 2019 51.90 Qingdao Hyde Garden 16,371,348.00 354,631,079.00 2017 83.13 Rizhao Leyden Town 421,889,575.00 219,234,939.00 2016 70.00 Head Garden in 615,154,961.00 1,508,430,536.00 2015 93.37 Shanghai Shanghai China Merchants Haiwan 420,784,116.70 196,029,163.00 2015 91.49 Garden Magnificent Times in 36,799,029.00 715,461,752.00 Completed 92.00 Shanghai Shanghai Sheshan 300,270,148.00 349,677,488.00 2016 58.45 Longyuan Nanjing Qisheng Evian 62,773,715.25 2017 5.57 Riviera Nanjing Fangshanli 302,348,170.16 78,625,082.11 2016 79.29 Nanjing Magnificent 3,748,605,854.23 3,335,751,999.82 2015 98.00 House Nanjing Evian County 259,968,256.86 57,192,099.86 2015 27.48 Nanjing Purple Mountain 24,876,249.01 28,724,940.69 Completed 64.98 No.1 Throne Bay in Zhenjiang 376,227,401.61 256,804,595.52 2015 43.00 Zhenjiang Evian Uptown 466,293,666.37 218,095,171.00 2016 22.00 Changshu Xicheng 105,264,269.40 10,706,787.00 2015 11.00 Garden Changzhou Park 1872 149,441,902.00 307,367,922.00 2015 31.97 Suzhou Small Stone City 2,241,917,425.21 1,753,131,248.21 2015 98.00 Suzhou Yishanjun 558,061,875.08 865,817,249.38 2015 91.28 Evian House in Suzhou 720,495,872.13 296,166,734.00 2015 62.00 Suzhou Magnificent 9,357,493.00 1,377,423,670.00 2016 84.00 House Suzhou Kingbay 12,436,511.03 59,818,068.03 Completed 99.37 Hangzhou Magnificent 237,721,941.45 2,940,000.00 2016 17.53 House Hangzhou Kingbay 52,509,098.00 2016 12.11 Ningbo Park 1872 389,138,698.00 181,988,399.00 2016 16.08 Xiamen Hyde Park 1,199,364,562.00 1,193,238,299.00 Completed 91.49 Xiamen Sea May Flower 1,443,813,303.57 1,952,288,013.57 2016 91.99 Xiamen Magnificent 201,698,449.00 25,567,577.00 2016 26.00 House Zhangzhou Garden City 1,204,020.20 2,024,714.20 Completed 99.43 Zhangzhou Holiday 365 95,474,712.26 282,985,711.26 2015 100.00 Zhangzhou Cadaques 1,278,338,555.32 1,371,272,755.21 2015 31.00 Other old projects in 1,990,733.00 Completed 100.00
128 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Amount at the Scheduled Presale Amount at the end of Project name beginning of the completion proportion the period period time (%) Zhangzhou Wuhan Park 1872 1,074,016,159.00 1,079,491,952.00 2015 67.00 Wuhan Magnificent 206,230.00 13,908,980.00 Completed 99.89 House Wuhan Jiangwan 259,322,311.00 2016 11.69 International Phase I of Xi’an Evian 60,000.00 2016 0.09 Qujiang Chongqing Central Park 398,955,116.60 129,891,750.46 2016 1.98 Project Glory of the City, 55,752,060.00 58,260,929.00 Completed 92.33 Chongqing Chongqing Evian Bay 104,422,322.00 25,266,310.00 2015 14.29 Chongqing Land Mark 94,079,155.76 78,624,903.93 2015 0.85 Riverside Chongqing Garden City 670,207,635.73 751,598,184.30 2015 78.53 Chengdu International 5,183,150.00 5,000,000.00 Completed 87.33 East City Evian Town in Chengdu 271,014,587.00 163,324,242.00 2016 9.12 Magnificent House in 282,214,962.05 611,167,659.65 Completed 86.24 Chengdu Bijie Garden City 606,059,800.00 606,208,960.00 2017 86.06 Yunnan Haigongguan 876,290,714.10 565,746,889.10 2015 48.54 Nanning Kingbay 267,978,327.00 69,468,321.00 2016 100.00 Foshan Park 1872 86,168,395.00 33,228,661.00 2016 10.47 Foshan Evian Mansion 208,232,264.00 60,020,372.00 2016 21.90 Evian International in 132,765,353.00 91,381,308.00 2015 100.00 Foshan Evian Riviera in Foshan 297,956,186.00 60,029,110.00 2015 49.52 Evian Uptown in Foshan 13,657,068.54 45,082,629.92 Completed 100.00 Evian Town in Foshan 26,666,955.00 38,291,024.00 Completed 99.90 Evian Riviera in Foshan 9,369,858.00 436,319,911.00 Completed 92.39 Evian Buena Vista in 709,187,474.00 351,179,700.00 2015 77.53 Foshan Evian Kingbay in Foshan 302,642,141.00 79,793,457.00 2016 12.67 Foshan Evian Property 45,861,152.00 45,000,000.00 2016 3.23 Center Donghuicheng in 1,830,228,470.62 2,471,609,158.92 2015 82.39 Guangzhou Guangzhou Jinshan 2,474,537,850.15 1,373,895,995.44 2015 78.36 Valley Garden Zhuhai Garden City 26,484,203.00 173,923,714.00 Completed 86.37 China Merchants (Zhuhai) 3,698,084.00 2016 0.58 Evian Town Garden Shenzhen Jingshan The 85,593,602.00 957,081,135.00 Completed 99.00 Ninth
129 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Amount at the Scheduled Presale Amount at the end of Project name beginning of the completion proportion the period period time (%) Shenzhen Green Garden 916,294.00 Completed 100.00 Shenzhen Jinxiu Kwun 5,151,831.00 41,454,328.00 Completed 94.00 Town Shenzhen Lanxi Valley 6,756,284.00 Completed 100.00 Shenzhen Pingshan 3,113,630,587.00 2,082,993,734.60 2015 72.90 Garden City Shenzhen Imperial Park 4,743,119,526.85 1,823,269,341.19 2016 43.00 Shenzhen Woods 23,358,109.00 9,306,522.00 Completed 97.00 Apartment Shenzhen Yihai City 2,307,032,008.00 1,728,058,899.00 2016 53.94 Shenzhen Kingbay 21,656,266.00 64,865,615.00 Completed 100.00 Shenzhen Guanyuan 55,916,383.01 57,514,019.17 Completed 100.00 Old projects in Shenzhen 79,440,000.00 Completed 100.00 Other old buildings in 7,741,234.00 2,980,153.88 Completed Shenzhen Total 44,173,618,256.01 35,457,967,075.71
(3) Significant deferred revenue with age of more than one year
Company name Reasons for outstanding or Balance at the end of the period non-carryover Nanjing Magnificent House 1,932,963,422.63 Not completed for occupation Zhangzhou Cadaques 1,026,097,265.29 Not completed for occupation Fails to meet carry-over terms Xiamen Hyde Park 918,445,161.00 of the project Donghuicheng in Guangzhou 908,452,679.00 Not completed for occupation Project fails to meet terms of Tianjin Diamond Hill 376,541,483.92 Carry-over Xiamen Sea May Flower 144,756,449.57 Not completed for occupation Bijie Garden City 65,044,577.00 Not completed for occupation Shenzhen Kingbay 21,656,266.00 Kingbay parking lot Total 5,393,957,304.41
24. Payroll payable
(1) Classification of employee remuneration payable
Item Balance at the Increase in Decrease in Balance at the beginning of the current period current period end of the year period Short-term 395,571,883.85 914,505,721.16 1,084,168,413.97 225,909,191.04 remuneration Post-employment benefit-defined 80,072,813.52 80,607,976.86 1,541,323.87 contribution plans 2,076,487.21 Dismiss welfares 1,096,972.26 1,497,660.03 1,497,660.03 1,096,972.26 Total 398,745,343.32 996,076,194.71 1,166,274,050.86 228,547,487.17
130 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Remunerations due to the staff reduce RMB 170,197,900 by 42.68% and are mainly last year's year-end bonuses to be paid in the current period. .
(2) Short-term remuneration
Item Balance at the Increase in Decrease in Balance at the beginning of the current period current period end of the year period Salaries, bonus, allowances and 360,425,651.04 791,702,624.82 968,892,101.36 183,236,174.50 subsidies Staff welfare expenses 35,558,369.07 35,558,369.07 Social insurance 459,805.77 30,201,373.13 30,326,747.16 334,431.74 premium Including: medical 234,823.73 25,257,825.31 25,342,713.49 149,935.55 insurance premiums Supplementary 67,994.97 67,994.97 medical insurance Industrial injuries insurance 124,088.42 2,198,685.95 2,220,352.78 102,421.59 premiums Maternity 100,893.62 2,676,866.90 2,695,685.92 82,074.60 insurance premiums Housing fund 1,621,952.74 34,148,922.97 34,606,258.77 1,164,616.94 Union expenses and employee educational 31,178,861.20 18,320,934.80 9,934,929.18 39,564,866.82 expenditure Others 1,885,613.10 4,573,496.37 4,850,008.43 1,609,101.04 Total 395,571,883.85 914,505,721.16 1,084,168,413.97 225,909,191.04
(3) Defined contribution plans
Balance at the Balance at the Increase in Decrease in Item beginning of the end of the current period current period year period Basic endowment 62,119,878.70 62,495,827.99 918,576.51 insurance premiums 1,294,525.80 Unemployment insurance 3,578,114.05 3,607,790.10 120,146.64 premiums 149,822.69 Company annuity 14,374,820.77 14,504,358.77 502,600.72 payment 632,138.72 Total 2,076,487.21 80,072,813.52 80,607,976.86 1,541,323.87
25. Tax payable
Item Balance at the end of Balance at the the period beginning of the year Corporate income tax 1,120,455,976.80 2,716,968,054.61 Land value increment tax 104,523,595.90 132,380,068.16
131 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Item Balance at the end of Balance at the the period beginning of the year Business tax 27,597,283.36 116,989,102.66 Individual income tax 39,587,487.86 9,782,656.35 Value-added tax 2,493,675.02 -8,028,492.66 Urban maintenance and construction tax 1,869,386.44 7,455,038.25 Land use tax 3,765,418.29 6,740,627.63 Others 79,029,225.63 151,406,363.62 Total 1,379,322,049.30 3,133,693,418.62
26. Interests payable
(1) Classification of interests payable
Balance at the end of the Balance at the beginning Item period of the year Long-term loan interest involving repayment 298,127,106.96 of capital with interest paid by installment 184,805,572.64 Interests of enterprise bonds 6,712,485.81 6,834,583.27 Interest payable for short-term loan 1,110,809.41 496,613.39 Total 305,950,402.18 192,136,769.30
27. Dividends payable
Item Balance at the end of the Balance at the beginning period of the year Dividends on common stock 118,244,875.70 160,730,318.08 Total 118,244,875.70 160,730,318.08
Note: The amount remained outstanding for more than 1 year is RMB 4.6923 million, which will be paid by a subsidy of the company, China Merchants(Tianjin) Real Estate Co., Ltd., after the transferred cash flows back from ARIVA HOTEL.
28. Other payables
(1) Classification of other payment payable by nature
Balance at the end of the Balance at the beginning of Fund nature period the year Incomings and outgoings of 10,236,819,791.32 9,212,749,641.79 cooperative companies Incomings and outgoings of 460,096,638.62 893,701,823.10 affiliated companies Margin 730,024,708.79 530,709,209.31 Agency fund and suspense receipts 998,574,275.98 894,937,739.43 Others 259,989,351.54 250,407,460.76 Equity acquisition cost 309,313,665.76 Total 12,994,818,432.01 11,782,505,874.39
132 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Balance at the end of the Balance at the beginning of Fund nature period the year Including: more than 1 year 3,632,378,943.72 3,654,937,124.85
Note 1: share acquisition payment is mainly the residual payment payable for the Company’s acquisition project, including Shenyang Golden Road Project, Beacon Hill Project in Harbin, Shanghai Hyde Project, and China Merchants (Shenzhen) Runde Project.
(2) Other significant accounts payable with age of more than one year
Company name Balance at the end of Reasons for outstanding or the period non-carryover Advances paid in early stage of project Shanghai Langda Industrial Co,. 730,230,768.56 will be gradually repaid by project Ltd. payables. Advances paid in early stage of project Tianjin TEDA Development Co., 520,905,285.78 will be gradually repaid by project Ltd. payables. Advances paid in early stage of project Yunnan Metropolitan Real Estate 499,991,245.00 will be gradually repaid by project Development Co., Ltd. payables. Advances paid in early stage of project Guangdong New Nanda Cable 261,401,273.14 will be gradually repaid by project Industrial Co., Ltd. payables. Project receivables to be transferred Shanghai Ledu Property Co., Ltd. 205,816,823.57 upon settlement Tianjin Hedong District Carried over after signing a contract Construction Management 199,763,144.64 formally Committee Foshan Henglun Property 167,208,465.34 Unqualified in payment Investment Co., Ltd Shenzhen China Merchants 140,795,301.95 Shareholders’ advances Financial Service Co., Ltd. Foshan Jincheng Frozen Food 104,560,814.00 Unqualified in payment Co., Ltd Tianjin Xinghai Real Estate Dividends distributed in advance to the 106,081,398.67 Development Co., Ltd. associated company Beijing Yintai Properties 101,881,165.76 Unqualified in payment Commercial Co., Ltd. Total 3,038,635,686.41
29. Non-current liabilities due within one year
Item Balance at the end of the Balance at the beginning period of the year Long-term loan due within one year 8,790,998,800.00 5,970,100,938.48 Credit loan 3,948,510,800.00 2,955,112,375.02 Assured loans 4,645,688,000.00 2,703,260,000.00 Mortgage loans 196,800,000.00 311,728,563.46 Total 8,790,998,800.00 5,970,100,938.48
133 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
See 31 - long-term loan in Note 6 for description of long-term loan which is due within one year.
30. Other current liabilities
(1) Classification of other current liabilities
Item Balance at the end of the Balance at the beginning period of the year Withdrawing increment tax on land value 3,442,316,139.45 3,720,770,853.26 Government subsidies 8,596,820.00 8,596,820.00 Total 3,450,912,959.45 3,729,367,673.26
(2) Items of government subsidies
Amount Balance at Amount of Items of s of new Other Balance at Related to the non-operatin governmen subsidies movement the end of assets/incom beginning g income in t subsidies in this s the period e of the year this period period Special support fund 4,710,020.0 4,710,020.0 Related to for hotel 0 0 assets project Subsidy for green building 3,380,000.0 3,380,000.0 Related to design label 0 0 assets standardized technology research Car awarded by Related to Chenghua 506,800.00 168,933.33 506,800.00 168,933.33 assets District Government Total 8,596,820.0 8,596,820.0 168,933.33 168,933.33 0 0
Note: other changes are the governmental subsidies carried over from deferred income and the profit statement within a year.
31. Long-term loans
(1) Classification of long-term loans
Loan type Balance at the end of the Balance at the beginning of the period year Mortgage loan Note 1 999,700,000.00 655,000,000.00 Guaranteed loan Note 2 16,358,966,400.02 15,927,176,000.02 Credit loans 7,381,649,920.00 7,347,477,200.00
134 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Loan type Balance at the end of the Balance at the beginning of the period year Entrusted loan Note 3 3,367,801,104.73 736,862,000.00 Total 28,108,117,424.75 24,666,515,200.02
Long-term loan increased 3,441,602,200 at the end of the period, with an increase rate of 14 %, and mainly coming from the increase of long-term loan according to fund demand due to the scale expansion of the Group.
Note 1: see 8 - inventory (5) in Note 6.
Note 2: see the following table for the statement of guaranteed loan.
Including: Lending long-term loan Borrower Loan amount Guarantor institution amount due within one year Huatai Asset China Merchants The Company Management 5,500,000,000.00 Group Co., Ltd. Co., Ltd. Eureka China Merchants Investment Banks 6,352,030,400.00 2,139,760,000.00 Group (Hongkong) Company Ltd. Co., Ltd. China Merchants The Company Banks 1,394,200,000.00 392,100,000.00 Shekou China Merchants (Shenzhen) Property The Company Banks 1,274,000,000.00 209,000,000.00 Development Co., Ltd. China Merchants (Guangzhou) Property China Merchants Development Co., (Nanjing ) Ltd. and China Property Banks 600,000,000.00 600,000,000.00 Merchants Development (Shenzhen) Land Co., Ltd. Investment Co., Ltd. provided a 51%:49% guarantee. China Merchants (Guangzhou) Property Nanjing China Development Co., Merchants Ltd. and China Banks 744,000,000.00 744,000,000.00 Ruisheng Merchants Property Co., Ltd. (Shenzhen) Land Investment Co., Ltd. provided a 51%:49% guarantee. China Merchants (Shenzhen) China Merchants Banks 500,000,000.00 2,000,000.00 Property Shekou Development
135 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Including: Lending long-term loan Borrower Loan amount Guarantor institution amount due within one year Co., Ltd. The Company and Shenzhen Jinyu China Merchants Rongtai Banks 500,000,000.00 Shekou provided Investment Co., guarantee according Ltd. to shareholding ratio. China Merchants (Shenzhen) Property Banks 499,800,000.00 200,000.00 The Company Development Co., Ltd. China Merchants Shekou and China Shenzhen Shekou Merchants Property Seaworld Hotel Banks 470,000,000.00 20,000,000.00 Investment Co., Ltd. Management Co., provided guarantee Ltd. according to shareholding ratio. China Merchants (Shenzhen) Property Shenzhen Jinyu Investment Co., Ltd. Rongtai Banks 441,000,000.00 18,000,000.00 and China Merchants Investment Co., Shekou provided Ltd. guarantee according to shareholding ratio. China Merchants (Shenzhen) Property Development Co., Shenzhen Vanke Ltd. and Shenzhen Binhai Property Banks 400,000,000.00 Vanke Real Estate Co., Ltd. Co., Ltd. provided guarantee according to shareholding ratio. Huitai Investment China Merchants Banks 366,816,000.00 Co., Ltd. Land Limited Wuhan Aoming Property China Merchants Banks 287,000,000.00 10,020,000.00 Development Shekou Co., Ltd. China Merchants (Shenzhen) Property China Merchants Development Co., (Guangzhou) Ltd. and China Property Banks 287,000,000.00 10,000,000.00 Merchants Land Development Limited provided Co., Ltd. guarantee according to shareholding ratio. Beijing Conrad China Merchants Property (Shenzhen) Property Banks 263,900,000.02 109,200,000.00 Development Development Co., Co., Ltd. Ltd. and China
136 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Including: Lending long-term loan Borrower Loan amount Guarantor institution amount due within one year Merchants Shekou provided guarantee according to shareholding ratio. The Company and HEC Estate Co., Ltd. provided guarantee according to shareholding ratio, and Harbin Notting China Merchants Hill land and project (Harbin) Jiatian under construction Property Banks 250,000,000.00 (land certificate No.: Development HGY (2014) No. Co., Ltd. 10000012; planning permit of construction engineering: HFJSZ No. 1410000036) were mortgaged to the bank for the loan, which was listed in mortgage loan. Foshan China Merchants Merchants Real Banks 249,000,000.00 4,000,000.00 Shekou Estate Co., Ltd. China Merchants Property Investment Shenzhen China Co., Ltd. and Merchants Shenzhen Sea World Business Banks 245,000,000.00 Industrial Development Development Co., Co., Ltd. Ltd. provided guarantee according to shareholding ratio. China Merchants (Shenzhen) Property China Merchants Development Co., (Foshan) Ltd. and Foshan New Xincheng Banks 199,000,000.00 199,000,000.00 City Development High-tech Co., and Construction Ltd. Co., Ltd. provided guarantee according to shareholding ratio. China Merchants (Shenzhen) Banks 183,408,000.00 183,408,000.00 The Company Power Supply Co., Ltd. China Merchants (Shenzhen) Property Foshan Kaida Development Co., Town Investment Banks 149,500,000.00 3,000,000.00 Ltd. provided full Development guarantee, and Co., Ltd. Foshan Jincheng Frozen Food Co.,
137 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Including: Lending long-term loan Borrower Loan amount Guarantor institution amount due within one year Ltd. and Guangdong New Nanda Cable Industrial Co., Ltd. provided guarantee according to shareholding ratio. China Merchants (Shenzhen) Property Development Co., Foshan Shunde Ltd. and Foshan Evian Zhenyuan Banks 99,000,000.00 2,000,000.00 Henglun Property Property Co., Ltd. Investment Co., Ltd. provided guarantee according to shareholding ratio. Total 21,254,654,400.02 4,645,688,000.00
Note 3: interest rate interval for long-term RMB loan was between 10% below benchmark loan rate in the corresponding period and 20 % above such benchmark loan rate, and that for long-term foreign currency loan was between Libor +1% and +4%.
32. Bonds payable
(1) Classification of bonds payable
Item Balance at the end of the Balance at the beginning of the period year Medium-term note 1,000,000,000.00 Credit enhancement bond of 3,031,285,700.65 3,018,076,924.57 China Merchants Land Limited Convertible bonds of CMLL 1,396,946,655.31 Note1 Total 5,428,232,355.96 3,018,076,924.57
Note 1: The bonds are 5-year convertible corporate bonds issued on June 23, 2015 by Cosmos Boom Investment Limited, a wholly owned subsidiary of China Merchants Land Limited, the principal of which is USD 290,000,000.00, equivalent to RMB 1,772,451,000.00. The issued net amount after deducting the issuing expenses is RMB 1,727,852,374.02. The annual interest rate is 0.5%, and interests will be paid on June 23 and December 23 for the past half year's period.
The bond holder shall have the debt-for-equity swap and put-back right in accordance with the subscription agreement. Debt-for-equity swap: The bonds holder shall be entitled to convert his bond into shares of China Merchants Land Limited Co., Ltd. on August 2, 2015 or at any time from August 2, 2015 (inclusion) to business hours ended on the tenth day before the expiry date (subject to
138 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB) the location where the bond certificate is submitted for conversation); or if the company requires to redeem the bond before the expiry date, to the fifteenth day before the redemption date. The number of convertible shares shall be determined by dividing the principal of convertible bonds (converted into Hong Kong dollars as per the fixed exchange rate of an USD at a price of HKD 7.7559) with the conversion price on the date when the bonds are converted and the issued share price for conversion is initially priced at HKD 2.9875. The initial conversion price shall be negotiated by the parties and determined by referencing the latest price and the prospective of China Merchants Land Limited. Put-back right: On June 23,2018, the bond holders have the right to choose to request the issuer to redeem all or part of the bonds with the principal and unpaid interests accrued till the specified redemption date on June 23,2018. Unless redeemed, converted, purchased or canceled prior to the expiry date, the bonds will be redeemed by the issuer with the principal amount together with the unpaid interests accrued till the expiry date. Unless the issuer exercises his redemption right, the issuer shall not redeem the bonds before the expiry date.
Redemption right of the convertible bonds: If the closing share price on the 20th day of the month covered by the 30 consecutive business days before the issuance of a redemption announcement is equal to at least 130% of the principal divided by the conversion ratio, the issuer may redeem all of the bonds, which are not yet converted at the time, with the principal amount and interests accrued till the specified redemption date after sending to the bond holder an irrevocable announcement not less than 30 days but not more than 90 days in advance on December 23, 2016 or at any time between December 23, 2016 and the expiry date. If 90% or more of the bond principal has been redeemed, converted, purchased or canceled, the issuer may redeem all of the bonds which are not yet converted at the time with the principal amount and interests accrued till the specified redemption date.
Fair values of the above derivatives are determined by the estimates of Jones Lang LaSalle Corporate Appraisal and Advisory Limited in accordance with models, with the key indicators adopted by the models shown as below:
Total principal US$ 290,000,000 Conversion Price HK$2.9875 Risk-free interest rate 1.7 % Fluctuation of share price 60 % Expected exercise period 23 June 2015 to 23 June 2020
The debt-for-equity swap and put-back right of the bond holders and the redemption right of the issuer have been listed subject to the fair values respectively as: RMB 414,329,445.41 of equities, RMB 61,341,172.42 of other non-current liabilities and RMB 144,834,167.45 of other non-current assets. The debt-for-equity swap of the bond holders has been listed as RMB 308,053,942.66 of capital reserve as per the shares held by the company.
139 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
(2) Changes in bonds payable
Balance at the Interests Amortization of Par value in Issuing Bond Amount issued in Payment in Exchange Balance at the end Name of bonds Issuing amount beginning of the accrued at par premium or total date duration this period this period impact of the period year value discount Credit enhancement bond of China 3,048,450,000.00 2013-12-11 5 3,003,382,977.23 3,018,076,924.57 61,622,368.04 15,916,629.03 61,744,465.50 -2,707,852.95 3,031,285,700.65 Merchants Land Limited Medium-term note 1,000,000,000.00 2015-02-05 5 1,000,000,000.00 1,000,000,000.00 1,000,000,000.00 Convertible bonds of 1,772,451,000.00 2015-06-23 5 1,396,157,001.27 1,396,157,001.27 196,993.76 408,204.69 196,993.76 381,449.35 1,396,946,655.31 the CMLL Total 5,820,901,000.00 5,399,539,978.50 3,018,076,924.57 2,396,157,001.27 61,819,361.80 16,324,833.72 61,941,459.26 -2,326,403.60 5,428,232,355.96
140 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
33. Long-term payables
(1) Classification of long-term payables by fund nature
Fund nature Balance at the end of Balance at the beginning the period of the year Property maintenance fund 104,741,277.07 103,153,146.52 Financing funds Note 3,469,117,074.04 China Merchants Entrepreneurship 1,200,000.00 1,200,000.00 (Shenzhen) Co., Ltd. Total 3,575,058,351.11 104,353,146.52
Note: Long-term payables at the end of the period is increase by RMB 3.574 billion than at the beginning of the period, mainly as a result of transferring equities of five real estate equities by the CMLL and receiving RMB 3.386 billion of equity transfer money and interests. In 2014, the company set up five subsidiaries, i.e. Shekou Technology Building, China Merchants Technology Building (Phase II), Garden City Digital Building, Shekou Garden City Commercial Center, and New Times Plaza and proposed to transfer in a public listing 100% of the equities at the equity exchange. In February, 2015, the company concluded the transaction as per the relevant agreement on the transfer of equities. Since the maximum investment term and buy-back clauses are agreed under the equity transfer agreement, accounting calculation will be done as per the financing after-sales buy-back. Equity transfer prices were determined as long-term payables, and for the difference between buy-back price and selling price, the straight-line method is adopted to calculate interests, and the net profits of all subsidiaries will be recognized as the financial expense in the consolidated level during the investment period.
34. Deferred income
(1) Classification of deferred income
Item Balance at the Increase in Decrease in Balance at the beginning of current period current period end of the Reason the year period Received Government 6,526,053.33 2,750,000.00 1,274,713.05 8,001,340.28 government subsidies appropriation Total 6,526,053.33 2,750,000.00 1,274,713.05 8,001,340.28
(2) Items of government subsidies
Balance at Amounts of Amount of Items of Balance at the new non-operating Other Related to government the end of beginning of subsidies in income in this movements assets/income subsidies the period the year this period period Special Related to 4,710,020.00 4,710,020.00 support fund assets
141 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Balance at Amounts of Amount of Items of Balance at the new non-operating Other Related to government the end of beginning of subsidies in income in this movements assets/income subsidies the period the year this period period for hotel project Car awarded by Chenghua Related to 1,816,033.33 -168,933.33 1,647,100.00 District assets Government Subsidies for green Related to building 1,250,000.00 1,105,779.72 144,220.28 income demonstration projects Special fund for 2014 Nanshan Related to independent 1,500,000.00 1,500,000.00 innovation income industry development Total 6,526,053.33 2,750,000.00 1,105,779.72 -168,933.33 8,001,340.28
Note: other changes are the governmental subsidies carried over as other current liabilities within a year.
35. Other non-current liabilities
Item Ending amount Initial amount Convertible bond buy-back 61,341,172.42 obligation Total 61,341,172.42
Note: Refer to the Note "VI. 32. Bonds payable" note 1.
36. Share capital
Changes (+/-) in this period Balance at the Shares Balance at the converted Item beginning of the Stock Dividend end of the from Others Subtotal year issue stock period reserved funds Share 2,575,950,754.00 2,575,950,754.00 capital
37. Capital reserve
Item Balance at the Increase in Decrease in Balance at the end beginning of the current period current period of the period year Note 1 to 8,334,214,466.92 119,856,355.92 8,454,070,822.84
142 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Premium on capital stock Capital reserves 104,411,758.00 104,411,758.00 transfer-in Other capital 91,131,429.44 324,099,342.55 82,017,826.11 333,212,945.88 reserves Note 2 Total 8,529,757,654.36 443,955,698.47 82,017,826.11 8,891,695,526.72
Note 1: The increase in the current period is that Ningbo Jiangwan Real Estate Development Co., Ltd., a subsidiary of the company, has absorbed minority equities, and after such increase, the difference between net asset shares owned by the company and the par value of the original long-term equity investment is adjusted as the capital reserve - the share premium.
Note 2: What is new in the current period include: China Merchants Land Limited, a subsidiary of the company, issued a convertible bond on June 23, 2015 with a debt-for-equity swap value that increases RMB 308053942.66 of other capital reserves (refer to the Note "six, 32.Bond payable" note 1 for details) and share-based payments included in the equity amount in the current period are RMB 16,045,399.89. The decrease in the current period is mainly from the reclassification into the capital share premium. What is reduced otherwise in the current period is an acquisition of the Beijing Guangying Residential Property Development Limited with different control and all other changes in equities of the investee confirmed with the equity method of the held shares before the acquisition date are turned into current profit and loss, others are mainly from the reclassification into the share premium.
38. Other comprehensive income
Item Balance at the Amount incurred in the current period Balance at the
143 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
beginning of Less: the end of the the year amount period calculated in other Accru comprehe Attributab al nsive Attributabl le to before income in Less: e to parent minority incom earlier incom company shareholde e tax period and e tax after tax rs after of this carried tax period over to profit and loss in current period. I Other comprehen sive income that couldn’t be classified into profit and loss in the future II Other comprehen sive income that 187,24 would be 78,901,353.52 139,215.19 48,027.84 79,040,568.71 3.03 classified into profit and loss in the future Where: 78,901,353.52 187,24 Exchange 3.03 differences on foreign 139,215.19 48,027.84 79,040,568.71 currency financial statements Other total 78,901,353.52 187,24 comprehen 3.03 139,215.19 48,027.84 79,040,568.71 sive income
39. Surplus reserve
Item Balance at the Increase in Decrease in Balance at the end of beginning of the current period current period the period year Legal surplus 1,106,108,219.72 1,106,108,219.72 reserves Any surplus 140,120,038.00 140,120,038.00 reserves Total 1,246,228,257.72 1,246,228,257.72
144 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
40. Undistributed profit
Item Current period 2009 Ending balance of previous year 18,663,578,091.22 15,336,958,642.03 Add: Adjustment of undistributed profits at the beginning of the year Balance at the beginning of this year 18,663,578,091.22 15,336,958,642.03 Plus: Net profit owned by parent company 2,145,502,164.69 4,263,636,555.36 owners in the year Less: withdrawal of legal surplus reserves 112,712,864.73 Profit payable 824,304,241.28 824,304,241.44 Other decreases Balance at the end of the year 19,984,776,014.63 18,663,578,091.22
41. Operation incomes and operation costs
Amount incurred in the current period Amount incurred in the previous period Item Income Cost Income Cost Primary 16,047,155,730.99 10,391,068,273.47 11,986,510,250.36 businesses 17,973,948,437.46 Total 17,973,948,437.46 11,986,510,250.36 16,047,155,730.99 10,391,068,273.47
(1) Classification of operation revenue by industry
Industry Amount of current period Amount of the same period of last year name Operating incomes Operating costs Operating incomes Operating costs Real estate 17,239,500,161.22 11,346,058,028.67 15,286,741,029.90 9,740,634,674.02 Public 306,065,742.43 240,087,300.42 296,760,432.45 232,485,479.31 utilities Property 428,382,533.81 400,364,921.27 463,654,268.64 417,948,120.14 management Total 17,973,948,437.46 11,986,510,250.36 16,047,155,730.99 10,391,068,273.47
(2) List of sales revenues from top 5 customers of the Company
Name of customer Operating incomes Proportion in total sales revenues (%) Customer I 119,346,683.00 0.66 Customer II 115,000,000.00 0.64 Customer III 107,100,000.00 0.60 Customer IV 105,000,000.00 0.58 Customer V 70,000,000.00 0.39 Total 516,446,683.00 2.87
42. Operating taxes and surcharges
Item Amount incurred in the Amount incurred in the current period previous period Land value increment tax 946,318,241.95 715,462,580.01 Business tax 896,779,034.91 795,233,571.24 Urban maintenance and construction 55,418,586.12 52,643,579.68 tax
145 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Item Amount incurred in the Amount incurred in the current period previous period Education surtax 44,333,090.79 31,521,296.26 Others 7,394,078.99 19,158,673.10 Total 1,950,243,032.76 1,614,019,700.29
43. Sales expenses
Item Amount incurred in the Amount incurred in the current period previous period Advertising expenses 164,189,204.40 131,573,936.41 Fees and commissions for sales agency 155,017,531.36 136,056,065.25 Others 15,054,330.91 14,308,246.79 Total 334,261,066.67 281,938,248.45
44. Administrative expenses;
Item Amount incurred in the Amount incurred in the current period previous period Labor cost 191,640,504.68 142,440,093.58 Office and administrative fees 40,418,233.54 43,358,242.39 Fees for intermediary agency 10,942,296.70 10,039,265.18 Assets amortization 10,645,289.62 11,953,023.23 Taxes and levies 14,852,328.72 15,615,878.06 Others 3,990,198.47 8,253,296.26 Total 272,488,851.73 231,659,798.70
45. Financial expenses
Item Amount incurred in the Amount incurred in the current period previous period Interest payments 631,709,516.22 461,627,423.25 Less: Interest incomes 153,765,387.70 221,966,151.28 Add: exchange loss -46,110,621.56 51,270,119.88 Add: other expenditures 23,902,555.14 35,170,994.70 Total 455,736,062.10 326,102,386.55
46. Assets impairment losses
Item Amount incurred in the Amount incurred in the current period previous period Bad debt losses -1,219,731.00 888,293.99 Inventory devaluation losses Total -1,219,731.00 888,293.99
47. Investment income
Item Amount incurred in the Amount incurred in the current period previous period Long-term equity investment income 42,235,644.34 143,318,415.51
146 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Item Amount incurred in the Amount incurred in the current period previous period measured by equity method Investment profit by the disposal of long-term equity investment Others 450,879,010.10 Total 493,114,654.44 143,318,415.51
The company obtained control over Beijing Guangying Residential Property Development Limited, which used to be an associated enterprise, on May 1, 2015, and previously held shares were reestimated and confirmed at RMB 432.5388 million of investment incomes, and all other changes in equities of the investee confirmed with the equity method of the held shares were turned into current profit and loss and confirmed at RMB 11.78 million of investment incomes.
48. Non-operating income
(1) Statement of non-operating incomes
Amount recognized Amount incurred Amount incurred in into current Item in the previous the current period non-recurring period profits and losses Gains on disposal of non-current 150,369.00 150,369.00 14,184.22 assets Including: gains on disposal of 150,369.00 150,369.00 14,184.22 fixed assets Government subsidies 6,716,649.90 25,262,476.52 6,716,629.90 Penalty income 14,809,092.90 4,879,293.44 14,809,092.90 Others 5,679,404.35 5,340,925.45 5,679,424.35 Total 27,355,516.15 35,496,879.63 27,355,516.15
(2) Statement of government subsidies
Amount Amount Related to incurred in incurred in the assets Item Source and basis the current previous Related to period period income Notice On Distribution of Subsidy for heating The First Heating Fuel Related to 3,062,136.85 2,064,476.52 fuel Subsidiary For Heating income Season In 2014 Circular of Suzhou Bonus for large Wuzhong Development Related to 1,800,000.00 2,500,000.00 taxpayer Zone on Award for income Taxpayer Subsidies for green Finance Bureau of Related to building 1,105,779.72 Shenzhen Nanshan District income demonstration projects China Merchants Related to Financial incentive 250,000.00 Zhangzhou Development income
147 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Amount Amount Related to incurred in incurred in the assets Item Source and basis the current previous Related to period period income Zone Management Committee Circular of Shuangshuinian Car awarded by Sub-district Office of Related to Chenghua District 168,933.33 Chengdu Chenghua assets Government District People's Government Shanghai Municipal Related to Financial rebate 120,000.00 Finance Bureau income The payment made by Nanshan District Economic Promotion Bureau for 2014 Nanshan District Related to Year-end 100,000.00 Economic Promotion income Joyful-Season Bureau Activities, Sea World International Light Festival Xiangcheng District, Work Style and Efficiency Suzhou Xiangcheng Related to 50,000.00 Development Meeting, District Finance Bureau income Awards for Excellent Enterprises Funds for environment Funds for environment improvement of Related to 49,800.00 improvement of Shenzhen Nanhai E-Cool Unique income Nanshan Unique Block Block Zhaoshang Subdistrict Office, award for Zhaoshang Subdistrict Related to outstanding 10,000.00 Office income contribution to grass-roots governance Government Finance Bureau of Related to delegation fees for Sea 20,000,000.00 Shenzhen Nanshan District income World Bar Block Special fund for Special fund for economic Related to economic development 168,000.00 development of Shenzhen income (center of Garden City) Nanshan District Government tax Circular on Suzhou Tax Related to 350,000.00 incentives Incentives income Subsidy for green Treasury Payment Branch building design label Related to 180,000.00 of Guangzhou Finance standardized assets Bureau technology research Total 6,716,649.90 25,262,476.52
49. Non-operating expense
148 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Amount included in Amount incurred in Amount incurred in Item extraordinary items the current period the previous period of this year Losses on disposal of 8,451.04 175,062.57 8,451.04 non-current assets Including: losses from disposal 8,451.04 175,062.57 8,451.04 of fixed assets Donation 2,000.00 Fine and fine for delaying 9,794,617.08 9,794,617.08 payment Renewable energy tariff 3,900,800.61 3,826,281.53 3,900,800.61 surcharge Major water conservancy 2,197,216.09 2,145,062.64 2,197,216.09 construction fund Others 1,448,583.16 15,577,008.75 1,448,583.16 Total 17,349,667.98 21,725,415.49 17,349,667.98
50. Income taxes
(1) Income taxes
Item Amount incurred in the Amount incurred in the current period previous period Income tax expenses in the current year 789,738,176.94 1,252,265,973.88 Deferred income tax 301,164,102.92 -287,769,205.47 Total 1,090,902,279.86 964,496,768.41
(2) Accounting profit and income tax expenses adjustment process
Item Amount incurred in the current period Consolidated profit this period 3,479,049,407.45 Income tax expenses calculated at legal/applicable tax rate 869,762,351.86 Impact of various tax rates applicable to subsidiaries 7,484,458.34 Adjustment of impact on the income tax in the previous period -1,613,546.44 Impact of non-taxable income -121,637,924.12 Impact of the non-deductible costs, expenses and losses 958,965.59 Impact of deductible losses of deferred income tax assets unconfirmed in -84,089,899.73 the previous use period Impact of the deductible temporary difference or deductible loss of the 290,083,126.22 unconfirmed deferred income tax assets of this period Impact of deferred tax of the profits to be distributed of the subsidiary with 12,122,183.38 a tax rate lower than 25%. Tax impact of unconfirmed taxable temporary differences -3,293.78 Others 117,835,858.54 Income taxes 1,090,902,279.86
51. Items of cash flow statements
(1) Cash received/paid related to other operating/investment/financing activities
149 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
1） Cash received from other operating activities
Item Amount incurred in the Amount incurred in the current period previous period Operational incomings and outgoings received 3,403,840,502.84 3,107,323,026.01 Project deposit received 1,132,890,000.00 351,203,069.17 Interest received 191,564,887.90 128,814,435.02 Operational advance received 183,686,385.08 283,677,449.41 Others 38,880,068.39 Total 4,950,861,844.21 3,871,017,979.61
2） Other cash paid relating to operating activities
Item Amount incurred in the Amount incurred in current period the previous period Operational incomings and outgoings paid 5,558,283,259.97 1,429,429,541.00 Project deposit refunded 1,895,040,000.00 362,500,632.11 Cash paid for selling expenses 243,329,649.14 265,717,364.18 Cash paid for administrative expenses 80,584,079.23 162,536,815.33 Others 21,118,406.40 403,680,191.23 Total 7,798,355,394.74 2,623,864,543.85
3） Other cash received relating to investment activities
Item Amount incurred in the Amount incurred in the current period previous period Negative net cash for subsidiary acquisition 630,235,033.61 moved under this item Total 630,235,033.61
(2) Supplementary data of consolidated cash flow statement
Item Amount of current Amount of the same period period of last year 1. Net profits transferred to cash flow of operation activities: Net profit 2,388,147,127.59 2,394,072,140.78 Add: provision for assets impairment -1,219,731.00 888,293.99 Depreciations of fixed assets, oil & gas assets, and 180,052,039.35 productive biological assets 82,124,734.55 Amortization of intangible assets 8,939,269.18 127,749,940.09 Amortization of long-term deferred expenses 29,285,463.63 28,475,654.32 Losses at disposal of fixed assets, intangible assets and other long-term assets (―-‖ indicates the 8,451.04 profit) 160,278.35 Losses at discard of fixed assets (―-‖ indicates the 884,954.97 profit) Profits and losses on the change of fair value (―-‖ indicates the profit) Financial expense (―-‖ indicates the profit) 631,709,516.22 461,627,423.25
150 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Item Amount of current Amount of the same period period of last year Losses on investments (―-‖ indicates the profit) -493,114,654.44 -143,318,415.51 Decreases of deferred income tax assets (―-‖ -96,883,432.67 indicates increase) -354,049,275.48 Increases of deferred income tax liabilities (―-‖ 398,047,535.59 indicates decrease) -14,732,536.77 Decrease of inventories (―-‖ indicates increase) -11,689,902,990.66 -12,762,507,273.06 Decrease of operational receivable items (―-‖ -2,801,100,084.65 indicates increase) -1,738,838,849.53 Increase of operational payable items (―-‖ 4,084,051,448.63 indicates decrease) 4,586,023,487.90 Others Net cash flows from operating activities -7,361,095,087.22 -7,332,324,397.12 2. Major investments and financing activities not related to cash expenditure and income: Conversion of debt into capital Convertible bonds expiring within one year Fixed assets acquired under finance leases 3. Net changes of cash and cash equivalent: Balance of cash at the end of the year 23,726,436,908.97 18,585,950,027.06 Less: beginning balance of cash 22,947,760,259.27 24,235,680,921.50 Add: Balance of cash equivalent as at the end of the year Less: beginning balance of cash equivalent Net increase of cash and cash equivalents 778,676,649.70 -5,649,730,894.44
(3) Net cash paid for acquisition of subsidiaries in the current year
Item Amount of current period Cash or cash equivalents paid in the current year for the business merger happened in the current year Less: Cash and cash equivalent held by subsidiary on purchase date 778,971,624.38 including: those held by Xiamen Jinghucheng Real Estate Development Co., 11,461,315.42 Ltd. Beijing Guangying Residential Property Development Limited 767,510,308.96 Add: Cash or cash equivalents paid in current year for the business 148,736,590.77 consolidation incurred in the previous period Net cash paid for subsidiary acquisition -630,235,033.61
(4) Cash and cash equivalents
Item Balance at the end Balance at the of the period beginning of the year Cash 23,726,436,908.97 22,947,760,259.27 Including: the cash on hand 289,924.34 372,572.19 Bank deposit available for payment at any time 19,039,335,443.97 19,547,572,224.50 Other monetary fund available for payment at 4,686,811,540.66 3,399,815,462.58
151 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Item Balance at the end Balance at the of the period beginning of the year any time Cash equivalents Including: debenture investment mature within three months Balance of cash and cash equivalents at the end of year 23,726,436,908.97 22,947,760,259.27 Including: Restricted cash and cash equivalents used by parent company and subordinated company of group
52. Item of statement of changes in owners' equity
The items listed under ―Others‖ in the Statement of Changes in Owners' Equity of this period are mainly changes in capital reserve, see (37) in Note 6 to Capital Reserve in Note 6.
53. Assets with limited ownership or right of use
Item Ending book value Reason for restriction Monetary fund 26,076,479.54 Margin deposits Inventories 5,074,957,142.72 Mortgage loans
54. Foreign currency monetary items
(1) Foreign currency monetary items
Item Balance of foreign Balance in RMB at the Exchange currency at the end of end of period rate period Monetary fund 2,006,676,706.88 Including: USD 317,238,794.08 6.1136 1,939,471,091.49 HKD 85,221,424.53 0.7886 67,205,615.39 Accounts receivable 115,340.64 Including: Hong Kong dollar 146,260.00 0.7886 115,340.64 Prepayment 52,020.72 Including: Hong Kong dollar 65,965.92 0.7886 52,020.72 Other receivables 726,089.74 Including: USD 50.00 6.1136 305.68 HKD 920,344.99 0.7886 725,784.06 Loan 9,876,215,120.00 Including: USD 1,615,450,000.00 6.1136 9,876,215,120.00 Accounts payable 260,433.45 Including: Hong Kong dollar 330,247.84 0.7886 260,433.45 Advances received Including: Hong Kong dollar 0.7886 Interests payable 7,072,391.01 Including: USD 1,156,829.20 6.1136 7,072,391.01 Other payables 774,847,060.04 Including: USD 126,714,010.42 6.1136 774,678,774.09
152 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Item Balance of foreign Balance in RMB at the Exchange currency at the end of end of period rate period HKD 213,398.36 0.7886 168,285.95 Bonds payable 4,428,680,133.80 Including: USD 724,398,085.22 6.1136 4,428,680,133.80
(2) Overseas operational entity
Key offshore operational entities of the Group include Eureka Investment Company Co., Ltd. and China Merchants Land Limited, for such companies are investment companies whose investment targets are entities with main business activities in China Mainland with RMB as functional currency, therefore, RMB is used as functional currency; China Merchants Land Limited has set up a wholly-owned subsidiary, Cosmos Boom Investment Limited, and selected USD as functional currency based on business requirements.
II. Consolidation scope change
1. Corporate merger not under common control
(1) Corporate merger not under the same control in current period
Time point of Equity control Equity ratio Name of acquiree equity control cost controlled (%) Xiamen Jinghucheng Real Estate June 31, 2015 539,683,600.00 95.00 Development Co., Ltd. Beijing Guangying Residential May 01, 2015 34.00 Property Development Limited
Continued: The revenue of Net profits of the Equity the acquiree from Confirmation basis acquiree from controlling Purchasing date purchase day to on purchase day purchase day to mode the end of the the end of the year year Acquisitions June 31, 2015 Acquisition of control -16,451,981.26 right of the acquiree Obtain the majority of Acquisition of control seats of May 01, 2015 724,732,639.00 174,636,530.39 right of the acquiree Board of Directors
(2) Merger cost and goodwill
Xiamen Jinghucheng Beijing Guangying Item Real Estate Development Residential Property Co., Ltd. Development Limited Cash 539,683,600.00 Fair value on the acquisition date of the 448,813,124.31
153 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Xiamen Jinghucheng Beijing Guangying Item Real Estate Development Residential Property Co., Ltd. Development Limited equities held before the acquisition date Total merger cost 539,683,600.00 448,813,124.31 Less: proportion of fair value of identifiable 539,683,600.00 448,813,124.31 net assets acquired Amount of goodwill/ merger cost which is less than the definable net assets fair proportion
After the appraisal on shareholders' equities of Xiamen Jinghucheng Real Estate Development Co., Ltd. as of December 31, 2014 by Xiamen Yongda Quanneng Assets Appraisal Firm (XYDPBZ [2015] No.002 Appraisal Report), shareholders' equities of Xiamen Jinghucheng is valued as RMB 28.4044 million with the asset-based valuation approach, on such basis, the transaction parties agree to introduce a new lump-sum investment of RMB 539.6836 million from China Merchants (Zhangzhou) Property Development Co., Ltd., wherein RMB 95 million is added to the registered capital of Xiamen Jinghucheng Real Estate Development Co., Ltd., and the remaining is used as the capital reserve. After capital increase, Xiamen Zhaogang Real Estate Development Co., Ltd., a subsidiary of China Merchants (Zhangzhou) Property Development Co., Ltd., will hold 95% equities of Xiamen Jinghucheng Real Estate Development Co., Ltd., while the remaining equity will be held by Xiamen Jimei Construction and Development Co., Ltd.
After the appraisal on the market value represented by the overall assets of Beijing Guangying Residential Property Development Limited as of April 30, 2015 by ZhongHe Appraisal Company Ltd. (ZHPBZ [2015] No. BJV1029 Appraisal Report), the appraisal value is RMB 1.7441894 billion with the asset-based valuation approach (without considering the influence of taxable temporary difference).
(3) Identifiable assets and liabilities on the purchase date of the purchased party
Xiamen Jinghucheng Real Estate Beijing Guangying Residential Property Development Co., Ltd. Development Limited Item Fair value on Book value on Fair value on Book value on purchase day purchase day purchase day purchase day Assets: Monetary fund 11,461,315.42 11,461,315.42 767,510,308.96 767,510,308.96 Prepayment 163,411.20 163,411.20 Other receivables 45,700,000.00 45,700,000.00 3,829,274.72 3,829,274.72 Inventories 510,926,684.58 487,522,284.58 4,642,416,835.90 2,946,186,235.90 Other current assets 310,437,840.81 310,437,840.81 Fixed assets 705,405.48 705,405.48 Liabilities: Accounts payable 219,072,527.24 219,072,527.24
154 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Xiamen Jinghucheng Real Estate Beijing Guangying Residential Property Development Co., Ltd. Development Limited Item Fair value on Book value on Fair value on Book value on purchase day purchase day purchase day purchase day Advances received 3,683,265,560.00 3,683,265,560.00 Payroll payable 274,665.67 274,665.67 Tax payable 110,686.22 110,686.22 Other payables 30,411,000.73 30,411,000.73 Other current 47,832,386.31 47,832,386.31 liabilities Deferred income tax liabilities Net assets 568,088,000.00 544,683,600.00 1,744,096,250.90 47,865,650.90 Less: Minority 28,404,400.00 27,234,180.00 1,151,103,525.59 31,591,329.59 interest Net asset acquired 539,683,600.00 517,449,420.00 592,992,725.31 16,274,321.31
The increment and change of definable asset and debts as of December 31,2014 is adjusted based on the appraisal value, and the fair value of 95 % definable net asset of Xiamen Jinghucheng Real Estate Development Co., Ltd. on the acquisition day is 539.6836 million.
The increment and change of definable asset and debts as of April 30, 2015 is adjusted based on the appraisal value, and the fair value of 34 % definable net asset of Beijing Guangying Residential Property Development Limited on the acquisition day is 448.8131 million.
(4) Shares previously held before the acquisition day will be recalculated in terms of the fair value for profits or losses produced
Determination method of fair Amount of Book value of Profits or losses values on the changes of other the equities on Fair value of the generated due to acquisition ownership the acquisition equities on the re-calculation of date of the interests related Name of with the equities date held acquisition date fair values of equities held acquiree held before the before the held before the the equities held before the acquisition and acquisition acquisition date before the acquisition carried forward to date acquisition date date, and investment major incomes assumptions Beijing Guangying Residential Asset-based 16,274,321.31 448,813,124.31 432,538,803.00 valuation 11,777,249.14 Property approach Development Limited
2. Merger scope change for other reasons
155 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Reasons for Not being included in Shareholding ratio being included in consolidation (%) Company name consolidation scope scope China Merchants (Shanghai) Baoxin Newly-established 51.00 Property Co., Ltd. China Merchants (Suzhou) Ruiying Newly-established 51.00 Property Development Co., Ltd. China Merchants (Suzhou) Mancheng Newly-established 100.00 Property Development Co., Ltd. China Merchants (Chongqing) Yicheng Newly-established 100.00 Property Development Co., Ltd. China Merchants (Chengdu) Boshi Newly-established 51.00 Property Development Co., Ltd. Shenzhen Zhaopingruisheng Newly-established 51.00 Investment Holdings Co., Ltd. Xiamen Zhaogang Real Estate Development Co., Newly-established 60.00 Ltd. Foshan Evian Guanyuan Property Development Newly-established 100.00 Co., Ltd. Nanjing Zhaopinglisheng Newly-established 51.00 Investment Co., Ltd. China Merchants (Nanjing) Zhaosheng Newly-established 100.00 Property Development Co., Ltd. Tiansheng investment co., Newly-established 100.00 LTD Chuangjinli Co., Ltd. Write-off
Note 1
Note1: Chuangjinli Co., Ltd., a non-entity company registered in Hong Kong, was written off upon approval on April 1, 2015.VIII. Rights and interests in other parties
1. Rights and interests in subsidiary
(1) Organization of enterprise group
Main Registered Business Shareholding ratio Name of subsidiary businesses address nature (%)
156 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Directly Indirectly Subsidiaries obtained by combination under common control Hong Eureka Investment Company Ltd. Hong Kong Investment 100 Kong China Merchants (Zhangzhou) Property Zhangzhou Zhangzhou Real estate 51 Development Co., Ltd. China Merchants (Zhangzhou) Property Property Zhangzhou Zhangzhou 100 Management Co., Ltd. management China Merchants (Shenzhen) Property Shenzhen Shenzhen Real estate 100 Development Co., Ltd. Shekou Xinghua Industrial Co., Ltd. Shenzhen Shenzhen Real estate 65.07 China Merchants (Shenzhen) Power Power Shenzhen Shenzhen 95 5 Supply Co., Ltd. supply Measurement China Merchants(Shenzhen) Energy Shenzhen Shenzhen & 100 Measurement & Verification Co., Ltd Verification China Merchants Property Management Property Shenzhen Shenzhen 90 10 Co., Ltd. management China Merchants (Shenzhen) Property Property Shenzhen Shenzhen 100 Management Co., Ltd. management Property Shekou Zhaofa Property Co., Ltd. Shenzhen Shenzhen 100 management China Merchants (Shenzhen) Qile Property Shenzhen Shenzhen 60 Property Management Co., Ltd. management Subsidiaries obtained by consolidation not under common control Cayman Cayman China Merchants Land Limited Investment 74.35 islands islands Hong Huaxian Co., Ltd. Hong Kong Investment 100 Kong Tianjin Guojun Investment Co., Ltd. Tianjin Tianjin Real estate 100 Tianjin CM Taida Investment Co., Ltd. Tianjin Tianjin Real estate 60 Tianjin Zhaojiang Investment Co., Ltd. Tianjin Tianjin Real estate 77 China Merchants (Harbin) Jiatian Property Harbin Harbin Real estate 50 Development Co., Ltd Note 1 Harbin Yinkai Real Estate Development Harbin Harbin Real estate 85 Co., Ltd. Qingdao Zhongrunde Auto Trade Co., Ltd. Qingdao Qingdao Real estate 51 China Merchants (Shanghai) Fengrui Shanghai Shanghai Real estate 100 Property Co., Ltd. Shanghai Fengyang Real Estate Shanghai Shanghai Real estate 60 Development Co., Ltd. Yunnan Merchants City Real Estate Co., Kunming Kunming Real estate 60 Ltd. Foshan Kaida Town Investment Foshan Foshan Real estate 51 Development Co., Ltd. Shenzhen Haitao Hotel Co., Ltd. Shenzhen Shenzhen Hotel service 100 Shenzhen Vanke Binhai Property Co., Ltd. Shenzhen Shenzhen Real estate 50 Note 1 Shenzhen Meiyue Real Estate Consulting Shenzhen Shenzhen Real estate 100 Co., Ltd.
157 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Shareholding ratio Main Registered Business Name of subsidiary (%) businesses address nature Directly Indirectly China Merchants (Shenzhen) Runde Shenzhen Shenzhen Real estate 51 Property Development Co., Ltd. Shenyang Jindaohuitong Real Estate Shenyang Shenyang Real estate 51 Development Co., Ltd. Guanhua Port Trade (Shenzhen) Co., Ltd. Shenzhen Shenzhen Trade 100 Beijing Guangying Residential Property Beijing Beijing Real estate 34 Development Limited Xiamen Jinghucheng Real Estate Xiamen Xiamen Real estate 95 Development Co., Ltd. Subsidiaries acquired through other ways British British Trinity Limited Virgin Virgin Investment 100 Islands Islands British British Juyang Co., Ltd. Virgin Virgin Investment 100 Islands Islands British British Huihao Co., Ltd. Virgin Virgin Investment 100 Islands Islands British British Huiyu Co., Ltd. Virgin Virgin Investment 100 Islands Islands British British Zengtian Holding Co., Ltd. Virgin Virgin Investment 100 Islands Islands British British Yinrong Co., Ltd. Note 1 Virgin Virgin Investment 50 Islands Islands British British Huiju Holding Co., Ltd. Virgin Virgin Investment 100 Islands Islands British British Jingji Co., Ltd. Virgin Virgin Investment 100 Islands Islands British British Chaocheng International Co., Ltd. Virgin Virgin Investment 100 Islands Islands British British Guangyu Holding Co., Ltd. Virgin Virgin Investment 100 Islands Islands British British Weirong Holding Limited Virgin Virgin Investment 100 Islands Islands British British Best Season Holdings Limited Virgin Virgin Investment 100 Islands Islands British British Biyuan Co., Ltd Virgin Virgin Investment 100 Islands Islands
158 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Shareholding ratio Main Registered Business Name of subsidiary (%) businesses address nature Directly Indirectly Hong Yingze Development Co., Ltd. Hong Kong Investment 100 Kong Hong Leyi Holding Co., Ltd. Hong Kong Investment 100 Kong Hong Yungao Co., Ltd. Hong Kong Investment 100 Kong Hong Jumbo Pacific Holding Limited Hong Kong Investment 100 Kong Hong Union Bloom Limited Hong Kong Investment 51 Kong Hong Vast Joint Limited Hong Kong Investment 51 Kong China Merchants Property Management Hong Property Hong Kong 100 (Hong Kong) Co., Ltd. Kong management Hong Property Koll Merchants Limited Hong Kong 100 Kong management CMK Property Management Company Hong Property Hong Kong 100 Limited Kong management Hong Oasis King Development Limited Hong Kong Investment 100 Kong Hong Union Winner Development Limited Hong Kong Investment 100 Kong Hong Suntec Development Limited Hong Kong Investment 100 Kong Hong Century World Investment Limited Hong Kong Investment 100 Kong Hong Jihong International Co., Ltd. Hong Kong Investment 100 Kong Hong Keen Right International Limited Hong Kong Investment 100 Kong Hong Maosheng Co., Ltd. Hong Kong Investment 100 Kong Hong Yuyue Co., Ltd. Hong Kong Investment 100 Kong Huipeng Real Estate Development Co., Hong Hong Kong Real estate 50 Ltd. Note 1 Kong Hong Sino Action Investments Limited Hong Kong Investment 100 Kong Hong Happy City Investments Limited Hong Kong Investment 100 Kong Hong Huitai Investment Co., Ltd. Hong Kong Investment 100 Kong Hong Billion Turbo Investments Limited Hong Kong Investment 100 Kong Hong Sino Ease Development Limited Hong Kong Investment 100 Kong Hong Cosmos Harvest Development Limited Hong Kong Investment 100 Kong
159 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Shareholding ratio Main Registered Business Name of subsidiary (%) businesses address nature Directly Indirectly Hong Torch Investment Co., Ltd. Hong Kong Investment 70 Kong Hong Mainwise Investments Limited Hong Kong Investment 100 Kong Hong Guanghong Investment Co., Ltd Hong Kong Investment 100 Kong Hong Long Wealth Development Limited Hong Kong Investment 100 Kong Hong Multion Investments Limited Hong Kong Investment 100 Kong Hong Chengfu Holding Co., Ltd. Hong Kong Investment 100 Kong British British Jialian Enterprise Co., Ltd. Virgin Virgin Investment 100 Islands Islands British British Gaowan Investments Limited Virgin Virgin Investment 100 Islands Islands British British Tiansheng investment co., LTD Virgin Virgin Investment 100 Islands Islands China Merchants (Beijing ) Property Beijing Beijing Real estate 90 10 Development Co., Ltd. China Merchants (Beijing ) Property Property Beijing Beijing 80 Management Co., Ltd. management China Merchants Jiaming (Beijing) Beijing Beijing Real estate 50 Property Development Co., Ltd. Note 1 Beijing Kanglade Property Development Beijing Beijing Real estate 60 Co., Ltd. Beijing Merchants Jiaming Property Beijing Beijing Real estate 70 Development Co., Ltd. Tianjin Zhaosheng Real Estate Co., Ltd. Tianjin Tianjin Real estate 60 40 China Merchants (Tianjin) Property Tianjin Tianjin Real estate 75 Development Co., Ltd. Tianjin Gangwei Real Estate Development Tianjin Tianjin Real estate 100 Co., Ltd. Tianjin Kingbay Real Estate Development Tianjin Tianjin Real estate 100 Co., Ltd. Dalian Zhaoyu Property Co., Ltd., Dalian Dalian Real estate 51 Qingdao Zhongrunde Property Co., Ltd. Qingdao Qingdao Real estate 100 Qingdao Merchants Hyde Property Qingdao Qingdao Real estate 100 Development Co., Ltd. China Merchants (Rizhao) Property Rizhao Rizhao Real estate 100 Development Co., Ltd. China Merchants (Yantai) Property Yantai Yantai Real estate 100 Development Co., Ltd. China Merchants (Yantai) Property Co., Yantai Yantai Real estate 100 Ltd.
160 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Shareholding ratio Main Registered Business Name of subsidiary (%) businesses address nature Directly Indirectly Hangzhou Zhujia Real Estate Hangzhou Hangzhou Real estate 50 Development Co., Ltd. Note 1 China Merchants (Hangzhou) Property Hangzhou Hangzhou Real estate 100 Development Co., Ltd. China Merchants (Nanjing ) Property Property Nanjing Nanjing 100 Management Co., Ltd. management China Merchants (Nanjing ) Property Nanjing Nanjing Real estate 49 51 Development Co., Ltd. Nanjing China Merchants Ruisheng Nanjing Nanjing Real estate 100 Property Co., Ltd. China Merchants (Nanjing) Ningsheng Nanjing Nanjing Real estate 51 Property Co., Ltd. China Merchants (Nanjing) Xingsheng Nanjing Nanjing Real estate 51 Property Co., Ltd. Nanjing China Merchants Qisheng Nanjing Nanjing Real estate 51 Property Co., Ltd. Nanjing Zhaopinglisheng Investment Co., Nanjing Nanjing Investment 51 Ltd. China Merchants (Nanjing) Zhaosheng Nanjing Nanjing Real estate 100 Property Development Co., Ltd. China Merchants (Shanghai) Property Co., Shanghai Shanghai Real estate 10 90 Ltd. China Merchants (Shanghai) Property Shanghai Shanghai Property 100 Management Co., Ltd. China Merchants (Shanghai) Minsheng Shanghai Shanghai Real estate 100 Property Co., Ltd. China Merchants (Shanghai) Fengsheng Shanghai Shanghai Real estate 100 Property Co., Ltd. China Merchants (Shanghai) Property Shanghai Shanghai Real estate 10 90 Development Co., Ltd. Shanghai Jingyuan Property Development Shanghai Shanghai Real estate 55 Co., Ltd. Shanghai CM Hongfa Property Co., Ltd. Shanghai Shanghai Real estate 100 China Merchants (Shanghai) Baoxin Shanghai Shanghai Real estate 51 Property Co., Ltd. China Merchants (Suzhou) Property Suzhou Suzhou Real estate 90 10 Development Co., Ltd. Suzhou CM Nanshan Property Co., Ltd. Suzhou Suzhou Real estate 60 China Merchants (Suzhou) Magnificent Suzhou Suzhou Real estate 100 House Development Co., Ltd. Suzhou Shuanghu Real Estate Co., Ltd. Suzhou Suzhou Real estate 50 Note 1 China Merchants (Suzhou) Yishanjun Suzhou Suzhou Real estate 100 Property Development Co., Ltd. China Merchants (Suzhou) Mancheng Suzhou Suzhou Real estate 100 Property Development Co., Ltd. China Merchants (Suzhou) Ruiying Suzhou Suzhou Real estate 51 Property Development Co., Ltd.
161 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Shareholding ratio Main Registered Business Name of subsidiary (%) businesses address nature Directly Indirectly Zhenjiang Nanshan Creative Industrial Zhenjiang Zhenjiang Real estate 60 Park Development Co., Ltd. Zhenjiang Yingsheng Real Estate Zhenjiang Zhenjiang Real estate 1 99 Development Co., Ltd. Zhenjiang Huoju Property Co., Ltd. Zhenjiang Zhenjiang Real estate 100 China Merchants (Changzhou) Property Changzhou Changzhou Real estate 100 Development Co., Ltd. China Merchants (Changshu) Xicheng Changshu Changshu Real estate 60 Real Estate Co., Ltd. China Merchants (Wuhan) Property Wuhan Wuhan Real estate 100 Development Co., Ltd. China Merchants (Wuhan) Property Property Wuhan Wuhan 100 Management Co., Ltd. management Wuhan Xinde Real Estate Development Wuhan Wuhan Real estate 100 Co., Ltd. Wuhan Aoming Property Development Wuhan Wuhan Real estate 100 Co., Ltd. Wuhan Mingjie Real Estate Development Wuhan Wuhan Real estate 100 Co., Ltd. Wuhan Merchants Property Gutian Wuhan Wuhan Real estate 100 Property Co., Ltd Xi’an Maoan Property Development Co., Xi’an Xi’an Real estate 100 Ltd. China Merchants (Chengdu) Beihu Land Chengdu Chengdu Real estate 100 Limited. China Merchants (Chengdu) Property Chengdu Chengdu Real estate 100 Development Co., Ltd. China Merchants (Chengdu) Beicheng Chengdu Chengdu Real estate 100 Property Development Co., Ltd. China Merchants (Chengdu) Longcheng Chengdu Chengdu Real estate 100 Property Development Co., Ltd. China Merchants (Chengdu) Boshi Chengdu Chengdu Real estate 51 Property Development Co., Ltd. China Merchants (Bijie, Guizhou) Bijie Bijie Real estate 100 Property Development Co., Ltd. China Merchants (Bijie, Guizhou) Bijie Bijie Real estate 100 Investment Co., Ltd. China Merchants (Bijie) Property Property Bijie Bijie 100 Management Co., Ltd. management China Merchants (Chongqing) Property Chongqing Chongqing Real estate 90 10 Development Co., Ltd. China Merchants (Chongqing) Huayuancheng Property Development Co., Chongqing Chongqing Real estate 100 Ltd. China Merchants (Chongqing) Land Chongqing Chongqing Real estate 100 Development Limited China Merchants (Chongqing) Pvian Chongqing Chongqing Real estate 100 Property Development Co., Ltd.
162 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Shareholding ratio Main Registered Business Name of subsidiary (%) businesses address nature Directly Indirectly China Merchants (Chongqing) Yizhi Real Chongqing Chongqing Real estate 100 Estate Co., Ltd. China Merchants (Chongqing) Yicheng Chongqing Chongqing Chongqing 100 Property Development Co., Ltd. Fujian Zhongliansheng Real Estate Co., Xiamen Xiamen Real estate 50 Ltd Note 1 China Merchants Property (Xiamen) Co., Xiamen Xiamen Real estate 100 Ltd. China Merchants (Xiamen) Magnificent Xiamen Xiamen Real estate 100 House Property Co., Ltd. Xiamen Zhaogang Property Development Xiamen Xiamen Real estate 60 Co., Ltd. China Merchants (Foshan) Xincheng Foshan Foshan Real estate 60 High-tech Co., Ltd. Foshan Xincheng Real Estate Co., Ltd. Foshan Foshan Real estate 50 Note 1 Foshan Xinjie Property Development Co., Foshan Foshan Real estate 100 Ltd. Foshan Evian Property Co., Ltd. Note 1 Foshan Foshan Real estate 50 China Merchants (Foshan) Jiulongcang Foshan Foshan Real estate 50 Property Development Co., Ltd. Note 1 Foshan Merchants Real Estate Co., Ltd. Note 2 Foshan Foshan Real estate 100 Foshan Shunde Evian Zhenyuan Property Foshan Foshan Real estate 55 Co., Ltd. Foshan Evian Shangyuan Property Foshan Foshan Real estate 100 Development Co., Ltd. Foshan Evian Xiaode Property Foshan Foshan Real estate 100 Development Co., Ltd. Foshan Evian Guanyuan Property Foshan Foshan Real estate 100 Development Co., Ltd. Guangzhou Wanshang Real Estate Co., Guangzhou Guangzhou Real estate 34 Ltd. China Merchants (Guangzhou) Property Guangzhou Guangzhou Real estate 100 Development Co., Ltd. Guangzhou Evian Property Development Guangzhou Guangzhou Real estate 51 Co., Ltd. China Merchants (Zhuhai) Property Zhuhai Zhuhai Real estate 100 Development Co., Ltd. Zhuhai Yuanfeng Real Estate Co., Ltd. Zhuhai Zhuhai Real estate 51 Zhuhai Evian Real Estate Co., Ltd. Zhuhai Zhuhai Real estate 100 China Merchants (Nanning) Haotian Nanning Nanning Real estate 70 Property Development Co., Ltd. China Merchants (Hainan) Yuanyang Qionghai Qionghai Real estate 60 Development Co., Ltd. China Merchants (Sanya) Property Sanya Sanya Real estate 100 Development Co., Ltd.
163 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Shareholding ratio Main Registered Business Name of subsidiary (%) businesses address nature Directly Indirectly China Merchants Property Investment Co., Shenzhen Shenzhen Real estate 100 Ltd. China Merchants (Shenzhen) Xin’an Shenzhen Shenzhen Real estate 60 40 Property Co., Ltd. China Merchants (Shenzhen) Pingshan Shenzhen Shenzhen Real estate 70 Property Development Co., Ltd. Commercial Shenzhen Maillen Hotel Management Co., Property Shenzhen Shenzhen 10 90 Ltd Operation Management China Merchants (Shenzhen) Property Real Estate Shenzhen Shenzhen 20 80 Consultant Co., Ltd. Agent Shenzhen Taige Apartment Management Shenzhen Shenzhen Hotel service 100 Co., Ltd. China Merchants (Shenzhen) Anye Shenzhen Shenzhen Real estate 51 Investment Development Co., Ltd. Shenzhen Merchants Construction Co., Construction Shenzhen Shenzhen 100 Ltd. project Shenzhen China Merchants Business Shenzhen Shenzhen Real estate 51 Development Co., Ltd. Shenzhen Shekou Seaworld Hotel Hotel Shenzhen Shenzhen 51 Management Co., Ltd. management Shenzhen Jinyu Rongtai Investment Shenzhen Shenzhen Real estate 50 Development Co., Ltd. Note 1 China Merchants (Shenzhen) Shekou Shenzhen Shenzhen Real estate 51 Construction Co., Ltd. Ningbo Jiangwan Property Development Ningbo Ningbo Real estate 51 Co., Ltd. Kunming Zhaojin Property Co., Ltd. Kunming Kunming Real estate 100 Kunming Merchants Metropolitan Kunming Kunming Real estate 100 Property Co., Ltd. Shenzhen Xingzhao Property Management Property Shenzhen Shenzhen 100 Co., Ltd. management Commercial CMBC Sci-tech Building Phase II Property Shenzhen Shenzhen 100 Property Management Co., Ltd. Operation Management Commercial Shenzhen Digital Building Property Property Shenzhen Shenzhen 100 Management Company Operation Management Commercial CMBC Sci-tech Building Property Property Shenzhen Shenzhen 100 Management Co., Ltd. Operation Management Commercial Shenzhen Garden City Property Property Shenzhen Shenzhen 100 Management Company Operation Management
164 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Shareholding ratio Main Registered Business Name of subsidiary (%) businesses address nature Directly Indirectly Commercial Shenzhen Shekou New Times Property Property Shenzhen Shenzhen 100 Management Company Operation Management Commercial China Merchants (Shenzhen ) Investment Property Shenzhen Shenzhen 100 Management Co., Ltd. Operation Management Commercial Shenzhen Zhaoyage Property Management Property Shenzhen Shenzhen 100 Company Operation Management Commercial Shenzhen Zhaoshengge Property Property Shenzhen Shenzhen 100 Management Company Operation Management Shenzhen Zhaopingruisheng Investment Shenzhen Shenzhen Investment 51 Holdings Co., Ltd.
Note 1: 50% of the shares of the company are directly or indirectly held by the Company. With the majority voting right in the board of such companies, the Company has control over their financial and operating decisions, therefore, they are covered in consolidation scope of consolidated financial statement.
Note 2: The company changed its name from Foshan Shunde Evian Desheng Property Co., Ltd. to China Merchants (Foshan) Real Estate Co., Ltd. on May 27, 2015.
(2) Important no-wholly owned subsidiaries
Dividend declared to Shareholdi Profit and loss be ng ratio of belonging to distributed Ending balance of Name of subsidiary minority minority to minority minority equity shareholde shareholder of shareholder rs % this period of the current period China Merchants (Guangzhou) Property 25.65 42,834,878.54 228,317,087.06 Development Co., Ltd. Shenzhen Vanke Binhai 50 -173,321,302.91 388,173,071.30 Property Co., Ltd. China Merchants (Chongqing) Yizhi Real 62.83 -2,948,226.01 2,282,696,080.07 Estate Co., Ltd. China Merchants 49 55,855,879.65 405,563,605.88
165 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Dividend declared to Shareholdi Profit and loss be ng ratio of belonging to distributed Ending balance of Name of subsidiary minority minority to minority minority equity shareholde shareholder of shareholder rs % this period of the current period (Zhangzhou) Property Development Co., Ltd. Beijing Guangying Residential Property 66 39,758,160.41 910,983,637.00 Development Limited China Merchants (Chongqing) Land 62.83 -10,177,977.05 2,296,836,525.68 Development Limited Harbin Yinkai Real Estate 15 -9,615,779.07 13,696,019.90 Development Co., Ltd. China Merchants (Shenzhen) Pingshan Property 30 -1,829,449.18 1,147,985.42 Development Co., Ltd. Nanjing China Merchants 13.08 -1,702,629.44 140,942,436.43 Ruisheng Property Co., Ltd. Ningbo Jiangwan Property 49 -3,628,339.21 -53,244,118.16 Development Co., Ltd.
166 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
(3) Main financial information of key non-wholly owned subsidiaries
Balance at the end of the year Name of subsidiary Non-current Current assets Non-current assets Total assets Current liabilities Total liabilities liabilities China Merchants (Guangzhou) 8,607,654,418.59 1,701,237,875.68 10,308,892,294.27 9,076,046,105.52 287,000,000.00 9,363,046,105.52 Property Development Co., Ltd. Shenzhen Vanke Binhai Property Co., 4,865,477,545.84 12,572,385.22 4,878,049,931.06 3,353,734,475.21 749,700,000.00 4,103,434,475.21 Ltd. China Merchants (Chongqing) Yizhi 4,539,239,487.74 11,017,096.65 4,550,256,584.39 916,836,639.99 916,836,639.99 Real Estate Co., Ltd. China Merchants (Zhangzhou) 4,198,916,366.33 319,028,802.54 4,517,945,168.87 3,369,120,758.06 294,710,020.00 3,663,830,778.06 Property Development Co., Ltd. Beijing Guangying Residential 4,361,332,222.21 711,681.12 4,362,043,903.33 4,139,541,722.04 4,139,541,722.04 Property Development Limited China Merchants (Chongqing) Land 3,861,123,715.79 1,999,442.08 3,863,123,157.87 207,195,540.39 207,195,540.39 Development Limited Harbin Yinkai Real Estate 3,584,700,462.88 4,396,541.36 3,589,097,004.24 1,305,918,323.22 2,441,506,503.60 3,747,424,826.82 Development Co., Ltd. China Merchants (Shenzhen) Pingshan 3,441,778,543.33 74,542.63 3,441,853,085.96 3,438,026,467.89 3,438,026,467.89 Property Development Co., Ltd. Nanjing China Merchants Ruisheng 3,378,861,742.21 78,989.59 3,378,940,731.80 257,522,726.00 2,044,000,000.00 2,301,522,726.00 Property Co., Ltd. Ningbo Jiangwan Property 3,085,383,620.06 1,148,045.60 3,086,531,665.66 475,090,340.93 2,690,102,790.34 3,165,193,131.27 Development Co., Ltd.
167 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Continued 1:
Balance at the beginning of the year Name of subsidiary Non-current Non-current Current assets Total assets Current liabilities Total liabilities assets liabilities China Merchants (Guangzhou) 8,011,782,328.32 927,956,228.22 8,939,738,556.54 7,321,137,085.72 895,380,000.00 8,216,517,085.72 Property Development Co., Ltd. Shenzhen Vanke Binhai Property Co., 4,537,073,720.52 187,694.31 4,537,261,414.83 2,945,306,361.43 524,800,000.00 3,470,106,361.43 Ltd. China Merchants (Chongqing) Yizhi 4,410,133,072.95 11,241,338.42 4,421,374,411.37 783,261,707.71 783,261,707.71 Real Estate Co., Ltd. China Merchants (Zhangzhou) 3,759,214,583.30 329,725,990.00 4,088,940,573.30 3,369,398,182.21 4,710,020.00 3,374,108,202.21 Property Development Co., Ltd. Beijing Guangying Residential
Property Development Limited China Merchants (Chongqing) Land 3,876,455,550.43 2,206,756.71 3,878,662,307.14 206,534,169.08 206,534,169.08 Development Limited Harbin Yinkai Real Estate 2,566,332,861.61 1,217,817.84 2,567,550,679.45 2,162,224,835.66 2,162,224,835.66 Development Co., Ltd. China Merchants (Shenzhen) Pingshan 2,439,434,828.29 132,370.60 2,439,567,198.89 2,198,042,846.40 2,198,042,846.40 Property Development Co., Ltd. Nanjing China Merchants Ruisheng 6,529,497,479.94 97,892.23 6,529,595,372.17 3,393,000,974.84 2,046,000,000.00 5,439,000,974.84 Property Co., Ltd. Ningbo Jiangwan Property 2,694,228,762.77 1,303,663.89 2,695,532,426.66 2,630,247,643.10 50,000,000.00 2,680,247,643.10 Development Co., Ltd.
The company obtained the control over Beijing Guangying Residential Property Development Limited, which used to be an associated enterprise, on May 1, 2015.
168 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Continued 2:
Amount incurred in the current period Amount incurred in previous year Total Total Name of subsidiary Operating Cash flows from Operating Cash flows from Net profit consolidated Net profit consolidated incomes operating activities incomes operating activities income income China Merchants (Guangzhou) Property 622,771,768.00 222,718,670.15 222,718,670.15 1,417,967,037.86 302,572,407.00 619,464,939.52 619,464,939.52 -2,719,115,235.11 Development Co., Ltd. Shenzhen Vanke Binhai Property Co., 421,482,640.00 -290,684,512.13 -290,684,512.13 308,450,045.44 2,112,082,217.00 580,426,030.77 580,426,030.77 -7,954,069.88 Ltd. China Merchants (Chongqing) Yizhi -4,692,759.26 -4,692,759.26 11,945,100.85 -1,384,387.01 -1,384,387.01 -6,810,218.15 Real Estate Co., Ltd. China Merchants (Zhangzhou) Property 629,670,452.94 106,924,596.03 106,924,596.03 -95,115,290.05 62,849,138.54 -9,963,099.35 -9,963,099.35 4,416,538.51 Development Co., Ltd. Beijing Guangying Residential Property 724,732,639.00 174,636,530.39 174,636,530.39 510,035,374.97 Development Limited China Merchants (Chongqing) Land 27,279,452.00 -16,200,520.58 -16,200,520.58 -85,945,776.46 360,537,586.00 33,595,119.00 33,595,119.00 -35,355,559.87 Development Limited Harbin Yinkai Real Estate Development -64,105,193.80 -64,105,193.80 114,709,956.16 -1,722,958.64 -1,722,958.64 -50,157,323.39 Co., Ltd. China Merchants (Shenzhen) Pingshan -6,098,163.93 -6,098,163.93 610,974,421.54 -16,566,929.43 -16,566,929.43 208,528,173.44 Property Development Co., Ltd. Nanjing China Merchants Ruisheng -13,015,552.01 -13,015,552.01 -88,483,343.28 -9,448,028.83 -9,448,028.83 -229,273,051.29 Property Co., Ltd.
169 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Amount incurred in the current period Amount incurred in previous year Total Total Name of subsidiary Operating Cash flows from Operating Cash flows from Net profit consolidated Net profit consolidated incomes operating activities incomes operating activities income income Ningbo Jiangwan Property Development 20,968.00 -93,946,249.17 -93,946,249.17 -2,456,836,771.85 Co., Ltd.
170 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
2. Change of owner’s equity proportion in subsidiaries and subsidiaries still under control
(1) Change of owner’s equity proportion in subsidiaries
1) The Company originally held 100% shares of Ningbo Jiangwan Real Estate Development Co., Ltd. In May 2015, the Company signed a capital increase agreement with Shenzhen New Alliance Investment Management Co., Ltd. After the capital increase, the actual investment of the Company is RMB30.6 million, and the Company held 51 % equity of Ningbo Jiangwan Real Estate Development Co., Ltd., and the control right over of the Company remains unchanged.
(2) Impact of the change of owner’s equity proportion in subsidiaries on equity
Ningbo Jiangwan Property Development Item Co., Ltd. Cash Fair value of non-cash assets Total of purchase cost/ disposal consideration Less: Subsidiaries’ share of net assets calculated based on share -49,615,778.95 of equity received / disposed. Shortfalls 49,615,778.95 Including: Adjusted capital surplus 49,615,778.95
3. Equity in joint ventures or associated enterprises
(1) Important joint ventures or associated enterprises
Shareholding ratio Accounting (%) treatment methods of Names of joint ventures Main Registered Business joint or associated enterprises businesses address Nature Directly Indirectly ventures or associated enterprises China Merchants Overseas Real Equity Shenzhen Shenzhen 50 Chinese Town estate method Shanghai New South Real Equity Mountain Real Estate Shanghai Shanghai 20 estate method Development Co., Ltd.
(2) Main financial information on key associates or joint ventures
Item Ending balance/ Amount incurred in the current period
171 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Shanghai New South China Merchants Overseas Mountain Real Estate Chinese Town Development Co., Ltd. Current assets: 601,686,721.00 1,471,596,981.32 Including: cash and cash equivalents 97,303,708.42 48,367,089.18 Non-current assets 330,119,718.38 813,288.86 Total assets 931,806,439.38 1,472,410,270.18 Current liabilities: 676,526,710.84 686,981,880.48 Non-current liabilities 190,000,000.00 Total liabilities 676,526,710.84 876,981,880.48 Net assets 255,279,728.54 595,428,389.70 Including: net assets owned by parent 255,279,728.54 595,428,389.70 company owners Share of net assets as calculated as per 127,639,864.27 119,085,677.94 shareholding proportion Adjusting events 84,455,589.65 Book value of equity investment on 214,609,624.82 119,085,677.94 associated enterprises Fair value of equity investment in associated enterprises under public offering Operating incomes 363,982,035.49 252,426,879.00 Financial expenses -1,764,071.58 -424,726.99 Income taxes 35,093,242.86 9,607,926.77 Net profit 105,279,728.54 28,823,780.33 Including: net profit owned by parent 105,279,728.54 28,823,780.33 company owners Other comprehensive income Total consolidated income 105,279,728.54 28,823,780.33 Share of net profit as calculated as per 52,639,864.27 5,764,756.07 shareholding proportion Other adjustment to profit or loss -16,539,852.23 -250,107.87 Dividend from associates received in 397,719,804.44 the current year
Continued:
Beginning balance / Amount incurred in previous year Shanghai New South Item China Merchants Overseas Mountain Real Estate Chinese Town Development Co., Ltd. Current assets: 1,958,555,507.72 1,387,923,209.05 Including: cash and cash equivalents 355,994,281.28 189,563,283.43 Non-current assets 336,830,699.55 430,046.42 Total assets 2,295,386,207.27 1,388,353,255.47 Current liabilities: 1,344,918,256.65 629,498,106.79 Non-current liabilities 191,000,000.00 Total liabilities 1,344,918,256.65 820,498,106.79
172 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Beginning balance / Amount incurred in previous year Shanghai New South Item China Merchants Overseas Mountain Real Estate Chinese Town Development Co., Ltd. Net assets 950,467,950.62 567,855,148.68 Including: net assets owned by parent 950,467,950.62 567,855,148.68 company owners Share of net assets as calculated as per 475,233,975.31 113,571,029.74 shareholding proportion Adjusting events 100,995,441.89 Book value of equity investment on 576,229,417.22 113,571,029.74 associated enterprises Fair value of equity investment in associated enterprises under public offering Operating incomes 1,263,070,845.58 0.00 Financial expenses -3,929,519.91 97,139.43 Income taxes 122,388,042.71 0.00 Net profit 367,164,128.12 -15,011,315.32 Including: net profit owned by parent 367,164,128.12 -15,011,315.32 company owners Other comprehensive income 0 Total consolidated income 367,164,128.12 -15,011,315.32 Share of net profit as calculated as per -183,582,064.06 -3,002,263.06 shareholding proportion Other adjustment to profit or loss -63,138,644.29 Dividend from associates received in 320,548,073.60 the current year
Adjustment is made because there is a difference between fair value definable net assets and their book value when the joint venture is acquired and such difference is continued to be measured as per their fair value.
(3) Financial information summary on less important joint ventures and associated enterprises
Ending balance/ Amount Beginning balance / Amount Item incurred in the current incurred in previous year period Joint ventures: Total investment book value 112,206,797.33 45,684,398.39 Totals of the following items calculated as per respective shareholding proportion - Net profit -5,511,103.63 -471,819.14 - Other consolidated income - Total consolidated income -5,511,103.63 -471,819.14 Affiliated enterprises:
173 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Ending balance/ Amount Beginning balance / Amount Item incurred in the current incurred in previous year period Total investment book value 1,571,002,261.96 1,222,373,623.06 Totals of the following items calculated as per respective shareholding proportion - Net profit -10,141,027.80 24,785,403.14 - Other consolidated income - Total consolidated income -10,141,027.80 24,785,403.14
(4) No significant restriction of the joint venture or associated enterprise's transferring funds to the Company
(5) Excess deficit in joint ventures or associated enterprises
Accumulated Unconfirmed loss of the Accumulated Names of joint ventures or unconfirmed loss current year (or shared unconfirmed associated enterprises of the previous net profits of the loss at the end year current year) of this year Shenzhen Yihaicheng Property 4,705,243.55 -790,544.00 3,914,699.55 Management Co., Ltd Foshan Merchants Longyuan 10,424,603.22 78,240.80 10,502,844.02 Real Estate Co., Ltd. Huizhou Taitong Real Estate 9,476,869.53 23,059.16 9,499,928.69 Investment Co., Ltd
（6） There is no relevant unconfirmed commitment for joint venture or associated enterprise
（7） Contingent liabilities related to joint venture or associated enterprise
The Company undertakes joint and several guarantees for the amount borrowed by China Merchants Guangming Science Park based on the proportion of shares it holds in China Merchants Guangming Science Park, i.e. providing guarantee for RMB 138,485,515.00 for two years from the expiration of life of loan under the loan contract. The company undertakes joint and several liabilities as per the shareholding ratio on the borrowed capital by China Merchants Industrial Park (Qingdao) Entrepreneurship Co., Ltd., with an actual guaranteed amount of RMB 4,900,000.00 for a period of two years after the expiration of life of loan under the loan contract. This imposed no significant effect on the Group’s financial position for this period and period after the balance sheet date.
IX. Risks related to financial instruments
The Company shall disclose various risks arising from financial instruments like credit risk, liquidity risk and market risk including risk exposure and its reason, risk management objective,
174 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB) policy procedure and risk measurement methods and the changes of such information in the current period, as well as quantitative information of risk exposure at the end of the period and other data facilitating investors’ risk exposure assessments.
The main financial instruments of the Group include borrowing, receivables, payables, trading financial asset and trading financial liability, for the details of such instruments see Note 6 Item Notes to Consolidated Financial Statement. Risks related to these financial instruments, and risk management policies adopted by the Group to lower these risks are described as follows. The Group's management manages and monitors these risk exposures so as to ensure that above risk is controlled in limited scope.
1. Targets and policies of risk management
The objective of risk management of the Group is to properly balance the risk and gains to minimize the adverse impact of risks to the business performance of the Group and maximize the interests of shareholders and other equity investors. Base on this risk management target, the fundamental strategy of the Group's risk management is to identify and analyze various risks in the industry, establish appropriate risk tolerance baseline, manage risks, and to supervise all risks promptly and reliably so as to control risk in limited scope.
(1) Market risk
1) Foreign exchange risk
The foreign exchange risk of the Group is mainly related to US Dollar, and Hong Kong Dollar, and the main businesses of the Group are denominated in RMB, excluding the purchase and sales by the following subsidiaries of the Group which are measured in US Dollar. As of June 30, 2015, the balance of assets and liabilities of the Group, except for those listed in the following table which are denominated in US Dollar and Hong Kong Dollar, are denominated in RMB. The foreign exchange risk arising from such balance of assets and liabilities denominated in US Dollar may have an impact on the business performance of the Group.
Item June 30, 2015 December 31, 2014 Monetary fund - USD 317,238,794.08 241,370,084.59 Monetary fund - HKD 85,221,424.53 56,560,533.59 Accounts receivable - HKD 146,260.00 136,680.00 Prepayment - HKD 99,771.61 Other receivables - USD 50.00 9,331,245.80 Other receivables - HKD 920,344.99 12,486,960.08 Other non-current assets - USD 23,690,488.00 Loans - USD 1,615,450,000.00 1,429,700,000.00
175 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Item June 30, 2015 December 31, 2014 Accounts payable - HKD 330,247.84 250,354.24 Advances received - HKD 40,630.00 Interests payable - USD 1,156,829.20 1,127,750.30 Other payables - USD 126,714,010.42 87,508,735.31 Other payables - HKD 213,398.36 11,483,419.47 Bonds payable - USD 724,398,085.22 493,230,417.48 Other non-current liabilities - USD 10,033,560.00
The Group pays close attention to the impact of exchange rate variation on the Group.
2) Interest rate risk
The Group’s interest rate risk comes from bank loans, bonds payable and other interest-bearing debts. Financial liabilities at floating interest rate make the Group faced with cash flow interest rate risk; and financial liabilities at fixed interest rate make the Group confronted with fair value interest rate risk. The Group determined the relative proportion of fixed and floating interest rate contracts on the basis of prevailing market conditions. As of June 30, 2015, the Group’s interest-bearing debts mainly were floating interest rate loan contract priced in RMB and USD amounting to RMB 23,784,177,000 (as of December 31, 2014: RMB 20,526,894,200), fixed interest rate loan contract priced in RMB and USD amounting to RMB 13,776,299,200 (as of December 31, 2014: RMB 13,996,622,000) and bonds payable priced in USD amounting to RMB 5,428,232,400 (as of December 31, 2014: RMB 3,018,076,900).
The Group’s risk of changes in fair value of financial instruments resulted from changes in interest rate is mainly related to bank loans at fixed interest rate. The Group aims to keep the floating interest rate of fixed interest rate loans.
The Group’s risk of changes in cash flow of financial instruments resulted from changes in interest rate is mainly related to bank loans at floating interest rate. Policy of the Group is to keep the floating interest rate of the loan to eliminate the fair value risk of interest rate change.
3) Price risk
Since the Group markets real estate goods at market prices, it may be affected by such price fluctuations.
(2) Risks of credit
176 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
On June 30, 2015, credit risk exposure which might cause financial loss to the Group is mainly generated by the Group's financial asset loss caused by the other contract party's failure to perform its obligation and financial guarantee provided by the Group, including specifically:
Book value of financial asset confirmed in the consolidated balance sheet; for financial instruments measured with fair value, its book value reflects its risk exposure, but not the maximum risk exposure, which would change in line with the future fair value.
In order to lower credit risk, the Group establishes a department to be in charge of determining credit level, authorizing credit, and taking other necessary monitoring procedures to ensure recovery of stale creditor's right. In addition, the Group reviews the recovery of each account receivable on each balance sheet date so as to ensure sufficient provision for bad debt is accrued to account that cannot be recollected. Therefore, the Group management holds the opinion that credit risk tolerated by the Group has been decreased substantially.
Working fund of the Group is deposits in the bank with high credit level, which means low credit risk for working fund.
Necessary policies are adopted by the Group to ensure the sound credit record of all sales customers. The Group has no major credit concentration risk except for receivables from top five accounts.
Receivables from top five accounts amount to RMB 33,238,970.02.
(3) Liquidity risk
The liquidity risk is that the Group may be unable to fulfill its financial obligations at maturity. The Group manages the liquidity risk by ensuring sufficient liquidity to fulfill its obligations at maturity to avoid unacceptable losses or damages to corporate reputation. The Group periodically analyzes debt structure and maturity to ensure sufficient funds. The Group management monitors the use of bank loan and ensure of compliance of loan agreement. Meanwhile, the Group maintains certain credit line and lowers liquidity risk through financing consultations with financial institutions.
The Group’s main source of funds is bank loans. As of June 30, 2015, the Group’s unused bank loans were RMB 30,786,239,600 (as of December 31, 2014: RMB 26,208,956,400), including used short-term bank loans of RMB 255 million (as of December 31, 2014: 965,000,000).
177 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
The analysis of the Group’s financial assets and liabilities as per the maturity of remaining undiscounted contractual obligations is as follows:
Amount as of June 30, 2015:
Item Within 1 year 1 to 2 years 2 to 5 years More than 5 years Total Financial assets Monetary fund 23,752,513,388.51 23,752,513,388.51 Notes receivable 13,120,000.00 13,120,000.00 Accounts 75,738,101.42 75,738,101.42 receivable Other Receivables 13,094,208,594.56 13,094,208,594.56 Financial liabilities Short-term loans 661,360,000.00 661,360,000.00 Notes payable 135,838,559.70 135,838,559.70 Accounts payable 11,398,328,029.62 11,398,328,029.62 Other payables 12,994,818,432.01 12,994,818,432.01 Dividends payable 118,244,875.70 118,244,875.70 Interests payable 305,950,402.18 305,950,402.18 Payroll payable 228,547,487.17 228,547,487.17 Non-current liabilities due 8,790,998,800.00 8,790,998,800.00 within one year Long-term loans 5,031,246,320.00 19,064,371,104.75 4,012,500,000.00 28,108,117,424.75 Bonds payable 5,428,232,355.96 5,428,232,355.96 Long-term 3,469,117,074.04 105,941,277.07 3,575,058,351.11 payables
2. Sensitivity analysis
The Group analyzed, with sensitivity analysis techniques, the potential impact of possible reasonable changes in risk variables on current profits and losses or owner's equity. Since risk variables rarely change independently and the correlation between variables may significantly affect the amount ultimately impacted by changes in certain risk variable, the following details are based on the assumption that each variable changes independently.
(1) Sensitivity analysis of foreign exchange risk
Assumption: All hedges of net investment in an overseas operation and cash flow hedges are highly effective.
Based on the above assumption and in case that other variables remain unchanged, the after-tax impact of possible reasonable changes in exchange rate on current losses & profits and equity is as follows:
Exchange January - June 2015 January - June 2014 Item rate Influence on net Influence on Influence on net Influence on
178 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
variation profit owners' equity profit owners' equity All RMB foreign depreciation -670,313,027.73 -649,800,599.27 -440,861,709.12 -440,861,709.12 currencies by 5% All RMB foreign appreciation 670,313,027.73 649,800,599.27 440,861,709.12 440,861,709.12 currencies by 5%
(2) Sensitivity analysis of interest rate risk
The analysis is based on following assumptions:
Market interest rate change will influence the interest income or expense of interest rate variable financial instruments;
For fixed-rate financial instruments measured with fair value, changes in market interest rate only affect the interest income or expense of such instruments;
Fair value variation of derivative financial instruments and other financial assets and liabilities is calculated with the market interest rate on the balance sheet date applying the discounted cash flow method.
Based on the above assumption and in case that other variables remain unchanged, the after-tax impact of possible reasonable changes in interest rate on current losses & profits and equity is as follows:
Interest January - June 2015 January - June 2014 Item rate Influence on net Influence on Influence on net Influence on variation profit owners' equity profit owners' equity Loans at Increased floating by 1% -15,720,777.52 -15,720,777.52 -16,102,272.86 -16,102,272.86 interest rate Loans at Decreased floating by 1% 15,720,777.52 15,720,777.52 16,102,272.86 16,102,272.86 interest rate
Note: The influence of changes in the floating interest rate of loans on the net profit in the current period increases 93.06% year on year, mainly as a result of the newly loaned USD 210 million in 2015 by China Merchants Land Limited.
179 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
X. Related parties and related transaction
(I) Relation of affiliated parties
1. Controlling shareholder and ultimate controller
(1) Controlling shareholder and ultimate controller China Merchants Group Co., LTD directly or indirectly holds 100% of the China Merchants Shekou, which holds 1,040,128,975 shares directly and 296,564,159 shares indirectly of the Company, amounting to 1,336,693,134 shares of the Company and accounting for 51.89% of the Company’s total shares. The Percent of percent of stocks of voting Registered Name Business nature Registered capital the share of address Company the (%) Company (%) Establishment China and management Merchants Shenzhen 2,236,000,000.00 40.38 40.38 of various Shekou enterprises, etc. Establishment China and management Merchants Beijing 12,150,000,000.00 40.38 40.38 of various Group Co., Ltd. enterprises, etc.
(2) Registered capital and its changes of controlling shareholder
Increase in Decrease in Controlling Balance at the Balance at the end of current current shareholder beginning of the year the period period period China Merchants 2,236,000,000.00 2,236,000,000.00 Shekou
(3) Shares or equity held by controlling shareholder and relevant changes
Holding shares Shareholding ratio (%) Controlling Ratio at the Balance at the end of Balance at the Ratio at the shareholder beginning of end of the year the year beginning of the year the year China Merchants 1,040,128,975.00 1,040,128,975.00 40.38 40.38 Shekou
180 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
2. Subsidiary
See 1 - Organization of the Group (1) in Note 8 for subsidiaries.
3. Joint ventures and associated enterprises
See 3 - Important associated enterprises or joint ventures (1) in Note 8 for the Company’s major joint ventures or associated enterprises. Details on other joint ventures or associated enterprises with balance from related party transactions with the Company this period or earlier are as follows:
Names of joint ventures or associated enterprises Relationship with the Company Tianjin Xinghai Real Estate Development Co., Ltd. Associates Huizhou Taitong Real Estate Investment Co., Ltd Associates Shanghai New South Mountain Real Estate Development Co., Associates Ltd. Shanghai Ledu Property Co., Ltd. Associates China Merchants Overseas Chinese Town Associates Tianjin Munanqiushi Industrial Co., Ltd. Associates Nanjing Aojian Property Co., Ltd. Associates Nanjing Shizhaoquansheng Property Co., Ltd. Associates Guangzhou Liansen Real Estate Co.,Ltd Associates Guangzhou Lianzhou Real Estate Co.,Ltd Associates Chengdu China MCC5 Wentou Land Ltd Note 1 Associates Shenzhen Dehan Investment Development Co., Ltd. Joint ventures Shanghai FTZ Pushen Property Co., Ltd. Joint ventures Foshan Merchants Longyuan Real Estate Co., Ltd. Joint ventures Ningbo Dingfeng Real Estate Development Co., Ltd. Joint ventures Beijing Yalindong Real Estate Development Co., Ltd. Joint ventures Beijing Yalinxi Real Estate Development Co., Ltd. Joint ventures
Note 1: In July 2015, the company changed its name to Chengdu Merchants Yuankang Real Estate Development Co., Ltd.
4. Other affiliated parties Names of other related parties Relationship with the Company International Merchants Holdings (China) Other enterprises under the control of common Investment Co., Ltd. controlling shareholder and ultimate controller China Merchants (Shenzhen) Tai Shan Bay Other enterprises under the control of common Property Co., Ltd. controlling shareholder and ultimate controller Other enterprises under the control of common China Ocean Shipping Agency Shenzhen controlling shareholder and ultimate controller Shenzhen China Merchants Financial Service Other enterprises under the control of common Co., Ltd. controlling shareholder and ultimate controller China Merchants Zhangzhou Development Zone Other enterprises under the control of common
181 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Names of other related parties Relationship with the Company Co., Ltd. controlling shareholder and ultimate controller ORIENTURE HOLDINGS COMPANY Other enterprises under the control of common LIMITED controlling shareholder and ultimate controller Other enterprises under the control of common China Merchants Group (Hongkong) Co., Ltd. controlling shareholder and ultimate controller Other enterprises under the control of common China Merchants (Shanghai) Investment Co., Ltd. controlling shareholder and ultimate controller Other enterprises under the control of common China Merchants Bank Co., Ltd. controlling shareholder and ultimate controller China Merchants Entrepreneurship (Shenzhen) Other enterprises under the control of common Co., Ltd. controlling shareholder and ultimate controller China Merchants Holdings (International) Other enterprises under the control of common Information Technology Co., Ltd. (CMHIT) controlling shareholder and ultimate controller China Merchants Plaza (Shanghai) Property Co., Other enterprises under the control of common Ltd. controlling shareholder and ultimate controller Shenzhen Shekou Industrial Zone Staff Other enterprises under the control of common Residential Co., Ltd. controlling shareholder and ultimate controller China Merchants Ocean Shipping Agency Other enterprises under the control of common Shenzhen controlling shareholder and ultimate controller China Merchants Group (Shenzhen) Coordination Other enterprises under the control of common Office for Major Projects controlling shareholder and ultimate controller China Merchants Group Industrial Park Other enterprises under the control of common (Qingdao) Development Co., Ltd. controlling shareholder and ultimate controller Other enterprises under the control of common China Merchants Securities Co., Ltd. controlling shareholder and ultimate controller International Merchants Holdings (China) Other enterprises under the control of common Investment Co., Ltd. controlling shareholder and ultimate controller Other enterprises under the control of common Shekou Container Terminals Limited controlling shareholder and ultimate controller Shenzhen Saikaidō Municipal Engineering Co., Other enterprises under the control of common Ltd. controlling shareholder and ultimate controller Other enterprises under the control of common Dafeng International Limited Liability Company controlling shareholder and ultimate controller Ganzhou Yuankang Investment Partnership Other enterprises under the control of common controlling shareholder and ultimate controller China Merchants Kunlun Equity Investment Other enterprises under the control of common Management Co., Ltd. controlling shareholder and ultimate controller The Director, General Manager and Deputy Other affiliated and interested parties General Manager and other key management of the Company
(II) Related transactions
1. Related transaction regarding trade of goods and labor services
(1) Purchasing products/obtaining labor services
Contents of Amount incurred Amount incurred in Related party related in the current the previous period transactions period
182 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Contents of Amount incurred Amount incurred in Related party related in the current the previous period transactions period Land acquisition China Merchants Shekou costs 52,501,653.58 4,852,900,000.00 Interest on China Merchants Bank Co., Ltd. borrowings 116,470,669.98 48,589,662.03 Banking service China Merchants Bank Co., Ltd. charges 2,556,057.02 817,328.44 China Merchants Zhangzhou Development Zone Co., Ltd. Interest payments 13,242,991.62 Shenzhen China Merchants Financial Service Co., Ltd. Funds occupation 7,222,145.00 15,101,556.66 China Merchants Securities Co., Ltd. Brokerage fee 300,000.00 Total 192,293,517.20 4,917,408,547.13
(2) Sales of goods / provision of services
Contents of Amount Amount related incurred in the incurred in the Related party transactions current period previous period China Merchants Bank Co., Ltd. Interest incomes 34,041,776.95 34,075,975.05 Engineering 1,679,482.23 China Merchants Overseas Chinese Town contract China Merchants (Shenzhen) Tai Shan Bay Engineering 458,110.30 193,107.30 Property Co., Ltd. contract Engineering 16,210,200.80 4,298,571.31 China Ocean Shipping Agency Shenzhen contract Other enterprises under the control of Power supply common controlling shareholder and ultimate 4,502,117.70 4,034,473.70 service controller Other enterprises under the control of Property common controlling shareholder and ultimate 6,914,909.97 4,026,757.25 management fee controller Total 51,340,601.25 104,656,064.98
2. Associated rental condition
(1) Rental condition
Rental Confirmed Name of Type of Name of Lessee recognized in rental income Lessor leasing assets this period for last year China Merchants Group Co., Ltd. Plant China Note 1 517,690.00 Office Merchants China Merchants Shekou 7,599,455.19 6,962,228.74 Property building/villa Investment International Merchants Holdings Office 2,384,997.00 2,882,360.5 Co., Ltd. (China) Investment Co., Ltd. building China Merchants Group Office 1,553,070.00
183 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Rental Confirmed Name of Type of Name of Lessee recognized in rental income Lessor leasing assets this period for last year (Hongkong) Co., Ltd. building China Merchants Holdings Plant/office (International) Information 1,062,420.00 building Technology Co., Ltd. (CMHIT) China Merchants Entrepreneurship Office 806,562.00 304,718.65 (Shenzhen) Co., Ltd. building Shenzhen Shekou Industrial Zone Office 525,087.07 708,061.5 Staff Residential Co., Ltd. building China Merchants Ocean Shipping Office 269,388.00 269,769.00 Agency Shenzhen building Shenzhen Saikaidō Municipal Office 225,384.00 Engineering Co., Ltd. building Office Total of other small amounts 1,069,274.00 306,189.00 building
Note: Rentals of China Merchants Group Co., LTD. will be burdened by China Merchants Group (Hongkong) Co., Ltd.
(2) Lease condition
Rental fees Confirmed Type of recognized in rental Name of Lessor Name of Lessee leasing this reporting income for assets period last year China Merchants Property Office 10,654,416.00 10,654,423.00 Investment Co., Ltd. building China Merchants (Shenzhen) Property Plant 2,663,604.00 2,663,605.85 China Merchants Development Co., Ltd. Shekou China Merchants Property Land use 2,598,423.60 3,191,430.10 Investment Co., Ltd. rights China Merchants Land use (Shenzhen) Power Supply 1,183,626.19 1,181,571.66 rights Co., Ltd. Shanghai Fengyang Real Office Estate Development Co., 460,622.40 424,622.40 building Ltd. China Merchants Plaza Shanghai CM Hongfa Office (Shanghai) Property 412,186.20 396,436.20 Property Co., Ltd. building Co., Ltd. Shanghai Jingyuan Office Property Development Co., 299,832.00 285,432.00 building Ltd. China Merchants (Shenzhen) Property Dormitory 2,956,293.50 2,339,280.00 Shenzhen Shekou Management Co., Ltd. Industrial Zone Staff China Merchants Residential Co., Ltd. Land use (Shenzhen) Property 197,890.70 rights Management Co., Ltd.
184 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
3. Status Of Associated Guarantee
Has the Amount of Beginning guarante Name of warrantee Name of guarantee Due date guarantee date e been fulfilled? China Merchants The Company Guangming Science 10,024,665.00 2012-03-30 2019-03-30 No Park China Merchants The Company Guangming Science 94,650,850.00 2012-05-18 2025-05-18 No Park China Merchants The Company Guangming Science 33,810,000.00 2014-06-12 2022-06-12 No Park China Merchants Group Industrial The Company Park (Qingdao) 4,900,000.00 2015-03-31 2024-06-30 No Development Co., Ltd. China Merchants Eureka Investment Group (Hongkong) 122,272,000.00 2013-10-31 2016-10-31 No Company Ltd. Co., Ltd. China Merchants Eureka Investment Group (Hongkong) 305,680,000.00 2013-09-30 2016-09-30 No Company Ltd. Co., Ltd. China Merchants Eureka Investment Group (Hongkong) 611,360,000.00 2013-12-18 2016-12-18 No Company Ltd. Co., Ltd. China Merchants Eureka Investment Group (Hongkong) 611,360,000.00 2014-09-26 2017-06-30 No Company Ltd. Co., Ltd. China Merchants Eureka Investment Group (Hongkong) 611,360,000.00 2014-07-18 2017-07-18 No Company Ltd. Co., Ltd. China Merchants Eureka Investment Group (Hongkong) 305,680,000.00 2013-03-05 2016-03-01 No Company Ltd. Co., Ltd. China Merchants Eureka Investment Group (Hongkong) 611,360,000.00 2013-04-29 2016-04-25 No Company Ltd. Co., Ltd. China Merchants Eureka Investment Group (Hongkong) 305,680,000.00 2014-09-25 2017-10-14 No Company Ltd. Co., Ltd. China Merchants Eureka Investment Group (Hongkong) 1,186,038,400.00 2013-12-23 2016-12-23 No Company Ltd. Co., Ltd. China Merchants Eureka Investment Group (Hongkong) 122,272,000.00 2013-03-26 2015-06-15 No Company Ltd. Co., Ltd. China Merchants Eureka Investment Group (Hongkong) 1,100,448,000.00 2013-04-11 2015-06-15 No Company Ltd. Co., Ltd.
185 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Has the Amount of Beginning guarante Name of warrantee Name of guarantee Due date guarantee date e been fulfilled? China Merchants Eureka Investment Group (Hongkong) 183,408,000.00 2015-01-12 2017-12-30 No Company Ltd. Co., Ltd. China Merchants Eureka Investment Group (Hongkong) 275,112,000.00 2015-06-25 2017-12-29 No Company Ltd. Co., Ltd. China Merchants The Company 2,000,000,000.00 2010-04-20 2019-04-19 No Group Co., Ltd. China Merchants The Company 3,500,000,000.00 2014-09-26 2023-09-26 No Group Co., Ltd. China Merchants The Company 195,000,000.00 2012-12-19 2017-12-19 No Shekou China Merchants The Company 105,000,000.00 2012-12-24 2017-12-24 No Shekou China Merchants The Company 76,500,000.00 2013-01-29 2018-01-29 No Shekou China Merchants The Company 47,000,000.00 2013-07-31 2018-07-31 No Shekou China Merchants The Company 98,000,000.00 2014-06-25 2019-06-25 No Shekou China Merchants The Company 198,000,000.00 2014-06-25 2019-06-25 No Shekou China Merchants The Company 298,000,000.00 2014-03-28 2019-03-28 No Shekou China Merchants The Company 198,000,000.00 2014-12-25 2019-12-25 No Shekou China Merchants The Company 128,700,000.00 2014-12-29 2019-12-29 No Shekou China Merchants The Company 50,000,000.00 2015-01-29 2018-01-29 No Shekou Wuhan Aoming China Merchants Property 10,000,000.00 2013-11-19 2018-11-19 No Shekou Development Co., Ltd. Wuhan Aoming China Merchants Property 12,000,000.00 2013-12-06 2018-11-19 No Shekou Development Co., Ltd. Wuhan Aoming China Merchants Property 20,000,000.00 2014-01-13 2018-11-19 No Shekou Development Co., Ltd. Wuhan Aoming China Merchants Property 26,000,000.00 2014-03-11 2018-11-19 No Shekou Development Co., Ltd. Wuhan Aoming China Merchants Property 19,000,000.00 2014-04-16 2018-11-19 No Shekou Development Co.,
186 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Has the Amount of Beginning guarante Name of warrantee Name of guarantee Due date guarantee date e been fulfilled? Ltd. Wuhan Aoming China Merchants Property 200,000,000.00 2014-08-29 2017-08-28 No Shekou Development Co., Ltd. Shenzhen Merchants China Merchants Construction Co., 50,000,000.00 2014-08-29 2017-08-28 No Shekou Ltd. China Merchants Foshan Merchants 249,000,000.00 2014-07-16 2018-07-08 No Shekou Real Estate Co., Ltd. Beijing Conrad China Merchants Property 105,560,000.00 2012-05-15 2019-05-15 No Shekou Development Co., Ltd. Shenzhen Shekou China Merchants Seaworld Hotel 230,300,000.00 2013-10-22 2020-10-20 No Shekou Management Co., Ltd. Shenzhen Jinyurongtai China Merchants Investment 220,500,000.00 2014-06-27 2021-06-27 No Shekou Development Co., Ltd. Shenzhen Jinyurongtai China Merchants Investment 250,000,000.00 2015-03-18 2018-03-17 No Shekou Development Co., Ltd. China Merchants China Merchants (Shenzhen) Property 500,000,000.00 2015-03-24 2020-03-24 No Shekou Development Co., Ltd.
4. Inter-bank lending of affiliated parties
Borrowing/lending Lending Beginning Due Names of related parties Remarks amount date date Beijing Yalindong Real Current Estate Development Co., Lending 1,203,130,596.01 2015.01 2018.04 account Ltd. Beijing Yalinxi Real Current Estate Development Co., Lending 1,038,744,000.00 2015.01 2018.04 account Ltd. Foshan Merchants Current Longyuan Real Estate Co., Lending 673,692,974.37 2014.12 2016.12 account Ltd. Ningbo Dingfeng Real Current Estate Development Co., Lending 570,330,754.00 2013.09 2017.02 account Ltd.
187 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Shenzhen Dehan Current Investment Development Lending 539,435,885.57 2014.12 2016.12 account Co., Ltd. Chengdu China MCC5 Entrust Lending 451,823,070.64 2015.06 2019.06 Wentou Land Ltd loans Guangzhou Liansen Real Entrust Lending 403,515,141.24 2015.05 2016.11 Estate Co.,Ltd loans Nanjing Current Shizhaoquansheng Lending 371,728,000.00 2014.12 2015.08 account Property Co., Ltd. Guangzhou Lianzhou Real Entrust Lending 342,275,537.06 2015.05 2016.11 Estate Co.,Ltd loans Shanghai FTZ Pushen Current Lending 187,672,166.06 2014.03 2015.12 Property Co., Ltd. account Nanjing Aojian Property Current Lending 186,930,200.00 2014.11 2015.09 Co., Ltd. account China Merchants Overseas Current Lending 40,008,857.00 2015.06 2015.12 Chinese Town account
5. Important related transactions with joint investments
Reviewed and approved on the 18th Interim meeting of the 7th BOD in 2014, China Merchants (Chengdu) Beihu Land Ltd. (―China Merchants Beihu‖), China Merchants (Shenzhen) Property Investment Co., Ltd. and China Merchants Kunlun Capital Co., Ltd. (―China Merchants Kunlun‖), which are subsidiaries of the Company, jointly acquire 100 % shares rights and creditors’ rights of all shareholders of Chengdu China MCC5 Wentou Land Ltd. As of the end of the reporting period, China Merchants Beihu, China Merchants Investment, Ganzhou Yuankang Investment Partnership Co. (hereinafter referred to as "Ganzhou Yuankang", a executive partner of China Merchants Kunlun, in place of China Merchants Kunlun in project acquisitions upon establishment of the Auction Consortium) have paid all considerations for assignment of equities. Among them, Among them, China Merchants Beihu and China Merchants Investment respectively acquired 31% and 20% of the equities and debts of Chengdu China MCC5 Wentou Land Ltd, paying a total of RMB 906 million respectively as per the equity ratio and debt ratio. The Company and China Merchants Kunlun Capital Co., Ltd. are controlled by China Merchants Group and transactions stated above constitute related party transactions. In July 2015, the company changed its name into Chengdu Merchants Yuankang Real Estate Development Co., Ltd. and formulated the new Articles of Association.
（二） Current balance of related parties
1. Receivables
Project Related party Balance at the end of the period Initial amount
188 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
name Provision for Provision for Book balance Book balance bad debts bad debts China Ocean Accounts Shipping Agency receivable 8,210,200.80 Shenzhen China Merchants Accounts (Shanghai) receivable Investment Co., 2,544,000.00 Ltd. Beijing Yalindong Other Real Estate receivables Development Co., 1,203,130,596.00 Ltd. Beijing Yalinxi Other Real Estate receivables Development Co., 1,038,744,000.00 Ltd. Foshan Merchants Other Longyuan Real receivables 673,692,974.37 673,692,974.37 Estate Co., Ltd. Ningbo Dingfeng Other Real Estate receivables Development Co., 570,330,754.00 Ltd. Shenzhen Dehan Other Investment receivables Development Co., 539,435,885.57 105,481,042.96 Ltd. Nanjing Other Shizhaoquansheng receivables 371,728,000.00 Property Co., Ltd. Shanghai FTZ Other Pushen Property receivables 187,672,166.06 26,139,294.31 Co., Ltd. Other Nanjing Aojian receivables Property Co., Ltd. 186,930,200.00 China Merchants Other Overseas Chinese receivables 40,008,857.00 Town Huizhou Taitong Other Real Estate receivables Investment Co., 11,270,000.00 11,270,000.00 11,270,000.00 11,270,000.00 Ltd China Merchants Other Entrepreneurship receivables (Shenzhen) Co., 1,000,000.00 1,000,000.00 Ltd. Long-term Guangzhou accounts Liansen Real 403,515,141.24 receivable Estate Co.,Ltd Long-term Chengdu China accounts MCC5 Wentou 451,823,070.64 receivable Land Ltd
189 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Balance at the end of the period Initial amount Project Related party Provision for Provision for name Book balance Book balance bad debts bad debts Long-term Guangzhou accounts Lianzhou Real 342,275,537.06 receivable Estate Co.,Ltd Total of other small Receivables 671,032.95 519,508.09 amounts
2. Payables
Project Balance at the end Beginning balance Related party name of the period Accounts 2,553,939,868.49 payable China Merchants Shekou 13,845,846.12 Other China Merchants Zhangzhou payables Development Zone Co., Ltd. 505,000,000.00 380,000,000.00 Other Shenzhen China Merchants Financial payables Service Co., Ltd. 331,900,076.09 811,061,941.40 Other Ganzhou Yuankang Investment payables Partnership 213,119,976.72 Other payables Shanghai Ledu Property Co., Ltd. 205,816,823.57 246,012,803.57 Other Dafeng International Limited Liability payables Company 131,874,587.84 209,947,096.50 Other Tianjin Xinghai Real Estate payables Development Co., Ltd. 106,081,398.67 106,081,398.67 Other Shanghai New South Mountain Real payables Estate Development Co., Ltd. 86,128,416.38 44,878,417.38 Other ORIENTURE HOLDINGS COMPANY payables LIMITED 77,887,264.00 Other payables Tianjin Munanqiushi Industrial Co., Ltd. 17,000,000.00 17,000,000.00 Other payables China Merchants Shekou 2,826,864.40 163,260.40 Other International Merchants Holdings payables (China) Investment Co., Ltd. 1,187,360.00 1,431,110.40 Long-term China Merchants Entrepreneurship 1,200,000.00 payables (Shenzhen) Co., Ltd. 1,200,000.00 Other China Merchants Overseas Chinese payables Town 479,722,021.97 Accounts payable Total of other small amounts 2,177,792.80 2,057,796.79
3. Deposits and borrowings of related party
Affiliated parties (items) Ending amount Initial amount Other enterprises under the control of common controlling shareholder and ultimate controller Including: China Merchants Bank Co., Ltd. (deposits) 6,693,993,375.82 6,116,282,679.72
190 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Affiliated parties (items) Ending amount Initial amount China Merchants Bank Co., Ltd. (borrowings) 4,094,153,850.00 3,017,628,563.46 Total 10,788,147,225.82 9,133,911,243.18
XI. Share payment
1． Overview of share payment
Item Condition Total amounts of all equity instruments granted by the
Company in this period Accumulated amounts of all equity instruments granted by 23.2283 million shares the Company Total amounts of all equity instruments executed by the Company in this period Total amounts of all invalid equity instruments of the Company in this period Range of execution price and remained contract term of the Exercise price: RMB 11.24, remaining outstanding stock option issued by the Company at the end contract term: 74 months of the period Range of execution price and remained contract term of other equity instruments of the Company at the end of the period
2． Share-based payment settled by equity
Item Condition Methods for determining fair value of an equity instrument Black-Scholes model was applied to at the grant date estimate the cost of the stock options granted. The Proposal on the Adjustment of Incentive Objects and Number to be Granted as per the First Granting Plan for Stock Options was reviewed and adopted at the 11th Extraordinary Meeting of the Basis for determining the number of vested equity Seventh Board of Directors for 2014 and instruments the 22th Meeting of the Seventh Board of Supervisors, and the Proposal on Review of the Company’s First Granting Plan for Stock Options (Revised Draft) and Its Abstract on the 1st extraordinary shareholders’ meeting for 2014. Reasons for significant variance between the estimations for None this period and last year Payment of the cumulative amount included into capital 25,159,003.22 reserves with equity-settled shares Total expenses of recognized share-based payment settled 16,045,399.89 by equity in this period
191 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
XII. Contingencies
1. Provision of guarantee or existence of liabilities
(1) The Group provides the bank with an amount of RMB 6,611,881,362.00 as commercial housing mortgage loan guarantee (as of December 31, 2014: RMB 5,724,511,479.44). This imposed no significant effect on the Group’s financial position for this period and period after the balance sheet date.
(2) The Company undertakes joint and several guarantees for the amount borrowed by China Merchants Guangming Science Park based on the proportion of shares it holds in China Merchants Guangming Science Park, i.e. providing guarantee for RMB 138,485,515.00 for two years from the expiration of life of loan under the loan contract. The company undertakes joint and several liabilities as per the shareholding ratio on the borrowed capital by China Merchants Industrial Park (Qingdao) Entrepreneurship Co., Ltd., with an actual guaranteed amount of RMB 4,900,000.00 for a period of two years after the expiration of life of loan under the loan contract. This imposed no significant effect on the Group’s financial position for this period and the period after the balance sheet date.
2. Except for the above contingencies, the Group had no other major contingencies as of June 30, 2015.
XIII. Commitments
1. Significant commitment
1） Lease contracts signed and being performed or to be performed and their financial impact
The amounts to be borne during the following periods for the irrevocable operating lease and finance lease signed by the Group as of June 30, 2015 (T) are as follows:
Period Operating leases Year T+1 41,992,714.28 Year T+2 38,223,978.85 Year T+3 35,989,699.40 Period after Year T+3 193,858,133.30 Total 310,064,525.83
2） Other major financial commitments
Amount at the end of the Amount at the beginning of Capital commitment period the period Commitments singed but not
192 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Amount at the end of the Amount at the beginning of Capital commitment period the period confirmed in the financial statement - Commitments for acquisition or construction of long-term assets - Commitments for real estate 18,189,714,794.68 19,015,645,000.79 development projects Total 18,189,714,794.68 19,015,645,000.79
2. Except for the above commitments, the Group had no other major commitments as of June 30, 2015.
XIV. Events after the balance sheet date
Issuance of debt financing instruments no more than RMB 5 billion was reviewed and approved at the 2nd extraordinary shareholders’ meeting for 2014 held on October 24, 2014. On December 15, 2014, the Company received the Notice of Registration Acceptance (Z.S.X.Z. [2014] No. MTN458) issued by National Association of Financial Market Institutional Investors (NAFMII), agreeing to accept the registration of medium-term notes with a registered amount of RMB 5 billion. The registration limit shall be effective within 2 years from the date of issuance of the Notice of Registration Acceptance by NAFMII. On February 4, 2015, the Company successfully issued the Phase I Medium-Term Notes in 2015 and the total RMB issued was RMB 1 billion.
On July 9, 2015, the Company successfully issued the Phase II Medium-Term Notes in 2015 and the results of issuance were as follows:
Elements of issuance Phase II Medium-Term Notes in 2015 by China Merchants Property Name Development Co., Ltd. Abbreviation 15 CMPD MTN002 Code 101573011 Term 3-year Value date July 10, 2015 July 10, 2018, and if that day is a statutory holiday or rest day, interest Repayment date shall be paid on the following working day, but no interest shall be accrued during that period. Planned total issuance RMB 2 billion amount Actual total issuance amount RMB 2 billion Issue price RMB 100/ RMB one hundred in nominal value Coupon Rate 4.12 % (1-year term SHIBOR + 0.7333%) Limited Number of 4 Investment Objects Effective Investment Amount RMB 2.01 billion Bookrunner CITIC Securities Co., Ltd.
193 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Elements of issuance Lead underwriter CITIC Securities Co., Ltd. Joint lead underwriter China Merchants Bank Co., Ltd.
XV. Other Important Events
1. Major asset restructuring and progress
On April 3, 2015, the company announced that the shares of the company(ZSDC, ZSJB) would be suspended starting the day due to the planning for major issues. Then, the company, in accordance with the relevant work progress, announced that China Merchants Group Co., LTD, actual controller of the company, confirmed that it was planning for an integration of the real estate sector of China Merchants Group. At present the proposed plan is that China Merchants Shekou will merge the Company and apply to Shenzhen Stock Exchange for listing.
The relevant parties are actively discussing and demonstrating specific matters in connection with such major assets restructuring and asking for advice from the related departments. The Company will pay full attention to the progress of the matters and perform the information disclosure obligation.
2. The company, upon approval by the third extraordinary general shareholders' meeting 2014, proposed to apply to China Securities Regulatory Commission for the issuance of RMB 8 billion's convertible bonds and other application documents in on December 25, 2014 and obtained the CSRC No.141796 Notice on Acceptance of the Administrative License Application by China Securities Regulatory Commission. Whereas China Merchants Group is discussing and working on the major assets restructuring plan to advance the integration of the Company and China Merchants Shekou. Therefore, the issuance of convertible bonds is non-operable. On June 30，2015，the proposal on application for withdrawal of the documents on applying for the public issuance of convertible bonds in 2014 to China Securities Regulatory Commission was approved. The Company has received the Notice on Review Termination of the Administrative Licensing Application by China Securities Regulatory Commission ([2015] No.131) before the report disclosure date.
3. Segment Information
(1) Basis for determining reportable divisions and accounting policies
194 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
A. Real estate, including companies engaged in real estate development and construction, real estate investment, commercial property operation management, real estate intermediary business and hotel business. See 1 – equity in subsidiaries (1) in Note 8.
B. Utilities, i.e. China Merchants (Shenzhen) Power Supply Co., Ltd.
C. Property management, including China Merchants Property Management Co., Ltd. engaged in property management business. See 1 – equity in subsidiaries (1) in Note 8.
D. Unassigned division, including companies engaged in other business.
195 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
(2) Financial information of reportable divisions in the first half year of 2015
Property Item Unassigned division Utilities Real estate Set-off Total management Operating incomes 564,118,228.95 309,885,381.33 17,239,500,161.22 -139,555,334.04 17,973,948,437.46 Including: external transaction 428,382,533.81 306,065,742.43 733,891,835.82 revenue Transaction income of branch 135,735,695.14 3,819,638.90 -139,555,334.04 company Operating expenses 4,894,957.19 559,016,303.57 244,228,763.34 14,329,434,842.56 -139,555,334.04 14,998,019,532.62 Operating profit (loss) 213,466,255.75 5,341,911.13 65,656,617.99 3,484,846,464.74 -300,267,690.33 3,469,043,559.28 Total assets 45,636,199,379.28 726,600,717.87 3,711,169,576.55 196,264,225,271.48 -77,528,931,218.64 168,809,263,726.54 Total liabilities 28,767,319,034.72 584,392,097.95 2,219,305,186.42 145,829,367,728.48 -55,989,950,307.09 121,410,433,740.48 Supplementary information Depreciation and amortization 148,112.50 1,937,854.93 5,149,318.36 211,041,486.37 218,276,772.16 Capital expenditure 9,448.00 135,777.00 80,207.85 40,361,969.81 40,587,402.66 Non-cash expenses other than
depreciation and amortization
(3) Financial information of reportable divisions in the first half year of 2014
Property Item Unassigned division Utilities Real estate Set-off Total management Operating incomes 463,654,268.64 296,760,432.45 15,317,234,955.90 -30,493,926.00 16,047,155,730.99 Including: external transaction 463,654,268.64 296,760,432.45 15,286,741,029.90 16,047,155,730.99 revenue Transaction income of branch 30,493,926.00 -30,493,926.00 0.00 company Operating expenses 106,570,688.45 458,311,189.19 229,097,640.57 12,081,834,751.24 -30,137,568.00 12,845,676,701.45 Operating profit (loss) -52,231,250.61 5,839,985.54 67,662,791.88 4,160,636,192.77 -837,110,274.53 3,344,797,445.05 Total assets 43,905,929,341.66 580,571,202.06 3,607,468,029.56 167,155,178,749.37 -74,295,144,356.59 140,954,002,966.06 Total liabilities 27,623,392,777.22 462,313,040.21 2,215,336,851.57 123,689,764,944.78 -52,584,922,629.29 101,405,884,984.49
196 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Property Item Unassigned division Utilities Real estate Set-off Total management Supplementary information Depreciation and amortization 343,673.29 2,985,568.72 10,687,114.12 213,448,246.39 227,464,602.52 Capital expenditure 50,282.50 627,231.15 1,693,006.61 29,598,456.23 31,968,976.49 Non-cash expenses other than
depreciation and amortization
197 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
XVI. Notes to Main Items of Financial Statements of Parent Company
1. Other receivables
(1) Classification of other receivables
Balance at the end of the period Provision for bad Book balance Type debts Book value Proportion Proportion Amount Amount (%) (%) Other receivables of individual account with significant amount and accrued for provision of bad account Other receivables of individual account with insignificant amount and accrued for provision of bad account Other accounts receivable withdrawn provision for bad debts based on credit risk feature combination Portfolio 1 24,687,852,992.53 100 24,687,852,992.53 Portfolio 2 Subtotal of portfolio 24,687,852,992.53 100 24,687,852,992.53 Total 24,687,852,992.53 100 24,687,852,992.53
Continued:
Amount at the beginning of the year Provision for bad Book balance Type debts Book value Proportion Proportion Amount Amount (%) (%) Other receivables of individual account with significant amount and accrued for provision for bad debts Other receivables of individual account with insignificant amount and accrued for provision for bad
198 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Amount at the beginning of the year Provision for bad Book balance Type debts Book value Proportion Proportion Amount Amount (%) (%) debts Other accounts receivable withdrawn provision for bad debts based on credit risk feature combination Portfolio 1 29,205,557,475.48 100 29,205,557,475.48 Portfolio 2 Subtotal of portfolio 29,205,557,475.48 100 29,205,557,475.48 Total 29,205,557,475.48 100 29,205,557,475.48
(2) Classification of other receivables by nature
Book balance at the beginning Fund nature Ending book value of the year Current accounts of subsidiaries 23,422,102,258.13 28,684,829,085.12 Current account of associated enterprise 570,350,754.00 135,416,900.00 Earnest money for cooperation 610,000,000.00 378,610,249.09 Cash deposit and pledge 78,610,249.09 514,500.00 Imprest 1,608,659.53 1,299,469.09 Others 5,181,071.78 4,887,272.18 Total 24,687,852,992.53 29,205,557,475.48
(3) Other accounts receivable in top five based on year-end balance collected from arrear party:
Proportion in total Ending ending balance of Balance at the end Company name Fund nature Aging balance of provision of the period other for bad receivables debts (%) Harbin Yinkai Real Current Within one Estate Development accounts of 2,241,506,503.60 9.08 year Co., Ltd. subsidiaries Wuhan Merchants Current Within one Property Gutian accounts of 1,722,916,300.00 6.98 year Property Co., Ltd subsidiaries China Merchants Current Within one (Rizhao) Property accounts of 1,547,589,244.00 6.27 year Development Co., Ltd. subsidiaries Zhenjiang Yingsheng Current Within one Real Estate accounts of 1,485,425,293.00 6.02 year Development Co., Ltd. subsidiaries
199 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Proportion in total Ending ending balance of Balance at the end Company name Fund nature Aging balance of provision of the period other for bad receivables debts (%) China Merchants Current Within one (Shanghai) Baoxin accounts of 1,371,698,550.00 5.56 year Property Co., Ltd. subsidiaries Total 8,369,135,890.60 33.91
2. Long-term equity investments
200 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
(1) Classification of long-term equity investment
Balance at the end of the period Balance at the beginning of the year Item Book balance Impairment Book value Book balance Impairment Book value provision provision Investment in subsidiaries 8,846,180,160.84 8,846,180,160.84 8,764,183,019.62 8,764,183,019.62 Investment into associated 201,045,697.55 201,045,697.55 162,076,268.45 162,076,268.45 enterprises and joint ventures Total 9,047,225,858.39 9,047,225,858.39 8,926,259,288.07 8,926,259,288.07
(2) Investment to subsidiaries
Estimated accrued Balance at the Decrease Depreciation Increase in Balance at the end impairment Invested company beginning of the in current reserves at the end current period of the period provision of current year period of this period period China Merchants (Shenzhen) Property 3,557,229,094.89 3,557,229,094.89 Development Co., Ltd. China Merchants (Shenzhen) Power 119,791,232.79 119,791,232.79 Supply Co., Ltd. China Merchants (Shenzhen) Property 36,460,596.83 36,460,596.83 Co., Ltd. China Merchants (Shenzhen) Xin’an 20,822,211.48 20,822,211.48 Property Co., Ltd. Eureka Investment Company Ltd. 1,301,760,042.44 1,301,760,042.44 China Merchants (Beijing) Property 27,388,566.33 27,388,566.33 Development Co., Ltd. China Merchants Real Estate (Suzhou) 27,180,750.69 27,180,750.69 Co., Ltd. China Merchants (Chongqing) Property 27,000,000.00 27,000,000.00 Development Co., Ltd.
201 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Estimated accrued Balance at the Decrease Depreciation Increase in Balance at the end impairment Invested company beginning of the in current reserves at the end current period of the period provision of current year period of this period period China Merchants (Nanjing ) Property 14,860,839.52 14,860,839.52 Development Co., Ltd. Tianjin Zhaosheng Real Estate Co., Ltd. 18,093,952.22 18,093,952.22 Suzhou CM Nanshan Property Co., Ltd. 120,000,000.00 120,000,000.00 China Merchants (Zhangzhou) Property 229,546,976.11 229,546,976.11 Development Co., Ltd. China Merchants (Chongqing) Huayuancheng Property Development 30,000,000.00 30,000,000.00 Co., Ltd. China Merchants (Chengdu) Beihu Land 50,000,000.00 50,000,000.00 Limited. China Merchants (Chengdu) Property 10,113,863.41 10,113,863.41 Development Co., Ltd. China Merchants Property Development 50,113,863.41 50,113,863.41 (Xiamen) Co., Ltd. Fujian Zhongliansheng Real Estate Co., 25,000,000.00 25,000,000.00 Ltd. China Merchants (Wuhan) Property 30,113,863.41 30,113,863.41 Development Co., Ltd. Zhenjiang Yingsheng Real Estate 7,586,275.00 7,586,275.00 Development Co., Ltd. Qingdao Zhongrunde Auto Trade Co., Ltd. 183,731,836.00 183,731,836.00 China Merchants (Bijie, Guizhou) 30,066,887.30 30,066,887.30 Property Development Co., Ltd. China Merchants Property Investment Co., 1,883,810,191.68 1,883,810,191.68 Ltd. China Merchants (Harbin) Jiatian Property 80,250,000.00 80,250,000.00
202 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Estimated accrued Balance at the Decrease Depreciation Increase in Balance at the end impairment Invested company beginning of the in current reserves at the end current period of the period provision of current year period of this period period Development Co., Ltd. China Merchants (Changzhou) Property 30,000,000.00 30,000,000.00 Development Co., Ltd. China Merchants (Hainan) Yuanyang 240,000,000.00 240,000,000.00 Development Co., Ltd. Zhenjiang Nanshan Creative Industrial 30,000,000.00 30,000,000.00 Park Development Co., Ltd. China Merchants (Shenzhen) Pingshan 14,000,000.00 14,000,000.00 Property Development Co., Ltd. Tianjin Guojun Investment Co., Ltd. 300,550,000.00 300,550,000.00 China Merchants (Nanning) Haotian 14,000,000.00 14,000,000.00 Property Development Co., Ltd. China Merchants (Hangzhou) Property 30,046,976.11 30,046,976.11 Development Co., Ltd. China Merchants (Rizhao) Property 30,000,000.00 30,000,000.00 Development Co., Ltd. China Merchants (Shenzhen) Property 400,000.00 400,000.00 Consultant Co., Ltd. China Merchants (Shanghai) Property 3,000,000.00 3,000,000.00 Development Co., Ltd. China Merchants (Shanghai) Property Co., 3,000,000.00 3,000,000.00 Ltd. China Merchants (Yantai) Property Co., 30,000,000.00 30,000,000.00 Ltd. Shenyang Jindao Huitong Real Estate Co., 128,265,000.00 81,997,141.22 210,262,141.22 Ltd. Ningbo Jiangwan Property Development 30,000,000.00 30,000,000.00
203 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Estimated accrued Balance at the Decrease Depreciation Increase in Balance at the end impairment Invested company beginning of the in current reserves at the end current period of the period provision of current year period of this period period Co., Ltd., Total 8,764,183,019.62 81,997,141.22 8,846,180,160.84
(3) Investment into associated enterprises and joint ventures
Increase or decrease in this period Profit and Profit or loss on Depreciatio cash Balance at investment Other Other Withdrawin Balance at n reserves Invested Negative dividend the beginning Additional s comprehensiv equity g Other the end of the at the end company investmen declared of the year investments confirmed e income chang depreciation s period of this t to be with adjustment e reserves period distribute equity d method I. Joint ventures II. Affiliated - enterprises China Merchants 162,076,268.4 162,613,651.4 Guangming 537,383.00 5 5 Science Park Ningbo Dingfeng 38,899,500.0 -467,453.9 Real Estate 38,432,046.10 0 0 Developme nt Co., Ltd. Total 162,076,268.4 38,899,500.0 69,929.10 201,045,697.5
204 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Increase or decrease in this period Profit and Profit or loss on Depreciatio cash Balance at investment Other Other Withdrawin Balance at n reserves Invested Negative dividend the beginning Additional s comprehensiv equity g Other the end of the at the end company investmen declared of the year investments confirmed e income chang depreciation s period of this t to be with adjustment e reserves period distribute equity d method 5 0 5
205 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
3. Operating incomes and operating costs
Amount incurred in the current Amount incurred in the previous Item period period Income Cost Income Cost Primary 6,240,000.00 1,228,912.37 500,000.00 1,057,252.16 businesses Total 6,240,000.00 1,228,912.37 500,000.00 1,057,252.16
4. Investment income
Item Amount incurred in Amount incurred in the current period the previous period Long-term equity investment income measured by 200,000,000.00 51,508,689.22 cost method Long-term equity investment income measured by 69,929.10 -359,190.18 equity method Gains on consignment loan 18,291,283.84 2,689,938.80 Total 218,361,212.94 53,839,437.84
XVII. Approval of financial statement
The financial statement will be reported by the Board of Directors on August 21, 2015
206 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Additional information on financial statements
1. Incidental profit or loss statement in this period
In accordance with the Explanatory Announcement for Information Disclosure by Issuers of Public Securities No. 1 — Extraordinary Items (2008) of CSRC, the Group’s extraordinary items for the first half year of 2015 are as follows:
Item Amount of current period Amount of the same period of last year Losses and profits on disposal of non-current assets 141,917.96 -160,878.35 Return reduction and exemption of taxes which surpass approval, or without official approval, or occasional taxes Government subsidy recognized in current losses and 6,716,629.90 25,262,476.52 gains Funds occupation fees collected from non-financial enterprises and included in current profit or loss Profit generated when the investment cost for acquisition subsidiary, joint ventures and affiliates is smaller than the deserved fair value of identifiable net asset of the invested company. Losses and gains on exchange of non-monetary assets profit or loss of asset whose investment or management is entrusted to others Accrued provision of impairment of each asset due to force majeure such as natural disasters Losses and gains on debt restructuring transactions Corporate restructuring costs Profit or loss of surplus between fair value and unfair transaction Current net profit or loss from the beginning of the year to consolidation date of subsidiary generated by enterprise consolidation under common control Profits and losses arising from contingencies which are not related to company's normal business Except effective hedging business relating to normal operating business of the company, profit or loss caused by change in the fair value of held-for-trading financial asset and financial liabilities, and investment profit for disposal of trading financial asset, trading financial liabilities and available-for-sales financial assets. Impairment recovery of account receivable receiving individual impairment test Profit or loss acquired by outward entrusted loan 6,562,957.96 profit or loss caused by change in fair value of investment property subsequently measured with fair
207 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Item Amount of current period Amount of the same period of last year value mode. Influence on the current profit or loss by one-off adjustment on the current profit or loss required by tax and accounting laws and regulations. Trustee fee of trusted operation Other non-operating income and expenditure except the 3,147,300.31 -11,330,134.03 foregoing items Other profit or loss items recognized by CSRC Note 1 275,247,008.70 -63,138,644.29 Subtotal 291,815,814.83 -49,367,180.15 Affected amount of income taxes -43,272,269.14 -5,933,621.72 Affected amount of minority interest income (after-tax) -80,626,860.54 -2,141,420.73 Total 167,916,685.15 -57,442,222.60
Note 1: ―Others are modifications of current investment income as per the actual carry-over area for this period of China Merchants OCT Investment Co., Ltd. Since China Merchants OCT Investment Co., Ltd. was changed from a subsidiary to an associated company on April 1, 2013 due to loss of control power, residual equity was re-measured as per fair value. The balance between the fair value and original book value of residual equity was mainly resulted from the appreciation of its inventory. Therefore, the Company modifies the investment income as per the actual carry-over area of China Merchants OCT Investment Co., Ltd. for current period. The second is about the difference from recalculating at fair value of the shares of Beijing Guangying and the modification of the actual carry-over area in the current period for main business costs in the current period of the Beijing Guangying Residential Property Development Limited, a subsidiary of the company. See Seven 1, Corporate merger not under the common control for details.
2. Return on equity and earnings per share
According to the Compilation Rules for Information Disclosure by Companies Offering Securities to the Public No.9 – Calculation and Disclosure of Return on Net Assets (Amended in 2010) issued by CSRC, the weighted profit margin on net assets and basic earnings per share as well as diluted earnings per share of the Group for the first half year of 2015 are as follows: Earnings per share (EPS) Weighted mean Profits during reporting Diluted Rate of return of net assets Basic earnings period earnings per (%) per share share Net profits attributable to the 6.76 0.8329 0.8329 parent company shareholders Net profits attributable to the parent company shareholders 6.23 0.7677 0.7677 after deducting extraordinary profits and losses
208 Notes to Financial Statements of China Merchants Property Development Co., Ltd. From January 1, 2015 to June 30, 2015 (Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Section Nine Contents of Reference Files
(I) Financial statement with signatures and seals of the legal representative, the accounting supervisor and the principal of the accounting firm. (II) All original of company's files and original announcements which have been disclosed in 2015 in the newspapers designated by Securities Regulatory Commission. (III) English version of 2015 Annual Report (IV) Semiannual Reports Released in Other Securities Markets
China Merchants Property Development Co., Ltd. August 25, 2015
209