POLY REAL ESTATE GROUP CO., LTD. AUDITORS’ REPORT PCPAR [2015] NO.720297

POLY REAL ESTATE GROUP CO., LTD. Auditors’ Report (From January 1, 2014 to December 31, 2014)

Table of Content Page 1. AUDITORS’ REPORT 1-2 2. FINANCIAL STATEMENTS BALANCE SHEET AND CONSOLIDATED BALANCE SHEET 1-5 INCOME STATEMENT AND CONSOLIDATED INCOME 6-8 STATEMENT STATEMENT OF CASH FLOWS AND CONSOLIDATED 9-11 STATEMENT OF CASH FLOWS STATEMENT OF CHANGES IN OWNERS’ EQUITY AND 12-21 CONSOLIDATED STATEMENTS OF CHANGES IN OWNERS’ EQUITY NOTES TO THE FINANCIAL STATEMENTS 1-149

AUDITORS’ REPORT

PCPAR [2015] No. 720297

To all shareholders of Poly Real Estate Group Co., Ltd.: We have audited the accompanying financial statements of Poly Real Estate Group Co., Ltd. (hereinafter referred to as “the Company”), which comprise the balance sheet and consolidated balance sheet as at December 31, 2014, the income statement and consolidated income statement, the statement of cash flows and consolidated statement of cash flows and the statement of changes in owners’ equity and consolidated statement of changes in owners’ equity for the year then ended and notes to the financial statements.

Management's Responsibilities for the Financial Statements Management of the Company is responsible for the preparation and fair presentation of these financial statements. This responsibility includes: (1) preparing the financial statements in accordance with the requirements of Accounting Standards for Business Enterprises to achieve a fair presentation; (2) designing, implementing and maintaining internal control that is necessary to ensure that the financial statements are free from material misstatements, whether due to frauds or errors.

Auditor's Responsibilities Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Auditing Standards for Certified Public Accountants in China. Those standards require that we comply with professional and ethical requirements of Chinese certified public accountants, and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatements.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgments, including the assessment of the risks of material misstatements of the financial statements, whether due to fraud or error. In making those risk assessments, we consider the internal control relevant to the preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the management, as well as evaluating the overall presentation of the financial statements.

Auditors’ Report Page 1

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinions In our opinion, the financial statements of the Company are prepared, in all material respects, in accordance with Accounting Standards for Business Enterprises and present fairly the consolidated financial position and the financial position of the Company as at December 31, 2014 and the consolidated operating results and cash flows and the operating results and cash flows for the year then ended.

BDO China Shu Lun Pan Certified Public Accountant of China: Certified Public Accountants LLP

Certified Public Accountant of China:

Shanghai, China March 15, 2015

This auditors’ report and the accompanying notes to the financial statements are English translation of the Chinese auditors’ report. In case of doubt as to the presentation of these documents, the Chinese version shall prevail.

Auditors’ Report Page 2 POLY REAL ESTATE GROUP CO., LTD. BALANCE SHEET Balance as at December 31, 2014 (Amounts are expressed in RMB unless otherwise stated)

Balance as at Balance as at Assets Note 14 December 31, 2014 January 1, 2014 Current assets Cash and cash equivalents 5,820,822,408.89 4,102,069,720.57 Financial assets measured at fair value through current profit and loss Derivative financial assets Notes receivable Accounts receivable 14.1 1,412,382.08 8,363,184.16 Advances to suppliers 3,396,230,366.39 1,828,927,853.35 Interests receivable Dividends receivable 14,397,769.00 526,906,936.33 Other receivables 14.2 70,354,021,264.38 49,448,567,701.54 Inventories 5,589,462,412.76 8,627,585,118.82 Assets classified as those held for sale Non-current assets maturing within one year Other current assets Total current assets 85,176,346,603.50 64,542,420,514.77 Non-current assets: Available-for-sale financial assets 376,802,985.00 520,802,985.00 Held-to-maturity investments Long-term receivables Long-term equity investments 14.3 12,977,388,687.83 9,079,640,383.66 Investment properties 719,713,013.42 658,810,146.58 Fixed assets 99,357,662.12 98,357,675.06 Construction in progress Project materials Disposal of fixed assets Productive biological assets Oil and gas assets Intangible assets 9,362,180.39 6,617,058.33 Development expenses Goodwill Long-term deferred expenses 10,833.32 Deferred income tax assets 79,987,716.53 28,671,331.15 Other non-current assets Total non-current assets 14,262,612,245.29 10,392,910,413.10 Total assets 99,438,958,848.79 74,935,330,927.87 The accompanying notes form an integral part of these financial statements.

Page 1 POLY REAL ESTATE GROUP CO., LTD. BALANCE SHEET (CONTINUED) Balance as at December 31, 2014 (Amounts are expressed in RMB unless otherwise stated)

Balance as at Balance as at Liabilities and owners' equity Note 14 December 31, 2014 January 1, 2014 Current liabilities: Short-term borrowings 1,000,000,000.00 Financial assets measured at fair value through current profit and loss Derivative financial liabilities Notes payable 3,893,254.77 Accounts payable 1,713,149,730.09 624,378,877.75 Advance from customers 5,438,273,601.77 9,416,182,037.19 Employee compensation payable 10,037,248.74 16,799,536.54 Taxes and surcharges payable -581,151,447.46 -497,399,894.63 Interests payable 666,666.67 Dividends payable Other payables 49,927,956,702.93 32,998,572,508.10 Liabilities classified as those held for sale Non-current liabilities maturing within one year 3,464,294,740.00 3,175,594,740.00 Other current liabilities Total current liabilities 60,977,120,497.51 45,734,127,804.95 Non-current liabilities: Long-term borrowings 10,678,122,355.00 6,631,617,095.00 Bonds payable 1,000,000,000.00 Including: preferred shares Perpetual capital securities Long-term payables Long-term employee compensation payable Special payables Estimated liabilities Deferred income Deferred income tax liabilities Other non-current liabilities Total non-current liabilities 11,678,122,355.00 6,631,617,095.00 Total liabilities 72,655,242,852.51 52,365,744,899.95 Owners' equity Share capital 10,729,745,027.00 7,137,994,391.00 Other equity instruments Including: preferred shares Perpetual capital securities Capital reserves 7,405,712,174.72 10,820,301,541.43 Less: treasury stock Other comprehensive income -40,994.46 2,028.00 Special reserves Surplus reserves 1,714,475,367.27 1,100,917,160.02 Undistributed profits 6,933,824,421.75 3,510,370,907.47 Total owners’ equity 26,783,715,996.28 22,569,586,027.92 Total liabilities and owners' equity 99,438,958,848.79 74,935,330,927.87 The accompanying notes are an integral part of the financial statements of the financial statements.

Page 2 POLY REAL ESTATE GROUP CO., LTD. CONSOLIDATED BALANCE SHEETS Balance as at December 31, 2014 (Amounts are expressed in RMB unless otherwise stated)

Balance as at Balance as at Assets Note 5 December 31, 2014 January 1, 2014 Current assets: Cash and cash equivalents 5.1 40,069,512,626.00 33,752,969,830.80 Balances with clearing companies Loans to banks and other financial institutions Financial assets measured at fair value through current profit and loss Derivative financial assets Notes receivable 5.2 3,150,000.00 3,224,500.00 Accounts receivable 5.3 3,349,567,715.28 2,331,813,449.76 Advances to suppliers 5.4 22,565,616,676.99 19,275,863,743.91 Premiums receivable Reinsurance accounts receivable Reinsurance contract reserves receivable Interests receivable Dividends receivable Other receivables 5.5 17,678,063,008.80 7,736,887,404.08 Financial assets purchased under resale agreements Inventories 5.6 267,192,101,934.69 239,907,295,955.86 Assets classified as those held for sale Non-current assets maturing within one year Other current assets Total current assets 350,858,011,961.76 303,008,054,884.41 Non-current assets: Disbursement of advances and loans Available-for-sale financial assets 5.7 399,554,214.53 535,554,214.53 Held-to-maturity investments Long-term receivables Long-term equity investments 5.8 3,545,764,026.72 2,846,528,728.37 Investment properties 5.9 7,038,840,353.40 4,714,890,472.13 Fixed assets 5.10 2,477,630,766.49 1,985,039,517.32 Construction in progress Project materials Disposal of fixed assets Productive biological assets Oil and gas assets Intangible assets 5.11 18,488,958.62 14,535,584.92 Development expenses Goodwill 5.12 10,342,507.30 10,342,507.30 Long-term deferred expenses 5.13 31,407,816.22 27,485,719.48 Deferred income tax assets 5.14 1,385,602,725.31 797,422,692.06 Other non-current assets Total non-current assets 14,907,631,368.59 10,931,799,436.11 Total assets 365,765,643,330.35 313,939,854,320.52 The accompanying notes are an integral part of the financial statements of the financial statements.

Page 3 POLY REAL ESTATE GROUP CO., LTD. CONSOLIDATED BALANCE SHEET (CONTINUED) Balance as at December 31, 2014 (Amounts are expressed in RMB unless otherwise stated) Balance as at Balance as at Liabilities and owners' equity Note 5 December 31, 2014 January 1, 2014 Current liabilities: Short-term borrowings 5.15 3,257,400,000.00 1,370,000,000.00 Borrowings from central bank Absorption of deposits and interbank deposit Loans from banks and other financial institutions Financial assets measured at fair value through current profit and loss Derivative financial liabilities Notes payable 5.16 25,720,679.77 Accounts payable 5.17 22,579,456,096.69 18,670,703,415.17 Advances from customers 5.18 113,301,490,370.56 107,167,841,700.08 Financial assets sold under repurchase agreements Handling charges and commissions payable Employee compensation payable 5.19 96,397,774.43 124,633,442.34 Taxes and surcharges payable 5.20 -7,422,362,073.58 -6,218,525,196.99 Interests payable 5.21 119,463,155.59 55,170,317.97 Dividends payable 5.22 228,905,375.03 4,812,626.00 Other payables 5.23 29,715,269,658.05 25,835,195,792.55 Reinsurance accounts payable Reserves for insurance contracts Receiving from vicariously traded securities Receiving from vicariously sold securities Liabilities classified as those held for sale Non-current liabilities maturing within one year 5.24 25,411,752,181.00 19,624,724,743.00 Other current liabilities Total current liabilities 187,313,493,217.54 166,634,556,840.12 Non-current liabilities: Long-term borrowings 5.25 90,494,984,084.52 75,101,300,578.37 Bonds payable 5.26 7,030,420,966.22 2,989,548,695.82 Including: preferred shares Perpetual capital securities Long-term payables Long-term employee compensation payable Special payables Estimated liabilities Deferred income Deferred income tax liabilities 5.14 54,460,117.54 61,272,278.97 Other non-current liabilities Total non-current liabilities 97,579,865,168.28 78,152,121,553.16 Total liabilities 284,893,358,385.82 244,786,678,393.28 Owners' equity Share capital 5.27 10,729,745,027.00 7,137,994,391.00 Other equity instruments Including: preferred shares Perpetual capital securities Capital reserves 5.28 6,916,930,399.42 10,963,714,559.11 Less: treasury stock Other comprehensive income 5.29 -40,994.46 2,028.00 Special reserves Surplus reserves 5.30 1,714,475,367.27 1,100,917,160.02 General risk reserves Undistributed profits 5.31 42,048,427,771.05 32,560,241,225.29

Page 4 Balance as at Balance as at Liabilities and owners' equity Note 5 December 31, 2014 January 1, 2014 Total equity attributable to owners of the parent company 61,409,537,570.28 51,762,869,363.42 Minority equity 19,462,747,374.25 17,390,306,563.82 Total owners’ equity 80,872,284,944.53 69,153,175,927.24 Total liabilities and owners' equity 365,765,643,330.35 313,939,854,320.52 The accompanying notes form an integral part of these financial statements.

Page 5 POLY REAL ESTATE GROUP CO., LTD. INCOME STATEMENT Year of 2014 (Amounts are expressed in RMB unless otherwise stated) Item Note14 Year 2014 Year 2013 I. Operating income 14.4 8,220,568,785.66 9,151,433,041.21 Less: operating costs 14.4 4,973,428,559.06 5,680,516,660.96 Business taxes and surcharges 1,248,315,068.91 1,213,832,172.19 Selling and distribution expenses 164,850,726.79 180,207,718.71 General and administrative expenses 165,667,959.15 225,915,583.07 Financial expenses -37,641,261.38 -92,434,040.35 Losses from asset impairment -1,104,709.20 -5,084,885.18 Plus: gains from changes in fair value ("-" for losses) Investment income ("-" for losses) 14.5 4,970,445,419.75 1,477,449,917.99 Including: income from investment in associates and joint ventures 145,941,391.63 110,086,933.20 2. Operating profits ("-" for losses) 6,677,497,862.08 3,425,929,749.80 Plus: non-operating income 16,652,268.86 15,191,002.25 Including: gains from disposal of non-current assets 147,902.92 Less: non-operating expenses 4,035,593.20 22,265,987.39 Including: losses from disposal of non-current assets 310.80 19,424.52 3. Total profits ("-" For Total Losses) 6,690,114,537.74 3,418,854,764.66 Less: income tax expenses 554,532,465.26 526,700,936.95 4. Net profit ("-" for net loss) 6,135,582,072.48 2,892,153,827.71 5.Other Comprehensive Income, Net Of Tax -43,022.46 (1) Other comprehensive income that will not be reclassified to profits or losses a. Changes in net liability or net asset arising from the re-measurement of defined benefit plan b. Share in the investees' other comprehensive income that cannot be reclassified into profits or losses under equity method (2) Other comprehensive income that will be reclassified into profits and losses -43,022.46 a. Share in the investees' other comprehensive income that will be reclassified into profits or losses under equity method -43,022.46 b. Profits or losses from change in fair values of available-for-sale financial assets c. Profits or losses from reclassification of held-to-maturity investments as available-for-sale financial assets d. Effective profits or losses from hedging of cash flows e. Differences arising from translation of foreign-currency financial statements 6. Others 6.Total comprehensive income 6,135,539,050.02 2,892,153,827.71 7. Earnings per share a. Basic earnings per share (yuan / share) b. Diluted earnings per share (yuan / share)

The accompanying notes form an integral part of these financial statements.

Page 6 POLY REAL ESTATE GROUP CO., LTD. CONSOLIDATED INCOME STATEMENT Year of 2014 (Amounts are expressed in RMB unless otherwise stated) Item Note 5 Year 2014 Year 2013 I. Total operating income 5.32 109,056,497,066.48 92,355,524,195.85 Including: operating income 5.32 109,056,497,066.48 92,355,524,195.85 Interests income Earned premiums Income from handling charges and commissions 2. Total operating costs 5.32 91,228,756,524.61 76,983,752,453.96 Including: operating costs 5.32 74,122,573,304.93 62,655,215,219.51 Interest expenses Handling charges and commissions expenses Surrender value Net amount of compensation payout Net amount withdrawn for insurance contracts reserves Policy dividend payment Reinsurance costs Business taxes and surcharges 5.33 11,147,738,612.05 9,522,127,698.60 Selling and distribution expenses 5.34 2,401,924,852.47 2,185,176,436.97 General and administrative expenses 5.35 1,722,757,392.85 1,575,818,588.79 Financial expenses 5.36 1,271,224,134.26 985,531,951.77 Losses from asset impairment 5.37 562,538,228.05 59,882,558.32 Plus: gains from changes in fair value ("-" for losses) Investment income ("-" for losses) 5.38 1,152,793,610.86 635,052,586.69 Including: income from investment in associates and joint ventures 690,059,062.14 631,751,353.83 Foreign exchange gains ("-" for losses) 3. Operating profits ("-" for losses) 18,980,534,152.73 16,006,824,328.58 Plus: non-operating income 5.39 166,683,258.52 182,283,960.89 Including: gains from disposal of non-current assets 391,989.16 605,003.65 Less: non-operating expenses 5.40 115,394,340.49 87,411,760.92 Including: losses from disposal of non-current assets 1,192,174.26 158,318.88 4.Total profit ("-"for total losses) 19,031,823,070.76 16,101,696,528.55 Less: income tax expenses 5.41 4,800,461,725.57 4,237,234,223.24 5. Net profit ("-" for net losses) 14,231,361,345.19 11,864,462,305.31 Net profit attributable to owners of the parent company 12,200,315,103.96 10,747,161,554.27 Minority interest income 2,031,046,241.23 1,117,300,751.04 6. Other comprehensive income, net of tax -43,022.46 -1,449,354.82 Other comprehensive income attributable to owners of the parent company, net of tax -43,022.46 -1,449,354.82 (1) Other comprehensive income that will not be reclassified to profits or losses a. Changes in net liability or net asset arising from the re-measurement of defined benefit plan b. Share in the investees' other comprehensive income that cannot be reclassified into profits or losses under equity method (2) Other comprehensive income that will be reclassified into profits and losses -43,022.46 -1,449,354.82 a. Share in the investees' other comprehensive income that will be reclassified into profits or losses under equity method -43,022.46 b. Profits or losses from change in fair values of available-for-sale financial assets c. Profits or losses from reclassification of held-to-maturity investments as available-for-sale financial assets d. Effective profits or losses from hedging of cash flows

Page 7 Item Note 5 Year 2014 Year 2013 e. Differences arising from translation of foreign-currency financial statements -1,449,354.82 f. Others Other comprehensive income attributable to minority shareholders, net of tax 7. Total comprehensive income 14,231,318,322.73 11,863,012,950.49 Total comprehensive income attributable to owners of the parent company 12,200,272,081.50 10,745,712,199.45 Total comprehensive income attributable to minority shareholders 2,031,046,241.23 1,117,300,751.04 8. Earnings per share a. Basic earnings per share (yuan / share) 1.14 1.00 b. Diluted earnings per share (yuan / share) 1.14 1.00 The accompanying notes form an integral part of these financial statements.

Page 8 POLY REAL ESTATE GROUP CO., LTD. STATEMENT OF CASH FLOWS Year of 2014 (Amounts are expressed in RMB unless otherwise stated) Item Note14 Year 2014 Year 2013 1. Cash flows from operating activities Cash received from sale of goods and rendering of services 4,186,368,030.93 9,254,132,491.42 Refunds of taxes and surcharges Cash received from other operating activities 103,265,536,293.62 115,648,415,165.64 Sub-total of cash inflows from operating activities 107,451,904,324.55 124,902,547,657.06 Cash paid for goods purchased and services received 2,031,720,345.81 1,859,818,411.41 Cash paid to and on behalf of employees 64,621,806.88 77,287,875.86 Cash paid for taxes and surcharges 1,314,547,366.65 1,173,878,441.63 Cash paid for other operating activities 107,684,918,498.17 116,929,344,156.62 Sub-total of cash outflows from operating activities 111,095,808,017.51 120,040,328,885.52 Net cash flows from operating activities -3,643,903,692.96 4,862,218,771.54 2. Cash flows from investing activities Cash received from disposal of investments 787,170,800.00 120,000,000.00 Cash received from returns on investments 5,415,393,995.45 878,716,332.86 Net cash received from disposal of fixed assets, intangible assets and other long-term assets 181,220.00 15,682.00 Net cash received from disposal of subsidiaries and other business units Cash received from other investing activities Sub-total of cash inflows from investing activities 6,202,746,015.45 998,732,014.86 Cash paid to acquire and construct fixed assets, intangible assets and other long-term assets 5,091,345.01 5,078,725.57 Cash paid for investments 4,475,020,735.00 3,022,734,750.00 Net cash paid to acquire subsidiaries and other business units Cash paid for other investing activities Sub-total of cash outflows from investing activities 4,480,112,080.01 3,027,813,475.57 Net cash flows from investing activities 1,722,633,935.44 -2,029,081,460.71 3. Cash flows from financing activities Cash received from investors 115,337,187.36 Cash received from borrowings 11,000,000,000.00 3,910,000,000.00 Cash received from bonds issue 1,000,000,000.00 Cash received from other financing activities Sub-total of cash inflows from financing activities 12,115,337,187.36 3,910,000,000.00 Cash paid for debts repayments 5,164,794,740.00 7,343,094,740.00 Cash paid for distribution of dividends and profits or payment of interest 3,295,454,693.55 2,985,693,862.03 Cash paid for other financing activities 14,617,807.97 21,895,507.75 Sub-total of cash outflows from financing activities 8,474,867,241.52 10,350,684,109.78 Net cash flows from financing activities 3,640,469,945.84 -6,440,684,109.78 4. Effect of fluctuation in exchange rate on cash and cash equivalents 5. Net increase in cash and cash equivalents 1,719,200,188.32 -3,607,546,798.95 Plus: balance of cash and cash equivalents at the beginning of the period 3,489,569,720.57 7,097,116,519.52 6. Cash and cash equivalents at the end of the period 5,208,769,908.89 3,489,569,720.57 The accompanying notes form an integral part of these financial statements.

Page 9 POLY REAL ESTATE GROUP CO., LTD. CONSOLIDATED STATEMENT OF CASH FLOWS Year of 2014 (Amounts are expressed in RMB unless otherwise stated) Item Note 5 Year 2014 Year 2013 1. Cash flows from operating activities Cash received from sale of goods and rendering of services 111,842,833,751.60 108,813,710,317.04 Net increase in deposits from customer and other banks Net increase in borrowings from central bank Net increase in loans from other financial institutions Cash received from receiving insurance premiums of original insurance contracts Net cash received from reinsurance business Net increase in deposits and investments from policyholders Net increase in financial assets measured at fair value through current profit and loss Cash received from interests, handling charges and commissions Net increase in loans from banks and other financial institutions Net capital increase in repurchase business Refunds of taxes and surcharges Cash received from other operating activities 5.42 10,607,179,267.83 15,461,547,458.14 Sub-total of cash inflows from operating activities 122,450,013,019.43 124,275,257,775.18 Cash paid for goods purchased and services received 90,456,104,177.13 98,055,416,580.85 Net increase in loans and advances from customers Net increase in deposits in central bank and other banks Cash payments for claims of original insurance contracts Cash payments for interests, fees and commissions Cash payments for policy dividend Cash paid to and on behalf of employees 2,521,807,284.00 1,995,195,904.90 Cash paid for taxes and surcharges 17,895,847,188.25 17,598,785,316.49 Cash paid for other operating activities 5.42 22,034,620,935.05 16,379,966,750.93 Sub-total of cash outflows from operating activities 132,908,379,584.43 134,029,364,553.17 Net cash flows from operating activities -10,458,366,565.00 -9,754,106,777.99 2. Cash flows from investing activities Cash received from disposal of investments 444,000,000.00 120,000,000.00 Cash received from returns on investments 474,373,670.89 87,301,232.86 Net cash received from disposal of fixed assets, intangible assets and other long-term assets 2,300,326.64 522,010.08 Net cash received from disposal of subsidiaries and other business units Cash received from other investing activities Sub-total of cash inflows from investing activities 920,673,997.53 207,823,242.94 Cash paid to acquire and construct fixed assets, intangible assets and other long-term assets 80,502,350.24 101,873,897.47 Cash paid for investments 3,617,725,735.00 1,629,000,000.00 Net increase in pledge loans Net cash paid to acquire subsidiaries and other business units 356,984,066.75 702,799,424.43 Cash paid for other investing activities 5.42 34,275,528.22 Sub-total of cash outflows from investing activities 4,089,487,680.21 2,433,673,321.90 Net cash flows from investing activities -3,168,813,682.68 -2,225,850,078.96 3. Cash flows from financing activities Cash received from investors 3,955,658,354.36 4,512,020,052.00 Including: cash received by subsidiaries from investments by minority shareholders 3,840,321,167.00 4,512,020,052.00 Cash received from borrowings 63,576,658,092.90 60,680,580,000.00 Cash received from bonds issue 4,042,069,916.00 3,013,185,429.55

Page 10 Item Note 5 Year 2014 Year 2013 Cash received from other financing activities Sub-total of cash inflows from financing activities 71,574,386,363.26 68,205,785,481.55 Cash paid for debts repayments 40,018,547,148.75 46,713,665,086.15 Cash paid for distribution of dividends and profits or payment of interest 11,521,329,868.41 8,841,862,603.64 Including: dividends and profits paid to minority shareholders by subsidiaries 1,090,780,954.56 402,598,716.48 Cash paid for other financing activities 5.42 143,399,173.88 144,311,752.51 Sub-total of cash outflows from financing activities 51,683,276,191.04 55,699,839,442.30 Net cash flows from financing activities 19,891,110,172.22 12,505,946,039.25 4. Effect of fluctuation in exchange rate on cash and cash equivalents -24,234,575.11 6,149,987.12 5. Net increase in cash and cash equivalents 6,239,695,349.43 532,139,169.42 Plus: balance of cash and cash equivalents at the beginning of the period 33,112,173,949.23 32,580,034,779.81 6. Cash and cash equivalents at the end of the period 39,351,869,298.66 33,112,173,949.23 The accompanying notes form an integral part of these financial statements.

Page 11

POLY REAL ESTATE GROUP CO., LTD. STATEMENT OF CHANGES IN OWNERS’ EQUITY Year of 2014 Amounts are expressed in RMB unless otherwise stated Year 2014 Other equity instruments Less: Other Item Perpetual Special Undistributed Total owners’ Share capital Preferred Capital reserves treasury comprehensive Surplus reserves capital Others reserve profits equity shares stock income securities 1. Balance as at December 31 of last year 7,137,994,391.00 10,820,301,541.43 2,028.00 1,100,917,160.02 3,510,370,907.47 22,569,586,027.92 Plus: adjustments for changes in accounting policies Adjustments for correction of accounting errors in prior year Others 2. Balance as at January 1 of the current year 7,137,994,391.00 10,820,301,541.43 2,028.00 1,100,917,160.02 3,510,370,907.47 22,569,586,027.92 3. Increases/decreases in the current year (“-” for decreases) 3,591,750,636.00 -3,414,589,366.71 -43,022.46 613,558,207.25 3,423,453,514.28 4,214,129,968.36 (1) Total comprehensive income -43,022.46 6,135,582,072.48 6,135,539,050.02 (2) Capital contributed or reduced by owners 22,753,440.00 154,407,829.29 177,161,269.29 a. Common stock contributed by shareholders 22,753,440.00 92,583,747.36 115,337,187.36 b. Capital contributed by holders of other equity instruments c. Amounts of share-based payments recognized in owners’ equity 61,824,081.93 61,824,081.93 d. Others (3) Profit distribution 613,558,207.25 -2,712,128,558.20 -2,098,570,350.95 a. Withdrawal of surplus reserves 613,558,207.25 -613,558,207.25 b. Profit distributed to owners (or shareholders) -2,098,570,350.95 -2,098,570,350.95

Page 12 Year 2014 Other equity instruments Less: Other Item Perpetual Special Undistributed Total owners’ Share capital Preferred Capital reserves treasury comprehensive Surplus reserves capital Others reserve profits equity shares stock income securities c. Others (4)Internal carry-forward of owners' equity 3,568,997,196.00 -3,568,997,196.00 a. Conversion of capital reserves into paid-in capital (or share capital) 3,568,997,196.00 -3,568,997,196.00 b. Conversion of surplus reserves into paid-in capital (or share capital) c. Surplus reserves offsetting losses 4. Others (5)Special reserves 1. Amount withdrawn in the current year 2. Amount used in the current year (6) Others 4. Balance as at December 31 of the current year 10,729,745,027.00 7,405,712,174.72 -40,994.46 1,714,475,367.27 6,933,824,421.75 26,783,715,996.28 The accompanying notes form an integral part of these financial statements.

Page 13 POLY REAL ESTATE GROUP CO., LTD. STATEMENT OF CHANGES IN OWNERS’ EQUITY (CONTINUED) Year of 2014 (Amounts are expressed in RMB unless otherwise stated) Year 2013 Other equity instruments Less: Other Item Perpetual Special Undistributed Total owners’ Share capital Preferred Capital reserves Treasury comprehensive Surplus reserves capital Others reserves profits equity shares stock income securities 1. Balance as at December 31 of last year 7,137,994,391.00 10,718,419,908.27 2,028.00 811,701,777.25 2,563,447,161.24 21,231,565,265.76 Plus: adjustments for changes in accounting policies Adjustments for correction of accounting errors in prior year Others 2. Balance as at January 1 of the current year 7,137,994,391.00 10,718,419,908.27 2,028.00 811,701,777.25 2,563,447,161.24 21,231,565,265.76 3. Increases/decreases in the current year (“-” for decreases) 101,881,633.16 289,215,382.77 946,923,746.23 1,338,020,762.16 (1) Total comprehensive income 2,892,153,827.71 2,892,153,827.71 (2) Capital contributed or reduced by owners 101,881,633.16 101,881,633.16 a. Common stock contributed by shareholders b. Capital contributed by holders of other equity instruments c. Amounts of share-based payments recognized in owners’ equity 101,881,633.16 101,881,633.16 4. Others (3) Profit distribution 289,215,382.77 -1,945,230,081.48 -1,656,014,698.71 a. Withdrawal of surplus reserves 289,215,382.77 -289,215,382.77 b. Profit distributed to owners (or shareholders) -1,656,014,698.71 -1,656,014,698.71 c. Others

Page 14 Year 2013 Other equity instruments Less: Other Item Perpetual Special Undistributed Total owners’ Share capital Preferred Capital reserves Treasury comprehensive Surplus reserves capital Others reserves profits equity shares stock income securities (4) Internal carry-forward of owners' equity a. Conversion of capital reserves into paid-in capital (or share capital) b. Conversion of surplus reserves into paid-in capital (or share capital) c. Surplus reserves offsetting losses d. Others (5) Special reserves 1. Amount withdrawn in the current year 2. Amount used in the current year (6) Others 4. Balance as at December 31 of the current year 7,137,994,391.00 10,820,301,541.43 2,028.00 1,100,917,160.02 3,510,370,907.47 22,569,586,027.92 The accompanying notes form an integral part of these financial statements.

Page 15 POLY REAL ESTATE GROUP CO., LTD. CONSODIDATED STATEMENT OF CHANGES IN OWNERS’ EQUITY Year of 2014 Amounts are expressed in RMB unless otherwise stated Year 2014 Equity attributable to owners of the parent company Other equity instruments Item Less: Other General Perpetual Special Minority equity Total owners’ equity Share capital Preferred Capital reserves Treasury comprehensive Surplus reserves risk Undistributed profits capital Others reserves shares stock income reserves securities 1. Balance as at December 31 of last year 7,137,994,391.00 10,963,714,559.11 2,028.00 1,100,917,160.02 32,560,241,225.29 17,390,306,563.82 69,153,175,927.24 Plus: adjustments for changes in accounting policies Adjustments for correction of accounting errors in prior year Business combination under common control Others 2. Balance as at January 1 of the current year 7,137,994,391.00 10,963,714,559.11 2,028.00 1,100,917,160.02 32,560,241,225.29 17,390,306,563.82 69,153,175,927.24 3. Increases/decreases in the current year (“-” for decreases) 3,591,750,636.00 -4,046,784,159.69 -43,022.46 613,558,207.25 9,488,186,545.76 2,072,440,810.43 11,719,109,017.29 (1) Total comprehensive income -43,022.46 12,200,315,103.96 2,031,046,241.23 14,231,318,322.73 (2) Capital contributed or reduced by owners 22,753,440.00 -477,786,963.69 1,356,268,272.79 901,234,749.10 a. Common stock contributed by shareholders 22,753,440.00 92,583,747.36 1,356,268,272.79 1,471,605,460.15

Page 16 Year 2014 Equity attributable to owners of the parent company Other equity instruments Item Less: Other General Perpetual Special Minority equity Total owners’ equity Share capital Preferred Capital reserves Treasury comprehensive Surplus reserves risk Undistributed profits capital Others reserves shares stock income reserves securities b. Capital contributed by holders of other equity instruments c. Amounts of share-based payments recognized in owners’ equity 61,824,081.93 61,824,081.93 d. Others -632,194,792.98 -632,194,792.98 (3) Profit distribution 613,558,207.25 -2,712,128,558.20 -1,314,873,703.59 -3,413,444,054.54 a. Withdrawal of surplus reserves 613,558,207.25 -613,558,207.25 b. Withdrawal of general risk reserve c. Profit distributed to owners (or shareholders) -2,098,570,350.95 -1,314,873,703.59 -3,413,444,054.54 d. Others (4) Internal carry-forward of owners' equity 3,568,997,196.00 -3,568,997,196.00 a. Conversion of capital reserves into paid-in capital (or share capital) 3,568,997,196.00 -3,568,997,196.00 b. Conversion of surplus reserves into paid-in capital (or share capital) c. Surplus reserves offsetting losses d. Others (5) Special reserves

Page 17 Year 2014 Equity attributable to owners of the parent company Other equity instruments Item Less: Other General Perpetual Special Minority equity Total owners’ equity Share capital Preferred Capital reserves Treasury comprehensive Surplus reserves risk Undistributed profits capital Others reserves shares stock income reserves securities a. Amount withdrawn in the current year b. Amount used in the current year (6) Others 4. Balance as at December 31 of the current year 10,729,745,027.00 6,916,930,399.42 -40,994.46 1,714,475,367.27 42,048,427,771.05 19,462,747,374.25 80,872,284,944.53 The accompanying notes form an integral part of these financial statements.

Page 18 POLY REAL ESTATE GROUP CO., LTD. CONSODIDATED STATEMENT OF CHANGES IN OWNERS’ EQUITY(CONTINUED) Year of 2014 (Amounts are expressed in RMB unless otherwise stated) Year 2013 Equity attributable to owners of the parent company Other equity instruments Item Less: Other General Perpetual Special Minority equity Total owners’ equity Share capital Preferred Capital reserves Treasury comprehensive Surplus reserves risk Undistributed profits capital Others reserve shares stock income reserves securities 1. Balance as at December 31 of last year 7,137,994,391.00 10,776,923,444.63 1,451,382.82 811,701,777.25 23,758,309,752.50 12,293,139,735.60 54,779,520,483.80 Plus: adjustments for changes in accounting policies Adjustments for correction of accounting errors in prior year Business combination under common control Others 2. Balance as at January 1 of the current year 7,137,994,391.00 10,776,923,444.63 1,451,382.82 811,701,777.25 23,758,309,752.50 12,293,139,735.60 54,779,520,483.80 3. Increases/decreases in the current year (“-” for decreases) 186,791,114.48 -1,449,354.82 289,215,382.77 8,801,931,472.79 5,097,166,828.22 14,373,655,443.44 (1) Total comprehensive income -1,449,354.82 10,747,161,554.27 1,117,300,751.04 11,863,012,950.49 (2) Capital contributed or reduced by owners 186,791,114.48 4,381,118,993.66 4,567,910,108.14 a. Common stock contributed by shareholders 4,381,118,993.66 4,381,118,993.66 b. Capital contributed by holders of other equity instruments

Page 19 Year 2013 Equity attributable to owners of the parent company Other equity instruments Item Less: Other General Perpetual Special Minority equity Total owners’ equity Share capital Preferred Capital reserves Treasury comprehensive Surplus reserves risk Undistributed profits capital Others reserve shares stock income reserves securities c. Amounts of share-based payments recognized in owners’ equity 101,881,633.16 101,881,633.16 d. Others 84,909,481.32 84,909,481.32 (3) Profit distribution 289,215,382.77 -1,945,230,081.48 -401,252,916.48 -2,057,267,615.19 a. Withdrawal of surplus reserves 289,215,382.77 -289,215,382.77 b. Withdrawal of general risk reserve c. Profit distributed to owners (or shareholders) -1,656,014,698.71 -401,252,916.48 -2,057,267,615.19 d. Others (4) Internal carry-forward of owners' equity a. Conversion of capital reserves into paid-in capital (or share capital) b. Conversion of surplus reserves into paid-in capital (or share capital) c. Surplus reserves offsetting losses d. Others (5) Special reserves a. Amount withdrawn in the current year b. Amount used in the current year

Page 20 Year 2013 Equity attributable to owners of the parent company Other equity instruments Item Less: Other General Perpetual Special Minority equity Total owners’ equity Share capital Preferred Capital reserves Treasury comprehensive Surplus reserves risk Undistributed profits capital Others reserve shares stock income reserves securities (6) Others 4. Balance as at December 31 of the current year 7,137,994,391.00 10,963,714,559.11 2,028.00 1,100,917,160.02 32,560,241,225.29 17,390,306,563.82 69,153,175,927.24 The accompanying notes form an integral part of these financial statements.

Page 21 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 (Amounts are expressed in RMB unless otherwise stated)

1. Corporate information 1.1 Company profile Poly Real Estate Group Co., Ltd. (hereinafter referred to as “the Company”), formerly known as Guangzhou Poly Real Estate Development Co., Ltd, was an enterprise owned by the whole people registered for establishment in Guangzhou on September 14, 1992 by Poly South Group Co., Ltd (formerly kno2wn as “Poly Technology South Co., Ltd”, and hereinafter referred to as “Poly South”), a wholly-owned subsidiary of China Poly Group Cooperation (hereinafter referred to as “Poly Group”). The registered capital on initial establishment was RMB 10 million. On September 1997, Poly South increased its investment in the Company to RMB 60 million, including a capital contribution of RMB 49,597,200 made by cash and RMB 402,800 made by the conversion of surplus reserves into paid-in capital.

On August 22, 2002, approved by the State Economic and Trade Commission with a document of GJMQG [2002] No.616, launched by Poly South and jointly supported by Guangdong Huamei International Investment Group Co., Ltd (formerly known as “Guangdong Huamei Education Industry Group Co., Ltd”, and hereinafter referred to as “Huamei Group”), Zhang Keqiang and other 15 natural persons, the Company was reformed to a company limited by shares and altered its name to “Poly Real Estate Co., Ltd”. On July 2, 2002, approved by the Ministry of Finance with a document of CQ [2002] No.256, Poly South converted the audited net assets of RMB 225,172,141.84 of Guangzhou Poly Real Estate Development Co., Ltd as at March 31, 2002 and the monetary funds of RMB 74,827,858.16 of other shareholders into a total share capital of RMB 200 million, at a proportion of 66.67%. Among the total share capital converted, Poly South accounted for 75.06%; Huamei Group accounted for 15.19%, and natural persons’ contribution accounted for 9.75%.

In December 2005, based on the total share capital of 200 million shares as at June 30, 2005, the Company distributed 5 shares of share dividend for every 10 shares, and issued 5 new shares for every 10 shares by way of capitalization of capital reserves. After the dividend distribution and conversion of capital reserve into share capital, the share capital of the Company increased from RMB 200 million to RMB 400 million, equivalent to 400 million shares.

In March 2006, the Company changed its name to “Poly Real Estate Group Co., Ltd.”.

On July 19, 2006, under the approval of ZJFXZ [2006] No.30 issued by China Securities Regulatory Commission, the Company conducted initial public offering of 150 million ordinary shares (A share) at RMB 1 per share. On July 31, 2006, the Company’s stocks were listed for trading at Shanghai Stock Exchange. The stock is called “Poly Real Estate” and the stock code is 600048. After the stock issuance, the Company’s share capital increased to RMB 550 million, equivalent to 550 million shares.

On April 2, 2007, based on the total share capital of 550 million shares as at December 31, 2006, the Company issued 10 new shares for every 10 shares then issued by way of capitalization of capital reserves. After that, the Company’s total shares increased to 1,100 million shares.

Under the approval of ZJFXZ [2007] No.202 issued by China Securities Regulatory Commission, the Company publicly issued 126,171,593 new shares on August 1, 2007. After the issuance, the total number of shares of the Company increased to 1,226,171,593 shares.

On March 11, 2008, based on the share capital as at December 31, 2007, the Company issued 10 new shares for every 10 shares then issued by way of capitalization of capital reserves. After that, the total number of shares increased to 2,452,343,186 shares.

Notes to the Financial Statements Page 1 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 On April 30, 2009, based on the share capital as at December 31, 2008, the Company distributed 3 share dividends for every 10 shares. After that, the Company’s total number of shares increased to 3,188,046,142 shares.

On July 6, 2009, under the approval of ZJXK [2009] No.573 issued by China Securities Regulatory Commission, the Company privately issued 331,674,958 shares. After the private issuance, the total number of shares of the Company increased to 3,519,721,100 shares.

On April 27, 2010, based on the share capital as at December 31, 2009, the Company, by way of capitalization of the capital reserves, issued 1,055,916,330 new shares to all shareholders, on the basis of 3 new shares for every 10 shares then issued. After that, the total number of share capital is 4,575,637,430 shares.

On May 17, 2011, based on the share capital as at December 31, 2010, the Company, by way of capitalization of the capital reserves, issued 1,372,691,229 new shares to all shareholders, on the basis of 3 new shares for every 10 shares then issued. After that, the total number of share capital is 5,948,328,659 shares.

On June 18, 2012, based on the share capital as at December 31, 2011, the Company, by way of capitalization of the capital reserves, issued 1,189,665,732 new shares to all shareholders, on the basis of 2 new shares for every 10 shares then issued. After that, the total number of share capital is 7,137,994,391 shares.

On May 23, 2014, based on the share capital as at December 31, 2013, the Company, by way of capitalization of the capital reserves and bonus of 5 new shares for every 10 shares then issued, increased the total number of share capital to 10,706,991,587.

On September 10, 2014, the Company issued 19,633,320 new shares to incentive objects of option incentive plan, making the total number of shares amount to 10,726,624,907 after the targeted issuance.

On November 21, 2014, the Company issued 3,120,120 new shares to incentive objects of option incentive plan, making the total number of shares amount to 10,729,745,027 after the targeted issuance.

The Company’s registered address: Level 30-33, Poly International Plaza, No.688 Middle Yuejiang Road, Haizhu District, Guangzhou City. The Company and its subsidiaries are mainly engaged in real estate development and operation, property management, etc.

The Company’s authorized business scope includes: real estate industry (items requiring approval according to the law can be operated only after approved by relevant authorities).

The Company's parent company is Poly Southern Group Co., Ltd., and its actual controller is China Poly Group Corporation.

The financial statements were approved for disclosure by all directors of the Company on March 15, 2015.

1.2 Scope of consolidated financial statements For the scope of consolidated financial statements and the change in consolidation scope for the reporting period, refer to "6. Change in consolidation scope" and "7. Interest in other entities".

2. Basis of preparation for financial statements 2.1 Basis of preparation Based on going concern, according to actually occurred transactions and events, the Company prepares its financial statements in accordance with the Accounting Standards for Business Enterprises – Basic Standards and all concrete accounting standards issued by the Ministry of

Notes to the Financial Statements Page 2 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Finance, the Accounting Standards for Business Enterprises – Application Guidelines, the Accounting Standards for Business Enterprises – Interpretations and other relevant provisions (collectively known as “Accounting Standards for Business Enterprises”), as well as well as the disclosure requirements of Regulation on the Preparation of Information Disclosure of Companies Issuing Public Shares No.15-General Requirements for Financial Reports issued by the China Securities Regulatory Commission.

2.2 Going concern There is no significant matter that will affect the Company's going-concern ability in twelve months from the end of the reporting period.

3. Significant accounting policies and accounting estimates Reminder about some specific accounting policies and accounting estimates:

The Company's accounting policies and accounting estimates are in consistency with the requirements of accounting standards. The following disclosures have covered the specific accounting policies and accounting estimates developed by the Company according to its actual production and management features. See notes "3.12 Inventories" and "3.25 Revenue" for details.

3.1 Statement on compliance with Accounting Standards for Business Enterprises The financial statements prepared by the Company meet the requirements of the Accounting Standards for Business Enterprises, and truly and completely reflect the Company’s financial position, operating results, cash flows and other relevant information for the reporting period.

3.2 Accounting period The accounting year is from January 1 to December 31 in calendar year.

3.3 Operating cycle The normal operating cycle refers to the cycle from the Company's purchase of assets for processing to the realization of cash or cash equivalents. The Company's operating cycle is 12 months.

3.4 Functional currency The Company adopts RMB as its functional currency.

3.5 Accounting treatment methods of business combinations under and not under common control Business combination under common control: The assets and liabilities acquired by the Company in a business combination are measured at the book values of the assets and liabilities (including the goodwill formed through acquisition of the combinee by its ultimate controller) of the combinee as stated in the consolidated financial statement of the ultimate controller on the date of combination. The stock premium in the capital reserve is adjusted according to the difference between the book value of net assets acquired through combination and the book value of consideration paid for the combination (or total par value of shares issued). If the stock premium in the capital reserves is insufficient to cover the differences, the remaining amount shall be charged against retained earnings.

Business combination not under common control: The Company shall, on the acquisition date, measure the assets surrendered and liabilities incurred or assumed by the Company for a business combination at their fair values, and shall record the differences between their fair values and their book values into the current profit and loss. The Company shall recognize the difference of the combination costs in excess of the fair value of the identifiable net assets acquired from the acquiree as goodwill. The Company shall recognize the difference of the combination costs in short of the fair value of the identifiable net assets acquired from the acquiree in the current profit and loss after review.

Notes to the Financial Statements Page 3 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 The intermediary service charges, including audit, legal service, evaluation and consultancy fees and other relevant administrative expenses incurred for business combination, shall be charged to current profit and loss when they are incurred; and the transaction expenses incurred for issuance of equity or debt securities as consideration for business combination shall offset the equity.

3.6 Preparation method of consolidated financial statements 3.6.1 The scope of consolidation The consolidation scope of consolidated financial statements of the Company is determined on the basis of control, and all its subsidiaries (including the investee's partible part that is under control of the Company) are included in the consolidated financial statements.

3.6.2 Combination procedures The Company prepares the consolidated financial statements based on financial statements of itself and its subsidiaries and according to other relevant information. Upon preparation of consolidated financial statements, the Company shall deem the whole group as a whole accounting entity, and reflects the overall financial position, operating results and cash flows of the group in accordance with relevant requirements for recognition, measurement and presentation as stated in the Accounting Standards for Business Enterprises measurement as well as uniform accounting policies.

All the subsidiaries within the consolidation scope of consolidated financial statements shall adopt the same accounting policies and accounting periods as those of the Company. If the accounting policies or accounting periods of a subsidiary are different from those of the Company, the consolidated financial statements of the subsidiary, upon preparation of consolidated financial statements, shall be adjusted according to the accounting policies and accounting periods of the Company. For the subsidiaries acquired through business combination not under the same control, adjustments to their financial statements shall be made based on the fair values of net identifiable assets on the acquisition date. For a subsidiary acquired through business combination under common control , adjustment to its financial statements shall be made based on the book values of its assets and liabilities (including goodwill formed in the acquisition of the subsidiary by its ultimate controller) as presented in the financial statements of the ultimate controller.

The share of owners' equity, current net profits and losses, and current comprehensive income of subsidiaries attributable to minority owners shall be respectively and separately listed under the owner's equity item of a consolidated balance sheet, under the net profit item of a consolidated income statement, and under the total comprehensive income in a consolidated income statement. Where the current loss shared by minority shareholders of subsidiaries exceeds the balances formed by the shares enjoyed by minority shareholders in the owners' equity of the subsidiaries at the beginning of the period, minority equity should be written down. (1) Increase of the subsidiaries or business During the reporting period, if the Company increases subsidiaries or business due to business combination under common control, it shall adjust the beginning amount of the consolidated balance sheet; include revenues, expenses and profits of the subsidiaries or business from the beginning of the current combination period to the end of the reporting period in the consolidated income statement; include cash flows of the subsidiaries or from the business from the beginning of the current combination period to the end of the reporting period in the consolidated cash flow statement; at the same time adjust the relevant items of the comparative statements to the extent that the reporting entity after combination has been always existed since the start of control by the ultimate controller.

During the reporting period, if the Company increases subsidiaries or business due to business combination under common control, it shall adjust the beginning amount of the consolidated balance sheet; include revenues, expenses and profits of the subsidiaries or business from the beginning of the current combination period to the

Notes to the Financial Statements Page 4 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 end of the reporting period in the consolidated income statement; include cash flows of the subsidiaries and business from the beginning of the current combination period to the end of the reporting period in the consolidated cash flow statement.

(2) Disposal of subsidiaries or business a. General method of disposal During the reporting period, where the Company disposes a subsidiary or business, the revenues, expenses and profits of the subsidiary or business from the beginning period to the disposal date should be included in the consolidated cash flow statement; the subsidiary's or the business's cash flows from the beginning period to the disposal date should be included in the consolidated cash flow statement.

When the Company losses the control over the investee due to disposal of partial equity investment or other reasons, the remaining equity investment after the disposal will be re-measured by the Company at its fair value on the date of loss of the control. The difference of total amount of the consideration from disposal of equities plus the fair value of the remaining equities less the shares calculated at the original shareholding ratio in net assets and goodwill of the original subsidiary which are continuously calculated as of the acquisition date or combination date is included in the investment income of the period at the loss of control. Other comprehensive incomes associated with the equity investments of the original subsidiary, or the changes in owners' equity other than net profit or loss, other comprehensive income and profit distribution, are transferred into investment income of the period when control is lost, except for other comprehensive income from the change in net liability or net asset due to the investor's re-measurement of designated benefit plan.

3.7 Classification and accounting treatment of joint venture arrangements Joint venture arrangements are classified into joint operation and joint venture.

Joint operation refers to those joint venture arrangements, relevant assets and liabilities of which are enjoyed and assumed by the joint ventures, when the Company is part of it.

The Company shall recognize the following items related to its share of benefits in the joint operation and conduct accounting treatment in accordance with relevant accounting standards for business enterprises: (1) assets it solely holds and its share of jointly-held assets based on its percentage;

(2) liabilities it solely assumes and its share of jointly-assumed liabilities based on its percentage;

(3) incomes from sale of output enjoyed by it from the joint operation;

(4) incomes from sale of output from the joint operation based on its percentage; and

(5) separate costs and costs for the joint operation based on its percentage.

Please refer to note "3.14 Long-term Equity Investments" for the Company's accounting policies on joint venture arrangements.

3.8 Recognition criteria of cash and cash equivalents For the purpose of preparing the statement of cash flows, the term “cash” refers to the cash on hand and the unrestricted deposit of the Company. The term “cash equivalents” refers to short-term (maturing within three months from acquisition) 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.

Notes to the Financial Statements Page 5 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 3.9 Foreign currency transactions and conversion of foreign currency statements 3.9.1 Foreign currency transactions Foreign currency transactions of the Company are converted into the amount in functional currency at the spot exchange rate on the day when the transaction occurs.

On the balance sheet date, foreign currency monetary items are translated using the spot exchange rates on the balance sheet date. Exchange differences arising from the differences between the spot exchange rates prevailing on the balance sheet date and those on initial recognition or on the previous balance sheet date are recognized in current profit and loss, except that exchange differences related to a specific-purpose borrowing denominated in foreign currency that qualify for capitalization are capitalized as part of the cost of the qualifying asset during the capitalization period.

Foreign currency non-monetary items measured at historical cost are translated to at the spot exchange rates on the dates of the transactions and the amounts in functional currency remain unchanged. Foreign currency non-monetary items measured at fair value are translated at the spot exchange rate on the date the fair value is determined. Difference between the translated functional currency amount in current period and the translated functional currency amount in previous period is treated as changes in fair value (including changes in exchange rate) and is included in current profit and loss or recognized as other comprehensive income.

3.9.2 Translation of foreign currency financial statements Where the subsidiaries controlled by the Company and the joints ventures and associates of the Companies adopt any functional currency different from that of the Company, the Company shall make relevant accountings and prepare the consolidated financial statements after translating its foreign currency financial statements.

In the balance sheet, items of assets and liabilities shall be translated at the spot exchange rates on balance sheet date, and items of owners’ equity, except for the item of “undistributed profits”, are translated at the spot exchange rates on the dates when the transactions occur. The income and expenses items in income statements are translated at the spot exchange rate prevailing on the date when transactions occur. Differences arising from the above translations of foreign currency financial statements are presented as other comprehensive income.

For foreign currency cash flows determined by using a systematical and reasonable method, they are converted at the spot exchange rate on the day of transaction. The effect of exchange rate change on cash is presented separately in the statement of cash flows.

Where the Company disposes of a foreign operation, it shall, in whole or in part (based on the proportion of the disposal), transfer the foreign currency translation differences relating to the operation disposed of to the current profit and loss.

3.10 Financial instruments Financial instruments include financial assets, financial liabilities and equity instruments.

3.10.1 Classification of financial instruments Upon initial recognition, financial liabilities are classified into: Financial assets and financial liabilities measured at fair value through current profit and loss, including financial assets or financial liabilities held for trading and financial assets or financial liabilities directly designated to be measured at fair value through current profit and loss; held-to-maturity investments; receivables; available-for-sale financial assets; and other financial liabilities, etc.

Notes to the Financial Statements Page 6 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 3.10.2 Recognition basis and measurement method of financial instruments (1) Financial assets (financial liabilities) measured at fair value through current profit and loss Financial assets (financial liabilities) are initially recorded at fair values when acquired (deducting cash dividends that have been declared but not distributed and bond interest that has matured but not been drawn). Relevant transaction expenses are included in the current profit and loss.

The interest or cash dividends to be received during the holding period are recognized as investment income. Change in fair values is included in the current profit and loss at the end of the period.

Difference between the fair value and initial book-entry value is recognized as investment income upon disposal; meanwhile, adjustment is made to gains or losses from changes in fair values.

(2) Held-to-maturity investments Held-to-maturity investments are initially recorded at the sum of fair values (less the bond interest that has matured but not been drawn) and relevant transaction expenses when acquired.

The interest income is calculated according to amortized costs and effective interest rates during the holding period, and is included in the investment income. The effective interest rates are determined upon acquisition and remain unchanged during the expected remaining period, or a shorter period if applicable.

Difference between the proceeds and the book value of the investment is recognized as investment income upon disposal.

(3) Accounts receivable For creditor’s rights receivable arising from external sales of goods or rendering of service by the Company and other creditor's rights of other enterprises (excluding liability instruments quoted in an active market) held by the Company, including accounts receivable and other receivables, the initial recognition amount shall be the contract price or agreement price receivable from purchasing party; for those with financing nature, they are initially recognized at their present values.

The difference between the amount received and the book value of the receivable is included in the current profit and loss upon recovery or disposal.

(4) Available-for-sale financial assets Available-for-sale financial assets are initially recorded at the sum of fair values (deducting cash dividends that have been declared but not distributed and bond interests that have matured but not been drawn) and transaction costs when acquired.

Interest or cash dividends obtained during the holding period are recognized as investment income. At the end of the period, measurement is carried out at fair value and changes in fair value are recognized in other comprehensive income. However, for an equity instrument investment that has no quoted price in an active market and whose fair value cannot be reliably measured, and for derivative financial asset linked to the said equity instrument investment and settled by delivery of the same equity instrument, they shall be measured at cost.

Difference between the proceeds and the book value of the financial assets is recognized as investment profit or loss upon disposal; meanwhile, amount of disposal corresponding to the accumulated change in fair value which is originally and directly

Notes to the Financial Statements Page 7 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 included in other comprehensive income shall be transferred out and recognized as investment income

(5) Other financial liabilities Other financial liabilities are initially recognized at the sum of fair value and transaction expenses, and subsequently measured at amortized costs.

3.10.3 Recognition basis and measurement methods of financial assets transferred When transfer of financial assets occurs, if nearly all of the risks and rewards related to the ownership of the financial assets have been transferred to the transferee, the Company derecognizes the financial assets; if nearly all of the risks and rewards related to the ownership of the financial assets are retained, the Company shall not derecognize the financial assets.

When determining whether the transfer of a financial asset meets the above de-recognition criteria of financial assets, the Company adopts the principle of substance over form. The Company classifies the transfer of a financial asset into the entire transfer and the partial transfer of financial asset. If the entire transfer of financial asset satisfies the criteria for de-recognition, the difference between the amounts of the following two items shall be included in the current profit and loss: (1) the book value of the transferred financial asset;

(2) the sum of the consideration received from the transfer and the accumulated amount of the changes in fair value originally and directly included in owners’ equity (the situation where the financial asset transferred is an available-for-sale financial asset is involved).

If the partial transfer of financial asset satisfies the criteria for de-recognition, the entire book value of the transferred financial asset shall be split into the derecognized and recognized part according to their respective fair value and the difference between the amounts of the following two items shall be included in the current profit and loss: (1) the book value of derecognized part;

(2) the sum of the consideration for the derecognized part and the portion of de-recognition corresponding to the accumulated amount of the changes in fair value originally and directly included in owners’ equity (the situation where the financial asset transferred is an available-for-sale financial asset is involved).

If the transfer of financial assets does not meet the de-recognition criteria, the financial assets shall continue to be recognized, and the consideration received will be recognized as a financial liability.

3.10.4 De-recognition criteria of financial liabilities A financial liability shall be wholly or partly derecognized if its present obligations are wholly or partly dissolved. Where the Company enters into an agreement with a creditor so as to substitute the existing financial liabilities with any new financial liability, and the new financial liability is substantially different from the contractual stipulations regarding the existing financial liability, it shall derecognize the existing financial liability, and recognize a new one at the same time.

Where substantial revisions are made to some or all of the contractual stipulations of the existing financial liability, the Company shall derecognize the existing financial liability wholly or partly, and at the same time recognize the financial liability with revised contractual stipulations as a new financial liability.

Upon whole or partial de-recognition of financial liabilities, the difference between the book value of the financial liabilities derecognized and the consideration paid (including

Notes to the Financial Statements Page 8 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 non-cash assets surrendered or new financial liabilities assumed) shall be included in the current profit and loss.

Where the Company repurchases part of a financial liability, the entire book value of the financial liability shall be split into the derecognized part and continuously-recognized part according to their respective fair value on the repurchase date. The difference between the book value of the derecognized part and the consideration paid (including non-cash assets surrendered or new financial liabilities assumed) shall be included in the current profit and loss.

3.10.5 Method of determining the fair value of financial assets and financial liabilities The fair value of a financial instrument, for which there is an active market, is the prices quoted for it therein. The fair value of a financial instrument, for which there is no active market, is determined by using valuation techniques. At the time of valuation, the Company adopts the techniques that are applicable in the current situation and supported by enough available data and other information, selects the input values that are consistent with the features of assets or liabilities as considered by market participants in relevant asset or liability transactions, and gives priority to use relevant observable inputs. Unobservable inputs are used only under the circumstance when it is impossible or unobservable inputs to obtain relevant observable inputs.

3.10.6 Testing and accounting methods of impairment of financial assets (excluding receivables) Except for the financial assets measured at fair values through current profit and loss, the book value of financial assets on the balance sheet date should be checked. If there is objective evidence that a financial asset is impaired, provision for impairment shall be made. (1) Provision for impairment of available-for-sale financial assets: If the fair value of available-for-sale financial assets has significantly declined at the end of the period, or it is expected that the trend of decrease in value is non-temporary after considering various relevant factors, the impairment shall be recognized, and accumulated losses from decreases in fair value originally and directly included in owners’ equity shall be all transferred out and recognized as impairment loss.

For available-for-sale debt instruments whose impairment losses have been recognized, if their fair values rise in the subsequent accounting period and such rise is objectively related to the matters occurring after the recognition of impairment loss, the previously recognized impairment loss shall be reversed and recorded into the current profit and loss.

Impairment losses on available-for-sale equity instruments shall not be reversed through profit or loss.

(2) Provision for impairment of held-to-maturity investments: Measurement of provision for impairment loss on held-to-maturity investments is treated by reference to the measurement method of impairment loss on receivables.

3.11 Allowance for bad debts of receivables The Company's receivables mainly include accounts receivable, long-term receivable and other receivables. On the balance sheet date, if there is objective evidence of impairment, the impairment loss is recognized at the difference between the book value and the present value of future cash flows.

3.11.1 Allowance for bad debts of individually significant receivables Basis of grouping Assessment basis or standard of amount individually significant Any receivable with a book balance exceeding RMB100 million

Notes to the Financial Statements Page 9 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Basis of grouping For individually significant receivables, they are individually tested for impairment. If there is objective evidence of impairment, the allowance for Method of separate allowance for bad debts is made at the difference of the present value of future cash individually significant bad debts flows in short of the book value.

3.11.2 Receivables whose allowance for bad debts is accrued on portfolio basis: Basis of grouping Determine portfolios of credit risk characteristics based on credit period Credit period and aging and aging Method of making provision for bad debts on portfolio basis Percentage of completion

Among those portfolios of receivables, the allowances for their bad debts that are accrued by using percentage-of-balance method are detailed as follows: Percentage for accounts receivable Percentage for other receivables Portfolio (%) (%) Portfolios of similar credit risk characteristics determined based on credit period and aging 5 5

3.11.3 Accounts receivable that are individually insignificant but are provided for bad debts on individual basis There is objective evidence that the impairment may have occurred, such as the revocation, bankruptcy or death of the debtor, the failure of Reason for accruing allowance for collection after settlement with its bankruptcy estate or property, and a bad debt separately: serious shortage of cash flows. If there is objective evidence that the impairment may have occurred to a receivable, the Company shall separate such receivable from the Method of accruing allowance for underlying portfolio and individually test the same for impairment so as to bad debts recognize the impairment loss.

3.12 Inventories 3.12.1 Classification of inventories Inventories refer to the finished products or merchandises possessed by the Company for sale in the daily operation, or goods in progress in the process of production, and materials and supplies to be consumed in the process of production or offering labor service. The Company's inventories mainly include development costs, developed products, goods in stock and low-cost consumables.

Accounting methods of land for development, maintenance fund, quality margin, expenses of public supporting facilities:

Land for development: the Company's land for development purpose is included in the item of "development cost" for accounting;

Maintenance fund: in accordance with the provisions of the country, the part that should be undertaken by the Company is included in "development cost";

Quality margin: quality margin is reserved in a certain proportion of project payment by the engineering construction unit, presented as "other payables", and paid to the construction unit when the project is confirmed to be qualified and accepted and involved in no quality issue during the agreed quality guarantee period;

Expenses of public supporting facilities: public supporting facilities refer to public supporting projects such as schools and the fees of public supporting facilities charged by government departments, expenses incurred therefrom shall be included in "development

Notes to the Financial Statements Page 10 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 costs", and amortized and accounted for based on the cost accounting objects and cost items.

3.12.2 Measurement method of dispatched inventories The actual costs of inventories are determined at specific identification method when they are dispatched.

3.12.3 Basis to determine net realizable values of inventories and method of provision for depreciation of inventories On the balance sheet date, inventories are measured at the lower of their costs or net realizable values, and the reserves for their depreciation are provided on an individual basis; but for those inventories with large quantity and low unit price, the provisions for inventory depreciation reserve are made based on categories of inventories.

Basis to determining the net realizable value of inventories: a) net realizable value of finished goods is the estimated selling price less estimated selling expenses and the related tax and surcharges; b) materials held for the production are measured at cost when the net realizable value of the finished good produced by using such them is higher than the cost; when material prices fall and make the net realizable value is lower than the cost, the net realizable value is the amounts of the estimated selling prices minus the estimated costs to completion, estimated selling expenses and relevant taxes and surcharges; c) for material held for sale, the net realizable value is the market price.

3.12.4 Inventory system The Company's adopts perpetual inventory system.

3.12.5 Amortization method of low-cost consumables and packaging materials Low-cost consumables are amortized at lump-sum method when applied for use.

3.13 Assets classified as held for sale The Company recognizes the component (or non-current asset) simultaneously meeting all the following conditions as held for sale: (1) The components can be definitely and immediately sold under its current status and according to the usual terms for the sale of such similar components;

(2) The Company has made an resolution on disposal of the component (or non-current asset), and has obtained the approval of the shareholders' meeting or the appropriate authority, if necessary according to the provisions;

(3) The Company has entered into an irrevocable transfer agreement with the transferee; and

(4) The transfer will be completed within one year.

3.14 Long-term equity investments 3.14.1 Criteria of recognizing joint control or significant influence Common control refers to the control shared over an arrangement in accordance with the relevant stipulations, and the decision-making of related activities of the arrangement should not be made before the party sharing the control right agrees the same. Where the Company exercises common control over the investee together with other parties to the joint venture and enjoys the right on the investee's net assets, the investee is a joint venture of the Company.

Significant influence refers to the power to participate in making decisions on the financial and operating policies of an enterprise, but not the power to control, or jointly control, the formulation of such policies with other parties. Where the Company is able to have significant influences on an investee, the investee shall be its associate.

Notes to the Financial Statements Page 11 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 3.14.2 Determination of initial investment cost (1) Long-term equity investments acquired from business combination Business combination under common control: if the Company pays a consideration to the combinee in cash, by transferring non-cash assets or by assuming debts, the share of book value of its owners' equity in the combinee in the consolidated financial statements of the ultimate controlling party shall be regarded, on the merger date, as the initial investment cost of the long-term equity investment. If the Company can exercise control over the investee under common control as a result of additional investment or other reasons, the share of book value of its net asset in the combinee in the consolidated financial statements of the ultimate controlling party shall be regarded, on the combination date, as the initial cost of the long-term equity investment. If there is a difference between the initial cost of the long-term equity investment on the combination date and the book value of the long-term equity investment before combination plus the book value of the additional consideration acquired on the combination date through new share-based payment, the difference shall be used to adjust share premium; and if the share premium is insufficient to be offset, retained earnings shall be reduced.

Business combination not under common control: The Company recognizes the combination cost determined on the acquisition date as the initial cost of the long-term equity investment. If the Company can exercise control over the investee not under common control as a result of additional investment or other reasons, the book value of the equity investment previously held plus the cost of increased investment shall be regarded as the initial investment cost to be measured by changing to employ the cost method.

(2) Long-term equity investments acquired by other means For a long-term equity investment acquired through making payments in cash, its initial cost is the actually paid purchase cost.

For a long-term equity investment acquired from issuance of equity securities, its initial cost is the fair value of the issued equity securities.

On the premise that non-monetary asset trade is of commercial nature and the fair value of the asset traded in or out can be measured reliably, the initial cost of a long-term equity investment traded in with non-monetary asset should be recognized at the fair value of the asset traded out and related taxes and surcharges payable, unless any unambiguous evidence indicates that the fair value of the asset traded in is more reliable; as to the non-monetary asset trade not meeting the aforesaid premise, the book value of the asset traded out and related taxes and surcharges payable should be recognized as the initial cost of the long-term equity investment.

For a long-term equity investment acquired from debt restructuring, the initial cost is determined based on the fair value.

3.14.3 Subsequent measurement and recognition of profits or losses (1) Long-term equity investments accounted for under cost method The Company's long-term equity investments in subsidiaries are accounted for using the cost method. Under the cost method, except for the actual price paid for acquisition of investment or the cash dividends or profits contained in the consideration which have been declared but not yet distributed, the Company recognizes its share in the cash dividends or profits declared by the investee as current investment income.

(2) Long-term equity investments accounted for under equity method Long-term equity investments in associates and joint ventures are accounted for by using the equity method. If the initial cost is in excess of the share of the fair value of

Notes to the Financial Statements Page 12 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 the net identifiable assets in the investee when the investment is made, the difference will not be adjusted to the initial cost of long-term equity investment; if the initial cost is in short of the share of the fair value of the net identifiable assets in the investee when the investment is made, the difference will be included in the current profit and loss.

The Company shall, in accordance with its attributable share of the net profit or loss and other comprehensive income realized by the investee, respectively recognize the investment income and other comprehensive income and simultaneously adjust the book value of the long-term equity investment. The Company shall, in the light of the profits or cash dividends that the investee declares to distribute, reduce the book value of the long-term equity investment correspondingly. As to any change in owners' equity of the investee other than net profit or loss, other comprehensive income and profit distribution, the Company shall adjust the book value of the long-term equity investment and include such change into the owners' equity.

The Company shall, based on the fair value of identifiable net asset of the investee when it obtains the investment, recognize its attributable share of the net profit or loss of the investee after it adjusts the net profit of the investee according to the Company's accounting policy and accounting period. During the holding of investment, if the investee prepares consolidated statement, it shall take the amounts of it share of net profit, other comprehensive income and changes in other owners' equity as presented in consolidated financial statements as basis for accounting.

As to an internal transaction between the Company and an associate or a joint venture, the unrealized gains and losses are offset in proportion to the part attributable to the Company, with investment income recognized accordingly. The unrealized internal transaction losses incurred to the investee are fully recognized if belonging to losses from asset impairment. As to an asset investment or sale transaction between the Company and its associate or joint venture, the accounting treatment shall be carried out in accordance with the relevant policies as disclosed in notes "3.5 Accounting treatment methods of business combinations under and not under common control" and in "3.6 Method of preparation for consolidated financial statements" when the asset forms part of the Company's business.

Under the equity method, when the Company confirms that it should share losses of the investee, treatment shall be done in the following sequence: firstly, the book value of the long-term equity investment shall be reduced; secondly, where the book value is insufficient to cover the share of losses, investment losses are recognized to the extent of book value of other long-term equity which form net investment in the investee in substance and the book value of long term receivables shall be reduced; finally, after all the above treatments, if the Company is still responsible for any additional liabilities in accordance with the provisions stipulated in the investment contracts or agreements, provisions are recognized and included into current investment loss according to the obligations estimated to undertake.

(3) Disposal of long-term equity investments Upon disposal of a long-term equity investment, the difference between its book value and the actual acquisition price is included in the current profit and loss.

When the Company disposes of the long-term equity investment measured by employing the equity method, accounting treatment of the portion previously included in other comprehensive income shall be made on the same basis as would be required if the investee had directly disposed of the assets or liabilities related thereto according to the corresponding proportion. The owners' equity recognized due to changes in owners’ equity of the investee other than net profits or losses, other comprehensive income and profit distribution shall be transferred to current profit and loss at the

Notes to the Financial Statements Page 13 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 corresponding proportion upon disposal, except for other comprehensive income from re-measurement of changes in net profit or net liability of the defined benefit plan.

If the Company loses its joint control over or significant influence on an investee due to its disposal of partial equity investment or other reasons, it shall change to measure the remaining equities after disposal according to the standards for recognition and measurement of financial instruments, and the balance, on the date of losing joint control or significant influence, between the fair value and book value of its remaining equities shall be included in current profit and loss. As to other comprehensive income recognized based on measurement of the original equity investment by employing the equity method, accounting treatment shall be made on the same basis as would be required if the investee had directly disposed of the assets or liabilities related thereto when measurement by employing the equity method is terminated. For owners' equity recognized as a result of changes in other owners' equity other than net profit or loss, other comprehensive income and profit distribution of the investee, it is carried forward to the current profit and loss when the equity method is abandoned.

Where the Company losses control over the investee due to its disposal of part of equity investment or other reasons, if it can exercise joint control over or significant influence on the investee through the remaining equities after disposal, the remaining equities shall be measured by changing to employ the equity method and adjusted as if the remaining equities had been measured by employing the equity method ever since acquired in preparation of separate financial statements; if the Company cannot exercise joint control over or a significant influence on the investee through the remaining equities after disposal, the accounting treatment shall be changed to be made in accordance with relevant provisions on recognition and measurement of financial instruments, and the balance between the fair value and book value thereof on the date of loss of control shall be recorded in current profit and loss.

Where the equities are acquired through business combination as a result of additional investment and other reasons, if the remaining equities after disposal are accounted by using the cost method or equity method upon preparation of separate financial statements, other comprehensive income and other owners' equities recognized in equity investments held before the acquisition date as a result of employment of equity method for accounting shall be carried forward pro rata; if the remaining equities after disposal are accounted for according to the provisions on Recognition and Measurement of Financial Instruments, other comprehensive income and other owners' equities will all be carried forward.

3.15 Investment property Investment properties are properties to earn rentals or for capital appreciation or both. Examples include land leased out under operating leases, land held for long-term capital appreciation, buildings leased out under operating leases, (including buildings that have been constructed or developed for future lease out under operating leases, and buildings that are being constructed or developed for future lease out under operating leases).

The Company measures its existing investment property by using the cost model. For investment property measured by using the cost model, the buildings for lease shall be depreciated by using policies the same as used for fixed assets of the Company, and the land use rights for lease shall be amortized by using the same policies as applicable to intangible assets.

3.16 Fixed assets 3.16.1 Recognition criteria of fixed assets Fixed assets refer to tangible assets held for the purpose of producing commodities, providing services, renting or business management with useful lives exceeding one accounting year. Fixed assets will only be recognized when all the following criteria are satisfied:

Notes to the Financial Statements Page 14 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 (1) It is probable that the economic benefits relating to the fixed assets will flow into the Company; and

(2) The costs of the fixed assets can be measured reliably.

3.16.2 Classification and depreciation methods of fixed assets Fixed assets of the Company are classified into buildings and constructions, vehicles, electric and office facilities and other equipment, and are depreciated by using the straight-line method. The useful lives and estimated net residual value of fixed assets are determined by category based on the nature and use stage of fixed assets. At the end of the year, the Company reviews the useful lives, estimated net residual values and depreciation methods of fixed assets, and makes corresponding adjustments if there are differences with the previous estimates. Except for fixed assets that have been fully depreciated but still in use and lands that are separately accounted for, the Company provides depreciation for all the other fixed assets.

The depreciation lives and annual depreciation rates of fixed assets are listed as follows on a category basis: Annual depreciation rate Type Depreciation life (year) Residual value rate (%) (%) Buildings and constructions 20-40 4 2.40-4.80 Vehicles 5-10 4 9.60-19.20 Electronic and office equipment 3-5 4 19.20-32.00 Other equipment 3-8 4 12.00-32.00

3.16.3 Testing and provision methods of impairment of fixed assets On the balance sheet date, the Company checks its fixed assets to see whether there is any indication of possible impairment. If there is an indication of impairment, relevant test is made to recognize the recoverable amount. The provision for impairment is made at the lower of book value or the recoverable amount. Once provided, the impairment loss shall not be reversed in subsequent accounting period.

The recoverable amount of a fixed asset is the higher of the net amount of its fair value less disposal expenses or the present value of its estimated future cash flows. If there is an negotiated price for the fair transaction, the net fair value of the fixed asset for sale shall be the negotiated price less the expenses used for disposal of the asset; if there is no such fair sale agreement but there is an active market for the asset or there is a transaction value for a similar assets in the same industry, such net fair value shall be the market price less the expenses used for disposal of the asset.

3.16.4 Determination basis and measurement method of fixed assets acquired under financing leases Determination of fixed assets acquired under financial lease: they refer to those leases with all risks and rewards associated with the asset ownership have been substantially transferred. A fixed asset leased under financing leases is recognized when one or several criteria below are satisfied: (1) the ownership of the leased asset is transferred to the lessee upon expiry of the lease term; (2) the lessee has the option to purchase the leased asset, and the purchase price agreed is far lower than the leased asset’s fair value at the time of exercising the option, so it can be reasonably assured that the lessee will exercise the option on the lease commencement data. (3) even if the ownership of the asset is not transferred, the lease term covers the most of the useful life of the leased asset; (4) the present value of the minimum lease payments by the lessee on the lease commencement date is almost equivalent to the leased asset's fair value on the lease commencement date; (5) the leased assets are of a specialized nature and without major modifications, can only be used by the lessee.

Notes to the Financial Statements Page 15 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Measurement of fixed assets acquired under financing leases: fixed assets acquired under financing leases are initially recorded and measured at the lower of the fair values of the leased assets on the lease commencement dates or the present value of the minimum lease payments.

In subsequent measurement, fixed assets acquired under financial lease are accrued with depreciation and impairment provisions by applying the same depreciation policies as applicable to fixed assets owned by the Company.

3.17 Construction in progress The Company measures construction in progress at all the expenditures incurred for bringing such assets to conditions for intended use and account it as its book-entry value. If the construction in progress of fixed assets constructed are ready for their intended use but the final account of completed project has not been issued, it should be transferred to fixed assets at an estimated cost according to the project budget, construction price or actual cost, and depreciation should be provided according to deprecation policy for fixed assets from the date when the assets are ready for their intended use. When the final account of completed project is issued, the estimated cost will be adjusted according to the actual cost, while the depreciation charge provided will not be adjusted.

3.18 Borrowing costs 3.18.1 Recognition principles of capitalization of borrowing costs The borrowing costs incurred to the Company and directly attributable to the acquisition and construction or production of assets eligible for capitalization should be capitalized and recorded into relevant asset costs; other borrowing costs should be recognized as costs according to the amount incurred and be included into the current profit and loss. Assets eligible for capitalization refer to fixed assets, investment property, inventories and other assets which may reach their intended use or sale status only after long-time acquisition and construction or production activities.

3.18.2 Calculation method of capitalization amount of borrowing costs Capitalization period: it refers to the period from the beginning of capitalization to the cease of capitalization, excluding the period of capitalization suspension of borrowing costs.

Period of capitalization suspension of borrowing costs: if the acquisition and construction or production activities of the assets are interrupted abnormally and this condition lasts for more than three months, the Company shall suspend the capitalization of borrowing costs.

Calculation of capitalized amount: (1) as for special borrowings, it is determined according to the interest expenses of the special borrowings actually incurred in the current period, less the interest income of the unused borrowings deposited in bank or the investment income received from temporary investment.(2) as for general borrowings used, it is determined by multiplying the weighted average of asset disbursements of the part of accumulated asset disbursements exceeding special borrowings by the capitalization rate of used general borrowings, which is determined based on the weighted average interest rate of the general borrowings;(3) as for borrowings with discount or premium, the to-be-amortized discount or premium in each accounting period should be recognized by using effective interest rate method, and the interest for each period should be adjusted.

The effective interest method refers to the method of calculating amortized discount or premium or interest expense of borrowings based on their actual interest rates. The effective interest rate refers to the rate used to discounting the future cash flows of the borrowings during the expected remaining period into the current book value of the borrowings.

Notes to the Financial Statements Page 16 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 3.19 Intangible assets 3.19.1 Measurement method of intangible assets The Company's intangible assets are initially measured at cost. The actual cost of a purchased intangible asset shall be the actual payment for the purchase and other relevant expenses. The actual cost of an invested intangible asset shall be determined according to the value stipulated in the investment contract or agreement, or according to the fair value in case the value of the contract or agreement is not fair. The cost of a self-developed intangible asset refers to the total expense incurred before the asset achieves its intended use.

The Company carries out subsequent measurement for its intangible assets respectively as follows: (1) as for intangible assets with limited useful lives, they are amortized by using the straight-line method, and their useful lives and amortization methods are reviewed at the end of the year and accordingly adjusted if there are differences with the previous estimates;(2) as for intangible assets with indefinite useful lives, they are not amortized, but their useful lives are reviewed at the end of the year and re-estimated when there is solid evidence that they are limited, with corresponding amortization under straight-line method.

3.19.2 Estimation of useful lives of intangible assets with limited useful lives The Company generally considers the following factors when estimating the useful life of an intangible asset with limited life:(1) information about the general life cycle of the products that are made by using the asset or the useful life of similar assets that can be obtained; (2) current status of technology, process and other aspects and expectation about the future development trends; (3) market demand for the products made by or services provided by using the asset; (4) action expected to be taken by the existing or potential competitors; (5) expected maintenance expenses for keeping the asset's ability of bring economic benefits, and the Company's ability of paying related expenses; (6) relevant legal provisions or similar restrictions on period of controlling the asset, such as franchise term and lease term; and(7) relevance with the useful lives of other assets held by the Company.

3.19.3 Determination basis of intangible assets with indefinite useful lives The Company recognizes an asset for which the period it can bring economic benefits to the Company cannot be predicted or the useful life cannot be ascertained as an intangible asset with indefinite useful life.

Basis to determine indefinite useful life: (1) the asset comes from a contractual right or other legal rights, but the contractual terms or legal provisions states that there is no specific useful life; and (2) it still cannot ascertain the period when the intangible asset can bring benefit to the Company after giving comprehensive consideration to the industry status or related professional evidence.

At the end of each year, the Company reviews the useful lives of those intangible assets with indefinite useful lives by using the top-down testing method, which means the fundamental reviews are made by relevant departments using the intangible assets, and assesses whether there is any change in the determination basis of indefinite useful live.

3.19.4 Testing and provision methods for impairment of intangible assets On the balance sheet date, the Company checks its intangible assets to see whether there is any indication of possible impairment. If there is an indication of impairment, relevant test is made to recognize the recoverable amount. The provision for impairment is made at the lower of book value or the recoverable amount. Once provided, the impairment loss shall not be reversed in subsequent accounting period.

The recoverable amount of an intangible asset is the higher of the net amount of its fair value less disposal expenses or the present value of its estimated future cash flows.

Notes to the Financial Statements Page 17 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 3.20 Impairment of long-term assets Long-term equity investments, investment property measured by using the cost model, fixed assets, construction in progress, intangible assets and other long-term assets shall go through impairment test if there is any sign of impairment on the balance sheet date. Where the impairment test result shows that the recoverable amount of the asset is less than its book value, the difference should be the basis of provision for impairment and be included in the impairment loss. The recoverable amount is determined at the higher of the net amount of the asset less disposal expenses or the present value of its estimated future cash flows. Impairment of assets is calculated and recognized on an individual asset basis, and if it is difficult to estimate the recoverable amount of an asset, the asset group which the asset belongs should be the basis to determine the recoverable amount. Asset group is the minimum portfolio that could independently generate cash inflows.

The Company conducts impairment test on goodwill at least at the end of every year.

The Company conducted an impairment test of goodwill, the carrying amount of goodwill in a business combination is, from the date of purchase in accordance with reasonable method allocated to the related asset groups; difficult allocated to the related asset groups, it is allocated to the relevant asset groups. The book value of goodwill is amortized to relevant asset groups or combinations of asset groups according to the proportion of the fair value of such asset groups or combinations of asset groups in the total fair value of relevant asset groups or combinations of asset groups. Where the fair value cannot be reliably measured, it should be amortized according to proportion of the book value of each asset group or combination of asset group in the total book value of relevant asset groups or combinations of asset groups.

When making an impairment test on the relevant asset groups or combination of asset groups containing goodwill, if any indication shows that the asset groups or combinations of asset groups related to the goodwill may be impaired, the Company shall first conduct an impairment test on the asset groups or combinations of asset groups not containing goodwill, calculate the recoverable amount and compare it with the relevant book value to recognize the corresponding impairment loss. Then the Company shall conduct an impairment test on the asset groups or combinations of asset groups containing goodwill, and compare the book value of these asset groups or combinations of asset groups (including the book value of the goodwill apportioned thereto) with the recoverable amount. Where the recoverable amount of the relevant assets groups or combinations of asset groups is lower than the book value thereof, the Company shall recognize the impairment loss of the goodwill. The above-mentioned losses from asset impairment are recognized once recognized, and shall not be reversed in subsequent accounting period.

3.21 Long-term deferred expenses: The Company's long-term deferred expenses refer to all kinds of paid-out expenses amortized over more than one year (excluding one year), and mainly include parking fee and housing renovation costs. Long-term deferred expenses are amortized by stages over the period of benefit of expense items. If an item of long-term deferred expense cannot bring any benefit in future accounting periods, the amortized value of the unamortized item shall all be transferred to the current profit and loss.

3.22 Employee compensation 3.22.1 Accounting treatment methods of short-term compensations During the accounting period of receiving services from employees, the Company recognizes the employee compensation actually paid as liability, and includes it in the current profit and loss or relevant asset cost.

The social insurance premiums and housing fund paid for employees by the Company, as well as the labor union expense and employee education expense accrued according to the provisions, shall be calculated according to the stipulated contribution base and proportion to determine the amount of corresponding employee compensation during the accounting period of employees providing services to the Company.

Notes to the Financial Statements Page 18 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Employee welfare, if being non-monetary benefits that can be measured reliably, is measured at fair value.

3.22.2 Accounting treatment methods of post-employment welfare (1) Defined contribution plan The Company pays basic endowment insurance premiums and unemployment insurance premiums for its employees in accordance with relevant provisions of local government. During the accounting period when the Company receives services from employees, the payable amount calculated according to the base and proportion prescribed is recognized as a liability and included in current profit and loss or related asset cost.

In addition to the basic endowment insurance, the Company also established the enterprise annuity contribution system (supplementary pension insurance) according to related state policies on enterprise annuity. The Company pays or contribute to the annuity plan in a certain proportion to the total employee wage to the local social insurance agency, with corresponding expense included in the current profit and loss or related asset cost.

3.22.3 Accounting treatment methods of dismissal welfare When the Company cannot unilaterally withdraw the dismissal welfare provided due to termination of labor relation or layoff proposal, or when the Company confirms costs or expenses relevant to the restructuring of payment of dismissal welfare, whichever is earlier, it shall recognize the employee compensation paid as dismissal welfare as a liability and include it to the current profit and loss.

3.23 Estimated liabilities 3.23.1 Recognition criteria of estimated liabilities When an obligation is a current obligation of the Company, the performance of the obligation is likely to result in an outflow of economic benefits and the amount of the obligation can be measured reliably, such obligation shall be recognized as estimated liabilities.

3.23.2 Measurement method of estimated liabilities The estimated liabilities are initially measured as the best estimate of expenses required for the performance of relevant present obligations. If there is a continuous range for the necessary expenses and the probability of occurrence of all the outcomes within this range are equal, the best estimate shall be determined at the average within the range; if the contingency involves several items, the best estimate should be determined according to all the possible outcomes with their relevant probabilities.

The Company reviews the book value of estimated liabilities on the balance sheet date, and makes corresponding adjustments to reflect the current best estimate if there is any change in such book value.

3.24 Share-based payments The term "share-based payment" refers to a transaction in which the Company grants equity instruments or undertakes equity-instrument-based liabilities in return for services from employee. The share-based payments shall consist of equity-settled share-based payments and cash-settled share-based payments. The equity-settled share-based payment in exchange for employee services is measured at the fair value of equity instrument granted to the employees; for equity-settled share-based payment in exchange for other parties' services, it is measured at the fair value of other parties' services on the acquisition date, or is measured at the fair value of the equity instrument on the day of receiving services if the fair value of other party's cannot be reliably measured. The fair value of equity instrument is determined as follows:

Notes to the Financial Statements Page 19 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 (1) The fair value of an equity instrument for which there is an active market shall be determined in accordance with the quoted price in such active market; and

(2) The fair value of an equity instrument for which there is no active market shall be determined by using some valuation techniques, including the prices adopted by the parties, who are familiar with the condition, in the latest market transaction upon their own free will, the current fair value obtained by referring to other financial instruments of the same essential nature, and the discount cash flow method and options pricing model.

The Company determines the best estimate of vesting equity instrument according to the latest change in number of vesting employees and other subsequent information.

3.25 Revenue The Company's revenue mainly include the revenue from real estate sales, the revenue from property lease, the revenue from property management, and the revenue from other goods and services. Specific recognition principles are as follows: (1) Revenue from real estate sales: the sale revenue is recognized when the construction is completed and accepted, the sale contract is signed, the buyer's payment evidence has been obtained and the real estate has been delivered for use. Where the buyer refuses to accept after receipt of the written notice of housing delivery, the sales revenue is recognized upon expiry of the delivery term as determined in the said written notice. For entrusted development projects meeting the conditions stipulated in the Accounting Standards for Business Enterprises - Construction Contract, relevant sales revenue is recognized by using the percentage-of-completion method. The percentage of completion is determined according to the percentage of work completed.

(2) Revenue from property lease: it is recognized according to the date and amount of payment stated in the contract or agreement signed with the leasee.

(3) Revenue from property management: it is recognized when the property management service has been provided, economic benefits related to the property management service will flow to the Company, and cost related to the property management service can be measured reliably.

(4) Other revenue: A. Revenue from sales of goods is recognized when the Company has transferred to the buyer the significant risks and rewards of ownership of the goods; the Company retains neither continuous management rights usually associated with the ownership nor effective control over the goods sold; the amount of revenue can be measured reliably; it is highly likely that relevant economic benefits will flow into the enterprise; and the relevant cost incurred or to be incurred can be measured reliably.

B. Revenue from rendering of services is recognized by using the percentage-of-completion method when the transaction result of rendering of service can be reliably estimated.

C. Revenue from transfer of right to use assets is recognized when economic benefit related to trade probably flow into the enterprise and the amount of revenue can be reliably measured.

3.26 Government subsidies 3.26.1 Type Government subsidies are monetary assets and non-monetary assets acquired free of charge by the Company from the government. Government subsidies are classified into government subsidies related to assets and government subsidies related to income.

The government subsidies related to assets refer to government subsidies obtained by the Company and used for acquiring and constructing or otherwise formed long-term assets,

Notes to the Financial Statements Page 20 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 which include financial appropriation for acquiring fixed assets or intangible assets and the financial discounts of special borrowings for fixed assets. Government subsidies related to income refer to those other than the government subsidies related to assets.

3.26.2 Accounting treatment Government subsidies related to assets are recognized as deferred income, and included in non-operating income by stages within the useful life of the assets acquired and constructed;

The income-related government subsidies used for compensation to the related expenses or loss of the Company in subsequent period shall be recognized as deferred income when obtained and charged into current non-operation income during the recognition of related expenses. The income-related government subsidies used for compensation to the related expenses or loss of the Company occurred shall be directly charged into current non-operation income when acquired.

3.27 Deferred income tax assets and deferred income tax liabilities Recognition of deferred income tax assets and deferred income tax liabilities (1) Deferred income tax assets and deferred income tax liabilities are calculated and recognized according to the difference between the book values and tax bases of the assets and liabilities (or according to the tax bases in respect of items that are not recognized as assets and liabilities but whose tax bases can be determined according to tax provisions), plus the applicable tax rates prevailing in the expected period of asset recovery or liability.

(2) Deferred income tax assets are recognized to the extent of taxable income that is likely to offset the deductible temporary differences. On the balance sheet date, if there is solid evidence that it is possible to obtain sufficient taxable income in future period to offset the deductible temporary differences, the deferred income tax assets not recognized in prior accounting period shall be recognized in the current period; if it is impossible to obtain sufficient taxable income in future period to offset the deferred income tax assets, book value of the deferred income tax assets is written down.

(3) Taxable temporary differences related to investments in subsidiaries and associates are recognized as deferred income tax liabilities, unless the Company can control the time of reversing the temporary differences and such differences cannot be reversed in the foreseeable future. Deductible temporary differences related to investments in subsidiaries and associates are recognized as deferred income tax assets when the temporary differences are very likely to be reversed in the foreseeable future and to be obtained for deducting the taxable income of the deductible temporary differences in the future.

3.28 Leases 3.28.1 Accounting treatment of operating lease (1) Lease fees paid by the Company for leased asset shall be amortized at straight-line method over the whole lease term (including rent-free period) and included in the current expenses. Initial direct costs related to lease transactions paid by the Company shall be included in the current expenses.

If the expense related to the lease which shall be paid by the Company is assumed by the lessor of the asset, such expenses shall be deducted from total lease fees, and residual lease fees shall be amortized over the lease period and included in the current expenses.

(2) Lease fees received by the Company from leasing assets shall be amortized at straight-line method over the whole lease period (including rent-free period), and shall be recognized as lease income. Initial direct costs related to lease transactions paid by the Company shall be included in the current expenses; if the amount is large, it shall

Notes to the Financial Statements Page 21 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 be capitalized, and shall be included in the current income by stages within the whole lease period on same basis for recognition of lease income.

If the expenses related to the lease which shall be paid by the lessee are borne by the Company, such expenses shall be deducted from total lease income by the Company, and residual lease fees shall be amortized over the lease period.

3.28.2 Accounting treatment of financing lease (1) Assets acquired under financing lease: on the commencement date of lease, the Company recognizes the fair value of leased assets or the present value of the minimum lease payment, whichever is the lower, as the entry value of the leased assets, the minimum lease payment as the entry value of long-term payables, and their difference as unrecognized financing expenses. The Company adopts effective interest rate method to amortize unrecognized financing expenses over the lease period of the asset and includes them into financial expenses. Initial direct costs incurred to the Company are included in the value of leased asset.

(2) Assets surrendered under financing lease: on the commencement date of lease, the Company recognizes the difference between the sum of financing lease payment receivable and unguaranteed residual value, and the present value of the assets as unrealized financing income and as financing income in each period of future lease. The initial direct expenses of the Company related to lease are included into the initial measurement of financing lease payment receivable, and the income recognized in lease period is decreased accordingly.

3.29 Changes in significant accounting policies and accounting estimates 3.29.1 Changes in significant accounting policies (1) Nature, content and cause of the change in accounting policies In 2014, the Ministry of Finance, respectively through its documents of Cai Kuai [2014] No.6, No.7, No.8, No.10, No.14, No.16 and No.23, issued the Accounting Standards for Business Enterprises No.39 - Measurement of Fair Value, the Accounting Standards for Business Enterprises No.30 - Presentation of Financial Statements (Revised), the Accounting Standards for Business Enterprises No.9 - Employee compensation (Revised), the Accounting Standards for Business Enterprises No.33 - Consolidated Financial Statements (Revised), the Accounting Standards for Business Enterprises No.40 - Joint Venture Arrangements, the Accounting Standards for Business Enterprises No .2 - Long-term Equity Investments (Revised), the Accounting Standards for Business Enterprises No.41 - Disclosure of Interests in Other Entities, and the Accounting Standards for Business Enterprises No.37 - Presentation of Financial Instruments, requested corresponding implementation in all enterprises applying the Accounting Standards for Business Enterprises as of July 1, 2014, and encouraged all overseas-listed enterprises to implement in advance.

The Company has adopted the said new and revised Accounting Standards for Business Enterprises since July 1, 2014.

(2) Main impacts arising from implementation of the said Accounting Standards for Business Enterprises are as follows: According to the Accounting Standards for Business Enterprises No.2 - Long-term Equity Investments (Revised), the Company reclassifies the investments which constitute no joint control or significant influence over the investee and have no price quoted in the active market and whose fair value cannot be measured as available-for-sale financial assets from long-term equity investments, and makes retroactive adjustments after the accounting. Specific amounts affected in the statements in the beginning of the period are listed as follows:

Notes to the Financial Statements Page 22 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Amount affected Investee Basic trading information Long-term equity Available-for-sale investments financial assets Initially invested Beijing New Poly Plaza RMB14,822,800.00, and Real Estate Development consolidated 10.53% shareholding Co., Ltd. ratio -10,751,229.53 10,751,229.53 Initially invested RMB76,802,985.00, and Poly Finance Company consolidated 10% shareholding Limited ratio -76,802,985.00 76,802,985.00 Initially invested Shaoshan Everbright Rural RMB4,000,000.00, and Bank Co., Ltd. consolidated 8% shareholding ratio -4,000,000.00 4,000,000.00 The ECIC (Tianjin) Equity Investment Fund Partnership Enterprise Initially invested (limited partnership) RMB444,000,000.00 -444,000,000.00 444,000,000.00 Total -535,554,214.53 535,554,214.53

3.29.2 Changes in significant accounting estimates None.

4. Taxation 4.1 Major tax types and tax rates Tax type Basis of tax assessment Tax rate Enterprise income tax Taxable income 25% Revenue from real estate sales and construction Business tax services and so on 3%, 5% or 20% Urban maintenance and Paid in accordance with local taxation construction tax Business tax (or VAT paid) policies Paid in accordance with local taxation Education surtax Business tax (or VAT paid) policies Revenue from real estate sales - less the project Paid at the excess progressive tax rate VAT on land amount of 30%-60% Deed tax Amount for sale and transfer of land use right 3%-5%

Disclosure of information about taxpayers applying different enterprise income tax rates Taxpayer Name Income Tax Rate Hengfu (Hong Kong) Real Estate Limited 16.5% Noda Co., Ltd. 16.5% Boqiao Investment Co., Ltd. 16.5% Life Land Company Limited 16.5% Shouhong Co., Ltd. 16.5% ABUNDANT CHOICE INVESTMENTS LIMITED 16.5% ACTION DRAGON INVESTMENTS LIMITED 16.5% Hong Tai Co., Ltd. 0% Shengxin Company Limited 0% Poly Real Estate Finance Ltd 0% CORSS FORTUNE HOLDINGS LIMITED 0% MEGA WISE HOLDINGS LIMITED 0% PRIDE SOUTH HOLDINGS LIMITED 0% TOTAL FAVOUR LIMITED 0%

Notes to the Financial Statements Page 23 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 4.2 Tax preference None.

5. Notes to mains items of the consolidated financial statements 5.1 Cash and cash equivalents 5.1.1 Cash and cash equivalents presented by category: Balance as at Balance as at Item December 31, 2014 January 1, 2014 Cash on hand 8,923,274.07 8,546,377.74 Bank deposit 39,342,412,728.68 33,096,603,837.87 Other cash and cash equivalents 718,176,623.25 647,819,615.19 Total 40,069,512,626.00 33,752,969,830.80 Including: total amount of deposit abroad 601,476,987.88 2,117,456,004.81 Other notes: as at December 31, 2014, RMB717,643,327.34 in the item of other cash and cash equivalents is the Company's performance bond deposit, for which the use right is restricted during the performance period; apart from that, there is no other restricted or pledged cash and cash equivalents.

5.2 Notes receivable 5.2.1 Notes receivable presented by category Item Balance as at December 31, 2014 Balance as at January 1, 2014 Bank acceptance bill 3,150,000.00 3,224,500.00 Commercial acceptance bill Total 3,150,000.00 3,224,500.00

Notes to the Financial Statements Page 24 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 5.3 Accounts receivable 5.3.1 Disclosure of accounts receivable by category Balance as at December 31, 2014 Balance as at January 1, 2014 Book balance Allowance for bad debts Book balance Allowance for bad debts Type Proportion Proportion Book value Proportion Proportion Book value Amount Amount Amount Amount (%) (%) (%) (%) Individually significant accounts receivable with allowance for bad debts accrued on a separate basis Accounts receivable with allowance for bad debts accrued according to credit risk characteristics 3,525,860,752.93 100.00 176,293,037.65 5.00 3,349,567,715.28 2,454,540,473.43 100.00 122,727,023.67 5.00 2,331,813,449.76 Individually insignificant accounts receivable with allowance for bad debts accrued on a separate basis Total 3,525,860,752.93 100.00 176,293,037.65 3,349,567,715.28 2,454,540,473.43 100.00 122,727,023.67 2,331,813,449.76

There is no individually significant account receivable with allowance for bad debts accrued on a separate basis as at December 31, 2014.

Notes to the Financial Statements Page 25 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Accounts receivable accrued for provision for bad debt by balance percentage method in portfolio: Balance as at December 31, 2014 Percentage-of-balance Allowance for Accounts receivable Provision ratio (%) bad debts Within 1 year (including 1 year) 3,118,737,179.00 155,936,858.95 5.00 1 to 2 (inclusive) years 242,527,590.93 12,126,379.55 5.00 2 to 3 (inclusive) years 90,216,057.60 4,510,802.88 5.00 Over 3 years 74,379,925.40 3,718,996.27 5.00 Total 3,525,860,752.93 176,293,037.65 5.00 Notes to determination of portfolio: portfolio with similar credit risk characteristics is formed based on the credit term and aging.

There is no individually insignificant account receivable with allowance for bad debts accrued on a separate basis as at December 31, 2014.

5.3.2 RMB 54,213,452.12 was accrued as allowance for bad debts in 2014.

5.3.3 There is no account receivable actually written off during the reporting period.

5.3.4 The sum amount of accounts receivable from top 5 debtors in terms of ending balance is RMB250,020,440.27, accounting for 7.09% of the ending balance of accounts receivable, and the corresponding ending balance of allowance for bad debts is RMB12,501,022.01.

5.4 Advances to suppliers 5.4.1 Presentation of advances to suppliers by aging Balance as at December 31, 2014 Balance as at January 1, 2014 Aging Book balance Proportion (%) Book balance Proportion (%) Within 1 year 13,560,218,099.33 60.09 13,795,899,211.41 71.57 1 to 2 years 5,043,298,424.39 22.35 3,084,841,208.99 16.00 2 to 3 years 1,863,779,875.68 8.26 1,518,353,835.95 7.88 Over 3 years 2,098,320,277.59 9.30 876,769,487.56 4.55 Total 22,565,616,676.99 100.00 19,275,863,743.91 100.00 Other notes: the advances to suppliers with significant amount and aging exceeding one year refer to the project cooperation price and construction price and arise from pre-cooperation or unsettlement of projects.

5.4.2 Information about advances to suppliers in terms of top 5 ending balances Proportion in the total ending Balance as at Prepaid object balance of advances to December 31, 2014 suppliers (%) Southern United Assets & Equity Exchange 2,020,176,000.00 8.96 Qingdao Land Reserves and Coordination Center 1,617,644,883.00 7.17 Land Resources Bureau of Xindu District, Chengdu 1,558,091,520.00 6.90 Wuhan 2049 Investment and Development Co., Ltd. 1,241,800,000.00 5.50 Guangzhou Xiancun Industrial Co., Ltd. 1,024,000,000.00 4.54 Total 7,461,712,403.00 33.07

Notes to the Financial Statements Page 26 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 5.5 Other receivables 5.5.1 Other receivables disclosed by type: Balance as at December 31, 2014 Balance as at January 1, 2014 Book balance Allowance for bad debts Book balance Allowance for bad debts Proportion Proportion Type Proportion of Book value Proportion of Book value Amount Amount Amount Amount (%) provision (%) provision (%) (%) Other receivables with significant single amount and allowance for bad debts accrued on individual basis 14,450,613,450.19 80.97 14,450,613,450.19 5,367,122,252.67 68.27 5,367,122,252.67 Other receivables with allowance for bad debts accrued on a group basis and according to credit risk characteristics 3,397,315,324.85 19.03 169,865,766.24 5.00 3,227,449,558.61 2,494,489,633.06 31.73 124,724,481.65 5.00 2,369,765,151.41 Other receivables with insignificant single amount and allowance for bad debt accrued on individual basis Total 17,847,928,775.04 100.00 169,865,766.24 17,678,063,008.80 7,861,611,885.73 100.00 124,724,481.65 7,736,887,404.08

Notes to the Financial Statements Page 27 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 (1) Other receivables with significant single amount and allowance for bad debts accrued on individual basis as at December 31, 2014: Balance as at December 31, 2014 Proportion Other receivables (by unit): Allowance for Reason for Other receivables of bad debts provision provision Beijing Sunac Hengji Real Estate Co., Ltd. (Sunac Hengji) 1,715,670,000.00 Note 1 Beijing Yitai Real Estate Development Co., Ltd. ("Beijing Yitai") 1,665,000,000.00 Note 2 Guangzhou Zhongyao Industrial Investment Co., Ltd. ("Guangzhou Zhongyao") 1,339,152,396.73 Note 2 Tianjin Sunac Lvcheng Investment Holdings Co., Ltd. ("Sunac Lvcheng") 1,300,171,813.00 Note 1 Tianjin Sunac Aocheng Investment Co., Ltd. ("Sunac Aocheng") 1,107,890,000.00 Note 1 Foshan Shunde District Vanke Real Estate Co., Ltd. (“Shunde Vanke”) 882,654,897.55 Note 2 Dongguan Wanhong Real Eatate Co., Ltd. ("Dongguan Wanhong") 675,281,164.00 Note 2 Beijing Capital Develop Co., Ltd. ("BCD") 634,314,000.00 Note 1 ECIC (Tianjin) Equity Investment Fund Partnership Enterprise (limited partnership) ("ECIC Limited Partnership") 593,046,486.17 Note 1 ECIC (Tianjin) Equity Investment Fund Management Co., Ltd. ("ECIC Fund Management") 495,998,155.00 Note 2 Wuhan Qingneng Yisheng Property Co., Ltd. ("Wuhan Qingneng") 404,900,466.67 Note 2 ECIC Gaoya (Tianjing) Equity Investment Fund Partnership (limited partnership) ("ECIC Gaoya Fund") 346,630,950.10 Note 1 Tianjin Xinhe Longchang Real Estate Co., Ltd. (“Tianjin Xinhe Longchang”) 345,015,088.40 Note 2 Chance King Investments Limited 323,100,000.00 Note 1 Dongguan Heyue Investment Co., Ltd. ("Dongguan Heyue") 286,834,450.50 Note 2 Luoyang Liye Real Estate Development Co., Ltd. ("Luoyang Liye") 265,807,841.53 Note 2 Shanghai Green Land Group Chengdu Property Co., Ltd. ("Green Land Chengdu") 241,811,980.65 Note 1 Foshan Nanhai Hengcheng Property Co., Ltd. ("Foshan Hengcheng Property") 240,293,628.44 Note 1 Cloud Magic Holdings Limited 238,600,000.00 Note 1 Henan Tianzhidong Property Co., Ltd. ("Henan Tianzhidong") 217,099,320.70 Note 2

Notes to the Financial Statements Page 28 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Balance as at December 31, 2014 Proportion Other receivables (by unit): Allowance for Reason for Other receivables of bad debts provision provision Putian Zhongchen Real Estate Development Co., Ltd. ("Putian Zhongchen") 207,071,619.50 Note 2 Shenzhen Hengdi Investment Co., Ltd. ("Shenzhen Hengdi") 180,985,024.00 Note 1 Tianjin Sunac Real Estate Co., Ltd. (Sunac Real Estate) 163,573,489.40 Note 1 Foshan Shunde Wanjia Equity Investment Partnership Enterprise (limited partnership) ("Foshan Shunde Wanjia") 163,563,073.23 Note 1 Guangzhou Bao'ao Real Estate Development Co., Ltd. ("Guangzhou Bao'ao") 157,428,468.60 Note 2 Sanya Zhongtie Baofeng Property Co., Ltd. ("Sanya Zhogntie") 129,416,074.02 Note 2 Hangzhou Jinmu Real Estate Development Co., Ltd.("Hangzhou Jinmu") 129,303,062.00 Note 2 Total 14,450,613,450.19 Note 1: Sunac Hengji, Sunac Lvcheng, Sunac Aocheng, BCD, ECIC Limited Partnership, ECIC Gaoya Fund, Chance King Investments Limited, Green Land Chengdu, Foshan Hengcheng Property, Cloud Magic Holdings Limited, Shenzhen Hengdi, Sunac Property and Foshan Shunde Wanjia are all partner shareholders of subsidiaries of the Company, and in order to improve usage efficiency of the capital surplus of subsidiaries, all shareholders have transferred certain capital at a certain proportion of their respective shareholding ratios, and the allowance for bad debt has not been accrued due to the their mutual constraints and equality of rights and duties.

Note 2: Beijing Yitai, Guangzhou Zhongyao, Shunde Vanke, Dongguan Wanhong, ECIC Fund Management, Wuhan Qingneng, Tianjing Xinhe Longchang, Dongguan Heyue, Luoyang Liye, Henan Tianzhidong, Putian Zhongchen, Guangzhou Bao'ao, Sanya Zhongtie and Hangzhou Jinmu are associates or joint ventures of the Company or their subordinate enterprises. The said associates or joint ventures have been invested by the Company based on a certain ratio according to relevant project cooperation agreements and conducted impairment tests by specific identification method at the end of the period. Owing to the availability for effective operation and management by the Company, as well as the good economic return of their real estate projects with no signs of impairment through measurement, the allowance for bad debt has not been accrued.

(2) Other receivables with allowance for bad debts accrued by using the percentage-of-balance method in portfolios: Balance as at December 31, 2014 Percentage-of-balance Allowance for Proportion of Other receivables bad debts provision (%) Within 1 year (including 1 year) 1,588,537,228.25 79,426,861.41 5.00 1 to 2 (inclusive) years 893,366,053.80 44,668,302.69 5.00 2 to 3 (inclusive) years 393,954,683.00 19,697,734.15 5.00 Over 3 years 521,457,359.80 26,072,867.99 5.00 Total 3,397,315,324.85 169,865,766.24 5.00

Notes to the Financial Statements Page 29 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Notes to determination of portfolio: portfolio with similar credit risk characteristics is formed based on the credit term and aging.

There are no other receivables with insignificant single amount and allowance for bad debts accrued on an individual basis as at December 31, 2014.

5.5.2 Provision, reversal or recovery of allowance for bad debts in 2014 RMB45,157,094.63 was accrued as allowance for bad debts in 2014.

5.5.3 There are no other receivables actually written off in 2014.

5.5.4 Other receivables (by nature): Nature Ending book balance Book balance as at January 1, 2014 Current account of partners 8,289,244,843.81 3,833,642,206.20 Current account of associates and joint ventures 6,997,808,798.94 2,039,964,584.47 Others 2,560,875,132.29 1,988,005,095.06 Total 17,847,928,775.04 7,861,611,885.73

5.5.5 Information about other receivables from debtors in terms of top 5 ending balances Proportion in Allowance for bad Balance as at the total ending debts Unit name Nature December 31, Aging balance of other Balance as at 2014 receivables (%) December 31, 2014 Current accounts with shareholders of Within 1 year, Sunac Hengji partners of subsidiaries 1,715,670,000.00 or 1-2 years 9.62 Fund invested in joint venture for project Beijing Yitai development 1,665,000,000.00 Within 1 year 9.33 Fund invested in joint Guangzhou venture for project Zhongyao development 1,339,152,396.73 Within 1 year 7.50 Current accounts with Sunac shareholders of Within 1 year, Lvcheng partners of subsidiaries 1,300,171,813.00 or 1-2 years 7.28 Current accounts with Sunac shareholders of Within 1 year, Aocheng partners of subsidiaries 1,107,890,000.00 or 1-2 years 6.21 Total 7,127,884,209.73 39.94

Notes to the Financial Statements Page 30 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 5.6 Inventories 5.6.1 Classification of inventories Ending balance Beginning balance Item Book balance Depreciation reserve Book value Book balance Depreciation reserve Book value Development costs 231,268,239,431.70 322,823,920.33 230,945,415,511.37 214,902,424,143.16 214,902,424,143.16 Product development 36,367,345,826.99 140,343,760.97 36,227,002,066.02 24,954,589,229.09 24,954,589,229.09 Raw materials 11,217,159.56 11,217,159.56 42,497,672.18 42,497,672.18 Stock commodities 7,190,740.12 7,190,740.12 7,119,547.30 7,119,547.30 Low-cost consumables 1,276,457.62 1,276,457.62 665,364.13 665,364.13 Total 267,655,269,615.99 463,167,681.30 267,192,101,934.69 239,907,295,955.86 239,907,295,955.86

(1) Development costs Estimated total Commencement Expected completion Project name investment Ending balance Beginning balance date date (RMB'0,000) The Guangzhou Poly West Coast Residence (including the Guangzhou Poly Xinghai Garden) September-09 June-15 979,293.00 1,870,094,371.63 3,322,004,083.98 Guangzhou Poly Park City November-11 December-15 364,465.83 775,818,740.63 2,296,400,572.50 Guangzhou Poly Seine Villa April-12 October-15 188,765.00 1,583,446,971.65 1,398,466,366.56 Guangzhou Poly D Plaza September-10 187,088.51 359,581,283.73 Guangzhou Poly Zhongke Plaza (the former head office base project) October-10 June-15 47,439.00 366,497,189.29 243,214,227.09 Guangzhou Poly World Trade Center December-06 December-15 467,300.88 68,667,203.58 846,436.61 Guangzhou Poly Clover Plaza September-09 December-15 252,975.72 886,857,935.08 670,674,123.07 Zhongshan Poly Spring January-12 December-16 396,560.26 1,555,963,117.45 1,280,952,337.03 Zhongshan Poly International Plaza May-12 December-16 718,122.00 1,849,351,048.30 1,421,499,934.05 Guangzhou Poly Yunxi June-12 June-15 571,670.00 2,994,417,879.15 4,261,839,694.81 Guangzhou Poly Tianyue December-10 December-15 1,642,364.00 5,836,298,458.51 6,314,780,407.36 Guangzhou Poly Roland International June-15 December-18 637,705.06 2,991,801,487.21 Guangzhou Zengcheng Capital of Poly Dongjiang May-10 December-15 688,503.07 1,830,327,614.80 2,326,390,808.22 Guangzhou Poly Zhongchen Square July-08 58,839.93 79,722,392.78 Guangzhou Poly Lingnan Woods September-13 December-17 370,797.22 2,325,835,142.76 1,801,727,664.29 Guangzhou Poly Long-hee (the former Songhejie Project) September-13 December-15 63,713.51 485,496,162.94 421,726,188.64 Guangzhou Poly Ta To Wun September-13 December-17 371,449.35 2,222,581,580.34 1,763,542,229.12 Guangzhou Conghua Poly Hot Springs Village Project June-15 December-17 166,847.61 271,819,480.74 258,109,499.11 Guangzhou Poly Financial City A005-2 Project June-15 December-18 353,793.54 1,469,032,331.93 817,969,455.00 Guangzhou Poly Financial City A007-1 Project June-15 December-18 361,373.66 1,471,695,631.94 650,003,000.00

Notes to the Financial Statements Page 31 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Estimated total Commencement Expected completion Project name investment Ending balance Beginning balance date date (RMB'0,000) Guangzhou Poly Greenland Ta To Wun (the former Nansha Jinzhou No.7 land project) December-14 December-17 74,708.29 230,753,831.97 Guangzhou Poly Nansha Jinzhou No.9 Land Project June-15 December-17 59,215.56 321,087,235.22 292,534,411.50 Guangzhou Poly Xuefuli (the formerly valve plant project) December-14 June-17 243,604.00 1,763,332,700.13 Guangzhou Poly Hanxi Project June-15 December-17 115,421.89 832,806,990.70 Guangzhou Poly GISE land plot 122 June-16 December-18 300,607.32 776,863,500.00 Guangzhou Poly GISE land plot 140 June-16 December-18 381,177.36 1,050,098,500.00 Zhuhai Poly Lihai Mayflower December-13 December-16 355,599.54 2,287,939,964.70 1,916,267,842.87 Nankunshan Poly Jinliving June-14 June-18 147,938.06 342,674,866.25 Shanwei Poly Jinding project December-15 December-20 414,431.33 329,734,792.49 Guangzhou Nansha e-commerce port project December-15 December-20 225,043.00 109,266,024.13 Foshan Poly Donghu Forest Language June-10 207,186.95 604,247,868.42 Bund the 1st of Foshan Poly June-10 257,539.80 891,388,523.82 Foshan Poly, East Bay I June-12 December-16 517,185.99 2,283,205,714.24 2,797,827,756.59 Foshan Poly, East Bay II September-10 December-15 531,540.44 1,802,217,257.76 1,642,420,036.47 Foshan Poly Purple Mountain Garden June-13 June-15 201,456.95 679,332,602.31 779,799,317.41 Foshan Poly Lafite April-11 June-15 245,771.22 618,681,344.07 934,911,479.27 Foshan Poly Central May-11 June-15 732,204.06 2,721,820,045.27 2,296,663,743.92 Foshan Poly Manor September-12 December-15 514,200.40 2,007,189,414.92 2,324,499,337.21 Foshan Poly Dongbin Garden June-13 December-15 597,092.04 3,306,452,566.56 2,886,171,350.45 Foshan Poly Zhongyue Garden September-14 December-18 314,674.64 1,097,655,242.89 957,780,777.56 Foshan Poly Seattle September-13 December-17 456,047.00 1,885,411,832.95 1,160,470,382.35 Foshan Poly Zishan International December-15 December-18 612,901.00 1,064,162,392.29 817,004,420.61 Foshan Poly Central Park March-14 June-18 481,562.98 1,265,414,553.65 477,770,702.39 Foshan Poly Champagne International (the former Fo Da Shi Shan Project) June-15 December-18 170,617.43 593,455,262.28 120,000,000.00 Jiangmen Poly Ta Tu Wun June-13 December-20 843,224.17 2,089,482,892.76 1,600,394,569.27 Qingyuan Poly Garden July-13 December-20 357,223.32 643,353,792.71 373,003,384.16 Qingyuan Poly Tianhui (the former Ta Tu Wun Project) December-14 December-20 861,416.00 2,270,677,786.99 Shaoguan Poly Furong New Town June-14 December-20 756,651.86 699,069,245.52 528,930,565.40 Shaoguan Poly Whisper Garden (the former Leitin Pharmaceutical Plant project) June-15 December-18 134,512.00 276,580,930.91 260,416,506.66 Zhanjiang Poly Yuandian Square June-14 December-20 1,036,519.73 2,225,799,705.73 958,387,306.14 Zhaoqing Poly Garden June-15 June-19 254,118.00 356,084,001.08 Maoming PolyBohe project December-15 December-18 115,086.76 69,117,755.00

Notes to the Financial Statements Page 32 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Estimated total Commencement Expected completion Project name investment Ending balance Beginning balance date date (RMB'0,000) Shenyang Poly Classically Mysterious Romaunl March-11 June-16 300,471.09 807,775,223.38 709,305,853.10 Shenyang Poly Seelake Fairyland April-10 December-15 390,513.65 624,145,513.66 847,670,450.26 Dandong Poly Whisper Garden March-09 December-15 199,318.07 238,992,631.84 287,513,561.80 Shenyang Poly Whisper Garden June-08 241,174.76 154,143,960.84 Yingkou Poly Champagne Garden April-11 June-16 295,703.20 234,105,264.40 514,273,099.99 Shenyang Poly Twelve Oaks Manor March-09 December-15 105,368.26 88,897,112.40 98,746,199.73 Shenyang Poly Champagne Garden May-13 December-17 286,564.79 902,446,732.60 1,315,684,762.75 Shenyang Poly Jasmine Mansion September-13 December-16 229,601.32 737,813,584.92 653,290,673.59 Shenyang Poly Nature's Whisper September-14 December-18 170,832.00 433,645,942.54 230,811,170.79 Shenyang Poly Redbud Palace September-14 December-18 131,710.79 372,657,800.88 189,965,899.51 Dandong Poly Champagne International September-14 December-17 63,536.93 160,052,082.90 149,240,000.00 Shenyang Poly Ta To Wun (the former Tiandi Project) June-15 June-19 488,306.23 1,514,886,947.47 Dalian Paul Leisy mountains language September-12 November-15 329,419.14 750,871,916.76 2,019,524,000.53 Dalian Poly Nanguanling Project March-14 December-15 54,548.52 316,654,750.86 173,207,710.23 Dalian Poly Grande Mansion September-14 December-20 1,679,036.00 7,315,242,098.59 3,652,945,199.69 Baotou Poly Garden June-06 December-15 288,704.61 241,026,248.67 216,515,432.34 Baotou Paul Li Nanhai Park May-12 June-15 175,068.61 1,669,640,447.70 1,455,342,959.99 Baotou Poly Champagne Garden September-12 June-15 82,301.04 49,282,037.51 437,814,940.16 Beijing Poly Fanghua Jiayuan June-12 52,309.08 404,614,662.94 Beijing Poly West Mountains Residence April-07 December-15 357,446.41 93,312,152.14 76,783,916.21 Beijing Poly Dongjun September-10 430,882.00 686,974,338.84 Beijing Poly Spring October-11 March-15 538,925.20 1,385,399,729.05 4,241,943,210.40 Beijing Poly Central Park July-11 879,289.71 5,211,407,147.46 Beijing Poly Fengdan I June-13 December-15 537,812.46 2,901,759,701.24 3,376,134,148.05 Beijing Poly Hyde Park September-13 December-15 287,194.03 2,410,764,648.98 2,089,861,760.64 Beijing Baoli Shoukai Sunrise Spring June-13 December-15 267,400.82 1,981,987,026.03 1,612,227,263.85 Beijing Poly Luo Lanxiang Valley phase II (the former Shahe Project in Changping) June-14 December-18 251,730.44 1,622,067,522.10 1,361,357,557.61 Beijing Baoli Shoukai Liwan Jiayuan (the former Dongba Project) December-14 December-17 332,438.91 2,210,026,127.83 2,100,000,000.00 Beijing Poly Tongzhou Project June-15 June-17 508,831.73 2,383,002,354.39 2,126,755,015.01 Taiyuan Poly Champagne International December-14 December-18 232,248.44 1,049,566,809.89 766,701,906.14 Shanghai Poly Champagne Garden December-04 December-15 247,605.88 204,354,858.21 938,110,732.77 Shanghai Poly Ye Shanghai February-08 December-15 680,467.54 14,055,843.48 Shanghai Poly International Center August-12 December-15 694,552.78 4,067,549,557.24 3,656,032,900.75

Notes to the Financial Statements Page 33 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Estimated total Commencement Expected completion Project name investment Ending balance Beginning balance date date (RMB'0,000) Shanghai Poly the Blue Forest Phrase August-11 December-15 231,406.73 1,767,843,569.89 1,628,251,348.23 Shanghai Poly Jasmine Mansion March-11 December-15 480,382.35 699,030,082.71 617,009,874.39 Shanghai Bao Lima Bridge Jingcheng·Yayuan July-12 113,640.93 502,686,539.69 The Shanghai Bao Lima Bridge Jingcheng·Zi March-12 76,863.79 461,019,211.30 Shanghai Poly Westcoast December-13 June-16 767,784.44 5,370,283,766.75 4,856,240,729.38 Shanghai Majestic Mansion June-13 June-16 404,890.88 2,955,787,576.77 2,571,353,696.51 Shanghai Poly Ailu (the former International Medical Zone project) December-14 December-18 335,044.27 1,964,173,556.40 1,740,000,000.00 Jiaxing Paul Leisy Tong Yue September-11 December-15 152,978.00 180,289,910.29 123,005,321.58 Nantong Poly Champagne International July-11 December-15 361,307.70 832,969,147.05 710,334,437.73 Wuhan Poly Whisper January-07 343,728.98 212,700,734.13 Wuhan Poly May Flower June-09 December-16 184,206.44 71,723,039.06 107,424,468.58 Wuhan Poly Champagne International July-11 179,819.88 438,326,737.29 Wuhan Poly Mahu Project June-11 June-15 343,728.98 154,667,313.05 1,066,753,387.72 Wuhan Poly Central Mansion August-11 June-15 345,298.74 511,962,656.18 461,307,356.98 Wuhan Guri Poly Park June-12 June-16 548,488.99 1,597,226,993.70 1,880,986,652.99 Wuhan Poly Guanshan Village Project May-13 December-17 802,167.00 3,638,244,738.73 3,014,180,490.76 Wuhan Poly Dream City April-08 December-15 578,974.76 442,181,164.71 299,752,081.93 Changsha Poly Lugu Forest Language March-09 December-15 549,692.14 145,486,185.70 415,200,074.34 Changsha Poly International Plaza March-11 December-15 554,281.29 831,579,242.76 2,442,687,701.69 Changsha Poly West Coast December-13 December-17 947,705.37 3,968,277,310.45 3,735,589,307.87 Changsha Poly Champagne International November-13 December-20 393,652.73 1,239,237,888.79 1,045,027,107.35 Chenzhou Poly Suxianlinyu December-13 June-16 92,631.00 387,939,624.56 296,807,790.60 Chongqing Poly Garden August-04 338,788.20 411,079,584.26 Chongqing Poly Champagne Garden April-05 December-15 176,519.00 211,843,957.26 117,708,165.42 Chongqing Poly Pearl August-10 December-15 983,537.35 2,111,968,538.58 2,457,107,316.43 Chongqing Poly Flowers in City Center June-12 December-15 364,545.54 1,405,540,540.91 2,257,353,206.26 Chongqing Poly Aishangli June-13 June-17 586,915.13 1,937,216,738.10 2,195,905,582.69 Chongqing Poly Linyuxi September-13 December-15 112,179.09 790,439,539.83 585,904,408.26 Chongqing Poly No. 1 Mansion December-13 June-16 119,005.00 664,297,297.01 452,954,123.61 Chongqing Poly Guanlan June-14 December-18 553,101.88 2,971,118,304.58 2,544,617,568.55 Chongqing Poly Immensee (the former Beibei project) December-14 December-18 158,187.94 710,316,031.31 563,193,000.00 Chongqing Poly Guantang June-14 December-20 640,642.52 1,495,560,000.52 1,170,675,844.00 Changchun Poly Luo Lanxiang Valley August-07 June-16 227,911.98 85,502,735.89 46,084,336.43 Changchun Poly Brook Forest Garden June-15 December-17 125,190.26 453,766,510.60 221,158,728.00

Notes to the Financial Statements Page 34 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Estimated total Commencement Expected completion Project name investment Ending balance Beginning balance date date (RMB'0,000) Changchun Poly Golden Champagne June-15 December-18 130,425.97 310,894,747.00 Nanchang Poly Mingya European December-15 201,057.70 50,298,719.80 37,429,009.27 Nanchang Poly Banshan International Garden October-10 December-15 612,646.90 939,593,517.76 910,233,887.28 Nanchang Poly Whisper Garden December-15 December-17 127,302.00 266,359,628.16 258,355,075.00 Nanchang Poly Golden Champagne June-14 December-17 75,069.00 455,940,232.99 201,433,752.00 Chengdu Poly Stone Elephant Lake project April-12 December-15 335,075.78 1,268,573,985.84 799,275,903.06 Chengdu Poly Whisper Garden April-10 204,510.44 541,906,408.58 Chengdu Poly International Square December-14 December-19 280,419.84 396,061,172.34 343,890,882.96 Chengdu Poly Cambridge August-11 June-15 325,544.17 114,303,201.41 1,077,071,791.92 Chengdu Poly Shizi Lake (the former Shizi reservoir project) December-13 June-16 180,334.87 761,535,114.37 716,934,461.36 Chengdu Poly Shizi Lake phase II December-15 December-18 264,473.42 356,862,126.25 Chengdu Poly Garden May-10 393,236.64 563,993,926.60 Chengdu Poly Park 198 April-08 December-18 1,079,847.92 2,123,988,736.23 1,722,707,725.21 Chengdu Poly Champagne International May-11 December-15 167,838.90 6,873,196.92 208,353,779.77 Chengdu Poly Lily Mansion March-13 December-15 191,749.84 1,469,753,412.03 1,218,428,549.06 Deyang Poly International City (including phase I and phase II) June-11 December-16 788,620.72 1,130,454,396.59 1,188,391,086.80 Chengdu Poly City September-11 December-15 297,331.64 807,491,503.56 1,049,511,756.47 Chengdu Poly Champaign Guanghua December-12 122,002.29 889,290,772.84 Chengdu Poly Phoenix Tree June-13 December-15 114,973.70 904,589,642.13 771,745,008.15 Chengdu Poly Leaves Whisper June-13 June-17 211,710.00 1,374,923,944.57 1,009,984,017.11 Chengdu Spring Flowers Whisper April-13 December-17 128,143.91 811,062,776.41 528,761,679.05 Chengdu Poly Rose Whisper May-13 December-16 223,540.00 1,446,878,350.43 979,942,722.33 Chengdu Poly Lake Whisper June-14 December-17 239,485.85 1,590,669,271.42 680,505,043.87 Chengdu Poly Forest Whisper Brook June-14 December-18 216,572.00 1,031,000,889.89 246,976,340.85 Chengdu Poly Lianghe Park September-14 December-18 202,785.48 1,008,651,050.95 Chengdu Poly Lagerstroemia Florid (the former longquanyi project) November-14 December-18 164,116.00 533,986,172.49 Suining Poly Grand River June-13 December-16 169,172.74 792,256,165.05 399,290,483.02 Tibet Paul Linzhi Project December-14 December-19 56,868.62 80,800,409.04 66,627,317.00 Shanghai Poly Leaves of the Forest December-11 December-15 455,828.07 1,937,530,342.17 3,276,750,786.37 Hangzhou Poly Roses Bay June-11 150,141.41 1,183,023,438.58 Hangzhou Poly City Green December-11 143,558.73 969,372,475.15 Hangzhou Poly Joffre County December-11 233,542.53 1,912,375,238.69

Notes to the Financial Statements Page 35 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Estimated total Commencement Expected completion Project name investment Ending balance Beginning balance date date (RMB'0,000) Ningbo Poly Lakeside World April-12 December-16 472,416.67 2,262,961,379.57 2,162,533,082.40 Shaoxing Poly Lakeside Reverie October-11 December-15 206,196.93 1,222,630,737.45 1,393,177,907.18 Hangzhou Poly Phoenix Tree December-13 December-15 159,046.96 1,207,952,118.60 1,033,525,626.24 Zhejiang Poly Luo Lanxiang Valley December-13 December-16 192,075.02 1,187,867,375.82 989,383,261.84 Tianjin Poly Roses Bay September-10 March-15 570,087.95 689,337,528.95 1,504,856,195.87 Tianjin Poly Begonia Bay January-11 190,500.00 674,295,363.67 Tianjin Poly Horizon Capital September-12 September-15 606,012.36 2,615,900,867.93 3,503,238,833.82 Tianjin Poly Chanson Lake December-13 June-16 106,429.29 548,163,558.43 358,103,361.20 Tianjin Poly Charming Mansion September-14 December-17 187,934.00 838,599,685.62 690,026,861.66 Tianjin Poly Seelake Fairyland June-14 December-18 133,180.76 378,326,071.93 334,260,327.84 Tianjin Poly Phoenix Tree December-14 June-17 135,465.70 347,503,773.26 Qingdao Ensure Lihai on Roland June-11 December-15 398,535.36 754,884,028.98 1,760,715,234.99 Qingdao Poly Champagne International September-12 June-15 162,470.39 1,014,807,304.63 1,125,220,345.06 Qingdao Paul Leary Yard August-10 December-15 161,669.02 94,746,548.58 87,409,860.95 Qingdao Poly Manyueshan September-13 December-15 137,779.39 1,200,028,291.88 1,042,237,893.44 Qingdao Poly Leaf Mansion September-13 December-16 263,521.04 1,302,291,758.80 946,092,488.58 Qingdao Poly Jasmine Mansion March-14 December-16 201,999.01 1,036,554,486.70 735,764,451.95 Qingdao Poly the Circle September-14 December-17 41,468.68 151,032,751.60 113,240,000.00 Changchun Poly Champagne Garden November-11 December-16 172,691.76 200,330,827.87 410,202,043.85 Changchun Paul Lihring Language June-10 December-15 225,801.17 238,007,637.27 664,667,617.87 Changchun Poly Lafei Mansion September-12 December-15 199,984.00 848,951,313.71 969,958,229.99 Changchun Poly Net Monthly Project June-14 December-15 43,473.00 391,779,550.22 295,165,035.09 Tonghua Poly Luo Lanxiang Valley December-13 December-16 167,626.55 352,931,525.80 275,011,940.88 Changchun Poly Central Park December-14 December-16 231,419.18 1,143,753,118.67 923,145,188.07 Changchun Poly Spring September-13 June-16 103,450.27 584,926,319.38 361,174,325.74 Yang Jiang Poly Luo Lanxiang Valley September-09 91,580.81 2,797,547.00 Yangjiang Poly Silver Beach September-10 December-15 695,505.40 617,112,260.47 905,289,774.75 Wuxi Poly Champagne International November-10 June-15 270,094.20 967,428,476.78 1,315,721,764.21 Changzhou Guri Poly Park August-13 December-15 143,047.07 785,089,071.39 692,307,864.18 Nanjing Poly Luo Lanxiang Valley August-11 155,255.94 966,732,190.01 Lianyungang Poly Lihai Mayflower June-11 December-15 132,597.31 433,434,287.94 667,344,308.24 Nanjing Poly Phoenix Tree December-11 June-15 248,244.49 394,424,691.82 1,736,674,921.71 Nanjing Poly Amethyst Mountain September-10 333,885.88 429,954,404.39 Nanjing Poly Zijing Mansion December-13 December-15 154,475.26 857,436,658.04 707,770,567.02 Nanjing Poly Luolan Spring June-13 June-15 181,928.48 825,532,095.16 971,880,942.53

Notes to the Financial Statements Page 36 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Estimated total Commencement Expected completion Project name investment Ending balance Beginning balance date date (RMB'0,000) Nanjing Poly Central Park December-13 June-17 524,415.00 2,753,897,398.96 2,484,986,875.59 Nanjing Poly Grand Mansion (the former southern xincheng project) June-15 December-18 453,455.00 1,946,412,906.52 Nanjing Poly Pukou District project December-15 December-18 374,798.85 880,647,893.64 Wuxi Poly Central Park July-13 December-15 197,005.63 1,023,918,993.84 844,682,731.85 Zhuhai Poly Champagne International August-11 August-15 225,652.00 1,139,914,172.07 785,114,666.60 Dongguan Poly Red Coral February-12 December-15 175,968.00 56,923,408.22 640,441,479.05 Zhuhai Poly International Plaza (the former Hengqin project) September-14 December-18 398,261.00 1,394,667,269.70 Dongguan Poly Linyu June-13 December-16 272,115.61 1,311,277,680.72 828,811,696.32 Dongguan Poly Lily Garden (the former Fenggang project) June-14 March-17 64,639.18 389,568,850.51 Nanchang Poly Champagne International November-11 December-15 263,974.00 159,398,735.87 689,470,182.08 Nanchang Poly Lily Garden December-13 December-15 44,455.00 339,107,213.91 252,410,636.52 Hefei Poly Champagne International April-12 December-15 423,879.00 2,162,773,447.87 2,260,677,093.86 Hefei Poly Lafei Mansion October-12 July-15 289,059.00 1,083,379,347.12 1,018,194,290.53 Hefei Poly Lihai Mayflower October-13 June-18 491,618.00 2,459,407,194.20 2,001,627,332.36 Hefei Poly Phoenic Tree October-13 December-16 69,879.00 429,863,630.28 254,365,472.36 Hefei Poly Oriental Mansion October-13 June-18 349,619.27 1,730,596,054.35 1,489,604,450.42 Hefei Poly WestHill Imagination (the former Fenglin Road Project) December-14 December-18 385,905.00 2,066,308,358.98 Zhengzhou Poly Lily Garden February-12 110,468.00 916,454,994.93 Zhengzhou Poly May Flower December-13 June-16 193,782.00 990,139,322.10 771,441,002.64 Shijiazhuang Poly Garden October-12 December-17 636,679.01 2,333,478,053.62 2,631,781,719.95 Shijiazhuang Poly Lafei Mansion June-15 December-19 583,825.47 1,657,778,091.05 Sanya Poly Forum Project December-14 June-16 305,386.59 1,346,664,272.07 849,970,845.32 Sanya Poly Begonia Bay June-15 December-17 110,986.68 473,357,791.78 Haikou Poly Xiuying Port Project December-15 December-19 415,858.64 1,243,521,126.58 Fuzhou Poly Xijiang Forest Whisper August-13 December-15 300,014.00 1,598,678,333.27 1,449,600,120.76 Fuzhou Poly Grand Mansion Garden June-15 December-18 334,128.17 1,780,315,250.00 Xiamen Poly Coastal Mansion (the former Tongan District project) December-15 June-19 685,653.66 3,490,921,532.07 Xi'an Poly Spring Plaza September-13 June-16 200,570.00 1,013,238,014.52 865,469,973.67 Xi'an Poly Gold Champagne December-13 June-16 143,622.00 740,353,724.78 393,832,603.75 Xi'an Poly Lafei Mansion September-13 December-16 312,288.00 1,496,252,457.81 1,024,660,724.72 Lanzhou Poly Leader Hill December-15 December-19 282,377.00 736,052,358.14

Notes to the Financial Statements Page 37 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Estimated total Commencement Expected completion Project name investment Ending balance Beginning balance date date (RMB'0,000) Urumqi Poly WestHill Imagination December-15 December-18 170,826.46 569,939,846.86 Total 231,268,239,431.70 214,902,424,143.16

(2) Product development Commencement Increase in the Decrease in the Project name Beginning balance Ending balance date current year current year Guangzhou Poly Beijing Plaza September-01 3,564,058.43 550.00 3,564,608.43 Guangzhou Poly Cotton Tree Garden December-01 1,512,465.36 1,512,465.36 Guangzhou Poly Cloud Hill December-02 4,069,168.57 80,000.00 4,149,168.57 Guangzhou Poly Lily Garden April-05 30,898,549.80 1,280.00 30,899,829.80 Guangzhou Poly Lily Garden II April-07 12,670,501.67 216,483.15 12,886,984.82 Guangzhou Poly Champagne Garden November-05 2,394,174.09 2,394,174.09 Guangzhou Poly Fragrant Snow-Capped Mountains September-11 205,769,374.59 70,488,616.56 276,257,991.15 Guangzhou Poly West Sub Bay December-10 8,674,298.12 4,180,730.11 4,493,568.01 Guangzhou Poly Begonia Garden June-06 1,473,986.25 1,473,986.25 Guangzhou Poly International Plaza March-07 238,254,314.83 87,186,817.52 151,067,497.31 Guangzhou Bao Li Linhai Hills February-10 117,955,035.61 2,233,311.20 120,188,346.81 Guangzhou Poly Center July-10 76,522,167.08 3,558,262.67 80,080,429.75 Guangzhou Poly Manor 2010 September-11 71,864,228.63 10,563,470.33 82,427,698.96 Guangzhou Poly Spring November-11 11,781,249.19 6,018,094.24 5,763,154.95 Guangzhou Poly Champaign Mansion June-13 49,066,750.68 40,356,768.95 89,423,519.63 Guangzhou Paul Lihring language Hills June-11 2,545,374.09 38,027,641.83 38,027,641.83 2,545,374.09 Guangzhou Poly Ziwei Garden December-13 4,126,929.11 8,986,393.95 7,136,197.23 5,977,125.83 Guangzhou Poly Whisper Garden June-10 38,030,040.23 1,028,974,457.00 1,035,210,961.79 31,793,535.44 One Manor Poly, Guangzhou Zengcheng December-10 88,600,888.93 954,576.25 43,768,892.36 45,786,572.82 Guangzhou Poly V Block June-12 216,924,147.50 1,133,054,896.75 1,145,093,294.73 204,885,749.52 Guangzhou Poly Zhongyu Square April-11 40,043,652.61 1,113,956.08 38,929,696.53 Guangzhou Poly Central Square September-11 146,869,221.35 12,367,568.96 134,501,652.39 Guangzhou Poly Central Plaza May-13 188,633,950.79 42,882,705.90 1,829,259.99 229,687,396.70 Guangzhou Poly Zhongchen Square 10,670,647.46 10,670,647.46 Guangzhou Poly West Coast Residence (including the Guangzhou Poly Xinghai Garden) June-15 6,729,052.63 2,413,237,573.58 2,418,604,866.69 1,361,759.52 Guangzhou Zengcheng Capital of Poly Dongjiang December-15 11,436,758.50 1,196,733,315.82 672,519,733.40 535,650,340.92 Guangzhou Poly Clover Plaza December-15 178,791,877.40 151,897,397.73 26,894,479.67

Notes to the Financial Statements Page 38 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Commencement Increase in the Decrease in the Project name Beginning balance Ending balance date current year current year Guangzhou Poly Yunxi June-15 1,696,019,303.23 592,529,943.13 1,103,489,360.10 Guangzhou Poly D Plaza September-14 614,442,647.62 598,611,049.70 15,831,597.92 Guangzhou Poly Park City December-15 1,906,751,291.25 1,906,751,291.25 Guangzhou Poly World trade Center December-15 23,111,635.90 8,336,000.00 14,775,635.90 Guangzhou Poly Tianyue December-15 3,457,287,137.74 3,271,126,793.74 186,160,344.00 Dongguan Poly Red Coral December-15 95,026,993.69 871,908,241.76 915,358,989.27 51,576,246.18 Zhongshan Poly Spring December-16 150,400,226.20 101,769,756.34 48,630,469.86 Zhongshan Poly International Plaza December-16 32,095,824.52 308,247,710.75 308,311,804.00 32,031,731.27 Zhuhai Poly Champagne International August-15 27,198,288.66 27,198,288.66 South China Sea Poly Canal Plaza June-11 235,642,282.95 552,336.49 236,194,619.44 Nanhai Poly Garden June-11 84,412,942.45 59,589,147.01 109,019,988.61 34,982,100.85 Nanhai Poly Constellation May-10 39,257,019.00 4,581,485.88 23,563,996.05 20,274,508.83 Foshan Poly Donghu Forest Language June-14 370,680,821.28 685,521,033.23 838,904,040.45 217,297,814.06 Shunde Poly Lily Garden July-11 4,245,331.05 297,285.60 4,542,616.65 Foshan Poly Champagne Garden December-13 527,665,238.85 426,199,867.42 101,465,371.43 Yang Jiang Poly Luo Lanxiang Valley May-14 109,798,706.78 48,867,037.45 60,931,669.33 Yangjiang Poly Silver Beach December-15 456,055,380.19 1,108,193,619.45 1,125,464,679.75 438,784,319.89 Bund the 1st of Foshan Poly December-14 291,023,923.63 1,385,594,412.12 516,388,154.64 1,160,230,181.11 Foshan Poly, East Bay II December-15 9,111,861.25 230,003,894.86 225,464,846.90 13,650,909.21 Foshan Poly Central June-15 163,141,063.70 380,118,864.82 404,062,367.68 139,197,560.84 Foshan Poly, East Bay I December-16 17,557,809.75 1,143,743,809.05 466,853,352.75 694,448,266.05 Foshan Poly Zishan International December-18 4,903,589.69 4,903,589.69 Foshan Poly Purple Mountain Garden June-15 471,684,585.31 362,902,937.91 108,781,647.40 Foshan Poly Lafite June-15 470,205,718.57 282,443,504.80 187,762,213.77 Foshan Poly Manor December-15 877,140,512.98 837,966,885.78 39,173,627.20 Foshan Poly Dongbin Garden December-15 564,708,666.01 555,749,569.93 8,959,096.08 Shenyang Poly Garden June-12 9,720,508.70 4,072,251.43 4,303,513.02 9,489,247.11 Shenyang Begonia Garden July-07 4,826,989.86 1,207,746.82 3,619,243.04 Shenyang Poly Classically Mysterious Romaunl June-16 87,409,263.18 232,301,029.61 270,149,845.04 49,560,447.75 Shenyang Poly Shanglin Bay December-13 32,878,961.13 9,132,772.22 11,834,893.20 30,176,840.15 Dandong Poly Whisper Garden December-15 267,138,085.00 224,697,463.36 187,746,782.64 304,088,765.72 Shenyang Poly Seelake Fairyland December-15 90,919,777.03 860,658,477.96 672,033,950.88 279,544,304.11 Shenyang Poly Cambridge December-13 722,809,530.97 90,762,044.23 632,047,486.74 Shenyang Poly Whisper Garden November-14 24,353,666.12 270,582,156.00 223,470,769.79 71,465,052.33 Shenyang Poly Twelve Oaks Manor December-15 196,137,853.73 10,400,324.44 35,143,680.08 171,394,498.09 Shenyang Poly Champagne Garden December-17 879,018,179.46 774,120,113.38 104,898,066.08

Notes to the Financial Statements Page 39 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Commencement Increase in the Decrease in the Project name Beginning balance Ending balance date current year current year Yingkou Poly Champagne Garden June-16 158,246,501.65 157,110,011.87 103,315,611.91 212,040,901.61 Dalian Paul Leisy Coast December-12 518,294,218.28 182,401,248.87 335,892,969.41 Dalian Paul Leisy mountains language November-15 1,809,074,916.09 1,383,874,174.39 425,200,741.70 Beijing Poly Ganlixin Court July-05 5,490,012.00 4,802,186.26 687,825.74 Beijing Poly Rose Garden March-10 11,601,553.73 11,601,553.73 Beijing Poly West Mountains Residence December-15 72,009,357.76 27,135,031.75 44,874,326.01 Beijing Poly Jasmine Kungkuan December-12 3,164,714.54 664,795.44 2,499,919.10 Beijing, Lancashire and Park December-11 16,031,192.92 3,065,147.29 12,966,045.63 Beijing Poly Ridge On December-12 3,761,000.89 3,761,000.89 Beijing Poly Dongjun December-14 953,121,411.52 871,966,093.80 81,155,317.72 Beijing Poly Luo Lanxiang Valley December-13 25,823,499.00 15,362,752.08 10,460,746.92 Beijing Poly Central Park December-14 4,305,396,068.38 3,003,504,270.21 1,301,891,798.17 Beijing Poly Spring March-15 4,039,192,974.39 2,700,469,986.38 1,338,722,988.01 Beijing Poly Fanghua Jiayuan June-14 560,680,623.08 449,236,863.83 111,443,759.25 Beijing Poly Fengdan I December-15 1,485,487,397.43 1,485,487,397.43 Wuhan Poly Garden July-08 35,631,822.25 651,497.07 34,980,325.18 Wuhan Poly Twelve Oaks Manor December-12 77,700,007.01 15,862,057.71 86,494,873.54 7,067,191.18 Wuhan Poly Whisper June-14 11,563,254.22 289,372,794.65 208,753,010.33 92,183,038.54 Wuhan Poly May Flower December-16 167,358,919.67 82,861,199.71 229,730,542.12 20,489,577.26 Wuhan Poly Central Mansion June-15 806,094,006.95 7,605,568.31 685,658,038.35 128,041,536.91 Wuhan Poly Lafite December-13 157,140,199.87 8,415,758.96 100,134,647.29 65,421,311.54 Wuhan Poly Dream City December-15 254,584,995.08 75,998,294.49 203,749,569.91 126,833,719.66 Wuhan Poly Champagne International December-14 83,486,583.14 612,907,283.56 532,882,722.25 163,511,144.45 Wuhan Poly Mahu Project June-15 128,112,085.07 1,417,234,218.37 1,082,308,127.15 463,038,176.29 Wuhan Guri Poly Park June-16 181,878,588.67 1,192,390,469.29 835,300,326.64 538,968,731.32 Huanggang Poly One Manor May-13 7,182,763.74 804,960.00 6,377,803.74 Wuhan Poly Guanshan Village Project December-17 771,951,916.49 665,787,854.26 106,164,062.23 Changsha Today Lee Garden December-02 3,425,925.23 3,425,925.23 Changsha Poly Garden January-02 196,099.71 196,099.71 Changsha Poly Garden I January-10 9,919,151.59 142,270.18 9,776,881.41 Changsha Poly Garden II June-12 71,304,308.11 3,864,882.25 67,439,425.86 Hunan Poly Dongting East Coast June-13 51,282,951.35 147,393.61 51,135,557.74 Changsha Poly Lugu Forest Language December-15 274,534,552.38 441,499,922.40 226,320,721.04 489,713,753.74 Changsha Poly Langzhong Peak Cloud Villa December-12 35,768,494.57 2,925,805.45 32,842,689.12 Changsha Poly International Plaza December-15 286,287,542.93 2,465,180,323.71 803,140,358.39 1,948,327,508.25 Shanghai Poly Champagne Garden December-15 24,568,065.46 1,958,164,996.70 971,091,698.87 1,011,641,363.29

Notes to the Financial Statements Page 40 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Commencement Increase in the Decrease in the Project name Beginning balance Ending balance date current year current year Shanghai Poly Lihai Mayflower December-13 94,331,693.78 47,275,931.90 58,750,012.02 82,857,613.66 Shanghai Bao Lihring Language Creek May-11 25,127,861.17 422,152.26 4,010,356.06 21,539,657.37 Shanghai Poly Ye Shanghai December-15 36,017,201.44 201,429,030.72 155,885,597.38 81,560,634.78 Shanghai Poly Indus Language December-13 307,268,272.88 9,900,531.40 91,521,875.54 225,646,928.74 Shanghai Poly Jasmine Mansion December-15 1,406,403,574.06 828,648,522.16 577,755,051.90 Shanghai Poly Leaf Language December-13 821,939,994.62 92,951,160.61 862,081,568.42 52,809,586.81 Shanghai Poly Leaves of the Forest December-15 1,660,920,876.37 1,592,949,526.58 67,971,349.79 Shanghai Bao Lima Bridge Jingcheng·Yayuan December-14 705,003,032.63 162,725,488.48 542,277,544.15 Shanghai Bao Lima Bridge Jingcheng·Ziyuan October-14 650,828,036.88 597,833,528.73 52,994,508.15 Jiaxing Paul Leisy Tong Yue December-15 433,041,599.56 118,314,377.15 273,905,922.26 277,450,054.45 Nantong Poly Champagne International December-15 886,985,017.76 296,594,891.27 590,390,126.49 Chongqing Poly Garden December-14 133,659,985.54 122,825,818.82 31,294,353.04 225,191,451.32 Chongqing Poly Champagne Garden December-15 138,685,472.53 2,244,299.78 45,871,181.10 95,058,591.21 Chongqing Poly Whisper May-11 51,400,261.04 2,114,455.84 4,617,093.04 48,897,623.84 Chongqing Poly Kangqiao May-11 47,025,743.25 10,782,624.06 29,083,630.50 28,724,736.81 Chongqing Poly Pearl December-15 1,997,537,989.50 721,000,242.61 1,597,823,276.47 1,120,714,955.64 Chongqing Guobin Shangyuan March-10 17,571,462.82 1,187,162.36 16,384,300.46 Chongqing Poly Harbour International December-13 186,429,102.08 90,732.25 119,313,272.32 67,206,562.01 Chongqing Poly Hornsey Garden December-13 216,411,552.05 135,055,876.16 81,355,675.89 Chongqing Poly Yefeng Peninsula June-13 24,401,033.24 7,386,917.75 17,014,115.49 Chongqing Poly Kauai January-13 31,698,782.77 16,524,116.17 15,174,666.60 Chongqing Poly Flowers in City Center December-15 1,455,085,086.70 1,375,190,230.72 79,894,855.98 Chongqing Poly Aishangli June-17 1,326,714,278.85 1,218,319,202.91 108,395,075.94 Baotou Poly Lily Garden December-14 1,642,014.37 26,395.78 1,615,618.59 Baotou Poly Lafei Mansion December-14 119,985,621.16 98,449,378.69 21,536,242.47 Baotou Poly Garden December-15 18,648,389.39 10,638,160.47 8,010,228.92 Baotou Paul Li Nanhai Park June-15 208,587,385.23 288,027,797.26 45,840,039.41 450,775,143.08 Baotou Poly Champagne Garden June-15 514,259,084.65 427,788,942.78 86,470,141.87 Nanchang Poly Mingya European December-15 121,734,237.40 24,754,099.24 96,980,138.16 Nanchang Poly East Bay International Garden December-14 299,265,098.72 37,467,294.05 94,565,844.93 242,166,547.84 Nanchang Poly Banshan International Garden December-15 418,130,494.26 424,319,104.93 393,190,024.09 449,259,575.10 Nanchang Poly Champagne International December-15 131,691,979.04 1,080,445,233.43 990,263,542.20 221,873,670.27 Changchun Poly Luo Lanxiang Valley June-16 69,009,330.49 1,085,779.21 7,990,371.09 62,104,738.61 Changchun Poly Lily Hong Bay December-15 11,274,080.75 96,399,170.21 72,485,602.53 35,187,648.43 Changchun Paul Lihring Language December-15 41,882,329.43 540,629,619.09 422,696,877.72 159,815,070.80 Changchun Poly Champagne Garden December-16 8,917,449.22 296,895,189.01 265,592,949.99 40,219,688.24

Notes to the Financial Statements Page 41 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Commencement Increase in the Decrease in the Project name Beginning balance Ending balance date current year current year Changchun Poly Lafei Mansion December-15 545,816,994.68 465,658,637.39 80,158,357.29 Chengdu Poly Park 198 December-18 1,051,982,334.40 101,090,951.77 522,119,071.39 630,954,214.78 Chengdu Poly Gold Champagne December-11 34,651,406.83 18,697,606.08 15,953,800.75 Chengdu Poly Garden June-14 116,442,069.85 582,853,073.29 644,417,413.18 54,877,729.96 Chengdu Poly Whisper Garden September-14 98,608,396.72 850,949,675.82 867,505,627.03 82,052,445.51 Chengdu the Poly Hornseyy (the former whisper phase IV) June-13 747,428,989.04 227,914,579.43 519,514,409.61 Chengdu Poly Champagne International December-15 121,679,122.52 450,215,927.66 289,578,445.31 282,316,604.87 Chengdu Poly Center June-12 226,718,651.47 93,209,355.48 133,509,295.99 Chengdu Poly Stone Elephant Lake project December-15 3,596,044.70 1,911,503.90 1,684,540.80 Chengdu Poly Beisen Residence December-13 505,839,339.24 391,384,199.65 114,455,139.59 Chengdu Poly Cambridge June-15 699,310,767.18 1,111,479,377.35 532,870,582.70 1,277,919,561.83 Chengdu Poly City December-15 75,272,152.23 673,075,969.14 668,612,620.72 79,735,500.65 Chengdu Poly Champaign Guanghua December-14 1,122,291,864.58 1,051,540,908.51 70,750,956.07 Deyang Poly International City (including phase I and phase II) December-16 969,233,991.32 391,776,701.87 346,991,272.49 1,014,019,420.70 Tianjin Poly River Hymns June-15 68,551,400.15 11,423,462.30 38,215,795.35 41,759,067.10 Tianjin Poly Begonia Bay June-14 346,133,943.71 1,013,572,134.37 981,519,742.08 378,186,336.00 Tianjin Poly Roses Bay March-15 249,036,216.41 1,378,190,491.18 1,378,520,187.39 248,706,520.20 Tianjin Poly Champagne International December-13 93,947,909.59 47,516,030.55 50,317,779.42 91,146,160.72 Tianjin Poly Horizon Capital September-15 1,652,120,016.78 1,493,190,787.56 158,929,229.22 Tianjin Poly Chanson Lake June-16 63,879,960.72 58,367,228.02 5,512,732.70 Qingdao Poly Lily Garden December-11 71,973,787.20 9,515,397.74 18,645,441.33 62,843,743.61 Qingdao Poly Lily Garden West End April-13 57,952,595.39 19,743,183.52 45,261,666.18 32,434,112.73 Qingdao Paul Leary Yard December-15 116,508,088.04 14,344,325.25 37,999,565.76 92,852,847.53 Qingdao Ensure Lihai on Roland December-15 36,801,061.88 1,860,877,675.21 1,579,352,303.13 318,326,433.96 Qingdao Poly Champagne International June-15 323,438,790.18 270,842,037.12 52,596,753.06 Hangzhou Poly East Bay December-13 425,326,672.01 180,591,817.06 244,734,854.95 Hangzhou Poly Jiang Yu Hai April-13 593,863,085.21 108,553,196.81 485,309,888.40 Hangzhou Poly Champagne International December-13 152,490,726.55 92,741,485.23 59,749,241.32 Hangzhou Poly Roses Bay June-14 1,454,996,742.73 436,227,559.90 1,018,769,182.83 Hangzhou Poly City Green December-14 1,382,493,218.86 809,294,101.48 573,199,117.38 Hangzhou Poly Joffre County December-14 2,199,924,827.22 1,541,308,050.68 658,616,776.54 Ningbo Poly Lakeside World December-16 1,022,263,419.97 905,525,690.03 116,737,729.94 Shaoxing Poly Lakeside Reverie December-15 424,209,194.19 63,198,397.16 361,010,797.03 Nanjing Poly Champagne International December-13 67,327,896.08 47,670,222.50 19,084,463.26 95,913,655.32 Nanjing Poly Luo Lanxiang Valley December-14 4,067,375.06 1,114,787,121.42 1,032,330,013.42 86,524,483.06 Nanjing Poly Amethyst Mountain June-14 67,691,954.89 563,593,009.48 574,967,264.77 56,317,699.60

Notes to the Financial Statements Page 42 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Commencement Increase in the Decrease in the Project name Beginning balance Ending balance date current year current year Nanjing Poly Phoenix Tree June-15 1,821,257,407.71 1,655,065,797.17 166,191,610.54 Nanjing Poly Luolan Spring June-15 503,407,094.60 490,808,391.00 12,598,703.60 Wuxi Poly Champagne International June-15 230,427,932.69 472,654,627.26 411,060,428.92 292,022,131.03 Lianyungang Poly Lihai Mayflower December-15 355,824,268.04 284,389,905.56 71,434,362.48 Hefei Poly Champagne International December-15 754,430,106.92 670,421,396.93 84,008,709.99 Hefei Poly Lafei Mansion July-15 117,283,381.00 474,772,453.55 483,363,861.66 108,691,972.89 Shijiazhuang Poly Garden December-17 1,149,952,651.37 1,100,591,977.25 49,360,674.12 Zhengzhou Poly Lily Garden December-14 1,128,891,898.54 948,433,367.13 180,458,531.41 Total 24,954,589,229.09 84,902,145,956.60 73,489,389,358.70 36,367,345,826.99

Notes to the Financial Statements Page 43 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 5.6.2 Inventory depreciation reserve Increase in the Decrease in the Beginning current year current year Item Ending balance balance Reversal or Provision Others Others write-off Development costs 322,823,920.33 322,823,920.33 Product development 140,343,760.97 140,343,760.97 Total 463,167,681.30 463,167,681.30 Note: The subsidiary Shaoxing Poly Real Estate Development Co., Ltd. made a provision of RMB392,872,183.81 for impairment of the net realizable value of Shaoxing Poly Lakeside Reverie, after the impairment test carried out in accordance with the local market conditions and actual sales at the end of period; the subsidiary Dalian Poly Bingang Real Estate Development Co., Ltd. made the provision of RMB70,295,497.49 for impairment of the net realizable value of Dalian Paul Leisy Coast, after the impairment test carried out in accordance with the market condition and actual sales at the end of period .

5.6.3 Capitalized amount of borrowing cost included in the ending balance of inventories As at the end of the report period, the capitalized inventories amounted to RMB12,007,605,957.22.

Notes to the Financial Statements Page 44 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 5.7 Available-for-sale financial assets 5.7.1 Available-for-sale financial assets Ending balance Beginning balance Item Book balance Provision for impairment Book value Book balance Provision for impairment Book value Available-for-sale equity instruments Available-for-sale equity instruments 399,554,214.53 399,554,214.53 535,554,214.53 535,554,214.53 Including: measured based on fair value Measured at cost 399,554,214.53 399,554,214.53 535,554,214.53 535,554,214.53 Total 399,554,214.53 399,554,214.53 535,554,214.53 535,554,214.53

5.7.2 Available-for-sale financial assets measured at cost at the end of period Book balance Provision for impairment Shareholding invested Increase in Decrease in End of Cash bonus in the Beginning of Increase in the Decrease in the End of the Beginning ratio in the party/organization the current the current the current period the year current year current year period of the year investee (%) year year period Beijing New Poly Plaza Real Estate Development Co., Ltd. 10,751,229.53 10,751,229.53 10.53 Poly Finance Company Limited 76,802,985.00 76,802,985.00 10.00 4,373,670.89 Shaoshan Everbright Rural Bank Co., Ltd. 4,000,000.00 8,000,000.00 12,000,000.00 8.00 ECIC (Tianjin) Equity Investment Fund Partnership (limited partnership) 444,000,000.00 444,000,000.00 Note 1: 300,000,000.00 Tibet ECIC Equity investment Partnership (limited partnership) 300,000,000.00 300,000,000.00 Note: Total 535,554,214.53 308,000,000.00 444,000,000.00 399,554,214.53 / 304,373,670.89 Note 1: In August 2010, The ECIC (Tianjin) Equity Investment Fund Management Co., Ltd., one of the Company's associates, set up ECIC (Tianjin) Equity Investment Fund Partnership (limited partnership), as the general partner, and subscribed and actually contributed RMB600,000,000.00 to the same; as at the end of period all the investment cost was fully recovered.

Note 2: In August 2010, The ECIC (Tianjin) Equity Investment Fund Management Co., Ltd., one of the Company's associates, set up Tibet ECIC Equity Investment Fund Partnership (limited partnership), as the general partner, and subscribed and actually contributed RMB600,000,000.00 to the same; as at the end of period RMB300,000,000.00 was contributed.

Notes to the Financial Statements Page 45 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 5.8 Long-term equity investments Increase or decrease in the current period Provision for Gain or loss on Adjustment to Ending balance Beginning Other impairment in invested party/organization Additional Decrease in investment recognized other Cash dividend or Ending balance of provision for balance change in Others the current investment investment under the equity comprehensive profit declared impairment equity period method income 1.Joint ventures (1) Beijing Yitai 50,000,000.00 -869,400.37 49,130,599.63 (2)Fujian Zhongliansheng Real Estate Development Co., Ltd. ("Fujian Zhongliansheng") 97,663,599.52 152,888,551.42 50,000,000.00 200,552,150.94 (3) Henan Tianzhidong 5,005,000.00 -5,005,000.00 (4) Tianjin Shengshi Xinhe Real Estate Co., Ltd. ("Shengshi Xinhe") 838,397,703.70 67,934,429.34 906,332,133.04 (5) Nanjing Xueshang Real Estate Ltd ("Nanjing Xueshang") (note 1) 93,922,416.58 27,252,622.98 -3,641,609.44 117,533,430.12 (6) Wuhan Qingneng 39,903,413.65 -16,231,109.67 23,672,303.98 (7) Changchun Vanke Stream & Valley Real Estate Development Co., Ltd.("Changchun River Valley") 78,934,191.44 31,307,627.53 40,000,000.00 70,241,818.97 (8)Foshan Zhaoshang Longyuan Real Estate Investment Co., Ltd. ("Zhaoshang Longyuan Longyuan") 50,012,801.34 -498.11 50,012,303.23 (9) Shunde Wanke 5,000,000.00 -200,000.01 4,799,999.99 (10)Guangzhou Yuehong Real Estate Development Co., Ltd. ("Guangzhou Yuehong") 99,900,686.19 -1,307,980.89 -52,530.00 98,540,175.30 (11) Guangzhou Bao'ao 4,924,555.35 -742,411.21 4,182,144.14 (12) Guangzhou Zhongyao 999,604,886.32 -1,559,421.07 -731,934.00 997,313,531.25 (13) Sanya CREC 25,000,000.00 -185,004.30 24,814,995.70 Sub-total 2,203,363,567.90 184,905,686.19 253,282,405.64 90,000,000.00 -4,426,073.44 2,547,125,586.29 2. Associates

Notes to the Financial Statements Page 46 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Increase or decrease in the current period Provision for Gain or loss on Adjustment to Ending balance Beginning Other impairment in invested party/organization Additional Decrease in investment recognized other Cash dividend or Ending balance of provision for balance change in Others the current investment investment under the equity comprehensive profit declared impairment equity period method income (1) Beijing Shoukai Poly Rentai Property Co., Ltd. ("Poly Rentai") 244,689,905.43 -176,558.13 -570,673.11 243,942,674.19 (2)Fuzhou Zhongding Investment Limited ("Fuzhou Zhongding") 11,847,288.85 304,029,339.60 -55,257,752.33 260,618,876.12 (3) Luoyang Liye 14,700,000.00 -933,623.43 13,766,376.57 (4) Tianjin Munan Qiushi Industrial Co., Ltd. ("Munan Qiushi") 17,000,000.00 -621.58 16,999,378.42 (5) Hangzhou Jinmu 142,667,344.79 -4,824,588.83 137,842,755.96 (6) Dongguan Heyue 10,000,000.00 -237,027.79 9,762,972.21 (7) Dongguan Wanhong 1,995,515.55 -1,974,443.76 21,071.79 (8) Putian Zhongchen 20,000,000.00 -4,005,185.55 -131,928.64 15,862,885.81 (9) ECIC Fund Management 224,965,105.85 146,036,447.32 -43,022.46 80,000,000.00 290,958,530.71 (10) Dongguan Hehong Investment Co., Ltd. ("Dongguan Hehong") 10,000,000.00 -1,137,081.35 8,862,918.65 Sub-total 643,165,160.47 54,700,000.00 436,776,656.50 -43,022.46 80,000,000.00 -55,960,354.08 998,638,440.43 Total 2,846,528,728.37 239,605,686.19 690,059,062.14 -43,022.46 170,000,000.00 -60,386,427.52 3,545,764,026.72 Note 1: For such joint venture, the accounting, recognition and distribution of the gains of Company and the cooperator are under the agreed method.

Notes to the Financial Statements Page 47 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 5.9 Investment property 5.9.1 Investment property measured at cost Item Buildings and constructions Total 1. Original book value (1) Beginning balance 5,427,187,356.13 5,427,187,356.13 (2) Increase in the current year 2,581,414,722.13 2,581,414,722.13 —Outsourcing —Inventory \ fixed assets \ transferred from construction in progress 2,581,414,722.13 2,581,414,722.13 —Increase as a result of business combination (3) Decrease in the current year 71,675,527.36 71,675,527.36 —Disposal —Transfer-out of others 39,825,687.88 39,825,687.88 —Decrease as a result of business combination 31,849,839.48 31,849,839.48 (4) Ending balance 7,936,926,550.90 7,936,926,550.90 2. Accumulated depreciation and accumulated amortization (1) Beginning balance 712,296,884.00 712,296,884.00 (2) Increase in the current year 190,114,031.88 190,114,031.88 —Accrual or amortization 190,114,031.88 190,114,031.88 (3) Decrease in the current year 4,324,718.38 4,324,718.38 —Disposal —Transfer-out of others 3,950,014.39 3,950,014.39 —Decrease as a result of business combination 374,703.99 374,703.99 (4) Ending balance 898,086,197.50 898,086,197.50 3. Provision for impairment (1) Beginning balance (2) Increase in the current year —Accrual (3) Decrease in the current year —Disposal (4) Ending balance 4. Book value (1) Book value at the end of period 7,038,840,353.40 7,038,840,353.40 (2) Book value as at beginning of year 4,714,890,472.13 4,714,890,472.13

5.10 Fixed assets 5.10.1 Fixed assets Buildings and Electronics and Item Vehicles Other equipment Total constructions office equipment 1.Original book value (1)Beginning balance 1,917,563,259.51 176,053,204.04 140,576,304.44 106,065,412.89 2,340,258,180.88 (2) Increase in the current year 551,676,719.21 28,286,799.71 34,107,273.68 18,053,446.65 632,124,239.25 —Outsourcing 1,210,239.00 27,957,499.71 33,954,160.68 17,814,936.65 80,936,836.04 —Transferred from construction in progress —Increase as a result of business combination 329,300.00 153,113.00 238,510.00 720,923.00 —Transfer-out of others 550,466,480.21 550,466,480.21 (3)Decrease in the current year 2,109,021.85 8,521,219.32 5,025,713.36 4,828,248.23 20,484,202.76 —Disposal or write-off 2,109,021.85 8,521,219.32 4,429,274.23 4,828,248.23 19,887,763.63

Notes to the Financial Statements Page 48 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Buildings and Electronics and Item Vehicles Other equipment Total constructions office equipment —Decrease as a result of business combination 596,439.13 596,439.13 —Transfer-out of others (4) Ending balance 2,467,130,956.87 195,818,784.43 169,657,864.76 119,290,611.31 2,951,898,217.37 2. Accumulated depreciation (1) Beginning balance 131,315,111.32 99,066,873.54 76,974,507.79 47,862,170.91 355,218,663.56 (2)Increase in the current year 82,059,208.88 19,469,687.92 25,164,504.79 9,749,978.72 136,443,380.31 —Accrual 82,059,208.88 19,469,687.92 25,132,329.65 9,518,560.13 136,179,786.58 —Increase as a result of business combination 32,175.14 231,418.59 263,593.73 —Transfer-out of others (3)Decrease in the current year 1,307,593.95 7,899,116.19 4,334,561.87 3,853,320.98 17,394,592.99 —Disposal or write-off 1,307,593.95 7,899,116.19 3,776,287.49 3,853,320.98 16,836,318.61 —Decrease as a result of business combination 558,274.38 558,274.38 —Transfer-out of others (4) Ending balance 212,066,726.25 110,637,445.27 97,804,450.71 53,758,828.65 474,267,450.88 3. Provision for impairment (1) Beginning balance (2) Increase in the current year —Accrual —Increase as a result of business combination —Transfer-out of others (3)Decrease in the current year —Disposal or write-off —Decrease as a result of business combination —Transfer-out of others (4) Ending balance 4. Book value (1) Book value at the end of period 2,255,064,230.62 85,181,339.16 71,853,414.05 65,531,782.66 2,477,630,766.49 (2) Book value as at beginning of year 1,786,248,148.19 76,986,330.50 63,601,796.65 58,203,241.98 1,985,039,517.32 Note: Depreciation for the current period amounted to RMB136,179,786.58; no construction in progress transferred to fixed assets in the current period.

5.10.2 No fixed assets were temporarily idle.

5.10.3 No fixed assets were leased under the finance lease in the current period.

5.10.4 No fixed assets were held for sale at the end of period.

5.10.5 No fixed assets were without certificate of ownership at the end of the period.

Notes to the Financial Statements Page 49 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 5.11 Intangible assets 5.11.1 Intangible assets Item Software Total 1. Original book value (1) Beginning balance 28,762,169.31 28,762,169.31 (2)Increase in the current year 9,617,332.83 9,617,332.83 —Outsourcing 9,617,332.83 9,617,332.83 —Internal research and development —Increase as a result of business combination (3) Decrease in the current year 9,750.00 9,750.00 —Disposal —Decrease as a result of business combination 9,750.00 9,750.00 (4) Ending balance 38,369,752.14 38,369,752.14 2. Accumulated amortization (1) Beginning balance 14,226,584.39 14,226,584.39 (2) Increase in the current year 5,663,959.13 5,663,959.13 —Accrual 5,663,959.13 5,663,959.13 —Increase as a result of business combination (3) Decrease in the current year 9,750.00 9,750.00 —Disposal —Decrease as a result of business combination 9,750.00 9,750.00 (4) Ending balance 19,880,793.52 19,880,793.52 3. Provision for impairment (1) Beginning balance (2) Increase in the current year —Accrual (3) Decrease in the current year —Disposal (4) Ending balance 4. Book value (1) Book value at the end of period 18,488,958.62 18,488,958.62 (2) Book value as at beginning of year 14,535,584.92 14,535,584.92 Note: The amortization amounted to RMB5,663,959.13 in the current period.

5.12 Goodwill 5.12.1 Original book value of goodwill Increase in the Decrease in the Name of investee or the Beginning current year current year Ending matter goodwill arises from balance From business balance Others Disposal Others combination Poly Shanghai Real Estate Development Co., Ltd. 4,769.05 4,769.05 Shanghai Jianqiao Real Estate Co., Ltd. 518,996.21 518,996.21 Guangzhou Poly Digital Technology Co., Ltd. 1,779,460.75 1,779,460.75 Shanghai Junlan Property Co., Ltd. 232,946.59 232,946.59 Yueyang Poly Property Co., Ltd. (“Yueyang Poly 95,395.44 95,395.44 Guangdong Zhonggong Project Management Co., Ltd. 50,939.26 50,939.26

Notes to the Financial Statements Page 50 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Increase in the Decrease in the Name of investee or the Beginning current year current year Ending matter goodwill arises from balance From business balance Others Disposal Others combination Nanchang Ruida Property Co., Ltd. 7,660,000.00 7,660,000.00 Total 10,342,507.30 10,342,507.30

5.13 Long-term deferred expenses Increase in the Amortization in Item Beginning balance Other decrease Ending balance current year the current period Office building decoration and others 27,485,719.48 18,373,480.66 14,451,383.92 31,407,816.22 Total 27,485,719.48 18,373,480.66 14,451,383.92 31,407,816.22

5.14 Deferred income tax assets and deferred income tax liabilities 5.14.1 Deferred income tax assets before offset Ending balance Beginning balance Deductible Deductible Item temporary deferred tax asset temporary deferred tax asset difference difference Provision for assets impairment 809,326,485.19 202,331,621.30 247,451,505.32 61,862,876.33 Equity investment difference 10,633,190.60 2,658,297.65 10,633,190.60 2,658,297.65 Unrealized profits from internal transactions 2,832,615,650.52 708,153,912.63 2,400,572,228.60 600,143,057.15 Deductible losses 320,146,439.56 80,036,609.89 157,138,805.12 39,284,701.28 Withholding expenses and other 1,569,689,135.36 392,422,283.84 373,895,038.60 93,473,759.65 Total 5,542,410,901.23 1,385,602,725.31 3,189,690,768.24 797,422,692.06

5.14.2 Deferred income tax liabilities before offset Ending balance Beginning balance Taxable Item Deferred income Taxable temporary Deferred income temporary tax liabilities difference tax liabilities difference Appreciation as a result of assessment of assets after combination of enterprises not under common control 217,840,470.16 54,460,117.54 245,089,115.88 61,272,278.97 Total 217,840,470.16 54,460,117.54 245,089,115.88 61,272,278.97

5.14.3 The deductible losses of the deferred income tax assets not recognized will come due in the following years: Year Ending balance Beginning balance Remark 2014 29,243,120.72 2015 40,288,089.94 40,346,331.68 2016 76,728,773.65 96,663,666.99 2017 118,437,270.75 288,198,577.62 2018 567,406,851.64 1,049,302,941.94 2019 1,567,774,644.38 Total 2,370,635,630.36 1,503,754,638.95

Notes to the Financial Statements Page 51 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 5.15 Short-term borrowings 5.15.1 Classification of short-term borrowings Item Ending balance Beginning balance Pledge borrowings Mortgage borrowings Guaranteed borrowings 2,257,400,000.00 1,370,000,000.00 Credit borrowings 1,000,000,000.00 Total 3,257,400,000.00 1,370,000,000.00

5.15.2 None of the aforementioned borrowings was outstanding after the maturity date.

5.16 Notes payable Category Ending balance Beginning balance Bank acceptance bills 5,220,000.00 Commercial acceptance bills 20,500,679.77 Total 25,720,679.77 Note: No notes payable were outstanding after the maturity date at the end of the current period.

5.17 Accounts payable 5.17.1 Presentation of accounts payable: Item Ending balance Beginning balance Withholding costs and expenses 19,574,068,874.83 15,738,592,626.23 Payables for project 2,833,670,929.43 2,799,033,046.22 Others 171,716,292.43 133,077,742.72 Total 22,579,456,096.69 18,670,703,415.17

5.18.2 Large accounts payable with aging of over one year represent the outstanding payment for project and the withholding costs and expenses.

5.19 Advances from customers 5.19.1 Presentation of advances from customers Item Ending balance Beginning balance Payment for real estate 112,492,064,664.27 106,560,631,282.14 Others 809,425,706.29 607,210,417.94 Total 113,301,490,370.56 107,167,841,700.08

5.19.2 Advances from customers for real estate are presented as below: Expected Proportion of Project name Ending balance Beginning balance completion date pre-sale (%) The Guangzhou Poly West Coast Residence (including the Guangzhou Poly Xinghai Garden) 1,609,830,541.78 3,209,753,978.25 June-15 97.56 Guangzhou Poly International Plaza 18,328,313.90 18,328,313.90 90 Guangzhou Poly Central Plaza 60,071.00 3,611,796.00 99.49 Guangzhou Poly Zhongchen Square 40,487,600.00 100 Guangzhou Poly Whisper Garden 3,689,447.75 2,004,247.75 100 Guangzhou Paul Lihring language Hills 1,391,004.36 52,281,004.36 100 Guangzhou Poly Ziwei Garden 332,149.00 4,298,349.00 99.3 One Manor Poly, Guangzhou Zengcheng 155,000.00 155,000.00 100 The Guangzhou Poly V Block 135,271,001.00 95,721,200.00 99.3

Notes to the Financial Statements Page 52 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Expected Proportion of Project name Ending balance Beginning balance completion date pre-sale (%) Guangzhou Poly Fragrant Snow-Capped Mountains 210,210,509.65 190,238,317.86 100 Guangzhou Poly West Sub Bay 3,386,930.00 6,722,862.00 100 Guangzhou Poly Central Square 17,936,797.01 35,702,067.01 99.88 Guangzhou Poly Zhongyu Square 833,000.00 1,282,000.00 100 Guangzhou Poly Spring 3,631,844.00 12,886,844.00 100 Guangzhou Poly D Plaza 107,582,638.00 1,183,888,823.00 99.08 Guangzhou Poly Center 8,627,777.39 1,618,627.18 100 Guangzhou Poly Beijing Plaza 851,446.00 817,369.00 100 Guangzhou Poly World Trade Center 1,500,000.00 1,500,000.00 December-15 99.48 Guangzhou Poly Manor 2010 474,503.00 139,817.00 99.71 Guangzhou Poly Champagne Garden 2,991,000.00 20,000.00 100 Guangzhou Poly Champaign Mansion 810,538.67 810,538.67 98.37 Guangzhou Poly Park City 1,158,696,722.00 3,300,814,240.00 December-15 99 Guangzhou Poly Clover Plaza 1,013,737,382.00 288,279,236.00 December-15 86.72 Guangzhou Zengcheng Capital of Poly Dongjiang 1,582,591,171.30 860,644,956.60 December-15 89.12 Guangzhou Bao Li Linhai Hills 130,615,988.63 36,200,290.33 100 Guangzhou Poly Lu Court 405,829.00 300,000.00 100 Guangzhou Poly Cloud Hill 291,861.45 419,451.00 100 Guangzhou Poly Cotton Tree Garden 124,015.00 124,015.00 100 Guangzhou Poly Lily Garden II 7,165,848.00 5,398,848.00 100 Guangzhou Poly Seine Villa 2,173,982,708.00 1,447,999,702.00 October-15 99.86 Guangzhou Poly Tianyue 7,369,965,354.40 9,409,408,151.24 December-15 74.45 Guangzhou Poly Yunxi 1,165,382,392.65 830,897,374.50 June-15 70.51 Guangzhou Poly Ta To Wun 1,494,355,036.20 54,207,884.00 December-17 71.24 Guangzhou Poly Lingnan Woods 534,177,419.55 December-17 96.24 Guangzhou Poly Long-hee (the former Songhejie Project) 129,414,600.00 December-15 41.65 Zhongshan Poly International Plaza 905,967,272.00 632,540,465.00 December-16 85.1 Zhongshan Poly Spring 428,151,830.72 37,192,650.00 December-16 72.49 Dongguan Poly Red Coral 23,405,682.00 1,192,014,348.00 December-15 98.57 Dongguan Poly Linyu 1,327,901,274.84 431,413,534.00 December-16 87.55 Dongguan Poly Lily Garden (the former Fenggang project) 169,583,905.00 March-17 54.81 Zhuhai Poly Champagne International 1,425,766,653.00 845,424,574.50 August-15 99.57 Zhuhai Poly Lihai Mayflower 281,321,050.00 December-16 63.1 Nankunshan Poly Jinliving 35,842,698.00 June-18 30.61 Nanhai Poly Garden 2,862,155.08 2,167,555.08 100 Shunde Poly Lily Garden 7,111,294.00 6,821,294.00 100 Bund the 1st of Foshan Poly 88,250,997.00 172,617,903.00 88.45 Foshan Poly, East Bay I 1,837,920,934.90 1,650,097,248.00 December-16 85.63 Foshan Poly, East Bay II 851,019,068.00 961,151,952.00 December-15 95.39 Foshan Poly Champagne Garden 36,143,980.00 420,163,704.64 94.4 Foshan Poly Donghu Forest Language 42,324,419.00 526,233,675.00 90.95 South China Sea Poly Canal Plaza 1,081,800.00 147,750.00 100

Notes to the Financial Statements Page 53 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Expected Proportion of Project name Ending balance Beginning balance completion date pre-sale (%) Foshan Poly Central 2,065,993,691.12 1,429,880,237.00 June-15 88.77 Nanhai Poly Constellation 5,453,665.26 100 Foshan Poly Manor 1,999,503,747.00 1,402,343,214.00 December-15 87.9 Foshan Poly Purple Mountain Garden 761,360,512.00 348,420,623.00 June-15 76.31 Foshan Poly Lafite 16,912,815.00 221,483,147.00 June-15 78.54 Foshan Poly Dongbin Garden 1,305,534,751.00 978,974,337.00 December-15 94.33 Foshan Poly Seattle 1,585,552,155.00 140,560,332.00 December-17 82.79 Foshan Poly Central Park 895,753,954.00 June-18 88.13 Foshan Poly Zishan International 350,600,686.00 68,789,636.00 December-18 78.55 Foshan Poly Zhongyue Garden 27,453,180.00 December-18 38.18 Jiangmen Poly Ta Tu Wun 1,326,256,919.00 320,323,544.00 December-20 76.56 Qingyuan Poly Garden 249,265,625.00 18,142,826.00 December-20 75.73 Qingyuan Poly Tianhui (the former Ta Tu Wun Project) 24,553,364.00 December-20 7.24 Zhanjiang Poly Yuandian Square 331,221,191.00 December-20 42.36 Shaoguan Poly Furong New Town 143,389,760.00 December-20 39.67 Wuhan Poly Garden 1,347,978.80 1,435,978.80 100 Wuhan Poly Twelve Oaks Manor 823,892.00 37,202,623.00 99.99 Wuhan Poly Whisper 6,923,257.00 291,123,272.00 99.63 Wuhan Poly Dream City 164,862,221.00 47,875,618.00 December-15 94.33 Wuhan Poly May Flower 51,512,111.00 410,366,625.00 December-16 97.46 Wuhan Poly Lafite 3,381,358.00 2,644,493.00 98.67 Wuhan Poly Mahu Project 1,044,546,198.00 1,532,573,279.85 June-15 98.52 Wuhan Poly Champagne International 4,395,939.00 447,459,061.00 89.4 Wuhan Poly Central Mansion 699,568,926.00 706,376,080.00 June-15 91.57 Wuhan Guri Poly Park 332,709,370.00 429,782,451.00 June-16 88.34 Wuhan Poly Guanshan Village Project 2,009,063,790.00 937,495,204.00 December-17 83.75 Huanggang Poly One Manor 686,068.37 985,014.37 98.06 Changsha Poly Garden I 880,000.00 20,697.00 99.69 Changsha Poly Garden II 859,766.92 927,303.92 85.88 Changsha Poly Lugu Forest Language 44,544,506.45 190,254,249.54 December-15 92.43 Changsha Poly Langzhong Peak Cloud Villa 15,770,231.55 7,528,528.55 99.19 Changsha Poly International Plaza 704,917,036.00 1,176,671,639.00 December-15 84.35 Changsha Poly West Coast 775,445,649.00 204,478,509.00 December-17 90.79 Changsha Poly Champagne International 374,601,508.00 65,620,619.00 December-20 98.23 Hunan Poly Dongting East Coast 10,638.26 10,638.26 100 Chenzhou Poly Suxianlinyu 449,937,120.00 243,457,123.00 June-16 74.31 Shenyang Poly Classically Mysterious Romaunl 675,844,180.88 501,745,100.00 June-16 88.92 Shenyang Poly Seelake Fairyland 174,980,780.40 345,386,771.00 December-15 90.07 Shenyang Poly Garden 831,892.69 563,941.69 99.56 Shenyang Begonia Garden 30,000.00 64,000.00 99.63 Shenyang Poly Shanglin Bay 3,843,924.00 6,047,997.00 99.78

Notes to the Financial Statements Page 54 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Expected Proportion of Project name Ending balance Beginning balance completion date pre-sale (%) Shenyang Poly Twelve Oaks Manor 1,867,026.00 32,975,522.00 December-15 85.7 Shenyang Poly Whisper Garden 5,474,434.30 161,892,151.00 98.93 Shenyang Poly Cambridge 5,446,821.00 7,463,068.00 54.97 Shenyang Poly Champagne Garden 71,739,522.30 471,802,393.00 December-17 77.25 Shenyang Poly Jasmine Mansion 44,178,228.00 10,482,892.00 December-16 65.18 Shenyang Poly Nature's Whisper 16,010,799.00 December-18 51.42 Shenyang Poly Ta To Wun (the former Tiandi Project) 42,466,875.00 June-19 100 Yingkou Poly Champagne Garden 25,218,571.00 64,411,079.00 June-16 70.98 Tonghua Poly Luo Lanxiang Valley 63,270,926.17 1,150,000.00 December-16 79.28 Dalian Paul Leisy mountains language 213,814,617.00 1,299,432,530.00 November-15 75.11 Dalian Paul Leisy Coast 2,866,928.00 5,933,774.00 71.77 Dalian Poly Nanguanling Project 150,000,000.00 December-15 100 Beijing Poly Ganlixin Court 50,000.00 99.48 Beijing Poly Jasmine Kungkuan 264,039.00 1,345,552.00 99.9 Beijing Poly Ridge On 3,132,569.00 3,132,569.00 100 Changchun Poly Champagne Garden 50,000.00 100 Guangzhou Poly Lily Garden 111,332.00 111,332.00 100 Beijing, Lancashire and Park 3,290,621.79 1,769,033.79 99.5 Beijing Poly West Mountains Residence 3,303,675.24 2,788,219.24 December-15 96.3 Beijing Poly Garden 9,996,113.00 100 Beijing Poly Dongjun 11,643,464.00 613,208,016.36 96.15 Beijing Poly Central Park 30,632,739.10 3,506,692,102.66 85.88 Beijing Poly Luo Lanxiang Valley 747,500.00 70,000.00 100 Beijing Poly Spring 343,215,101.00 3,109,765,245.00 March-15 97.5 Beijing Poly Fanghua Jiayuan 86,431,569.00 100 Beijing Poly Hyde Park 1,586,350,143.00 23,400,000.00 December-15 77.74 Beijing Baoli Shoukai Sunrise Spring 2,473,481,815.00 356,753,475.00 December-15 89.15 Beijing Poly Fengdan I 3,842,160,641.84 1,330,638,576.00 December-15 88.02 Beijing Poly Luo Lanxiang Valley phase II (the former Shahe Project in Changping) 502,044,561.00 December-18 90.88 Beijing Baoli Shoukai Liwan Jiayuan (the former Dongba Project) 377,266,782.00 December-17 90.37 Shijiazhuang Poly Garden 2,075,798,732.00 1,882,889,989.00 December-17 89.18 Chongqing Poly Champagne Garden 203,131,804.42 75,211,320.19 December-15 92.11 Chongqing Poly Garden 3,993,989.70 2,479,417.10 95.4 Chongqing Poly Kangqiao 1,285,770.06 96.74 Chongqing Poly Whisper 45,005.60 270,703.60 100 Chongqing Guobin Shangyuan 19,004.24 19,004.24 100 Chongqing Poly Pearl 952,016,884.60 1,139,034,202.00 December-15 82.89 Chongqing Poly Hornsey Garden 2,237,452.41 1,217,016.00 96.81

Notes to the Financial Statements Page 55 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Expected Proportion of Project name Ending balance Beginning balance completion date pre-sale (%) Chongqing Poly Harbour International 2,206,265.00 2,166,123.00 89.59 Chongqing Poly Kauai 48,064.00 47,649.00 98.12 Chongqing Poly Yefeng Peninsula 66,353.11 853,136.00 94.3 Chongqing Poly Flowers in City Center 1,110,864,760.71 1,800,795,453.00 December-15 89.21 Chongqing Poly Aishangli 567,082,393.00 1,089,936,091.00 June-17 90.98 Chongqing Poly Linyuxi 529,077,621.00 150,553,807.00 December-15 86.46 Chongqing Poly No. 1 Mansion 160,740,783.00 June-16 60.29 Chongqing Poly Guantang 306,045,381.87 December-20 64.69 Chongqing Poly Guanlan 175,418,670.00 December-18 56.69 Nanchang Poly Mingya European 57,606,650.00 57,783,822.38 December-15 97.68 Nanchang Poly East Bay International Garden 34,117,688.00 14,026,558.00 91.35 Nanchang Poly Banshan International Garden 110,168,694.00 368,137,775.53 December-15 78.85 Nanchang Poly Champagne International 100,811,952.00 1,400,649,067.00 December-15 93.13 Nanchang Poly Lily Garden 424,496,209.00 75,313,771.00 December-15 95.71 Nanchang Poly Golden Champagne 19,580,532.00 December-17 43.67 Shanghai Poly Leaf Language 34,395,601.00 1,493,525,693.00 99.52 Shanghai Poly Twelve Oaks Manor 55,834.57 55,834.57 100 Shanghai Poly Lihai Mayflower 18,281,366.11 80,287,263.11 98.24 Shanghai Bao Lihring Language Creek 2,105,924.40 795,924.40 94.08 Shanghai Poly Ye Shanghai 16,562,014.56 64,560,653.56 December-15 96.38 Poly Indus Language 20,879,079.00 34,210,974.49 84.58 Shanghai Poly Jasmine Mansion 129,764,677.40 1,011,898,924.00 December-15 93.11 Shanghai Poly Leaves of the Forest 655,662,231.46 1,512,362,491.00 December-15 82.77 Shanghai Bao Lima Bridge Jingcheng·Ziyuan 183,931,624.00 100 Shanghai Poly Champagne Garden 63,620,033.00 480,946,087.00 December-15 98.18 Shanghai Poly International Center 1,862,473,318.00 31,760,204.00 December-15 52.48 Shanghai Poly the Blue Forest Phrase 727,327,597.00 263,709,231.00 December-15 75.34 Shanghai Bao Lima Bridge Jingcheng·Yayuan 43,079,498.69 54,635,569.84 50.04 Shanghai Majestic Mansion 4,327,431,657.67 718,069,065.00 June-16 92.34 Shanghai Poly Westcoast 1,526,507,090.50 June-16 75.04 Nantong Poly Champagne International 8,840,852.00 38,512,139.00 December-15 58.23 Jiaxing Paul Leisy Tong Yue 9,244,299.00 296,776,817.00 December-15 62.64 Baotou Poly Garden 336,506,914.00 300,034,992.12 December-15 99.15 Baotou Poly Lafei Mansion 12,283,233.12 164,989,876.00 99.82 Baotou Paul Li Nanhai Park 644,561,148.00 329,038,121.00 June-15 94.94 Baotou Poly Champagne Garden 131,899,725.00 625,436,977.00 June-15 95.36 Changchun Poly Luo Lanxiang Valley 31,032,382.31 31,533,638.39 June-16 96.82 Changchun Poly Lily Hong Bay 2,767,759.72 3,621,480.98 December-15 93.24

Notes to the Financial Statements Page 56 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Expected Proportion of Project name Ending balance Beginning balance completion date pre-sale (%) Changchun Paul Lihring Language 35,427,457.51 329,748,442.93 December-15 95.02 Changchun Poly Champagne Garden 10,368,624.32 234,560,771.52 December-16 92.04 Changchun Poly Net Monthly Project 5,000,000.00 8,050,000.00 December-15 100 Changchun Poly Lafei Mansion 624,353,209.15 709,723,831.67 December-15 78.39 Changchun Poly Spring 583,938,517.78 67,426,769.25 June-16 78.55 Changchun Poly Central Park 206,224,882.00 December-16 50.71 Chengdu Poly Park 198 1,273,009,229.00 1,010,745,877.00 December-18 89.96 Chengdu Poly Garden 1,494,646.50 809,593,680.00 92.82 Chengdu Poly Gold Champagne 29,298.00 254,298.00 85.4 Chengdu Poly Whisper Garden 6,662,263.00 1,125,944,539.00 94.56 Chengdu Poly Center 15,314,606.95 1,675,361.50 95.57 Chengdu Poly Champagne International 5,309,114.00 467,525,974.00 December-15 79.25 Chengdu Poly Beisen Residence 8,933,326.00 1,389,254.00 81.77 Chengdu the Poly Hornseyy (the former whisper phase IV) 5,463,977.17 195,984,502.00 79.5 Chengdu Poly Cambridge 26,690,320.00 104,962,339.00 June-15 70.94 Chengdu Poly City 1,394,555,918.00 1,418,819,669.00 December-15 89.34 Chengdu Poly Stone Elephant Lake project 486,907,551.00 217,352,520.00 December-15 93.65 Chengdu Poly Lily Mansion 1,936,799,450.00 1,320,575,978.00 December-15 93.44 Chengdu Poly Champaign Guanghua 5,803,903.30 1,311,788,468.00 96.31 Chengdu Poly Leaves Whisper 966,880,521.00 441,477,199.00 June-17 73.19 Chengdu Poly Phoenix Tree 1,214,679,667.00 597,334,971.00 December-15 88.14 Chengdu Spring Flowers Whisper 1,263,609,591.00 695,554,171.00 December-17 93.42 Chengdu Poly Rose Whisper 1,179,868,573.00 558,844,791.00 December-16 69.77 Chengdu Poly Shizi Lake (the former Shizi reservoir project) 706,494,889.00 June-16 69.61 Chengdu Poly Lake Whisper 335,558,101.00 December-17 61.72 Chengdu Poly Forest Whisper Brook 219,413,484.00 December-18 61.02 Chengdu Poly Lagerstroemia Florid (the former longquanyi project) 32,867,212.00 December-18 51.65 Deyang Poly International City (including phase I and phase II) 22,894,452.00 353,893,037.00 December-16 71.33 Suining Poly Grand River 1,262,121,798.00 338,119,755.00 December-16 88.99 Hangzhou Poly Jiang Yu Hai 29,339,153.01 16,071,104.01 95.05 Hangzhou Poly East Bay 201,933,117.03 174,008,239.85 95.68 Hangzhou Poly Champagne International 26,584,190.20 26,931,721.00 99.53 Hangzhou Poly Roses Bay 55,080,469.00 291,992,595.00 65.62 Hangzhou Poly Joffre County 76,186,453.50 1,766,249,519.00 81.15 Hangzhou Poly City Green 85,378,370.00 557,818,755.00 82.87 Hangzhou Poly Phoenix Tree 207,183,204.96 64,845,734.00 December-15 65.92 Zhejiang Poly Luo Lanxiang Valley 323,316,956.80 87,214,472.00 December-16 77.14 Shaoxing Poly Lakeside Reverie 15,995,100.00 28,310,056.00 December-15 43.42 Ningbo Poly Lakeside World 967,084,481.85 2,083,186,059.00 December-16 88.09 Tianjin Poly Champagne International 5,224,884.37 8,212,484.37 95.7

Notes to the Financial Statements Page 57 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Expected Proportion of Project name Ending balance Beginning balance completion date pre-sale (%) Tianjin Poly Roses Bay 915,178,541.69 2,118,632,755.00 March-15 95.22 Tianjin Poly River Hymns 936,124.90 11,619,441.50 June-15 97.61 Tianjin Poly Begonia Bay 128,219,893.87 649,487,720.56 98.89 Tianjin Poly Horizon Capital 2,302,388,573.56 2,829,238,051.00 September-15 85.26 Tianjin Poly Chanson Lake 295,322,158.84 82,991,359.00 June-16 64.5 Tianjin Poly Seelake Fairyland 16,826,316.72 December-18 87.66 Tianjin Poly Charming Mansion 72,582,561.22 December-17 73.72 Tianjin Poly Phoenix Tree 5,143,100.11 June-17 91 Dandong Poly Whisper Garden 62,473,349.60 75,891,711.00 December-15 86.08 Qingdao Poly Lily Garden 2,791,673.55 334,231.55 96.88 Qingdao Poly Lily Garden West End 2,464,418.15 4,514,082.40 97.22 Qingdao Paul Leary Yard 44,007,927.03 5,278,487.47 December-15 95.45 Qingdao Ensure Lihai on Roland 608,640,917.94 2,402,920,839.30 December-15 94.02 Qingdao Poly Champagne International 233,399,522.00 314,237,426.00 June-15 96.77 Qingdao Poly Leaf Mansion 2,028,443,010.95 728,536,107.00 December-16 94.27 Qingdao Poly Manyueshan 681,317,444.30 December-15 83.09 Qingdao Poly Jasmine Mansion 601,593,416.00 December-16 90.89 Yang Jiang Poly Luo Lanxiang Valley 1,623,095.00 677,000.00 91.05 Yangjiang Poly Silver Beach 279,295,064.00 1,160,480,730.80 December-15 83.31 Nanjing Poly Amethyst Mountain 3,005,930.53 754,814,070.99 95.94 Nanjing Poly Champagne International 4,147,967.51 17,088,886.46 97.13 Nanjing Poly Luo Lanxiang Valley 1,069,760.00 1,256,944,062.00 98.51 Nanjing Poly Phoenix Tree 918,981,366.00 2,062,766,760.00 June-15 96.11 Nanjing Poly Zijing Mansion 1,399,474,581.01 6,500,000.00 December-15 88.14 Nanjing Poly Luolan Spring 1,190,722,446.14 616,056,756.00 June-15 92.11 Nanjing Poly Central Park 996,553,486.00 193,634,786.00 June-17 82.94 Wuxi Poly Champagne International 174,743,214.00 297,711,883.01 June-15 80.84 Wuxi Poly Central Park 606,980,099.00 139,295,972.00 December-15 81.15 Changzhou Guri Poly Park 132,565,765.00 29,030,821.00 December-15 80.66 Lianyungang Poly May Flower 15,865,271.00 176,435,607.00 December-15 71.4 Zhengzhou Poly Lily Garden 67,251,484.00 1,294,406,586.00 98.66 Zhengzhou Poly May Flower 597,756,302.00 June-16 76.58 Hefei Poly Champagne International 3,094,271,496.20 2,490,377,745.00 December-15 94.7 Hefei Poly Lafei Mansion 1,576,724,606.01 1,239,097,860.54 July-15 96.04 Hefei Poly Lihai Mayflower 933,655,484.00 223,003,422.00 June-18 76.38 Hefei Poly Oriental Mansion 1,594,092,283.00 143,891,324.00 June-18 90.44 Hefei Poly Phoenic Tree 785,803,579.00 87,054,084.00 December-16 93.93 Xi'an Poly Lafei Mansion 776,606,248.00 252,080,668.00 December-16 77.97 Xi'an Poly Spring Plaza 130,113,748.00 17,105,033.00 June-16 43.53 Xi'an Poly Gold Champagne 719,511,135.20 75,284,337.00 June-16 76 Taiyuan Poly Champagne International 196,876,049.00 December-18 50.47 Fuzhou Poly Xijiang Forest Whisper 217,177,221.00 December-15 56.5 Total 112,492,064,664.27 106,560,631,282.14 Note: The proportion of pre-sale is calculated based on the real estate eligible for sale, excluding the proportion to be developed or the proportion that is developed but does not meet the conditions for sale.

Notes to the Financial Statements Page 58 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 5.18.3 Advances from customers with aging of over one year mainly represent the advance for the real estate not liquidated.

5.19 Employee compensation payable 5.19.1 Presentation of employee compensation payable Beginning Increase in the Decrease in the Item Ending balance balance current year current year Short-term remuneration 73,167,941.11 2,331,085,757.53 2,315,380,741.68 88,872,956.96 Post-departure benefits - defined withdrawal plan 51,465,501.23 160,672,632.62 204,613,316.38 7,524,817.47 Dismissal benefits 1,813,225.94 1,813,225.94 Other benefits coming due within one year Total 124,633,442.34 2,493,571,616.09 2,521,807,284.00 96,397,774.43

5.19.2 Presentation of short-term compensation Beginning Increase in the Decrease in the Item Ending balance balance current year current year (1) Salaries, bonuses, allowances and subsidies 48,229,679.02 2,031,728,224.28 2,021,284,194.33 58,673,708.97 (2) Employee welfare 112,548,702.15 112,548,702.15 (3) Social insurance premium 653,731.07 75,640,451.11 75,649,724.34 644,457.84 Including: medical insurance 587,088.66 65,186,746.93 65,196,606.19 577,229.40 Work-related injury insurance expenses 35,464.15 4,934,228.42 4,936,412.68 33,279.89 Maternity insurance expenses 31,178.26 5,519,475.76 5,516,705.47 33,948.55 (4) Housing fund 686,422.92 72,911,461.51 73,025,072.21 572,812.22 (5) Labor union expenditures and employee education expenses 23,507,175.28 30,185,699.82 24,806,877.79 28,885,997.31 (6) Short-term paid absences (7) Short-term profit-sharing plan (8) Others 90,932.82 8,071,218.66 8,066,170.86 95,980.62 Total 73,167,941.11 2,331,085,757.53 2,315,380,741.68 88,872,956.96

5.19.3 Presentation of defined withdrawal plan Beginning Increase in the Decrease in the Item Ending balance balance current year current year Basic endowment insurance 1,422,389.02 134,180,804.02 134,443,096.50 1,160,096.54 Unemployment insurance expenses 74,058.04 9,787,232.64 9,818,771.95 42,518.73 Annuity payment 49,969,054.17 16,704,595.96 60,351,447.93 6,322,202.20 Total 51,465,501.23 160,672,632.62 204,613,316.38 7,524,817.47

5.20 Taxes and surcharges payable Item Ending balance Beginning balance Value-added tax (VAT) -1,453,005.05 213,644.45 Consumption tax Business tax -4,603,693,865.35 -4,270,380,924.67 Enterprise income tax -380,192,745.85 -444,793,367.60 Individual income tax 8,549,108.45 9,335,867.53 Urban maintenance and construction tax -300,372,517.71 -287,812,704.36 Property tax 14,016,203.55 10,322,911.99 Land value increment tax -1,940,633,304.23 -1,052,729,904.88 Educational surtax -237,144,054.82 -127,547,427.02 Other taxes 18,562,107.43 -55,133,292.43 Total -7,422,362,073.58 -6,218,525,196.99

Notes to the Financial Statements Page 59 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 5.21 Interests payable Item Ending balance Beginning balance Interest on long-term borrowing with the interest paid thereon by installments and the principal paid on the maturity date 33,419,555.56 Interest on the corporate bond 86,043,600.03 55,170,317.97 Interest payable on short-term borrowings Interest on preferred shares \ perpetual debt classified as financial liabilities Total 119,463,155.59 55,170,317.97

5.22 Dividends payable Item Ending balance Beginning balance Ordinary share dividends 228,905,375.03 4,812,626.00 Interest on preferred shares \ perpetual debt classified as financial liabilities Total 228,905,375.03 4,812,626.00

5.23 Other payables 5.23.1 Presentation of other payables by the nature: Item Ending balance Beginning balance Current account due to cooperator 20,562,322,119.93 17,091,320,142.55 Current accounting between Poly Group and its associates and joint venture between 2,816,530,135.74 1,788,994,520.65 Margin deposits 2,537,552,504.48 2,085,375,798.42 Others 3,798,864,897.90 4,869,505,330.93 Total 29,715,269,658.05 25,835,195,792.55

5.23.2 Significant other payables with aging of over 1 year Other payables with aging of over 1 year mainly represent the money invested by the subsidiaries' cooperators and results from the long development period of the real estate project.

5.24 Non-current liabilities maturing within one year Item Ending balance Beginning balance Long-term borrowings maturing within one year 25,411,752,181.00 19,624,724,743.00 Bonds payable due within one year Long-term borrowings maturing within one year Total 25,411,752,181.00 19,624,724,743.00

5.25 Long-term borrowings 5.25.1 Classification of long-term borrowings Item Ending balance Beginning balance Interest rate range Pledge borrowings Mortgage borrowings 11,008,783,521.62 15,105,487,631.37 5.895%-7.38% Guaranteed borrowings 70,143,700,562.90 57,814,312,947.00 5.535%-7.5% Credit borrowings 9,342,500,000.00 2,181,500,000.00 6.0375%-8.5% Total 90,494,984,084.52 75,101,300,578.37

Notes to the Financial Statements Page 60 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 5.26 Bonds payable 5.26.1 Details of bonds payable Item Ending balance Beginning balance U.S. dollar debt 6,030,420,966.22 2,989,548,695.82 Medium-term notes 1,000,000,000.00 Total 7,030,420,966.22 2,989,548,695.82

5.26.2 Increase or decrease in bonds payable: (excluding the preferred shares, sustainable debt or other financial instruments classified as financial liabilities) Amortization of Repayment in Bond Beginning Amount issued in the Interest accrued Bond name Par value Date of issue Amount issued premium or the current Ending balance term balance current period at par value discount period 2013 U.S. USD500 5 dollar debt million August-13 years 3,057,319,643.00 2,989,548,695.82 137,677,500.00 11,631,523.08 3,011,032,919.92 2014 U.S. USD500 5 dollar debt million April-14 years 3,060,242,237.50 3,060,242,237.50 110,318,509.59 5,566,381.30 3,019,388,046.30 2014 Medium RMB1 5 term notes billion December-14 years 1,000,000,000.00 1,000,000,000.00 666,666.67 1,000,000,000.00 Total / / / 7,117,561,880.50 2,989,548,695.82 4,060,242,237.50 248,662,676.26 17,197,904.38 7,030,420,966.22

Bonds payable:

In August 2013, Hengli (Hong Kong) Real Estate Limited, a wholly-owned subsidiary of the Company, issued the fixed-interest overseas bonds totaling USD500 million for a term of five years through its wholly-owned subsidiary, at a nominal interest rate of 4.50%, on which the interest is paid on a semi-annual basis.

In April 2014, Hengli (Hong Kong) Real Estate Limited, a wholly-owned subsidiary of the Company, issued the fixed-interest overseas bonds totaling USD500 million for a term of five years through its wholly-owned subsidiary, at a nominal interest rate of 5.25%, on which the interest is paid on a semi-annual basis.

In December 2014, the Company issued the first medium-term notes of RMB1 billion for a term of five years at an interest rate of 4.80%, on which interest is paid annually.

Notes to the Financial Statements Page 61 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 5.27 Share capital Increase (+) or decrease (-) in the current period Beginning Item Issuance of new Share Public reserve Ending balance balance Others Sub-total shares donation transferred to shares 7,137,994,391.00 22,753,440.00 3,568,997,196.00 3,591,750,636.00 10,729,745,027.00 Note: According to the resolution of 2013 annual meeting, the Company increased 3,568,997,196 shares in total to all shareholders, by adding 5 shares every 10 shares by transfer of capital reserves, based on the total share capital as at December 31, 2013; and issue shares to those benefiting from the stock option incentive, increasing 22,753,440 shares.

5.28 Capital reserves Increase in the Decrease in the Item Beginning balance Ending balance current year current year Capital premium (share premium) (note 1) 10,646,312,357.69 156,266,142.51 4,055,032,196.90 6,747,546,303.30 Fair value of equity-settled share-based payment equity instruments (note 2) 171,242,409.34 61,824,081.93 63,682,395.15 169,384,096.12 Other capital reserves (note 3) 146,159,792.08 18,800,590.95 164,960,383.03 Total 10,963,714,559.11 236,890,815.39 4,283,674,975.08 6,916,930,399.42 Note 1: Decrease in capital premium results from the addition of share capital as a result of transfer of capital reserves and offset for proportion of insufficient capital reserves.

Note 2: The Company finished the grant of stock option on May 4, 2012. On each balance sheet date of the waiting period, the Company calculates the administrative expenses and charges the same to the capital reserves, based on the quantity of estimated exercise and fair value of each stock option on the grant date.

Note 3: Increase or decrease in other capital reserves in the current period results from the purchase of minority equities by subsidiary and addition of capital of subsidiary by minority shareholders.

Notes to the Financial Statements Page 62 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 5.29 Other comprehensive income Year 2014 Less: Previously charged to other Attributable to Beginning Amount incurred Attributable to the Ending Item comprehensive income and Less: Income minority balance before income tax for parent company balance currently transferred to profit or tax expenses shareholders after the current period after tax loss tax 1.Other comprehensive that cannot be income reclassified into profit or loss in the future Including: Change brought by recalculation of net liabilities and net assets under the defined benefit plan Share of other comprehensive income in the investee that cannot be reclassified into the profit or loss under the equity method 2. Other comprehensive that will be income reclassified into profit or loss in the future 2,028.00 -43,022.46 -43,022.46 -40,994.46 Including: Share of other comprehensive income in the investee that will be reclassified into the profit or loss under the equity method 2,028.00 -43,022.46 -43,022.46 -40,994.46 Gains and losses from changes in fair value of available-for-sale financial assets Gains or losses on reclassifying Held-to-maturity investments as available-for-sale financial assets, Effective portion of gains or losses on cash flow hedging Difference arising from translation of financial statements denominated in foreign currency Adjustment to other comprehensive income 2,028.00 -43,022.46 -43,022.46 -40,994.46

Notes to the Financial Statements Page 63 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 5.30 Surplus reserves Increase in the Decrease in the Item Beginning balance Ending balance current year current year Statutory surplus reserves 1,100,917,160.02 613,558,207.25 1,714,475,367.27 Discretionary surplus reserves Total 1,100,917,160.02 613,558,207.25 1,714,475,367.27 Note: Increase in surplus reserves in the current period represents the withdrawal of surplus reserve based on 10% of Net income of the parent company in the current period.

5.31 Undistributed profit Item This period/current term Previous period Undistributed profit at the end of the last period before adjustment 32,560,241,225.29 23,758,309,752.50 Total adjustment to undistributed profit at the year beginning (+ for increase, - for decrease) Undistributed profit at the year beginning after adjustment 32,560,241,225.29 23,758,309,752.50 Add: net profit attributable to owners of the parent company for the current period 12,200,315,103.96 10,747,161,554.27 Less: Withdrawal of statutory surplus reserves 613,558,207.25 289,215,382.77 Withdrawal of discretionary surplus reserves Withdrawal of general risk reserves Ordinary share dividends payable 2,098,570,350.95 1,656,014,698.71 Ordinary share dividends transferred to share capital Undistributed profits at the end of period 42,048,427,771.05 32,560,241,225.29 Note: According to the resolution of 2013 annual meeting, the Company declared the cash dividends of RMB2.94 per 10 shares (including tax) and distributed the profit totaling RMB2,098,570,350.95, based on the total share capital as at December 31, 2013.

5.32 Operating income and operating cost 5.32.1 Operating income and operating cost Year 2014 Year 2013 Item Revenues Cost Revenues Cost Primary business 109,032,985,627.83 74,110,462,069.85 92,340,696,050.00 62,654,885,423.14 Other business 23,511,438.65 12,111,235.08 14,828,145.85 329,796.37 Total 109,056,497,066.48 74,122,573,304.93 92,355,524,195.85 62,655,215,219.51

5.32.2 Presentation of primary business by sectors is as set out below: Year 2014 Year 2013 Name of industry Income from Costs of Income from Costs of primary business primary business primary business primary business Real estate sales 105,587,199,135.34 72,510,318,859.01 89,289,984,174.94 61,385,958,590.81 Others 3,445,786,492.49 1,600,143,210.84 3,050,711,875.06 1,268,926,832.33 Total 109,032,985,627.83 74,110,462,069.85 92,340,696,050.00 62,654,885,423.14 Note: Others represent the revenue from construction, decoration, leasing, property management, sales agency, exhibitions, hotels, service fees, etc.

5.32.3 Presentation of primary business by regions is as set out below: Year 2014 Year 2013 Region Operating income Operating cost Operating income Operating cost Guangdong, China 32,778,920,386.74 20,570,518,505.00 26,800,553,832.39 16,863,170,978.38 Beijing, China 10,040,484,297.66 7,033,850,716.65 10,378,851,673.83 7,498,871,459.12 Sichuan, China 9,388,297,931.10 5,580,910,217.46 8,677,435,508.23 5,538,541,499.39 Shanghai, China 8,387,340,664.46 5,818,261,492.95 7,506,433,644.08 4,413,877,624.53 Hubei, China 7,479,155,227.98 4,629,584,182.09 7,559,748,474.92 4,994,433,543.76 Chongqing, China 5,862,908,935.75 4,608,071,588.03 6,199,461,224.52 5,065,598,908.95

Notes to the Financial Statements Page 64 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Year 2014 Year 2013 Region Operating income Operating cost Operating income Operating cost Tianjin, China 5,653,407,561.22 4,000,936,299.34 2,035,534,401.34 1,643,444,223.88 Jiangsu, China 5,436,843,781.88 4,467,706,264.10 4,432,842,390.32 3,181,052,707.16 Zhejiang, China 5,082,660,416.23 4,007,845,903.48 4,789,935,016.48 3,665,185,054.38 Liaoning, China 4,822,187,906.27 3,911,889,498.27 3,530,378,634.06 2,576,171,187.68 Qingdao, China 2,959,604,623.66 1,952,694,653.28 1,817,640,633.30 1,151,193,312.41 Nanchang, China 2,248,196,250.64 1,511,164,408.14 1,797,311,737.36 1,478,184,314.07 Hunan, China 1,751,951,277.54 1,036,541,430.92 2,817,439,525.65 1,624,315,634.50 Changchun, China 1,738,327,486.00 1,234,424,438.72 1,921,859,384.00 1,504,862,422.36 Hebei, China 1,646,307,588.87 1,139,902,129.31 Hefei, China 1,606,975,120.47 1,153,785,258.59 515,462,549.00 440,486,101.20 Zhengzhou, China 1,312,070,322.36 948,433,367.13 Baotou, China 837,345,849.00 503,941,716.39 1,559,807,420.52 1,015,496,451.37 Total 109,032,985,627.83 74,110,462,069.85 92,340,696,050.00 62,654,885,423.14

5.33 Business tax and surcharges Item Year 2014 Year 2013 Business tax 5,655,919,682.69 4,916,544,870.48 Urban maintenance and construction tax 382,369,895.50 330,471,554.80 Educational surtax 277,048,723.00 150,139,572.78 Resource tax 433,345.40 409,853.30 Land value increment tax 4,678,369,180.67 3,923,792,347.21 Other taxes 153,597,784.79 200,769,500.03 Total 11,147,738,612.05 9,522,127,698.60

5.34 Selling expenses Item Year 2014 Year 2013 Employee compensation 298,170,809.19 275,670,097.55 Advertising expense 800,663,541.47 669,558,865.57 Sales agency fees 458,637,825.05 374,272,941.10 Field sales expenses 195,188,886.80 253,591,103.31 Campaign expenses 319,926,543.46 291,580,939.99 Others 329,337,246.50 320,502,489.45 Total 2,401,924,852.47 2,185,176,436.97

5.35 Administrative expenses Item Year 2014 Year 2013 Employee compensation 886,077,785.34 764,952,281.16 Traveling expenses 87,260,928.82 75,493,296.74 Office and rental expenses 126,130,318.50 110,024,509.81 Taxes and surcharges 320,820,375.04 325,129,081.67 Depreciation costs 98,947,853.17 93,413,379.15 Others 203,520,131.98 206,806,040.26 Total 1,722,757,392.85 1,575,818,588.79

5.36 Financial expenses Category Year 2014 Year 2013 Interest expenses 1,554,086,633.22 1,039,984,211.01 Less: Interest income 425,911,315.33 293,370,406.30 Gains or losses on exchange -86,974.12 7,857,128.19 Other expenditures 143,135,790.49 231,061,018.87 Total 1,271,224,134.26 985,531,951.77

Notes to the Financial Statements Page 65 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 5.37 Losses from asset impairment Item Year 2014 Year 2013 Losses from bad debts 99,370,546.75 59,882,558.32 Loss from inventory depreciation 463,167,681.30 Total 562,538,228.05 59,882,558.32 Note: See Note 5.6 Inventories for details of inventory depreciation losses.

5.38 Investment income Item Year 2014 Year 2013 Long-term equity investment income calculated under equity method 690,059,062.14 631,751,353.83 Gains on disposal of long-term equity investment 158,261,564.03 Investment income from financial assets measured at fair value through current profit and loss during the holding period Investment income on the disposal financial assets measured at fair value through current profit and loss Investment income from held-to-maturity investments during the holding period Investment income from held-for-sale financial assets during the holding period 304,373,670.89 3,301,232.86 Investment income on disposal of available-for-sale financial assets Gains on re-measurement of remaining equities at fair value, after the loss of control 99,313.80 Total 1,152,793,610.86 635,052,586.69 Note: The long-term equity investments of RMB3,301,232.86 measured under the cost method was reclassified into the investment income from the available-for-sale financial assets during the holding period.

5.39 Non-operating income Amount counted into the Item Year 2014 Year 2013 non-recurring gains and losses Total gains on disposal of non-current assets 391,989.16 605,003.65 391,989.16 Including: Gains on disposal of fixed assets 391,989.16 605,003.65 391,989.16 Gains on disposal of intangible assets Gains from debt restructuring Gains from exchange of non-monetary assets Donations received Government subsidies Revenue from fines and liquidated damages 106,951,697.85 91,108,038.71 106,951,697.85 Others 59,339,571.51 90,570,918.53 59,339,571.51 Total 166,683,258.52 182,283,960.89 166,683,258.52

5.40 Non-operating expenses Amount counted into the Item Year 2014 Year 2013 non-recurring gains and losses Total losses on disposal of non-current assets 1,192,174.26 158,318.88 1,192,174.26 Including: losses on disposal of fixed assets 1,192,174.26 158,318.88 1,192,174.26 Losses on disposal of intangible assets Losses on debt restructuring

Notes to the Financial Statements Page 66 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Amount counted into the Item Year 2014 Year 2013 non-recurring gains and losses Losses on exchange of non-monetary assets Donations made 827,400.00 531,076.20 827,400.00 Amercement outlay 7,506,219.82 9,263,500.61 7,506,219.82 Others 105,868,546.41 77,458,865.23 105,868,546.41 Total 115,394,340.49 87,411,760.92 115,394,340.49

5.41 Income tax expenses 5.41.1 Income tax expense Item Year 2014 Year 2013 Current income tax calculated according to the tax law and related regulations 5,389,793,573.41 4,484,450,864.03 Adjustment for deferred income tax -589,331,847.84 -247,216,640.79 Total 4,800,461,725.57 4,237,234,223.24

5.41.2 Accounting profit and income tax expense adjustment process Item Year 2014 Total profit 19,031,823,070.76 Income tax expense calculated at statutory [or applicable] tax rates 4,757,955,767.69 Effect of different tax rates applicable to subsidiaries Effect of adjustments to income tax on prior period Effect of non-taxable income -260,665,332.46 Effect of non-deductible costs, expenses and losses 46,805,943.28 Effect of use of deductible losses of the deferred income tax assets not recognized for the previous period: -169,145,698.49 Effect of deductible temporary difference or deductible loss on the deferred income tax assets not recognized for the current period 374,918,076.73 Others 50,592,968.82 Income tax expenses 4,800,461,725.57

5.42 Cash flow statement 5.42.1 Receipt of other cash related to operating activities Item Year 2014 Year 2013 Dealings with relevant units 9,584,707,433.43 14,548,726,362.69 Earnest money for house purchasing and collection of owners’ expenses 389,477,397.38 261,073,679.65 Others 632,994,437.02 651,747,415.80 Total 10,607,179,267.83 15,461,547,458.14

5.42.2 Payment of other cash related to operating activities Item Year 2014 Year 2013 Dealings with relevant units 18,404,642,964.12 12,904,926,676.95 Period expenses 2,696,049,724.31 2,457,566,060.70 Others 933,928,246.62 1,017,474,013.28 Total 22,034,620,935.05 16,379,966,750.93

5.42.3 Payment of other cash related to investing activities Item Year 2014 Year 2013 Disposal of subsidiaries 34,275,528.22 Total 34,275,528.22

Notes to the Financial Statements Page 67 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 5.42.4 Payment of other cash related to financing activities Item Year 2014 Year 2013 Financing costs, etc. 143,399,173.88 144,311,752.51 Total 143,399,173.88 144,311,752.51

5.43 Supplementary information of the statement of cash flows 5.43.1 Supplementary information of the statement of cash flows Supplementary information Year 2014 Year 2013 1. Net profit adjusted to cash flows from operating activities Net profit 14,231,361,345.19 11,864,462,305.31 Add: Provision for assets impairment 562,538,228.05 59,882,558.32 Depreciation of fixed assets and others 326,293,818.46 305,706,452.51 Amortization of intangible assets 5,663,959.13 4,244,078.11 Amortization of long-term deferred expenses 14,451,383.92 23,486,708.98 Losses on disposal of fixed assets, intangible assets and other long-term assets (“-” for("-" for gains) 800,185.10 -446,684.77 Losses on write-off of fixed assets ("-" for gains) Losses from changes in fair value ("-" for gains) Financial expenses ("-" for gains) 1,554,086,633.22 1,039,984,211.01 Investment losses ("-" for gains) -1,152,793,610.86 -635,052,586.69 Decreases in deferred income tax assets ("-" for increases) -588,345,845.30 -261,796,897.04 Increases in deferred income tax liabilities ("-" for decreases) -986,002.54 -6,278,431.22 Decreases in inventories ("-" for increases) -25,068,447,766.95 -50,263,472,872.89 Decreases in operating receivables ("-" for increases) -14,347,315,601.89 -8,598,042,955.96 Increases in operating payables ("-" for decreases) 14,004,326,709.47 36,713,217,336.34 Others Net cash flows from operating activities - 10,458,366,565.00 -9,754,106,777.99 2. Significant investing and financing activities not involving cash receipts and payments Conversion of debt into capital Convertible bonds maturing within one year Fixed assets acquired under financing lease 3. Net changes in cash and cash equivalents Ending balance of cash 39,351,869,298.66 33,112,173,949.23 Less: Beginning balance of cash 33,112,173,949.23 32,580,034,779.81 Add: Ending balance of cash equivalents Less: Beginning balance of cash equivalents Net increase in cash and cash equivalents 6,239,695,349.43 532,139,169.42

5.43.2 Net cash paid to acquire subsidiary in the current period Amount Cash or cash equivalents paid in the current period for business merger in the current period 521,813,760.10 Less: Cash and cash equivalents held by the subsidiary on the acquisition date 164,829,693.35 Add: Cash or cash equivalents paid in the current period for business merger in the previous period Net cash paid to acquire subsidiary 356,984,066.75

5.43.3 Breakdowns of cash and cash equivalents: Item Ending balance Beginning balance 1. Cash 39,351,869,298.66 33,112,173,949.23 Including: cash on hand 8,923,274.07 8,546,377.74 Unrestricted bank deposit 39,342,412,728.68 33,096,603,837.87 Unrestricted other monetary funds 533,295.91 7,023,733.62

Notes to the Financial Statements Page 68 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Item Ending balance Beginning balance Deposits with central bank available for payments Deposits with banks and other financial institutions Loans from banks and other financial institutions 2. Cash equivalents Including: bond investments maturing within three month3. Ending balance of cash and cash equivalents s 3. Ending balance of cash and cash equivalents 39,351,869,298.66 33,112,173,949.23 Including: Including: Cash and cash restricted for use by the parent company or subsidiaries within the group.

5.44 Asset restricted for use or ownership Book value as at Item Book value at the end of period January 1, 2013 cash and cash equivalents 717,643,327.34 640,795,881.57 Inventories 64,061,451,409.67 61,423,917,600.00 Fixed assets 764,258,427.78 77,995,600.00 Investment property 6,517,711,376.56 3,793,425,100.00 Total 72,061,064,541.35 65,936,134,181.57

5.45 Monetary items denominated in foreign currency Ending balance of Ending balance of Item foreign currency at the Conversion rate conversion into RMB end of period Cash and cash equivalents 608,983,851.33 Including: USD 99,518,187.65 6.1190 608,951,790.23 Eur HKD 40,641.80 0.78887 32,061.10 Bonds payable 6,030,420,966.22 Including: USD 985,523,936.30 6.1190 6,030,420,966.22 Eur HKD

Notes to the Financial Statements Page 69 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 6. Changes in the consolidation scope 6.1 Combination of enterprises not under the common control 6.1.1 Combination of enterprises not under the common control in the current period Income of the Net profit of the Time-point of Proportion of Acquisition date Equity Acquisition Acquisition acquiree from the acquiree from the Acquiree acquisition of equity determination acquisition cost mode date acquisition date to acquisition date to the equity acquired (%) basis the end of period end of period Boda Hongwei (Tianjin) Real Equity Estate Co., Ltd ("Boda capital Transfer of Hongwei") January-14 31,237,500.00 51 increase January-14 control -848,440.93 Dongguan Zhongjun Real Estate Development Co., Ltd. Transfer of ("Dongguan Zhongjun") January-14 2,000,000.00 100 Acquisition January-14 control -5,304,638.53 Baiqiao Investment Co., Ltd. Transfer of ("Baiqiao investment") January-14 80 Acquisition January-14 control 3,516,930.18 Shenyang Zhonghuida Real Estate Co., Ltd. ("Shenyang Transfer of Zhonghuida") January-14 278,890,045.26 80 Acquisition January-14 control -2,292,299.09 Gansu Shengrong Estate Development Co., Ltd. ("Gansu Transfer of Shengrong") February-14 16,666,667.00 50 Acquisition February-14 control -13,862,275.81 HEBEI Yinhu REAL ESTATE DEVELOPMENT CO., LTD Transfer of ("Hebei Yinhu") April-14 13,000,000.00 65 Acquisition April-14 control -768,918.42 Sheng Huo Zhi Yuan Co., Ltd. Transfer of ("Sheng Huo Zhi Yuan ") July-14 51 Acquisition July-14 control 679,535.71 Huizhou Sheng Huo Zhi Yuan Tourism Development Co., Ltd. ("Huizhou Sheng Huo Zhi Transfer of Yuan") July-14 4,057.66 51 Acquisition July-14 control -6,190,067.44 Guangzhou Poly E-commerce Port Co., Ltd. ("E-commerce Transfer of Port") September-14 50,015,490.18 50 Acquisition September-14 control -28,700.75 Xinjiang Hengxin Yaju Real Estate Development Co., Ltd. Transfer of ("Xinjiang Hengxin Yaju") December-14 130,000,000.00 51 Acquisition December-14 control -1,386.47

Notes to the Financial Statements Page 70 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 6.1.2 Combination costs and goodwill Cost incurred for combination —Cash 521,813,760.10 —Fair value of non-cash assets —Fair value of debt issued or assumed —Fair value of the equity securities issued —Fair value of the contingent consideration —Fair value of the equity held prior to the acquisition date, on the acquisition date —Others Total combination cost 521,813,760.10 Less: Fair value of the identifiable net assets acquired 522,469,586.51 Goodwill / difference between the fair value of net identifiable assets and the combination cost, which is lower than the former -655,826.41

6.1.3 Acquiree's identifiable assets and liabilities on the acquisition date Boda Hongwei Dongguan Zhongjun Fair value on the Book value on the Fair value on the Book value on the acquisition date acquisition date acquisition date acquisition date Total assets 152,225,152.15 152,062,869.07 278,423,609.91 276,502,805.06 Cash and cash equivalents 61,253,573.24 61,253,573.24 1,742.23 1,742.23 Advances to suppliers 89,000,000.00 89,000,000.00 Other receivables 1,802,067.16 1,802,067.16 Inventories 1,971,578.91 1,809,295.83 276,577,300.67 274,656,495.82 Fixed assets 42,499.85 42,499.85 Intangible assets Liabilities: 90,975,152.15 90,975,152.15 276,423,609.91 276,423,609.91 Borrowing 10,000,000.00 10,000,000.00 Accounts payable Other payables 90,809,295.90 90,809,295.90 266,423,269.91 266,423,269.91 Taxes and surcharges payable 165,856.25 165,856.25 340 340 Net assets 61,250,000.00 61,087,716.92 2,000,000.00 79,195.15 Less: Minority equity 30,012,500.00 29,932,981.29 Net assets acquired 31,237,500.00 31,154,735.63 2,000,000.00 79,195.15

CONTINUED: Baiqiao investment Gansu Shengrong Fair value on the Book value on the Fair value on the Book value on the

acquisition date acquisition date acquisition date acquisition date Total assets 1,441,208,960.18 1,193,763,036.40 572,574,047.76 570,228,820.67 Cash and cash equivalents 22,049.91 22,049.91 23,407,820.25 23,407,820.25 Advances to suppliers 125,028,578.11 125,028,578.11 Other receivables 6,033,813.82 6,033,813.82 38,875,648.29 38,875,648.29 Inventories 1,435,153,096.45 1,187,707,172.67 385,262,001.11 382,916,774.02 Fixed assets Intangible assets Liabilities: 1,092,596,403.60 1,092,596,403.60 539,240,713.76 539,240,713.76 Borrowing Accounts payable 262,665,584.30 262,665,584.30 Other payables 1,092,596,403.60 1,092,596,403.60 276,410,949.26 276,410,949.26 Taxes and surcharges payable 164,180.20 164,180.20 Net assets 348,612,556.58 101,166,632.80 33,333,334.00 30,988,106.91 Less: Minority equity 69,722,511.32 20,233,326.56 16,666,667.00 15,494,053.45 Net assets acquired 278,890,045.26 80,933,306.24 16,666,667.00 15,494,053.46

Notes to the Financial Statements Page 71 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014

CONTINUED: Hebei Yinhu Xinjiang Hengxin Yaju Fair value on the Book value on the Fair value on the Book value on the acquisition date acquisition date acquisition date acquisition date Total assets 1,085,000,000.00 1,085,000,000.00 589,725,131.12 354,787,977.31 Cash and cash equivalents 19,785,284.27 19,785,284.27 Advances to suppliers Other receivables Inventories 1,085,000,000.00 1,085,000,000.00 569,939,846.85 335,002,693.04 Fixed assets Intangible assets Liabilities: 1,072,000,000.00 1,072,000,000.00 334,823,170.34 334,823,170.34 Borrowing Accounts payable Other payables 1,072,000,000.00 1,072,000,000.00 334,823,170.34 334,823,170.34 Taxes and surcharges payable Net assets 13,000,000.00 13,000,000.00 254,901,960.78 19,964,806.97 Less: Minority equity 124,901,960.78 9,782,755.42 Net assets acquired 13,000,000.00 13,000,000.00 130,000,000.00 10,182,051.55

CONTINUED: Sheng Huo Zhi Yuan E-commerce Port Fair value on the Book value on the Fair value on the Book value on the acquisition date acquisition date acquisition date acquisition date Total assets 546,435,585.90 546,435,585.90 167,146,035.36 164,062,518.47 Cash and cash equivalents 2,069,212.22 2,069,212.22 58,290,011.23 58,290,011.23 Advances to suppliers 7,737,853.59 7,737,853.59 Other receivables 350,232,057.14 350,232,057.14 Inventories 185,981,633.53 185,981,633.53 4,802,008.00 1,718,491.11 Fixed assets 414,829.42 414,829.42 Intangible assets 104,054,016.13 104,054,016.13 Liabilities: 545,141,695.56 545,141,695.56 67,115,055.00 67,115,055.00 Borrowing Accounts payable 12,812,716.02 12,812,716.02 Other payables 532,958,092.58 532,958,092.58 67,115,055.00 67,115,055.00 Taxes and surcharges payable -629,113.04 -629,113.04 Net assets 1,293,890.34 1,293,890.34 100,030,980.36 96,947,463.47 Less: Minority equity 634,006.27 634,006.27 50,015,490.18 48,473,731.73 Net assets acquired 659,884.07 659,884.07 50,015,490.18 48,473,731.74

Determination of fair value of identifiable assets and liabilities: Price assessment.

Contingent liabilities of the acquiree assumed: None.

Note: (1) On January 27, 2014, the subsidiary acquired 80% equities and the wholly-owned subsidiary Shenyang Zhonghuida of Baiqiao Investment, at a consideration of RMB278,890,045.26; (2) On July 31, 2014, the subsidiary acquired 51% equities and the wholly-owned subsidiary Huizhou Sheng Huo Zhi Yuan of Sheng Huo Zhi Yuan, at a consideration of RMB4,057.66.

Notes to the Financial Statements Page 72 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 6.2 Disposal of subsidiaries 6.2.1 Disposal of investment in subsidiary with loss of control on a lump-sum basis Difference Amount of other between the comprehensive disposal Determination Proportion income consideration and of and major of Book value of Fair value of Gain or loss on transferred to the Equity Determination the net assets of assumption for Time point remaining remaining remaining re-measurement gain or loss on Name of the Equity disposal disposal Equity of time point the subsidiary the fair value of for loss of equity on equity on the equity on the of the remaining investment, subsidiary consideration proportion disposal for loss of corresponding to the remaining control the date of date of loss of date of loss of equity at fair related to the (%) control the disposal of equity on the loss of control (%) control (%) value investment in investment at the date of loss of control (%) equity of the consolidated control original financial subsidiary statement level Equity By reference to Guangzhou capital Transfer of the transaction Yuehong 50 increase February-14 control 50 99,900,686.20 100,000,000.00 99,313.80 price Equity By reference to Dongguan capital Transfer of the transaction Hehong 50 increase January-14 control 50 10,000,000.00 10,000,000.00 price Guangzhou Tianli Real Estate Development Co., Ltd. ("Guangzhou Transfer of Tianli") 112,330,000.00 51 Transfer March 2014 control 158,261,564.03

Notes to the Financial Statements Page 73 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 6.3 Changes in scope of consolidation for other causes 6.3.1 New subsidiaries in the current period: Principal place of Net assets as at the end Net profit in the current Name of the subsidiary business of the period period Anhui Poly Real Estate Development Co., Ltd. Anhui Province 494,908,144.28 -5,091,855.72 Jiangsu Poly Ninghong Real Estate Development Co., Ltd. Jiangsu Province 946,443,833.89 -3,556,166.11 Guangzhou Yuelong Real Estate Development Co., Ltd. Guangzhou City 9,128,449.20 -871,550.80 British Virgin Hongtai Co., Ltd. Islands -5,284,132.94 -5,284,139.06 Changchun Poly Hengxin Real Estate Development Co., Ltd. Changchun City 9,667,689.03 -332,310.97 Poly (Gansu) Industrial Investment Co., Ltd. Gansu Province 196,008,950.46 -3,991,049.54 Qingyuan Xinrui Real Estate Co., Ltd. Qingyuan City 428,633,855.38 -11,366,144.62 Zhuhai Hengqin Poly Lilihe Investment Co., Ltd. Zhuhai City 49,171,323.79 -828,676.21 Shanxi Poly Real Estate Development Co., Ltd. Shanxi Province 91,835,405.69 -29,474.35 Poly Zhaoqing Investment Co., Ltd. Zhaoqing City 99,141,797.52 -858,202.48 Zhaoqing Xinrong Real Estate Co., Ltd. Zhaoqing City 19,830,834.97 -169,165.03 Guangzhou Puyu Real Estate Development Co., Ltd. Guangzhou City 9,924,437.53 -75,562.47 Fuzhou Zhongyue Real Estate Development Co., Ltd. Fuzhou City 19,281,488.81 -718,511.19 Chengdu Poly Xingrong Industrial Co., Ltd. Chengdu City 199,898,055.13 -101,944.87 Shaanxi Shangrun Real Estate Development Co., Ltd. Shaanxi Province 4,988,899.96 -11,100.04 Poly (Xinjiang) Investment Co., Ltd. Xinjiang 197,879,269.65 -2,120,730.35 Xinjiang Poly Tianhengji Real Estate Development Co., Ltd. Xinjiang 47,090,171.57 -2,909,828.43 Xiamen Zhongjing Real Estate Development Co., Ltd. Xiamen City 3,487,799,527.32 -12,200,472.68 Tianjin Xinhe Fitness Services Co., Ltd. Tianjin Municipality 208,684.91 108,684.91 Guangzhou Luocheng Real Estate Development Co., Ltd. Guangzhou City 91,996,777.78 -8,003,222.22 Shanwei Poly Real Estate Development Co., Ltd. Shanwei City 9,835,931.08 -164,068.92 Guangzhou Zhenglin Real Estate Development Co., Ltd. Guangzhou City 1,383,821,350.00 Guangzhou Rumao Real Estate Development Co., Ltd. Guangzhou City 1,001,200,000.00 Jiangsu Poly Ningcheng Real Estate Development Co., Ltd. Jiangsu Province 518,726,840.24 -858,062.76 Foshan Poly Haofeng Real Estate Development Co., Ltd. Foshan City -817.00 -817.00 Maoming Hexin Real Estate Development Co., Ltd. Maoming City -76,003.00 -76,003.00 Foshan Poly Xingtai Real Estate Development Co., Ltd. Foshan City -539.00 -539.00

Notes to the Financial Statements Page 74 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Principal place of Net assets as at the end Net profit in the current Name of the subsidiary business of the period period Foshan Poly Baoxingda Real Estate Development Co., Ltd. Foshan City -231,039.01 -231,039.01 Foshan Poly Baohengda Real Estate Development Co., Ltd. Foshan City -25,574.00 -25,574.00

6.3.2 Subsidiaries liquidated in the current period Principal Net profit from the beginning Net asset on the liquidation Name of the subsidiary place of of period to the liquidation date business date Hangzhou Dongliang Investment Hangzhou Management Co., Ltd. City 89,586.88 -9,415.11

7. Interests in other entities 7.1 Interest in the subsidiaries 7.1.1 Group constitution Principal Shareholding ratio (%) Name of the Registration Acquisition place of Business nature subsidiary place Direct Indirect mode business 1-1.Poly Guangzhou Real Estate Development Co., Real estate Ltd. ("Poly Guangzhou Guangzhou development Guangzhou") City City and operation 51 Investment 1-2.Guangzhou Poly Licheng Real Estate Real estate Development Co., Guangzhou Guangzhou development Ltd.("Poly Licheng") City City and operation 100 Investment 1-3.Zhongshan Xiang Yu Industrial Co., Ltd. Real estate ("Zhongshan Zhongshan Zhongshan development Xiangyu") City City and operation 100 Investment 2.Poly Zengcheng Real Estate Development Co., Real estate Ltd. ("Poly Guangzhou Guangzhou development Zengcheng") City City and operation 100 Investment 3-1.Guangdong Poly Real Estate Development Co., Real estate Ltd. ("Guangdong Guangzhou Guangzhou development Poly") City City and operation 100 Investment 3-2.Guangzhou Yuehe Property Development Co., Real estate Ltd. ("Guangzhou Guangzhou Guangzhou development Yuehe") City City and operation 50 Investment Real estate development 3-3.Zhuhai Poly and operation Tianyue Investment Zhuhai City Real estate Holdings Co., Ltd. Zhuhai City development ("Zhuhai Tianyue") Zhuhai City Zhuhai City and operation 60 Investment

Notes to the Financial Statements Page 75 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Principal Shareholding ratio (%) Name of the Registration Acquisition place of Business nature subsidiary place Direct Indirect mode business 3-4.Guangzhou Conghua Poly Real Estate Development Real estate Co., Ltd. ("Conghua Guangzhou Guangzhou development Poly") City City and operation 100 Investment 3-5.Guangzhou Bangjie Property Co., Real estate Ltd. ("Guangzhou Guangzhou Guangzhou development Bangjie") City City and operation 100 Investment 3-6.Guangzhou Honghe Real Estate Development Co., Real estate Ltd. ("Guangzhou Guangzhou Guangzhou development Honghe") City City and operation 50.98 Investment 3-7.Guangzhou Sitai Real Estate Development Co., Real estate Ltd. ("Guangzhou Guangzhou Guangzhou development Sitai") City City and operation 100 Investment 3-8.Dongguan Combination Zhongjun Real Estate Real estate of enterprises Development Co., development not under the Ltd. ("Dongguan Dongguan Dongguan and property common Zhongjun") City City management 100 control 3-9.Guangzhou Yuelong Real Estate Development Co., Real estate Ltd. ("Guangzhou Guangzhou Guangzhou development Yuehong") City City and operation 100 Investment 3-10.Zhuhai Hengqin Poly Lilihe Investment Co., Ltd. Leasing and ("Zhuhai Hengqin business Poly") Zhuhai City Zhuhai City services 100 Investment 3-11.Guangzhou Puyu Real Estate Development Co., Real estate Ltd. ("Guangzhou Guangzhou Guangzhou development Puyu") City City and operation 100 Investment Real estate development 3-12.Shanwei Poly and operation Real Estate Real estate Development Co., development Ltd. ("Shanwei Poly") Shanwei City Shanwei City and operation 100 Investment 4.Guangzhou Huachu Combination Real Estate of enterprises Development Co., Real estate not under the Ltd. ("Huachu Guangzhou Guangzhou development common Company") City City and operation 87.5 12.5 control 5.Guangzhou Science City Poly Real Estate Real estate Co. Ltd. ("Science Guangzhou Guangzhou development City") City City and operation 100 Investment

Notes to the Financial Statements Page 76 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Principal Shareholding ratio (%) Name of the Registration Acquisition place of Business nature subsidiary place Direct Indirect mode business 6-1.Guangzhou Jindi Combination Real Estate of enterprises Development Co., Real estate not under the Ltd. (Guangzhou Guangzhou Guangzhou development common Jindi") City City and operation 100 control Real estate 6-2Zhengzhou Poly Zhengzhou development Real Estate City engzhou and operation Development Co., City Real estate Ltd. ("Zhengzhou Zhengzhou Zhengzhou development Poly") City City and operation 100 Investment 7.Guangzhou Jinnuo Combination Real Estate of enterprises Development Co., Real estate not under the Ltd. ("Guangzhou Guangzhou Guangzhou development common Jinnuo") City City and operation 60 control 8.Poly (Dongguan) Real Estate Development Co., Real estate Ltd. ("Poly Dongguan Dongguan development Dongguan") City City and operation 100 Investment Real estate development 9.Poly (Dongguan) Dongguan and operation Investment Co., Ltd. DoDongguan City Real estate ("Dongguan City ngguan Dongguan development Investment") City City and operation 80 Investment 10.Poly (Zhuhai) Property Real estate Development Co., development Ltd. ("Zhuhai Poly") Zhuhai City Zhuhai City and operation 100 Investment 11.Poly (Zhongshan) Property Development Co., Real estate Ltd. ("Zhongshan Zhongshan Zhongshan development Poly") City City and operation 100 Investment 12-1.Hengli (Hong Real estate Kong) Real Estate sales, leasing Limited ("Hong Kong Hong Kong agency and Hengli") Hong Kong Hong Kong others 100 Investment 12-2.GUANGZHOU ELEGANCE REAL ESTATE Combination DEVELOPMENT of enterprises CO., LTD. Real estate not under the ("Guangzhou Guangzhou Guangzhou development common Elegance") City City and operation 100 control

Notes to the Financial Statements Page 77 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Principal Shareholding ratio (%) Name of the Registration Acquisition place of Business nature subsidiary place Direct Indirect mode business British Virgin Islands British Virgin Islands British Virgin Islands British Virgin Investment, Islands holding and 12-3.Poly Real Estate British Virgin British Virgin enterprise Finance Ltd Islands Islands management 100 Investment 12-4-1.CORSS Combination FORTUNE Investment, of enterprises HOLDINGS holding and not under the LIMITED (“CORSS British Virgin British Virgin enterprise common FORTUNE”) Islands Islands management 100 control 12-4-2.ABUNDANT Investment, CHOICE holding and INVESTMENTS enterprise LIMITED Hong Kong Hong Kong management 100 Investment Combination 12-5-1.MEGA WISE Investment, of enterprises HOLDINGS holding and not under the LIMITED(“MEGA British Virgin British Virgin enterprise common WISE”) Islands Islands management 100 control Investment, holding and 12-5-2-1.Hongtai Co., British Virgin British Virgin enterprise Ltd. ("Hong Tai") Islands Islands management 100 Investment Combination 12-5-2-2-1.Baiqiao Investment, of enterprises Investment Co., Ltd. holding and not under the ("Baiqiao enterprise common investment") Hong Kong Hong Kong management 80 control 12-5-2-2-2.Shenyang Combination Zhonghuida Real Shenyang Real estate of enterprises Estate Co., Ltd. City development not under the ("Shenyang Shenyang Shenyang and operation common Zhonghuida") City City R 100 control 1 2-5-3-1.ACTION DRAGON Investment, INVESTMENTS holding and LIMITED(“ACTION enterprise DRAGON”) Hong Kong Hong Kong management 100 Investment 12-5-3-2.Hefei Herong Real Estate Real estate Co., Ltd. ("Hefei development Herong") Hefei Hefei and operation 100 Investment 12-6-1.PRIDE Investment, SOUTH HOLDINGS holding and LIMITED(“PRIDE British Virgin British Virgin enterprise SOUTH”) Islands Islands management 65 Investment Combination 12-6-2-1.TOTAL Investment, of enterprises FAVOUR holding and not under the LIMITED(“TOTAL British Virgin British Virgin enterprise common FAVOUR”) Islands Islands management 100 control

Notes to the Financial Statements Page 78 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Principal Shareholding ratio (%) Name of the Registration Acquisition place of Business nature subsidiary place Direct Indirect mode business Combination Investment, of enterprises holding and not under the 12-6-2-2-1.Noda Co., enterprise common Ltd. ("Noda") Hong Kong Hong Kong management 100 control Real estate development Combination 12-6-2-2-2.Foshan and operation of enterprises Nanhai Jingyuan Real Real estate not under the Estate Co., Ltd. development common (Foshan Jingyuan") Foshan City Foshan City and operation 60 control 1 2-7-1.Shengxin Investment, Company Limited holding and ("Shengxin British Virgin British Virgin enterprise Company") Islands Islands management 100 Investment Combination 12-7-2-1.Sheng Huo Investment, of enterprises Zhi Yuan Co., Ltd. holding and not under the ("Sheng Huo Zhi enterprise common Yuan ") Hong Kong Hong Kong management 51 control 12-7-2-2.Huizhou Real estate Sheng Huo Zhi Yuan development Combination Tourism Development and operation of enterprises Co., Ltd. ("Huizhou Real estate not under the Sheng Huo Zhi Huizhou City development common Yuan") Huizhou City Huizhou City and operation 100 control a Combination Investment, of enterprises 12-8-1.Shouhong Co., holding and not under the Ltd. ("Shouhong enterprise common Company") Hong Kong Hong Kong management 60 control 12-8-2.Shouhong Property (Guangzhou) Real estate Co., Ltd. ("Shouhong Guangzhou Guangzhou development Property") City City and operation 100 Investment 12-9.Guangzhou Zhenglin Real Estate Development Co., Guangzhou Real estate Ltd. ("Guangzhou Guangzhou Guangzhou development Zhenglin") City City and operation 50 Investment 12-10.Guangzhou Rumao Real Estate Development Co., Real estate Ltd. ("Guangzhou Guangzhou Guangzhou development Rumao") City City and operation 50 Investment 13-1.Poly International Trade and Investment Co., Real estate Ltd. ("Poly Guangzhou Guangzhou development International Trade") City City and operation 51 Investment 13-2.Guangzhou PWTC Property Property Management Co., Ltd. Guangzhou Guangzhou management, ("PWTC") City City etc. 100 Investment

Notes to the Financial Statements Page 79 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Principal Shareholding ratio (%) Name of the Registration Acquisition place of Business nature subsidiary place Direct Indirect mode business 14.Guangzhou Pazhou Investment Co., Ltd. Real estate ("Pazhou Guangzhou Guangzhou development Investment") City City and operation 80 Investment 15-1.Guangzhou Poly Urban Renewal Investments Co., Ltd. Real estate ("Poly Urban Guangzhou Guangzhou development Renewal") City City and operation 100 Investment 15-2.Guangzhou Luocheng Real Estate Development Co., Ltd. ("Guangzhou Guangzhou Guangzhou Real estate

Luocheng") City City sector 606324B Investment6325B

166326B -1.Liaoning Poly

Industrial Co., Ltd. Real6329B estate

("Liaoning Shenyang6327B Shenyang6328B development

Industrial") City City and operation 1006330B Investment6331B

166332B -2.Shenyang Poly Champagne Real

Estate Development Real6335B estate

Co., Ltd. ("Shenyang Shenyang6333B Shenyang6334B development

Champagne") City City and operation 556336B Investment6337B

Real6341B estate development

166338B -3.Poly (Tonghua) and operation Real Estate Real estate

Development Co., Tonghua6340B City development

Ltd. ("Tonghua Poly") Tonghua6339B City Tonghua City and operation 1006342B Investment6343B

166344B -4.Shenyang Linhai Real Estate

Development Co., Real6347B estate

Ltd. ("Shenyang Shenyang6345B Shenyang6346B development

Linhai") City City and operation 1006348B Investment6349B

176350B -1.Poly (Shenyang) Real Estate

Development Co., Real6353B estate

Ltd. ("Poly Shenyang6351B Shenyang6352B development

Shenyang") City City and operation 606354B Investment6355B

176356B -2.Poly Riverbank, Shenyang Real Estate

Development Co., Real6359B estate

Ltd. ("Shenyang Shenyang6357B Shenyang6358B development

Riverbank") City City and sales 516360B Investment6361B

Combination6367B

176362B -3.Shenyang Wanyi of enterprises

Real Estate Properties Real6365B estate not under the

Co., Ltd. ("Shenyang Shenyang6363B Shenyang6364B development common

Wanyi") City City and sales 1006366B control

186368B -1.Liaoning Poly Real Estate

Development Co., Real6371B estate

Ltd. ("Liaoning a6369B Shenyang Shenyang6370B development

Poly") City City and operation 806372B 206373B Investment6374B

Notes to the Financial Statements Page 80 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Principal Shareholding ratio (%) Name of the Registration Acquisition place of Business nature subsidiary place Direct Indirect mode business

Real6378B estate

186375B -2.Dandong Poly development Combination6380B Tianci Real Estate and operation of enterprises Development Co., Real estate not under the

Ltd. ("Dandong Dandong6377B City development common

Poly") Dandong6376B City Dandong City and operation 516379B control

16381B 8-3.Shenyang Poly Xihu Real Estate

Development Co., Real6384B estate

Ltd. ("Shengyang Shenyang6382B Shenyang6383B development

Xihu") City City and operation 1006385B Investment6386B

196387B -1.Shenyang Combination6392B Guangtian Real Estate of enterprises

Development Co., Real6390B estate not under the

Ltd. ("Shenyang Shenyang6388B Shenyang6389B development common

Guangtian") City City and operation 1006391B control

196393B -2.Poly (Yingkou) Real6397B estate

Real Estate Real6396B estate development

Development Co., Yingkou6395B City development and

Ltd. ("Poly Yingkou") Yingkou6394B City Yingkou City and operation operation 956398B Investment6399B

196400B -3.Shengyang Hengfu Real Estate

Development Co., Real6403B estate

Ltd. ("Shengyang Shenyang6401B Shenyang6402B development

Hengfu") City City and operation 1006404B Investment6405B

Real6409B estate

196406B -4.Dalian Hongqi development Poly Real Estate and operation Development Co., Real estate

Ltd. ("Dalian Dalian6408B City development

Hongqi") Dalian6407B City Dalian City and operation 506410B Investment6411B

196412B -5.Dalian Poly Bingang Real Estate

Development Co., Real6415B estate Ltd. ("Dalian development

Bingang") Dalian6413B City Dalian6414B City and operation 1006416B Investment6417B

206418B -1.Poly (Dalian)

Real Estate Real6421B estate Development Co., development

Ltd. ("Poly Dalian") Dalian6419B City Dalian6420B City and operation 1006422B Investment6423B

206424B -2.Dalian Henghui Real Estate

Development Co., Real6427B estate Ltd. ("Dalian development

Henghui") Dalian6425B City Dalian6426B City and operation 1006428B Investment6429B

206430B -3-1.Dalian Poly Donggang Real Estate

Development Co., Real6433B estate Ltd. ("Dalian development

Donggang") Dalian6431B City Dalian6432B City and operation 506434B Investment6435B

206436B -3-2.Dalian Poly Convention & Exhibition Management Co., Ltd.

("Dalian Conference Exhibition6439B

& Exhibition") Dalian6437B City Dalian6438B City services 1006440B Investment6441B

Notes to the Financial Statements Page 81 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Principal Shareholding ratio (%) Name of the Registration Acquisition place of Business nature subsidiary place Direct Indirect mode business

206442B -4.Dalian Yingsheng Real Estate

Development Co., Real6445B estate Ltd. ("Dalian development

Yingsheng") Dalian6443B City Dalian6444B City and operation 506446B Investment6447B

216448B -1.Poly (Changchun) HengFu Real Estate

Development Co., Real6451B estate

Ltd. ("Changchun Changchun6449B Changchun6450B development

Hengfu") City City and operation 1006452B Investment6453B

216454B -2-1.Changchun Guangtian Real Estate

Development Co., Real6457B estate

Ltd. ("Changchun Changchun6455B Changchun6456B development

Guangtian") City City and operation 1006458B Investment6459B

216460B -2-2.Changchun Poly Real Estate

Development Co., Real6463B estate

Ltd. ("Changchun Changchun6461B Changchun6462B development

Poly") City City and operation 1006464B Investment6465B

216466B -3.Changchun City East Long Real Estate

Development Co., Real6469B estate

Ltd. ("Changchun Changchun6467B Changchun6468B development

East Long") City City and operation 1006470B Investment6471B

216472B -4.Changchun Poly Hengxin Real Estate

Development Co., Real6475B estate

Ltd. ("Changchun Changchun6473B Changchun6474B development

Hengxin") City City and operation 1006476B Investment6477B

216478B -5.Changchun Poly Hengxin Real Estate

Development Co., Real6481B estate

Ltd. ("Changchun Changchun6479B Changchun6480B development

Hengxin") City City and operation 1006482B Investment6483B

22.Changchun6484B Light Combination6489B Rail Liuhe Real Estate of enterprises

Development Co., Real6487B estate not under the

Ltd. ("Changchun Changchun6485B Changchun6486B development common

Liuhe") City City and operation 806488B control

Real6493B estate

23.Beijing6490B development Combination6496B

Jinchenghua Real Beijing6492B and operation of enterprises Estate Development Municipality Real estate not under the

Co., Ltd. Beijing6491B Beijing development common

("Jinchenghua") Municipality Municipality and operation 756494B 106495B control

246497B -1.POLY BEIJING Real Estate

Development Co., Real6500B estate

Ltd. ("Poly Beijing6498B Beijing6499B development

Beijing") Municipality Municipality and operation 1006501B Investment6502B

246503B -2.BEIJING POLY

XING Real Estate Real6506B estate

Development Co.,Ltd. Beijing6504B Beijing6505B development

("Beijing Poly Xing") Municipality Municipality and operation 1006507B Investment6508B

Notes to the Financial Statements Page 82 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Principal Shareholding ratio (%) Name of the Registration Acquisition place of Business nature subsidiary place Direct Indirect mode business

246509B -3.BEIJING POLY YING Real Estate

Development Co., Real6512B estate

Ltd. ("Beijing Poly Beijing6510B Beijing6511B development

Ying") Municipality Municipality and operation 1006513B Investment6514B

246515B -4.BEIJING POLY CHENG Real Estate

Development Co., Real6518B estate

Ltd. ("Beijing Poly Beijing6516B Beijing6517B development

Cheng") Municipality Municipality and operation 906519B Investment6520B

Combination6526B

246521B -5.Beijing Shibo of enterprises

Hongye Real Estate Real6524B estate not under the

Development Co., Beijing6522B Beijing6523B development common

Ltd. ("Beijing Shibo") Municipality Municipality and operation 1006525B control

246527B -6-1.Beijing Poly An Ping Pension

Investment Investment6530B Management Co., management,

Ltd.("Beijing An Beijing6528B Beijing6529B investment

Ping") Municipality Municipality advisory 516531B Investment6532B

246533B -6-2.Beijing Anping Preventive6536B Poclinic Co., Ltd. health care,

("Beijing Anping Beijing6534B Beijing6535B medicine,

Poclinic") Municipality Municipality surgery, etc. 1006537B Investment6538B

246539B -7.BEIJING POLY Sunac Real Estate

Development Co., Real6542B estate

Ltd. ("Beijing Poly Beijing6540B Beijing6541B development

Sunac") Municipality Municipality and operation 50.56543B Investment6544B

246545B -8.Beijing Baoli Shoukai Xintai Real

Estate Co., Ltd. Real6548B estate

("Beijing Baoli Beijing6546B Beijing6547B development

Shoukai") Municipality Municipality and operation 516549B Investment6550B

246551B -9.Beijing Baolitong Real Estate

Development Co., Real6554B estate

Ltd. ("Beijing Beijing6552B Beijing6553B development

Baolitong") Municipality Municipality and operation 656555B Investment6556B

Combination6562B

246557B -10.Beijing of enterprises

Runcheng Jiaxin Real Real6560B estate not under the

Estate Co., Ltd. Beijing6558B Beijing6559B development common

("Beijing Runcheng") Municipality Municipality and sales 1006561B control

246563B -11.Beijing Langtai Real Estate

Development Co., Real6566B estate

Ltd. ("Beijing Beijing6564B Beijing6565B development

Langtai") Municipality Municipality and operation 506567B Investment6568B

246569B -12.Beijing Litong Real Estate

Development Co., Real6572B estate

Ltd. ("Beijing Beijing6570B Beijing6571B development

Litong") Municipality Municipality and operation 656573B Investment6574B

Notes to the Financial Statements Page 83 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Principal Shareholding ratio (%) Name of the Registration Acquisition place of Business nature subsidiary place Direct Indirect mode business

246575B -13.Beijing Combination6580B Yuanxin Real Estate of enterprises

Development Co., Real6578B estate not under the

Ltd. ("Beijing Beijing6576B Beijing6577B development common

Yuanxin") Municipality Municipality and operation 1006579B control

246581B -14-1.HEBEI POLY REAL ESTATE

DEVELOPMENT Real6584B estate

CO.,LTD ("Hebei Shijiazhuang6582B Shijiazhuang6583B development

Poly") City City and operation 906585B Investment6586B

246587B -14-2.Hebei Yinhu Combination6592B Real Estate of enterprises

Development Co., Real6590B estate not under the

Ltd. ("Hebei Yinhu") Shijiazhuang6588B Shijiazhuang6589B development common

(note 1) City City and sales 656591B control

Real6596B estate

246593B -15.Tongzhou Beijing6594B Beijing6595B development

Project Department Municipality Municipality and sales 656597B Investment6598B

256599B -1.Poly Shanghai Real Estate

Development Co., Real6602B estate

Ltd. ("Poly Shanghai6600B Shanghai6601B development

Shanghai") Municipality Municipality and operation 616603B Investment6604B

256605B -2.Shanghai Junlan Real6608B estate

Property Co., Ltd. Shanghai6606B Shanghai6607B development

("Junlan Property") Municipality Municipality and operation 406609B 606610B Investment6611B

266612B -1.Shanghai Poly

Jianjin Real Estate Real6615B estate

Co., Ltd. ("Shanghai Shanghai6613B Shanghai6614B development

Jianjin") Municipality Municipality and operation 1006616B Investment6617B

266618B -2.Shanghai Poly

Jianyong Real Estate Real6621B estate

Co., Ltd. ("Shanghai Shanghai6619B Shanghai6620B development

Jianyong") Municipality Municipality and operation 1006622B Investment6623B

266624B -3.Shanghai Poly

Jianye Real Estate Real6627B estate

Co., Ltd. ("Shanghai Shanghai6625B Shanghai6626B development

Jianye") Municipality Municipality and operation 1006628B Investment6629B

266630B -4.Shanghai Combination6635B Chengqian Real of enterprises

Estate Development Real6633B estate not under the

Co., Ltd. ("Shanghai Shanghai6631B Shanghai6632B development common

Chengqian") Municipality Municipality and operation 1006634B control

266636B -5.Shanghai Poly Shanghai6638B Real6639B estate Jianheng Real Estate Municipality development

Co., Ltd. ("Shanghai Shanghai6637B Shanghai and operation

Jianheng") Municipality Municipality and operation 1006640B Investment6641B

266642B -6.Shanghai Poly

Jianzhen Real Estate Real6645B estate

Co., Ltd. ("Shanghai Shanghai6643B Shanghai6644B development

Jianzhen") Municipality Municipality and operation 1006646B Investment6647B

266648B -7.Shanghai Poly

Jianzhen Investment Real6651B estate

Consultation Co., Ltd. Shanghai6649B Shanghai6650B development

("Shanghai Jianzhen") Municipality Municipality and operation 1006652B Investment6653B

Notes to the Financial Statements Page 84 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Principal Shareholding ratio (%) Name of the Registration Acquisition place of Business nature subsidiary place Direct Indirect mode business

266654B -8.Shanghai Poly

Jianhao Business Real6657B estate

Investment Co.,Ltd Shanghai6655B Shanghai6656B development

("Shanghai Jianhao") Municipality Municipality and operation 80.016658B Investment6659B

266660B -9.Jiashan An Ping

Regimen Property Real6663B estate Co., Ltd. ("Jiashan development

Property") Jiaxing6661B City Jiaxing6662B City and operation 706664B Investment6665B

266666B -10.Poly Real

Estate Nantong Co., Real6669B estate Ltd. Nantong ("Poly development

Nantong") Nantong6667B City Nantong6668B City and operation 1006670B Investment6671B

266672B -11.Shanghai Poly

Jianrong Real Estate Real6675B estate

Co., Ltd. ("Shanghai Shanghai6673B Shanghai6674B development

Jianrong") Municipality Municipality and operation 1006676B Investment6677B

266678B -12.Shanghai Poly

Jianxi Real Estate Real6681B estate

Co., Ltd. ("Shanghai Shanghai6679B Shanghai6680B development

Jianxi") Municipality Municipality and operation 516682B Investment6683B

266684B -13.Shanghai Poly

Hongrong Real Estate Real6687B estate

Co., Ltd. ("Shanghai Shanghai6685B Shanghai6686B development

Hongrong") Municipality Municipality and operation 516688B Investment6689B

266690B -14.Shanghai Poly

Jianying Real Estate Real6693B estate

Co., Ltd. ("Shanghai Shanghai6691B Shanghai6692B development

Jianying") Municipality Municipality and operation 516694B Investment6695B

266696B -15.Shanghai Poly

Jianjing Real Estate Real6699B estate

Co., Ltd. ("Shanghai Shanghai6697B Shanghai6698B development

Jianjing") Municipality Municipality and operation 1006700B Investment6701B

Combination6707B of enterprises

27.Shanghai6702B Jianqiao Real6705B estate not under the

Real Estate Co., Ltd. Shanghai6703B Shanghai6704B development common

("Shanghai Jianqiao") Municipality Municipality and operation 906706B control

286708B -1.Poly South

China Industrial Co., Real6711B estate Ltd. ("South China development

Holdings") Foshan6709B City Foshan6710B City and operation 1006712B Investment6713B

286714B -2-1.Foshan Shunde

District Poly Real Real6717B estate Estate Co., Ltd. development

("Shunde Poly") Foshan6715B City Foshan6716B City and operation 1006718B Investment6719B

286720B -2-2.Foshan Shunde Poly Hengkun Real

Estate Development Real6723B estate Co., Ltd. ("Foshan development

Hengkun") Foshan6721B City Foshan6722B City and operation 1006724B Investment6725B

Tourist,6729B

286726B -3.Poly (Foshan) catering, hotel Hotel Co., Ltd. management

("Foshan Hotel") Foshan6727B City Foshan6728B City services 1006730B Investment6731B

Notes to the Financial Statements Page 85 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Principal Shareholding ratio (%) Name of the Registration Acquisition place of Business nature subsidiary place Direct Indirect mode business

286732B -4.Foshan Poly

Real Estate Real6735B estate Development Co., development

Ltd. ("Foshan Poly") Foshan6733B City Foshan6734B City and operation 16736B 996737B Investment6738B

286739B -5.Foshan Poly Zhenggao Real Estate

Development Co., Real6742B estate Ltd. ("Foshan development

Zhenggao") Foshan6740B City Foshan6741B City and operation 606743B Investment6744B

286745B -6.Foshan Poly

Hengshun Property Real6748B estate Co., Ltd. ("Foshan development

Hengshun") Foshan6746B City Foshan6747B City and operation 516749B Investment6750B

286751B -7.Foshan Poly

Hengxin Real Estate Real6754B estate Co., Ltd. ("Foshan development

Hengxin") Foshan6752B City Foshan6753B City and operation 516755B Investment6756B

286757B -8.Foshan South

Sea Poly Hairong Real6760B estate Investment Co., Ltd. development

("South Sea Hairong") Foshan6758B City Foshan6759B City and operation 606761B Investment6762B

286763B -9.Foshan Poly Xincheng Real Estate

Development Co., Real6766B estate Ltd. ("Foshan development

Xincheng") Foshan6764B City Foshan6765B City and operation 506767B Investment6768B

286769B -10.Foshan Poly Hongsheng Property

Development Co., Real6772B estate Ltd. ("Foshan development

Hongsheng") Foshan6770B City Foshan6771B City and operation 516773B Investment6774B

286775B -11.Jiangmen Poly

Hongxin Real Estate Real6778B estate

Co., Ltd. ("Jiangmen Jiangmen6776B Jiangmen6777B development

Hongxin") Municipality Municipality and operation 506779B Investment6780B

286781B -12.Jiangmen Poly Binjiang New Town

Development Co., Real6784B estate

Ltd. ("Jiangmen Jiangmen6782B Jiangmen6783B development

Binjiang") Municipality Municipality and operation 1006785B Investment6786B

286787B -13-1.Foshan Poly Baohengda Real

Estate Development Real6790B estate Co., Ltd. ("Foshan development

Baohengda") Foshan6788B City Foshan6789B City and operation 516791B Investment6792B

286793B -13-2.Foshan Poly

Hengsheng Property Real6796B estate Co., Ltd. ("Foshan development

Hengsheng") Foshan6794B City Foshan6795B City and operation 506797B Investment6798B

286799B -14.Qingxin

Xinghai Investment Combination6804B Real Estate of enterprises

Development Co., Real6802B estate not under the

Ltd. ("Qingxin Qingyuan6800B Qingyuan6801B development common

Xinghai") City City and operation 516803B control

Notes to the Financial Statements Page 86 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Principal Shareholding ratio (%) Name of the Registration Acquisition place of Business nature subsidiary place Direct Indirect mode business

286805B -15.Foshan Sanshui Poly Xinhe Real

Estate Development Real6808B estate Co., Ltd. ("Foshan development

Sanshui") Foshan6806B City Foshan6807B City and operation 516809B Investment6810B

286811B -16.Poly (Zhanjiang) Real

Estate Development Real6814B estate

Co., Ltd. ("Poly Zhanjiang6812B Zhanjiang6813B development

Zhanjiang") City City and operation 656815B Investment6816B

286817B -17. Poly Shaoguan Real6820B estate

Real Estate Co., Ltd. Shaoguan6818B Shaoguan6819B development

("Polu Shaoguan") City City and operation 516821B Investment6822B

Combination6828B

286823B -18. Shaoguan of enterprises

Jihua Property Co., Real6826B estate not under the

Ltd. ("Shaoguan Shaoguan6824B Shaoguan6825B development common

Jihua") City City and operation 1006827B control

286829B -19.Qingyuan

Xinrui Real Estate Real6832B estate

Co., Ltd. ("Qingyuan Qingyuan6830B Qingyuan6831B development

Xinrui") City City and operation 546833B Investment6834B

286835B -20.Poly Zhaoqing Real6838B estate

Investment Co., Ltd. Zhaoqing6837B development

("Poly Zhaoqing") Zhaoqing6836B City City and operation 516839B Investment6840B

Real6844B estate development

286841B -21.Zhaoqing Zhaoqing6843B and operation Xinrong Real Estate City Real estate Co., Ltd. ("Zhaoqing Zhaoqing development

Xinrong") Zhaoqing6842B City City and operation 1006845B Investment6846B

286847B -22.Foshan

Baoxingda Real Real6850B estate Estate Co., Ltd. development

("Foshan Baoxingda") Foshan6848B City Foshan6849B City and operation 516851B Investment6852B

286853B -23.Foshan Poly Xingtai Real Estate

Development Co., Real6856B estate Ltd. ("Foshan development

Xingtai") Foshan6854B City Foshan6855B City and operation 1006857B Investment6858B

286859B -24.Maoming

Hexin Real Estate Real6862B estate Development Co., development

Ltd. ("Maoming Maoming6860B Maoming6861B and operation

Hexin") City City and operation 806863B Investment6864B

286865B -25.Foshan Poly

Haofeng Real Estate Real6868B estate Co., Ltd. ("Foshan development

Haofeng") Foshan6866B City Foshan6867B City and operation 1006869B Investment6870B

296871B -1.Poly (Chongqing) Investment Industrial

Co., Ltd. ("Chongqing Chongqing6872B Chongqing6873B Project6874B

Investment") Municipality Municipality investment 1006875B Investment6876B

Notes to the Financial Statements Page 87 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Principal Shareholding ratio (%) Name of the Registration Acquisition place of Business nature subsidiary place Direct Indirect mode business

296877B -2.Chongqing

Sheng Chuang Xin Combination6882B Hao Real Estate of enterprises

Development Co., Real6880B estate not under the

Ltd. ("Chongqing Chongqing6878B Chongqing6879B development common

Sheng Chuang") Municipality Municipality and operation 1006881B control

296883B -3.Chongqing Poly Zhonghui Real Estate

Development Co., Real6886B estate

Ltd. ("Chongqing Chongqing6884B Chongqing6885B development

Zhonghui") Municipality Municipality and operation 1006887B Investment6888B

296889B -4.Chongqing Baocheng Real Estate

Development Co., Real6892B estate

Ltd. ("Chongqing Chongqing6890B Chongqing6891B development

Baocheng") Municipality Municipality and sales 516893B Investment6894B

296895B -5.Chongqing Baochang Real Estate

Development Co., Real6898B estate

Ltd. ("Chongqing Chongqing6896B Chongqing6897B development

Baochang") Municipality Municipality and sales 506899B Investment6900B

296901B -6.Chongqing Baofang Real Estate

Development Co., Real6904B estate

Ltd. ("Chongqing Chongqing6902B Chongqing6903B development

Baofang") Municipality Municipality and operation 516905B Investment6906B 6910B 296907B -7.Chongqing Real estate Baoxiang Real Estate development Development Co., and property

Ltd. ("Chongqing Chongqing6908B Chongqing6909B management,

Baoxiang") (Note 2) Municipality Municipality etc. 256911B Investment6912B

296913B -8.Chongqing Baosheng Real Estate

Development Co., Real6916B estate

Ltd. ("Chongqing Chongqing6914B Chongqing6915B development

Baosheng") Municipality Municipality and operation 1006917B Investment6918B

306919B -1.Poly (Tianjin)

Real Estate Real6922B estate

Development Co., Tianjin6920B Tianjin6921B development

Ltd. ("Tianjin Poly") Municipality Municipality and operation 1006923B Investment6924B

306925B -2.Tianjin Poly Champagne Real

Estate Development Real6928B estate

Co., Ltd. ("Tianjin Tianjin6926B Tianjin6927B development

Champagne") Municipality Municipality and operation 1006929B Investment6930B

306931B -3.Tianjin Poly Kunlun Real Estate

Development Co., Real6934B estate

Ltd. ("Tianjin Tianjin6932B Tianjin6933B development

Kunlun") Municipality Municipality and operation 1006935B Investment6936B

306937B -4.Tianjin Poly

Rongchuang Tianjin6939B

Investment Co., Ltd. Municipality Real6940B estate

("Tianjin Tianjin6938B Tianjin investment and

Rongchuang") Municipality Municipality development 516941B Investment6942B

Notes to the Financial Statements Page 88 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Principal Shareholding ratio (%) Name of the Registration Acquisition place of Business nature subsidiary place Direct Indirect mode business

306943B -5.Tianjin Shengxin Combination6948B Longmao Investment of enterprises

and Development Co., Real6946B estate and not under the

Ltd. ("Tianjin Tianjin6944B Tianjin6945B infrastructure common

Shengxin") Municipality Municipality investment 516947B control

306949B -6.Tianjin Poly Rongchang Real

Estate Development Real6952B estate

Co., Ltd. ("Poly Tianjin6950B Tianjin6951B development

Rongchang") Municipality Municipality and operation 1006953B Investment6954B

306955B -7.Tianjin Poly Construction6958B Shengtai Industries materials

Co., Ltd. ("Poly Tianjin6956B Tianjin6957B manufacturing

Shengtai") Municipality Municipality and sales, etc. 706959B Investment6960B

Building6964B materials

306961B -8.Tianjin technology Ronghong Shenglong development, Industrial Co., Ltd. transfer, and

("Ronghong Tianjin6962B Tianjin6963B building

Shenglong") Municipality Municipality materials sales 1006965B Investment6966B

Combination6972B

306967B -9.Boda Hongwei of enterprises

(Tianjin) Real Estate Real6970B estate not under the

Co., Ltd. ("Boda Tianjin6968B Tianjin6969B development common

Hongwei") Municipality Municipality and operation 516971B control

316973B -1.Poly (Wuhan)

Real Estate Real6976B estate

Development Co., Wuhan6975B City development

Ltd. ("Poly Wuhan") Wuhan6974B City Wuhan City and operation 1006977B Investment6978B

316979B -2.Wuhan Poly

Baihe Real Estate Real6982B estate Development Co., development

Ltd. ("Wuhan Baihe") Wuhan6980B City Wuhan6981B City and operation 1006983B Investment6984B

Real6988B estate

316985B -3.Huanggang Poly development

Real Estate Huanggang6987B and operation Development Co., City Real estate

Ltd. ("Huanggang Huanggang6986B Huanggang development

Poly") City City and operation 1006989B Investment6990B

316991B -4.Wuhan Poly May Flower Real

Estate Development Real6994B estate Co., Ltd. ("Wuhan development

May Flower") Wuhan6992B City Wuhan6993B City and operation 1006995B Investment6996B

316997B -5.Wuhan Poly Jinqiao Real Estate

Development Co., Real6999B estate Ltd. ("Wuhan development

Jinqiao") Wuhan6998B City and operation 1007000B Investment7001B

317002B -6.Wuhan Linyu

Real Estate Real7005B estate Development Co., development

Ltd. ("Wuhan Linyu") Wuhan7003B City Wuhan7004B City and operation 517006B Investment7007B

Notes to the Financial Statements Page 89 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Principal Shareholding ratio (%) Name of the Registration Acquisition place of Business nature subsidiary place Direct Indirect mode business

317008B -7.Wuhan Linhai Real Estate

Development Co., Real7011B estate 107012B a Ltd. ("Wuhan development Investment

Linhai") Wuhan7009B City Wuhan7010B City and operation 0 Investment7013B

317014B -8.Wuhan Poly Kangqiao Real Estate

Development Co., Real7017B estate Ltd. ("Wuhan development

Kangqiao") Wuhan7015B City Wuhan7016B City and sales 507018B Investment7019B

317020B -9.Wuhan Poly

Jingu Real Estate Real7023B estate Development Co., development

Ltd. ("Wuhan Jingu") Wuhan7021B City Wuhan7022B City and sales 807024B Investment7025B

32.Poly7026B Bogaohua

(Wuhan) Real Estate Real7029B estate Co., Ltd. ("Poly development

Bogaohua") Wuhan7027B City Wuhan7028B City and operation 707030B Investment7031B

337032B -1.Zhejiang Poly

Real Estate Real7035B estate

Development Co., Hangzhou7033B Hangzhou7034B development

Ltd. ("Zhejiang Poly") City City and operation 1007036B Investment7037B

337038B -2.Hangzhou Poly Jianyi Real Estate

Development Co., Real7041B estate

Ltd. ("Hangzhou Hangzhou7039B Hangzhou7040B development

Jianyi ") City City and operation 497042B 517043B Investment7044B

Real7048B estate

337045B -3.Hangzhou Poly development

Jianjia Real Estate Hangzhou7047B and operation Development Co., City Real estate

Ltd. ("Hangzhou Hangzhou7046B Hangzhou development

Jianjia ") City City and operation 1007049B Investment7050B

337051B -4.Hangzhou Poly Jianjin Real Estate

Development Co., Real7054B estate

Ltd. ("Hangzhou Hangzhou7052B Hangzhou7053B development

Jianjin ") City City and operation 1007055B Investment7056B

337057B -5. Cixi Poly Real7060B estate Jianjin Real Estate development Development Co, Ltd. and operation,

("Cixi Poly") Ningbo7058B City Ningbo7059B City etc. 1007061B Investment7062B

337063B -6. Shaoxing Poly Real7066B estate Real Estate development

Development Co, Ltd Shaoxing7065B and operation,

("Shaoxing Poly") Shaoxing7064B City City etc. 1007067B Investment7068B

337069B -7. Hangzhou Poly Real7072B estate Jianlin Real Estate development

Development Co, Ltd. Hangzhou7070B Hangzhou7071B and operation,

("Hangzhou Jianlin") City City etc. 1007073B Investment7074B

Business7080B

337075B -8. Hangzhou Investment7078B combination Biaofan Investment management not under

Management Co, Ltd. Hangzhou7076B Hangzhou7077B and common

("Hangzhou Biaofan") City City consultancy 1007079B control

Notes to the Financial Statements Page 90 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Principal Shareholding ratio (%) Name of the Registration Acquisition place of Business nature subsidiary place Direct Indirect mode business

Real7084B estate

347081B -1. Poly (Chengdu) development Holdings Co, Ltd. and operation,

(“Poly Chengdu”) Chengdu7082B City Chengdu7083B City etc. 1007085B Investment7086B

347087B -2. Xindu District Real7090B estate Chengdu Poly development Investment Co, Ltd and operation,

(Xindu Poly) Chengdu7088B City Chengdu7089B City etc. 907091B Investment7092B

Real7096B estate

347093B -3. Suining Baoxin development Investment Co, Ltd and operation,

("Suining Baoxin") Suining7094B City Suining7095B City etc. 517097B Investment7098B

347099B -4-1. Poly

(Chengdu) Real Estate Real7102B estate Development Co, Ltd development (“Chengdu Real and operation,

Estate”) Chengdu7100B City Chengdu7101B City etc. 1007103B Investment7104B

347105B -4-2. Chengdu

Baolong Real Estate Real7108B estate Development Co., development Ltd. ("Chengdu and operation,

Baolong") Chengdu7106B City Chengdu7107B City etc. 1007109B Investment7110B

347111B -5. Chengdu Stone

Elephant Lake Business7116B

Tourism Development Real7114B estate combination Co., Ltd. ("Chengdu development not under Stone Elephant and operation, common

Lake") Chengdu7112B City Chengdu7113B City etc. 907115B control

Business7122B

Real7120B estate combination

347117B -6. Chengdu Futong development not under Property Co, Ltd and operation, common

(“Chengdu Futong”) Chengdu7118B City Chengdu7119B City etc. 1007121B control

347123B -7． Chengdu Real7126B estate Baohua Real Estate development Development Co, Ltd and operation,

(“Chengdu Baohua”) Chengdu7124B City Chengdu7125B City etc. 1007127B Investment7128B

Business7134B

347129B -8. Chengdu Real7132B estate combination Baoxin Real Estate development not under Development Co, Ltd and operation, common

(“Chengdu Baoxin”) Chengdu7130B City Chengdu7131B City etc. 517133B control

347135B -9. Chengdu Real7138B estate Baofeng Investment development Co, Ltd (“Chengdu and operation,

Baofeng”) Chengdu7136B City Chengdu7137B City etc. 517139B Investment7140B

Real7144B estate

347141B -10. Poly (Deyang) development Industrial Co, Ltd. and operation,

(“Poly Deyang”) Deyang7142B City Deyang7143B City etc. 507145B Investment7146B

Real7150B estate

347147B -11. Poly (Deyang) development Holdings Co, Ltd and operation,

(“Deyang Property”) Deyang7148B City Deyang7149B City etc. 507151B Investment7152B

Notes to the Financial Statements Page 91 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Principal Shareholding ratio (%) Name of the Registration Acquisition place of Business nature subsidiary place Direct Indirect mode business

Business7158B

Real7156B estate combination

347153B -12. Chengdu Yachi development not under Property Co, Ltd and operation, common

(“Chengdu Yachi”) Chengdu7154B City Chengdu7155B City etc. 517157B control

347159B -13. Chengdu Real7162B estate Baoxin Investment development Co, Ltd (“Chengdu and operation,

Baoxin”) Chengdu7160B City Chengdu7161B City etc. 1007163B Investment7164B

347165B -14. Chengdu Poly Real7168B estate Huayang Investment development Co, Ltd (“Chengdu and operation,

Huayang”) Chengdu7166B City Chengdu7167B City etc. 1007169B Investment7170B

Tourist7174B

347171B -15. Linzhi Poly souvenir sales, Tourism Development hotel Co, Ltd (“Linzhi management,

Poly”) Linzhi7172B City Linzhi7173B City etc. 1007175B Investment7176B

347177B -16. Chengdu Poly Housing7180B Xingrong Industrial brokerage, Co., Ltd. ("Chengdu housing rental,

Xingrong") Chengdu7178B City Chengdu7179B City etc. 517181B Investment7182B

35.7183B Chengdu Baorong Real7186B estate Real Estate development Development Co, Ltd and operation,

(“Chengdu Baorong”) Chengdu7184B City Chengdu7185B City etc. 517187B Investment7188B

367189B -1. Hunan Poly Real7192B estate Real Estate development

Development Co, Ltd Changsha7190B Changsha7191B and operation,

(“Hunan Poly”) City City etc. 867193B Investment7194B

367195B -2. Changsha

Yongfeng Real Estate Real7198B estate Development Co., development

Ltd. ("Changsha Changsha7196B Changsha7197B and operation,

Yongfeng") City City etc. 707199B Investment7200B

367201B -3. Changsha Jinli

Hetai Real Estate Real7204B estate Development Co, Ltd development

(“Changsha Jinlin Changsha7202B Changsha7203B and operation,

Hetai”) City City etc. 707205B Investment7206B

367207B -4. Changsha Real7210B estate Nanhu Square development

Property Co, Ltd Changsha7208B Changsha7209B and operation,

("Nanhu Property") City City etc. 1007211B Investment7212B

Business7218B

367213B -5. Hunan Huayuan Real7216B estate combination Real Estate development not under

Development Co, Ltd Changsha7214B Changsha7215B and operation, common

(“Hunan Huayuan”) City City etc. 1007217B control

Real7222B estate

367219B -6. Yueyang Poly development Property Co, Ltd and operation,

(“Yueyang Poly”) Yueyang7220B City Yueyang7221B City etc. 997223B Investment7224B

Notes to the Financial Statements Page 92 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Principal Shareholding ratio (%) Name of the Registration Acquisition place of Business nature subsidiary place Direct Indirect mode business

367225B -7. Chengdu

Qianjiasheng Real Real7228B estate Estate Co., Ltd. development

("Chenzhou Chenzhou7226B Chenzhou7227B and operation,

Qianjiasheng") City City etc. 1007229B Investment7230B

Real7234B estate

377231B -1. Poly (Hunan) development

Investment Co, Ltd Changsha7232B Changsha7233B and operation,

("Hunan Investment") City City etc. 1007235B Investment7236B

Real7240B estate Business7242B

377237B -2. Changsha development combination Tianjiao Real Estate and not under

Development Co, Ltd Changsha7238B Changsha7239B consultancy, common

("Changsha Tianjiao") City City etc. 1007241B control

377243B -3. Poly (Changsha) West Coast Property

Co, Ltd ("Changsha Changsha7244B Changsha7245B Real7246B estate

West Coast") City City development 507247B Investment7248B

387249B -1. Poly Jiangsu Real7252B estate Real Estate development Development Co, Ltd and operation,

("Poly Jiangsu") Nanjing7250B City Nanjing7251B City etc. 1007253B Investment7254B

387255B -2. Jiangsu Poly

Ningxiang Real Estate Real7258B estate Development Co., development Ltd. ("Jiangsu and operation,

Ningxiang") Nanjing7256B City Nanjing7257B City etc. 1007259B Investment7260B

387261B -3. Jiangsu Poly

Ningsheng Real Real7264B estate Estate Development development Co, Ltd ("Jiangsu and operation,

Ningsheng") Nanjing7262B City Nanjing7263B City etc. 517265B Investment7266B

387267B -4. Jiangsu Poly Real7270B estate Ninghong Real Estate development Development Co, Ltd and operation,

("Jiangsu Ninghong") Nanjing7268B City Nanjing7269B City etc. 517271B Investment7272B

387273B -5. Poly Ningyuan Real7276B estate Wuxi Real Estate development Development Co, Ltd and operation,

(“Ningyuan Wuxi”) Wuxi7274B City Wuxi7275B City etc. 1007277B Investment7278B

387279B -6. Poly

Lianyungang Real Real7282B estate Estate Development development

Co, Ltd ("Poly Lianyungang7280B Lianyungang7281B and operation,

Lianyungang") City City etc. 1007283B Investment7284B

387285B -7. Poly Changzhou Real7288B estate Real Estate development

Development Co, Ltd. Changzhou7286B Changzhou7287B and operation,

("Poly Changzhou") City City etc. 1007289B Investment7290B

387291B -8. Jiangsu Poly Real7294B estate Ningheng Real Estate development Development Co, Ltd and operation,

("Jiangsu Ningheng") Nanjing7292B City Nanjing7293B City etc. 1007295B Investment7296B

Notes to the Financial Statements Page 93 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Principal Shareholding ratio (%) Name of the Registration Acquisition place of Business nature subsidiary place Direct Indirect mode business

387297B -9. Jiangsu Poly

Ningcheng Real Real7300B estate Estate Development development Co, Ltd ("Jiangsu and operation,

Ningcheng") Nanjing7298B City Nanjing7299B City etc. 517301B Investment7302B

39.7303B Jiangsu Poly Real7306B estate Ningyuan Real Estate development Development Co, Ltd and operation,

("Jiangsu Ningyuan") Nanjing7304B City Nanjing7305B City etc. 517307B Investment7308B

40.7309B Wuxi Poly Real7312B estate Zhiyuan Real Estate development Development Co, and operation,

Ltd("Wuxi Zhiyuan") Wuxi7310B City Wuxi7311B City etc. 517313B Investment7314B

41.7315B Poly Anxin Real7318B estate (Qingdao) Real Estate development Development Co, Ltd and operation,

("Qingdao Anxin") Qingdao7316B City Qingdao7317B City etc. 517319B 137320B Investment7321B

Real7325B estate development

427322B -1. Poly (Qingdao) and property Industrial Co, Ltd management,

("Poly Qingdao") Qingdao7323B City Qingdao7324B City etc. 1007326B Investment7327B

Real7331B estate Business7333B

427328B -2. Qingdao West development combination Sea Real Estate and property not under Development Co, Ltd management, common

(“Qingdao West Sea”) Qingdao7329B City Qingdao7330B City etc. 1007332B control

Real7337B estate development and property management,

427334B -3. Qingdao City Qingdao7335B City Qingdao7336B City etc. 1007338B Investment7339B

Real7343B estate

427340B -4. Qingdao Poly development Guanghui Property and property Co, Ltd ("Qingdao management,

Guanghui") Qingdao7341B City Qingdao7342B City etc. 1007344B Investment7345B

Real7349B estate

427346B -5. Qingdao Poly development Guangyuan Property and property Co, Ltd ("Qingdao management,

Guangyuan") Qingdao7347B City Qingdao7348B City etc. 1007350B Investment7351B

Real7355B estate

427352B -6. Qingdao development Guangsheng Property and property Co, Ltd ("Qingdao management,

Guangsheng") Qingdao7353B City Qingdao7354B City etc. 807356B Investment7357B

Real7361B estate

427358B -7. Qingdao Poly development Guangheng Property and property Co, Ltd ("Qingdao management,

Guangheng") Qingdao7359B City Qingdao7360B City etc. 1007362B Investment7363B

Notes to the Financial Statements Page 94 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Principal Shareholding ratio (%) Name of the Registration Acquisition place of Business nature subsidiary place Direct Indirect mode business

Real7367B estate

427364B -8. Qingdao Poly development Shuangfeng Property and property Co, Ltd("Qingdao management,

Shuangfeng") Qingdao7365B City Qingdao7366B City etc. 507368B Investment7369B

Real7373B estate

427370B -9. Qingdao Poly development Shuangyuan Property and property Co, Ltd("Qingdao management,

Shuangyuan") Qingdao7371B City Qingdao7372B City etc. 507374B Investment7375B

Real7379B estate

427376B -10. Qingdao development Guangrui Property and property Co, Ltd("Qingdao management,

Guangrui") Qingdao7377B City Qingdao7378B City etc. 737380B Investment7381B

437382B -1. Poly

(Yangjiang) Real Real7385B estate Estate Development development

Co, Ltd ("Yangjiang Yangjiang7383B Yangjiang7384B and operation,

Poly") City City etc. 1007386B Investment7387B

437388B -2. Guangdong

Poly South Chinasea Tourism7391B No.1 Cultural services, Industry Co, Ltd museum

(“South Chinasea No. Yangjiang7389B Yangjiang7390B management,

1”) City City etc. 75.017392B Investment7393B

44.7394B Poly Hailingdao Real7397B estate Real Estate development

Development Co, Ltd Yangjiang7395B Yangjiang7396B and operation,

(“Poly Hailingdao”) City City etc. 1007398B Investment7399B

45.7400B Zhanjiang Real7403B estate Xingsheng Investment development

Co, Ltd ("Zhanjiang Zhanjiang7401B Zhanjiang7402B and operation,

Xingsheng") City City etc. 707404B Investment7405B

Real7409B estate

46.7406B Poly (Xi'an) Real development Estate Development and property Co., Ltd. ("Poly management,

Xi’an") Xi’an7407B City Xi’an7408B City etc. 707410B Investment7411B

477412B -1. Shaanxi Poly Real7415B estate Real Estate development Development Co, Ltd and operation,

(“Shaanxi Poly”) Xi’an7413B City Xi’an7414B City etc. 1007416B Investment7417B

477418B -2. Shaanxi Poly Real7421B estate Mindong Real Estate development Development Co, Ltd and operation,

(“Shaanxi Mindong”) Xi’an7419B City Xi’an7420B City etc. 517422B Investment7423B

477424B -3. Shaanxi Poly Real7427B estate Rong’an Real Estate development Development Co, Ltd and operation,

(“Shaanxi Rong’an”) Xi’an7425B City Xi’an7426B City etc. 907428B Investment7429B

477430B -4. Xi’an Business7435B

Xinrongjia Real Real7433B estate combination Estate Development development not under Co, Ltd (“Xi’an and operation, common

Xinrongjia”) Xi’an7431B City Xi’an7432B City etc. 1007434B control

Notes to the Financial Statements Page 95 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Principal Shareholding ratio (%) Name of the Registration Acquisition place of Business nature subsidiary place Direct Indirect mode business

477436B -5. Shaanxi Real7439B estate Shangrun Real Estate development Development Co, Ltd. and operation,

(“Shaanxi Shangrun”) Xi’an7437B City Xi’an7438B City etc. 1007440B Investment7441B

48.7442B Zhengzhou Business7447B

Hengtian Xinghua Real7445B estate combination Real Estate Co, Ltd development not under

(“Zhengzhou Zhengzhou7443B Zhengzhou7444B and operation, common

Hengtian”) City City etc. 507446B control

49.7448B Poly (Baotou) Real7451B estate Real Estate development Development Co, Ltd and operation,

(“Poly Baotou”) Baotou7449B City Baotou7450B City etc. 557452B Investment7453B

507454B -1. Hefei Poly Real Real7457B estate Estate Development development Co, Ltd (“Hefei and operation,

Poly”) Hefei7455B City Hefei7456B City etc. 517458B 497459B Investment7460B

507461B -2-1. Hefei Poly Real7464B estate Hesheng Real Estate development Co, Ltd (“Hefei and operation,

Hesheng”) Hefei7462B City Hefei7463B City etc. 1007465B Investment7466B

507467B -2-2. Hefei Poly Real7470B estate Hezhu Real Estate Co, development

Ltd (“Hefei Hezhu”) Hefei7468B City Hefei7469B City and sale, etc. 1007471B Investment7472B

51.7473B Hefei Poly Hexin Real7476B estate Real Estate Co, Ltd development

(“Hefei Hexin”) Hefei7474B City Hefei7475B City and sale, etc. 857477B Investment7478B

52.7479B Hefei Poly Real7482B estate Heheng Real Estate development Development Co, Ltd and operation,

(“Hefei Heheng”) Hefei7480B City Hefei7481B City etc. 517483B 497484B Investment7485B

537486B . Anhui Poly Real

Estate Development Real7489B estate Co., Ltd. ("Anhui development

Poly") Hefei7487B City Hefei7488B City and sale, etc. 1007490B Investment7491B

547492B -1. Poly (Fujian)

Real Estate Real7495B estate Investment Co, Ltd development

("Poly Fujian") Fuzhou7493B city Fuzhou7494B city and sale, etc. 1007496B Investment7497B

547498B -2. Fuzhou

Zhongyue Real Estate Real7501B estate Development development

("Fuzhou Zhongyue") Fuzhou7499B city Fuzhou7500B city and sale, etc. 1007502B Investment7503B

547504B -3. Xiamen Zhongjing Real Estate

Development Co., Real7507B estate Ltd. ("Xiamen development

Zhongjing") Xiamen7505B city Xiamen7506B city and sale, etc. 1007508B Investment7509B

Business7515B

Real7513B estate combination

55.7510B Nanchang Ruida development not under

Property Co, Ltd Nanchang7512B and operation, common

(“Nanchang Ruida”) Nanchang7511B city city etc. 1007514B control

Notes to the Financial Statements Page 96 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Principal Shareholding ratio (%) Name of the Registration Acquisition place of Business nature subsidiary place Direct Indirect mode business

Real7519B estate Business7521B

56.7516B Poly (Jiangxi) development combination Jintongtai Property and property not under

Co., Ltd. ("Jiangxi Nanchang7518B management, common

Jintongtia") Nanchang7517B city city etc. 757520B control

Real7525B estate development and sports and

577522B -1. Nanchang health-building Business7527B Mingya European centres, tourist combination Town Industrial Co, attractions not under

Ltd (“Nanchang Nanchang7524B development common

Minya”) Nanchang7523B city city and catering 607526B control

577528B -2. Nanchang Poly Business7533B Property Management combination Co, Ltd (“Nanchang not under

Property Nanchang7530B Property7531B common

Management”) Nanchang7529B city city management 1007532B control

Management7537B of Business7539B

577534B -3. Nanchang stadiums or combination Yagao Industrial Co, gymnasiums not under

Ltd (“Nanchang Nanchang7536B and fitness common

Yagao”) Nanchang7535B city city centers 1007538B control

58.7540B Poly (Jiangxi)

Real Estate Real7543B estate

Development Co, Ltd Nanchang7542B development

("Poly Jiangxi") Nanchang7541B city city and sale, etc. 1007544B Investment7545B

597546B -1. Poly (Sanya) Real7549B estate Real Estate development Development Co, Ltd. and operation,

(“Poly Sanya”) Sanya7547B city Sanya7548B city etc. 1007550B Investment7551B

597552B -2. Sanya Forum Real7555B estate Center Construction development Co, Ltd (“Sanya and operation,

Forum”) Sanya7553B city Sanya7554B city etc. 507556B Investment7557B

597558B -3. Poly Haikou Real7561B estate Real Estate development Development Co, Ltd and operation,

("Poly Haikou") Haikou7559B city Haikou7560B city etc. 1007562B Investment7563B

60.7564B Sanya Baoxin Real7567B estate Xiande Real Estate development Development Co, Ltd and operation,

(“Sanya Baoxin”) Sanya7565B city Sanya7566B city etc. 507568B Investment7569B

617570B -1. Poly (Gansu)

Industrial Investment Real7573B estate Co., Ltd. ("Gansu development

Poly") Lanzhou7571B city Lanzhou7572B city and sale, etc. 1007574B Investment7575B

617576B -2. Gansu Business7581B Shengrong Real combination

Estate Development Real7579B estate not under Co., Ltd. ("Gansu development common

Shengrong") Lanzhou7577B city Lanzhou7578B city and sale, etc. 507580B control

Notes to the Financial Statements Page 97 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Principal Shareholding ratio (%) Name of the Registration Acquisition place of Business nature subsidiary place Direct Indirect mode business

Investment7585B business, real estate

627582B -1. Poly (Xinjiang) development Investment Co., Ltd. and operation,

("Xinjiang Poly") Urumqi7583B Urumqi7584B etc. 1007586B Investment7587B

627588B -2. Xinjiang Business7593B Hengxinyaju Real combination

Estate Development Real7591B estate not under Co., Ltd. ("Xinjiang development common

Hengxinyaju") Urumqi7589B Urumqi7590B and sale, etc. 517592B control

627594B -3. Xinjiang Poly Tianhengji Real

Estate Development Real7597B estate Co., Ltd. ("Xinjiang development

Tianhengji") Urumqi7595B Urumqi7596B and sale, etc. 577598B Investment7599B

637600B -1. Shanxi Poly

Real Estate Real7603B estate Development Co, Ltd development

(“Shanxi Poly”) Taiyuan7601B city Taiyuan7602B city and sale, etc. 1007604B Investment7605B

637606B -2. Shanxi Wanguo Business7611B

Commercial Plaza Real7609B estate combination Development Co., development not under Ltd. ("Shanxi and operation, common

Wanguo") Taiyuan7607B city Taiyuan7608B city etc. 707610B control

64.7612B Hengfu (Hong Real7615B estate Kong) Property Co., development, Ltd. ("Hong Kong operation and

Hengfu") Hong7613B Kong Hong7614B Kong management 1007616B Investment7617B

657618B -1. Poly

Commercial Real Real7621B estate Estate Investment development

Management Co., Ltd. Guangzhou7619B Guangzhou7620B and agency

("Poly Commerce") city city services, etc 1007622B Investment7623B

657624B -2. Guangzhou Poly

Hotel Management Hotel7627B

Co, Ltd ("Hotel Guangzhou7625B Guangzhou7626B management,

Management") city city etc. 1007628B Investment7629B

Rental7633B of proprietary

657630B -3. Guangzhou Poly properties and Commercial property

Management Co, Ltd Guangzhou7631B Guangzhou7632B management,

("Poly Commercial") city city etc. 1007634B Investment7635B

667636B -1. GZ Fuli Civil7639B

Construction & Engineering Business7641B Installation Construction combination Engineering Co, Ltd. and not under

(“Fuli Construction & Guangzhou7637B Guangzhou7638B construction common

Installation”) city city design, etc. 1007640B control

Civil7645B

667642B -2. Liaoning Fuli Engineering Construction & Construction Installation and Engineering Co, Ltd construction

(“Liaoning Fuli”) Shenyang7643B city Shenyang7644B city design, etc. 1007646B Investment7647B

Notes to the Financial Statements Page 98 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Principal Shareholding ratio (%) Name of the Registration Acquisition place of Business nature subsidiary place Direct Indirect mode business

Civil7651B

667648B -3. Dalian Fuli Engineering Construction & Construction Installation and Engineering Co, Ltd construction

(“Dalian Fuli”) Dalian7649B city Dalian7650B city design, etc. 1007652B Investment7653B

Civil7657B

667654B -4. Jilin Fuli Engineering Construction & Construction Installation and

Engineering Co, Ltd Changchun7655B Changchun7656B construction

(“Jilin Fuli”) city city design, etc. 1007658B Investment7659B

Civil7663B

667660B -5. Zhuhai Fuli Engineering Construction & Construction Installation and Engineering Co, Ltd construction

(“Zhuhai Fuli”) Zhuhai7661B city Zhuhai7662B city design, etc. 1007664B Investment7665B

Business7671B

667666B -6. Guangzhou Poly combination Dianshanggang Co., not under

Ltd. Guangzhou7667B Guangzhou7668B common

("Dianshanggang") city city Warehousing7669B 507670B control

Business7677B

67.7672B Guangzhou Jiali Indoor7675B combination Decoration decoration and not under

Engineering Co, Ltd Guangzhou7673B Guangzhou7674B decoration common

(“Jiali Decoration”) city city design, etc. 1007676B control

Installation7681B of Business7684B

68.7678B Guangzhou Poly intelligence combination Digital Technology system for not under

Co, Ltd (“Poly Guangzhou7679B Guangzhou7680B community, common

Digital”) city city etc. 507682B 507683B control

Property7688B

697685B -1. Poly Property management Management Co, Ltd and outdoor &

(“Poly Property Guangzhou7686B Guangzhou7687B indoor

Management”) city city decoration, etc. 1007689B Investment7690B

697691B -2. Poly Xiamen Property Management

Co, Ltd (“Xiamen Property7694B Property management,

Management”) Xiamen7692B city Xiamen7693B city etc. 1007695B Investment7696B

697697B -3. Poly Property

Management Property7700B (Beijing) Co, Ltd management

(“Beijing Property Beijing7698B Beijing7699B and home

Management”) municipality municipality decoration, etc. 1007701B Investment7702B

697703B -4. Poly Chongqing Property Management

Co, Ltd (“Chongqing Property7706B

Property Chongqing7704B Chongqing7705B management,

Management”) municipality municipality etc. 1007707B Investment7708B

Notes to the Financial Statements Page 99 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Principal Shareholding ratio (%) Name of the Registration Acquisition place of Business nature subsidiary place Direct Indirect mode business

697709B -5. Liaoning Poly Property Management

Co., Ltd. (“Liaoning Property7712B Property management,

Management”) Shenyang7710B city Shenyang7711B city etc. 1007713B Investment7714B

697715B -6. Poly Wuhan Property Management

Co, Ltd (“Wuhan Property7718B Property management,

Management”) Wuhan7716B city Wuhan7717B city etc. 1007719B Investment7720B

697721B -7. Zhejiang Poly Property Management

Co, Ltd (“Zhejiang Property7724B

Property Hangzhou7722B Hangzhou7723B management,

Management”) City City etc. 1007725B Investment7726B

697727B -8. Poly (Baotou)

Property Services Co., Property7730B Ltd. ("Baotou management,

Property Service") Baotou7728B City Baotou7729B City etc. 1007731B Investment7732B

697733B -9. Yangjiang Poly Property Management

Co, Ltd (“Yangjiang Property7736B

Property Yangjiang7734B Yangjiang7735B management,

Management”) City City etc. 1007737B Investment7738B

697739B -10． Jiangxi Poly Property Management

Co, Ltd (“Jiangxi Property7742B

Property Nanchang7741B management,

Management”) Nanchang7740B city city etc. 1007743B Investment7744B

697745B -11. Poly (Foshan)

Property Services Co, Property7748B Ltd (“Foshan Property management,

Service”) Foshan7746B city Foshan7747B city etc. 1007749B Investment7750B

697751B -12. Hunan Poly Property Management

Co, Ltd (“Hunan Property7754B

Property Changsha7752B Changsha7753B management,

Management”) City City etc. 1007755B Investment7756B

697757B -13. Poly Changchun Property

Service Co, Ltd Property7760B

(“Changchun Property Changchun7758B Changchun7759B management,

Management”) city city etc. 1007761B Investment7762B

697763B -14-1. Tianjin Poly Metropolitan Property

Service Co Ltd Property7766B

(“Tianjin Property Tianjin7764B Tianjin7765B management,

Management”) municipality municipality etc. 1007767B Investment7768B

697769B -14-2. Tianjin Xinhe Fitness

Services Co., Ltd. Tianjin7770B Tianjin7771B

("Xinhe Fitness") municipality municipality Fitness7772B services 1007773B Investment7774B

697775B -15. Shanghai Poly

Property Co., Ltd. Property7778B

("Shanghai Property Shanghai7776B Shanghai7777B management,

Management") municipality municipality etc. 1007779B Investment7780B

Notes to the Financial Statements Page 100 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Principal Shareholding ratio (%) Name of the Registration Acquisition place of Business nature subsidiary place Direct Indirect mode business

697781B -16. Poly (Dalian)

Property Management Property7784B Co, Ltd (Dalian management,

Property) Dalian7782B city Dalian7783B city etc. 1007785B Investment7786B

Business7792B

70.7787B Guangzhou Poly Real7790B estate combination Real Estate Agency agency services not under

Co, Ltd (“Poly Guangzhou7788B Guangzhou7789B as real estate common

Agency”) city city agent 1007791B control

Business7798B

Exhibition7796B combination

71.7793B Guangzhou Poly services and not under

Jinhan Exhibition Co, Guangzhou7794B Guangzhou7795B venue rental, common

Ltd (“Poly Jinhan”) city city etc. 517797B control

727799B -1. Guangdong

Zhonggong Business7804B Architectural Design combination

Institute Co, Ltd Construction7802B not under

(“Zhonggong Design Guangzhou7800B Guangzhou7801B engineering common

Institute”) city city design, etc. 607803B control

727805B -2. Guangdong Business7810B Zhonggong Project combination Management Co, Ltd not under

(“Zhonggong Project Guangzhou7806B Guangzhou7807B Construction7808B common

Management”) city city supervision 1007809B control

737811B -1. Shanghai Poly Real7814B estate Jianlin Real Estate development

Co, Ltd (“Shanghai Shanghai7812B Shanghai7813B and operation,

Jianlin”) municipality municipality etc. 1007815B Investment7816B

737817B -2. Shanghai Poly Real7820B estate Jiankun Real Estate development

Co, Ltd (“Shanghai Shanghai7818B Shanghai7819B and operation,

Jiankun”) municipality municipality etc. 1007821B Investment7822B

737823B -3. Shanghai Poly Real7826B estate Jiancui Real Estate development

Co, Ltd (“Shanghai Shanghai7824B Shanghai7825B and operation,

Jiancui”) municipality municipality etc. 1007827B Investment7828B

Business7835B combination

74.7829B Chongqing Poly Golf7832B course under

Golf Club Co., Ltd. Chongqing7830B Chongqing7831B management, common

(“Chongqing Golf”) municipality municipality etc. 907833B 107834B control

75.7836B Ziwei Garden Real7839B estate

Project of Guangzhou Guangzhou7837B Guangzhou7838B development

Poly (Note 3) city city and sale, etc. 507840B Investment7841B

76.7842B Project Real7845B estate

Department of Guangzhou7843B Guangzhou7844B development

Guangzhou Pazhou city city and sale, etc. 807846B Investment7847B

(7848B 1) Notes to the differences between the shareholding ratios in subsidiaries and the corresponding voting ratios:

Note 1： The group only has the rights and interests relating to the residential lands of the company as agreed.

Notes to the Financial Statements Page 101 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Note 2： The Company indirectly holds 25% equity in Chongqing Baoxiang through Chongqing Investment Company, but, in accordance with the cooperation agreement and the articles of association of Chongqing Baoxiang, Chongqing Investment Company has 50% usufruct in Chongqing Baoxiang and voting right at shareholders' meeting.

Note 3： In accordance with the Cooperation Agreement concluded by and between the Company and Guangzhou Metro Corporation (hereinafter referred to as "Guangzhou Metro") in February 2005, Guangzhou Metro contributes its land usage right valued RMB 65 million as its investment in the cooperation project, while the Company invests RMB 65 million as the launch fund for the project, and subsequent funds needed shall be invested by the Company through financing, with the financing costs being included into project development expenses. All income incurred from this project shall be accounted independently by the project department and be distributed to both parties at the ratio of 50%. The development and sale of the project as well as the appointment of project managers are made by the Company with actual control on the project, and therefore is included to the consolidation scope of financial statements of the Company.

(2)7849B Bases for the facts that Company holds 50% voting rights or below in, and has control over, the investees and that the Company holds 50% voting rights or above in, and has no control over the investees:

Reason7852B for being included in the scope Name7850B Voting7851B ratio of consolidation

Zhengzhou7853B Hengtian 50%7854B

Dalian7856B Hongqi 50%7857B

Wuhan7858B Kangqiao 50%7859B

Poly7860B Deyang 50%7861B

Deyang7862B Property 50%7863B

Beijing7864B Langtai 50%7865B

Chongqing7866B Baochang 50%7867B

Chongqing7868B Baoxiang 50%7869B

Changsha7870B West Coast 50%7871B

Guangzhou7872B Yuehe 50%7873B

Jiangmen7874B Hongxin 50%7875B

Sanya7876B Forum 50%7877B

7878B 7879B Dianshanggang 50% Each7855B board of directors consists of 5

Guangzhou7880B Zhenglin 50%7881B members, and 3 of them are from the

Foshan7882B Hengsheng 50%7883B Company with majority voting ratio,

Guangzhou7884B Rumao 50%7885B therefore are included in the scope of

Gansu7886B Shengrong 50%7887B financial statements consolidation.

Foshan7888B Xincheng 50%7889B

7891B 7892B Sanya Baoxin 50% Each7890B board of directors consists of 7

Qingdao7893B Shuangfeng 50%7894B members, and 4 of them are from the

Qingdao7895B Shuangyuan 50%7896B Company with majority voting ratio,

Dalian7897B Donggang 50%7898B therefore are included in the scope of

Dalian7899B Yingsheng 50%7900B financial statements consolidation.

7.1.2 Significant non-wholly-owned subsidiaries (Unit: RMB'0,000)

Profits7903B or losses Dividends7904B declared to Balance7905B of Shareholding7902B attributable to be distributed to minority equity as Name7901B of subsidiary ratio of minority minority shareholders minority shareholders at December 31, shareholder (%) for the current year for the current year 2014

Poly7906B Guangzhou 497907B 11,268.267908B 125,834.287909B

Zhuhai7910B Tianyue 407911B -7912B 1,034.37 62,775.057913B

Guangzhou7914B Honghe 49.027915B -7916B 1,512.68 73,435.777917B

Notes to the Financial Statements Page 102 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014

Profits7903B or losses Dividends7904B declared to Balance7905B of Shareholding7902B attributable to be distributed to minority equity as Name7901B of subsidiary ratio of minority minority shareholders minority shareholders at December 31, shareholder (%) for the current year for the current year 2014

Beijing7918B Poly Sunac 49.57919B -7920B 1,729.44 95,820.897921B

Beijing7922B Langtai 507923B -7924B 179.09 64,796.757925B

Shanghai7926B Jianhao 19.997927B 437.367928B 79,975.797929B

Shanghai7930B Jianxi 497931B -7932B 1,247.35 47,346.027933B

Shanghai7934B Hongrong 497935B -7936B 1,847.53 94,495.877937B

Chongqing7938B Baocheng 497939B 6,150.697940B 69,607.357941B

Chongqing7942B Baofang 497943B -7944B 762.60 56,529.177945B

Tianjin7946B Sunac 497947B 27,750.387948B 122,700.857949B

Guangzhou7950B Zhenglin 507951B 69,191.077952B

Jiangsu7953B Ninghong 497954B -7955B 174.25 46,375.757956B

Notes to the Financial Statements Page 103 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 7.1.3 Major financial information on significant non-wholly-owned subsidiaries

(Unit:7957B RMB'0,000)

Balance7959B as at December 31, 2014 Balance7960B as at January 1, 2014 Name7958B of Current7961B Non7962B -current Total7963B Current7964B Non7965B -current Total7966B Current7967B Non7968B -current Total7969B Current7970B Non7971B -current Total7972B subsidiary asset asset assets liability liability liabilities asset asset assets liability liability liabilities

Poly7973B

Guangzhou 808,336.647974B 13,339.417975B 821,676.057976B 435,391.407977B 129,480.007978B 564,871.407979B 747,846.227980B 155.517981B 748,001.737982B 305,253.527983B 208,940.007984B 514,193.527985B

Zhuhai7986B

Tianyue 387,453.327987B 8.447988B 387,461.767989B 120,539.127990B 109,985.007991B 230,524.127992B 216,093.707993B 6.927994B 216,100.627995B 36,577.077996B 20,000.007997B 56,577.077998B

Guangzhou7999B

Honghe 698,771.288000B 110.588001B 698,881.868002B 358,004.098003B 191,070.008004B 549,074.098005B 275,886.888006B 0.758007B 275,887.638008B 270,994.028009B 270,994.028010B

Beijing8011B Poly

Sunac 872,652.118012B 1,420.428013B 874,072.538014B 377,494.978015B 303,000.008016B 680,494.978017B 447,584.538018B 269.928019B 447,854.458020B 130,783.068021B 120,000.008022B 250,783.068023B

Beijing8024B

Langtai 263,660.408025B 11.978026B 263,672.378027B 134,078.878028B 134,078.878029B 210,216.678030B 0.008031B 210,216.678032B 80,265.008033B 80,265.008034B

Shanghai8035B

Jianhao 825,385.128036B 72.608037B 825,457.728038B 175,378.758039B 250,000.008040B 425,378.758041B 447,160.098042B 96.788043B 447,256.878044B 49,365.788045B 49,365.788046B

Shanghai8047B

Jianxi 407,699.428048B 872.778049B 408,572.198050B 185,347.668051B 126,600.008052B 311,947.668053B 316,287.078054B 17.228055B 316,304.298056B 76,334.148057B 140,800.008058B 217,134.148059B

Shanghai8060B

Hongrong 605,862.998061B 1,404.648062B 607,267.638063B 414,418.918064B 414,418.918065B 411,235.558066B 82.338067B 411,317.888068B 100,098.708069B 114,600.008070B 214,698.708071B

Chongqing8072B

Baocheng 304,587.908073B 164.988074B 304,752.888075B 78,367.818076B 84,329.268077B 162,697.078078B 331,203.908079B 125.358080B 331,329.258081B 105,313.868082B 96,512.008083B 201,825.868084B

Chongqing8085B

Baofang 235,081.668086B 42.308087B 235,123.968088B 49,758.318089B 70,000.008090B 119,758.318091B 117,070.148092B 0.018093B 117,070.158094B 93,727.368095B 93,727.368096B

Tianjin8097B Sunac 591,263.738098B 236.678099B 591,500.408100B 263,490.518101B 77,600.008102B 341,090.518103B 604,325.208104B 207.868105B 604,533.068106B 256,656.608107B 154,100.008108B 410,756.608109B

Guangzhou8110B

Zhenglin 138,382.148111B 138,382.148112B

Jiangsu8113B

Ninghong 244,583.778114B 20.498115B 244,604.268116B 149,959.878117B 149,959.878118B

Notes to the Financial Statements Page 104 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Continued:

Year8120B 2014 Year8121B 2013

Name8119B of subsidiary Cash8125B flow from Cash8129B flow from Operating8122B income Net8123B profit Total8124B comprehensive income Operating8126B income Net8127B profit Total8128B comprehensive income operating activity operating activity

Poly8130B Guangzhou 354,968.988131B 22,996.458132B 22,996.458133B 37,424.938134B -8135B 106.39 -8136B 106.39 70,925.968137B

Zhuhai8138B Tianyue -8139B 2,585.92 -8140B 2,585.92 -8141B 72,053.88 0.108142B -8143B 479.04 -8144B 479.04 -8145B 128,025.61

Guangzhou8146B Honghe -8147B 3,085.84 -8148B 3,085.84 -8149B 362,054.13 -8150B 106.39 -8151B 106.39 70,925.968152B

Beijing8153B Poly Sunac -8154B 3,493.82 -8155B 3,493.82 -8156B 96,095.68 -8157B 2,627.25 -8158B 2,627.25 -8159B 99,292.35

Beijing8160B Langtai -8161B 358.17 -8162B 358.17 22,585.368163B -8164B 48.33 -8165B 48.33 -8166B 129,783.33

Shanghai8167B Jianhao 2,187.888168B 2,187.888169B -8170B 230,540.46 -8171B 777.93 -8172B 777.93 -8173B 330,111.36

Shanghai8174B Jianxi -8175B 2,545.62 -8176B 2,545.62 55,795.368177B -8178B 828.96 -8179B 828.96 -8180B 227,142.98

Shanghai8181B Hongrong -8182B 3,770.46 -8183B 3,770.46 143,708.498184B -8185B 3,155.91 -8186B 3,155.91 -8187B 127,899.89

Chongqing8188B Baocheng 151,080.908189B 12,552.428190B 12,552.428191B 28,338.118192B -8193B 2,990.44 -8194B 2,990.44 -8195B 145,056.12

Chongqing8196B Baofang -8197B 1,556.34 -8198B 1,556.34 -8199B 142,812.13 -8200B 52.01 -8201B 52.01 -8202B 23,394.20

Tianjin8203B Sunac 258,724.708204B 56,633.438205B 56,633.438206B 60,791.618207B -8208B 4,500.76 -8209B 4,500.76 -8210B 53,588.72

Guangzhou8211B Zhenglin -8212B 138,382.14

Jiangsu8213B Ninghong -8214B 355.62 -8215B 355.62 -8216B 94,882.64

Notes to the Financial Statements Page 105 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 7.2 Transactions through which the Company's shares of owner's equity in subsidiaries are changed but it still has control over the subsidiaries. 7.2.1 Notes to the changes in the Company's shares of owner's equity in subsidiaries:

(1)8217B Poly Shengtai : the Company held 100% equity in Poly Shengtai as at January 1, 2014; it transfers 30% equity through capital increase and bringing in of shareholders for the current year.

(2)8218B Guangzhou Honghe: the Company held 100% equity in Guangzhou Honghe as at January 1, 2014; it transfers 49.0196% equity through capital increase and bringing in of shareholders for the current year.

(3)8219B Beijing Litong: the Company held 60% equity in Beijing Litong as at January 1, 2014; it acquires 5% equity from minority shareholders for the current year.

(4)8220B Dalian Exhibition : the Company's wholly-owned held 100% equity in Dalian Exhibition as at January 1, 2014; it transfers 60% equity to a holding company in which it holds 50% and transfers 40% equity to a holding company in which it holds 50% equity for the current year.

(5)8221B Pazhou Investment: the Company held 59.2% equity in Pazhou Investment as at January 1, 2014; it acquires 20.8% equity from minority shareholders for the current year.

(6)8222B Foshan Hengsheng: a wholly-owned subsidiary of the Company held 51% equity in Foshan Hengsheng as at January 1, 2014; it transfers 50% equity to a subsidiary in which it holds 51% equity for the current year.

7.2.2 Effects of the above transactions on the minority equity and equity attributable to owners of the parent company:

Guangzhou8225B Name8223B of subsidiary Poly8224B Shengtai Beijing8226B Litong Honghe

Cost8227B of purchase/consideration of disposal

-8228B Cash 60,000,000.008229B 750,000,000.008230B 5,000,000.008231B

-8232B The fair value of non-cash assets

Total8233B cost of purchase/consideration of disposal 60,000,000.008234B 750,000,000.008235B 5,000,000.008236B

Less:8237B shares of net assets in subsidiaries calculated according the percentage of equity

acquired/disposed 59,939,990.428238B 749,488,891.938239B 4,998,137.558240B

Difference8241B 60,009.588242B 511,108.078243B 1,862.458244B

Including:8245B adjustments to capital reserves 60,009.588246B 511,108.078247B 1,862.458248B

Adjustments8249B to surplus reserves

Adjustments8250B to retained earnings

Continued:

Name8251B of subsidiary Dalian8252B Exhibition Pazhou8253B Investment Foshan8254B Hengsheng

Cost8255B of purchase/consideration of disposal

-8256B Cash 250,000.008257B 3,175,020,735.008258B 25,500,000.008259B

-8260B The fair value of non-cash assets

Total8261B cost of purchase/consideration of

disposal 250,000.008262B 3,175,020,735.008263B 25,500,000.008264B

Less:8265B shares of net assets in subsidiaries calculated according the percentage of

equity acquired/disposed -8266B 7,975,334.58 2,524,027,213.528267B 25,484,161.818268B

Difference8269B 8,225,334.588270B 650,993,521.488271B 15,838.198272B

Including:8273B Adjustments to capital reserve 8,225,334.588274B 650,993,521.488275B 15,838.198276B

Notes to the Financial Statements Page 106 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014

Name8251B of subsidiary Dalian8252B Exhibition Pazhou8253B Investment Foshan8254B Hengsheng

Adjustments8277B to surplus reserves

Adjustments8278B to retained earnings

7.3 Equity in joint ventures or associates 7.3.1 Major joint ventures or associates

Shareholding8283B Accounting8284B

Name8279B of joint Domicile8280B of ratio (%) treatment method for Registered8281B venture or primary Nature8282B of the business the investments in place associate business Direct8285B Indirect8286B joint ventures or associates

Joint8287B ventures

Fujian8288B Real8291B estate

Zhongliansheng Xiamen8289B city Xiamen8290B city development 50.008292B Equity8293B method

Tianjin8295B Tianjin8296B Real8297B estate

Shengshi8294B Xinhe municipality municipality development 50.008298B Equity8299B method

The8300B Changchun Changchun8301B Changchun8302B Real8303B estate

River Valley city city development 50.008304B Equity8305B method

Real8309B estate

Wuhan8306B Qingneng Wuhan8307B city Wuhan8308B city development 50.008310B Equity8311B method

Guangzhou8312B Guangzhou8313B Guangzhou8314B Investment8315B

Zhongyao city city management 50.008316B Equity8317B method

Associates8318B

Management8322B of equity investment funds and management of

ECIC8319B Fund Tianjin8320B Tianjin8321B investment and

Management municipality municipality financing 40.008323B Equity8324B method

Fuzhou8325B

Zhongding Fuzhou8326B city Fuzhou8327B city Real8328B estate investment 40.008329B Equity8330B method

Hangzhou8332B Hangzhou8333B Real8334B estate

Hangzhou8331B Jinmu City City development 49.008335B Equity8336B method

7.3.2 Major financial information on significant joint ventures

(Unit:8337B RMB'0,000)

Balance8339B as at December 31, 2014/Year 2014

Item8338B Fujian8340B The8342B Changchun Wuhan8343B Guangzhou8344B Shengshi8341B Xinhe Zhongliansheng River Valley Qingneng Zhongyao

Current8345B assets 256,211.138346B 409,630.048347B 150,223.818348B 219,175.778349B 466,554.678350B

Including:8351B cash and cash

equivalents 47,410.898352B 48,075.058353B 30,515.948354B 28,523.078355B 3,780.318356B

Non8357B -current assets 121.788358B 5,188.858359B 27.688360B 19.218361B 5.388362B

Total8363B assets 256,332.918364B 414,818.898365B 150,251.498366B 219,194.988367B 466,560.058368B

Current8369B liabilities 216,222.488370B 133,552.468371B 136,203.138372B 128,998.708373B 266,950.968374B

Non8375B -current liabilities 100,000.008376B 82,300.008377B

Total8378B liabilities 216,222.488379B 233,552.468380B 136,203.138381B 211,298.708382B 266,950.968383B

Minority8384B equity

Equity8385B attributable to the shareholders of parent

company 40,110.438386B 181,266.438387B 14,048.368388B 7,896.288389B 199,609.098390B

Net8391B asset shares calculated according to the

shareholding ratios 20,055.228392B 90,633.218393B 7,024.188394B 3,948.148395B 99,804.548396B

Adjustment8397B events -8398B 1,580.91 -8399B 73.19

-8400B Goodwill

Notes to the Financial Statements Page 107 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014

Balance8339B as at December 31, 2014/Year 2014

Item8338B Fujian8340B The8342B Changchun Wuhan8343B Guangzhou8344B Shengshi8341B Xinhe Zhongliansheng River Valley Qingneng Zhongyao

-8401B Unrealized profits of

internal transactions -8402B 1,580.91 -8403B 73.19

-8404B Others

The8405B book values of equity

investments in joint ventures 20,055.228406B 90,633.218407B 7,024.188408B 2,367.238409B 99,731.358410B

The8411B fair values of equity investments in joint ventures with a public offer

Operating8412B income 121,968.068413B 85,589.588414B 62,819.798415B

Financial8416B expenses -8417B 297.93 1,187.318418B -8419B 171.77 -8420B 65.46 -8421B 9.93

Income8422B tax expenses 9,629.088423B 4,532.978424B 2,123.558425B -8426B 0.02 -8427B 5.38

Net8428B profit 30,577.718429B 13,586.898430B 6,261.538431B -8432B 1,756.18 -8433B 311.88

Net8434B profit from discontinued operations

Other8435B comprehensive income

Total8436B comprehensive income 30,577.718437B 13,586.898438B 6,261.538439B -8440B 1,756.18 -8441B 311.88

Dividends8442B received from joint ventures for the current

year 5,000.008443B 4,000.008444B

Continued:

(Unit:8445B RMB'0,000)

Balance8447B as at January 1, 2014/ Year 2013

Item8446B Fujian8448B The8450B Changchun Wuhan8451B Guangzhou8452B Shengshi8449B Xinhe Zhongliansheng River Valley Qingneng Zhongyao

Current8453B assets 196,710.998454B 612,068.708455B 149,241.228456B 96,798.478457B 217,921.028458B

Including:8459B cash and cash

equivalents 23,493.498460B 53,134.158461B 31,368.168462B 12,812.598463B 203.528464B

Non8465B -current assets 149.518466B 192.138467B 34.178468B 20.128469B

Total8470B assets 196,860.508471B 612,260.838472B 149,275.398473B 96,818.598474B 217,921.028475B

Current8476B liabilities 177,327.788477B 444,581.298478B 118,488.558479B 47,766.138480B 18,000.048481B

Non8482B -current liabilities 15,000.008483B 39,400.008484B

Total8485B liabilities 177,327.788486B 444,581.298487B 133,488.558488B 87,166.138489B 18,000.048490B

Minority8491B equity

Equity8492B attributable to the shareholders of parent

company 19,532.728493B 167,679.548494B 15,786.848495B 9,652.468496B 199,920.988497B

Net8498B asset shares calculated according to the

shareholding ratios 9,766.368499B 83,839.778500B 7,893.428501B 4,826.238502B 99,960.498503B

Adjustment8504B events -8505B 835.89

-8506B Goodwill

-8507B Unrealized profits of

internal transactions -8508B 835.89

-8509B Others

The8510B book values of equity

investments in joint ventures 9,766.368511B 83,839.778512B 7,893.428513B 3,990.348514B 99,960.498515B

Notes to the Financial Statements Page 108 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014

Balance8447B as at January 1, 2014/ Year 2013

Item8446B Fujian8448B The8450B Changchun Wuhan8451B Guangzhou8452B Shengshi8449B Xinhe Zhongliansheng River Valley Qingneng Zhongyao

The8516B fair values of equity investments in joint ventures with a public offer

Operating8517B income 103,678.338518B 453,876.098519B 54,523.278520B

Financial8521B expenses -8522B 290.26 616.328523B -8524B 149.21 -8525B 23.61 -8526B 29.42

Income8527B tax expenses 5,407.738528B 27,054.718529B 3,033.218530B -8531B 0.11

Net8532B profit 18,986.868533B 81,140.618534B 9,045.448535B -8536B 347.54 -8537B 79.02

Net8538B profit from discontinued operations

Other8539B comprehensive income

Total8540B comprehensive income 18,986.868541B 81,140.618542B 9,045.448543B -8544B 347.54 -8545B 79.02

Dividends8546B received from joint ventures for the current

year 6,000.008547B

7.3.3 Major financial information on significant associates

(Unit:8548B RMB'0,000)

Balance8550B as at Balance8551B as at December 31, 2014/Year 2014 January 1, 2014/ Year 2013 Item8549B ECIC8552B Fund Fuzhou8553B Hangzhou8554B ECIC8555B Fund Fuzhou8556B Hangzhou8557B Management Zhongding Jinmu Management Zhongding Jinmu

Current8558B assets 226,257.748559B 359,677.998560B 84,340.188561B 239,471.728562B 484,857.808563B 66,514.408564B

Non8565B -current assets 105,506.428566B 99.008567B 635.848568B 105,363.878569B 13,834.508570B 308.618571B

Total8572B assets 331,764.168573B 359,776.998574B 84,976.028575B 344,835.598576B 498,692.308577B 66,823.018578B

Current8579B liabilities 87,282.498580B 267,822.278581B 56,844.858582B 200,781.708583B 401,792.738584B 37,707.238585B

Non8586B -current liabilities 155,885.858587B 26,800.008588B 70,892.508589B 93,262.008590B

Total8591B liabilities 243,168.348592B 294,622.278593B 56,844.858594B 271,674.208595B 495,054.738596B 37,707.238597B

Minority8598B equity 14,566.308599B 15,606.468600B

Equity8601B attributable to the shareholders of parent

company 74,029.528602B 65,154.728603B 28,131.178604B 57,554.938605B 3,637.578606B 29,115.788607B

Net8608B asset shares calculated according to

the shareholding ratios 29,611.818609B 26,061.898610B 13,784.288611B 23,021.978612B 1,455.038613B 14,266.738614B

Adjustment8615B events -8616B 515.96 -8617B 525.46 -8618B 270.30

-8619B Goodwill

—8620B Unrealized profits of

internal transactions -8621B 515.96 -8622B 525.46 -8623B 270.30

-8624B Others

The8625B book values of equity investments in

associates 29,095.858626B 26,061.898627B 13,784.288628B 22,496.518629B 1,184.738630B 14,266.738631B

The8632B fair values of equity investments in associates with a public offer

Operating8633B income 39,381.328634B 346,291.138635B 26,924.388636B

Net8637B profit 39,920.358638B 61,517.158639B -8640B 984.61 30,298.878641B -8642B 2,473.59 -8643B 884.22

Notes to the Financial Statements Page 109 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014

Balance8550B as at Balance8551B as at December 31, 2014/Year 2014 January 1, 2014/ Year 2013 Item8549B ECIC8552B Fund Fuzhou8553B Hangzhou8554B ECIC8555B Fund Fuzhou8556B Hangzhou8557B Management Zhongding Jinmu Management Zhongding Jinmu

Net8644B profits from discontinued operations

Other8645B comprehensive

income -8646B 10.76

Total8647B comprehensive

income 39,909.598648B 61,517.158649B -8650B 984.61 30,298.878651B -8652B 2,473.59 -8653B 884.22

Dividends8654B received from associates for the current

year 8,000.008655B 2,400.008656B

7.3.4 Summary financial information on insignificant joint ventures and associates

Balance8658B as at Balance8659B as at

Item8657B December 31, 2014/ January 1, 2014/ Year 2014 Year 2013

joint8660B ventures:

Total8661B book values of investments 349,013,648.118662B 148,859,773.278663B

Total8664B amounts of the following items calculated according to the shareholding ratios

-8665B Net profit 18,942,328.098666B -8667B 4,739,426.73

-8668B Other comprehensive income

-8669B Total comprehensive income 18,942,328.098670B -8671B 4,739,426.73

Associates:8672B

Total8673B book values of investments 309,218,277.648674B 263,685,420.988675B

Total8676B amounts of the following items calculated according to the shareholding ratios

-8677B Net profit -8678B 8,464,541.59 -8679B 314,579.03

-8680B Other comprehensive income

-8681B Total comprehensive income -8682B 8,464,541.59 -8683B 314,579.03

7.3.5 Notes to the significant restrictions on the joint ventures or associates' abilities to transfer capitals to the Company: Not applicable.

7.3.6 Excess losses incurred by joint ventures or associates

Accumulated8685B Accumulated8687B Name8684B of joint Unrecognized8686B losses for the current year unrecognized losses unrecognized losses as venture or associate (or net profit shared for the current year) for the prior years at December 31, 2014

Henan8688B Tianzhidong -8689B 2,677,275.72 -8690B 2,677,275.72 Other interpretations: The real estate projects of Henan Tianzhidong have been at the early stage of development.

8. Risks relating to the financial instruments 8.1 Financial instruments The Company's existing major financial instruments include the cash and cash equivalents, accounts receivable, available-for-sale financial assets, loans from financial institutions, accounts payable, and bond payable, etc., see the note to each item for details of each financial instrument. The Company formulates the risk management policies to manage, monitor and control the risk exposures relating to the financial instruments, ensuring that the risks are controlled within the prescribed ranges.

Notes to the Financial Statements Page 110 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 8.2 Financial risk management The Company's existing financial instruments may be exposed to interest rate risk, exchange rate risk, credit risk, liquidity risk and other financial risks. The Company targets the proper balance between risk and income with respect to financial risk management and lowers the potential adverse effects on its operating performance by recognizing and analyzing all types of financial risks encountered, taking financial management policies and practically controlling financial risks.

(1)8691B Interest rate risk

The8692B key sources of interest rate risks encountered by the Company are loans from financial institutions, and most of loans from financial institutions are loans in RMB, with a floating interest rate, which shall be subject to the adjustments to the benchmark interest rate for loan by the People's Bank of China.

The8693B Company allocates the loans with a fixed interest rate and loans with a floating interest rate as well as short-term borrowings and medium- and long-term borrowings in proper proportions according to the financial market environment, so as to control the interest rate risks of cash flows arising from the changes in interest rates.

Sensitivity8694B analysis: as at December 31, 2014, the Company’s short-term borrowings, long-term borrowings maturing within one year and long-term borrowings amounted to RMB119.164 billion, including the loans with a floating interest rate of RMB108.67; given that other factors are unchanged, the Company’s interest expenses shall be increased/decreased by RMB0.294 billion if the benchmark interest rate for loans of the People’s Bank of China is increased/decreased by 0.25 ppt..

(2)8695B Exchange rate risk

The8696B key sources of exchange rate risks encountered by the Company are USD-denominated bonds payable and bank deposits, the foreign exchange exposures of the abovementioned financial instruments will be affected by the changes in USD exchange rate. The Company will continuously pay attention to the effects of USD exchange rate on the Company's foreign exchange risks which are now under control.

Sensitivity8697B analysis: as at December 31, 2014, the balance of USD bonds amounted to USD1 billion, and the balance of USD bank deposits amounted to USD99,518,187.65; given that other factors are unchanged, the Company’s profits shall be increased/decreased by RMB55,100,500 if the USD-RMB exchange rate is increased/decreased by 1%.

(3)8698B Credit risk

The8699B key resources of credit risks encountered by the Company are cash and cash equivalents, accounts receivable and other accounts receivable. The Company controls the credit risks within the prescribed ranges through formulating and implementing the credit risk management policies and paying attention to the credit risk exposures of the abovementioned financial instruments.

The8700B Company deposits most of cash and cash equivalents it holds in the commercial banks with higher credit rating, healthy asset conditions and lower credit risks, and avoids the credit risks of commercial banks through depositing cash and cash equivalents with a limited amount and closely monitoring the changes in bank account balances, etc.

The8701B Company has developed a sound risk management and internal control system of accounts receivable; it reduces the credit risk of accounts receivable through strictly auditing the customer credits and implementing the procedures for collection of accounts receivable. The Company has had no overdue accounts receivable with a large amount.

As8702B at December 31, 2014, total amount of top five accounts receivable of the Company amounted to RMB250,020,440.27, accounting for 7.09% of total accounts receivable.

Notes to the Financial Statements Page 111 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014

Other8703B receivables of the Company mainly contain the Company's current accounts with its associates and joint ventures, current accounts with the shareholders of partners of its subsidiaries, cash pledges, cash deposits, advances and other items.

The8704B Company is able to participate in operating and managing associates and joint ventures, and the real estate projects it has developed are well profitable; therefore, with respect to the current accounts, there almost has no risk of irrecoverability. As for the current accounts with shareholders of partners of subsidiaries, because of the mutual constraints and equal rights and obligations among the shareholders, the accounts are very likely to be recovered. The Company takes a special administration for the cash pledges, cash deposits and advances so as to ensure the timeliness of collection of accounts.

(4)8705B Liquidity risk

The8706B Company reduces the effects of the fluctuation of short-term cash flows by implementing the capital budget management, monitoring the existing and upcoming capital liquidity demands and maintaining adequate reserves of cash and cash equivalents according to the operating demands and analysis on the terms of borrowing contracts. The Company strictly supervises the use of borrowings and ensures the compliance with the borrowing agreements by the banks and enterprises; at the same time, the Company carries out the credit extension with financial institutions and obtains sufficient line of credit in order to meet the requirements for long- and short-term capital flows and to reduce the risks of capital liquidity.

(5)8707B Fair value

The8708B Company’s financial assets and liabilities are not measures at fair value, therefore, there is no adverse effect of changes in fair value on the operating performance of the Company.

9. Related parties and related party transactions 9.1 The parent company of the Company

Shareholding8713B ratio Voting8714B ratio in Name8709B of the parent Registered8710B Business8711B nature Registered8712B capital: in the Company the Company company place (%) (%)

Real8717B estate development and operation, property management, real estate

Poly8715B Southern Group agency service,

Corporation Guangzhou8716B wholesale and retail trade RMB100,500,0008718B 42.058719B 42.058720B Notes to the parent company of the Company: Poly Southern is a wholly-owned subsidiary of the Poly Group.

The ultimate controller of the Company is the Poly Group.

9.2 Subsidiaries of the Company See the Note 7 Equity in Other Entities for the details of subsidiaries of the Company

9.3 The joint ventures and associates of the Company See the Note 7 Equity in Other Entities for the details of significant joint ventures and associates of the Company

Other joint ventures and associates that conduct a related party transaction with the Company for the current year or have a balance arising from the related party transactions with the Company occurred in the prior years are follows:

Name8721B of joint venture or associate Relationship8722B with the company

Beijing8723B Yitai Joint8724B venture

Nanjing8725B Xueshang Joint8726B venture

Guangzhou8727B Hongyue Joint8728B venture

Guangzhou8729B Bao’ao Joint8730B venture

Henan8731B Tianzhidong Joint8732B venture

Notes to the Financial Statements Page 112 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014

Name8721B of joint venture or associate Relationship8722B with the company

Luoyang8733B Liye Joint8734B venture

Sanya8735B ChinaRailway Joint8736B venture

Shunde8737B Vanke Joint8738B venture

Poly8739B Rentai Associate8740B

Dongguan8741B Hehong Associate8742B

Dongguan8743B Heyue Associate8744B

Dongguan8745B Wanlong Associate8746B

Putian8747B Zhongchen Associate8748B

Munan8749B Qiushi Associate8750B

9.4 Other related parties of the Company

Name8751B of other related parties Relationship8752B with the Company

Shanghai8753B Sanli Industrial Co., Ltd .(“Shanghai Sanli”) Under8754B the common control of Poly Group

Poly8755B Finance Company Limited (Poly Finance) Under8756B the common control of Poly Group

Poly8757B Construction and Development Corporation (“Poly Construction”) Under8758B the common control of Poly South

Poly8759B Film Investment Co., Ltd. (“Poly Film”) Under8760B the common control of Poly Group

Guangzhou8761B Poly International Film Cinema Co., Ltd. ("Guangzhou Poly

Film Cinema") Under8762B the common control of Poly Group

Guangdong8763B Poly Asset Management Co., Ltd. (“Poly Asset”)) Under8764B the common control of Poly Group

Poly8765B Solar Technologies (Beijing) Co., Ltd (“Poly Solar”) Under8766B the common control of Poly Group

Poly8767B International Auction Co., Ltd.(“Poly Auction”) Under8768B the common control of Poly Group

Foshan8769B Yongsheng Investment Co., Ltd. ("Foshan Yongsheng") Note18770B

Foshan8771B Shengxin Investment Co., Ltd (“Foshan Shengxin”) Note18772B

Foshan8773B Shunde Shenghong Investment Co., Ltd (“Shunde Shenghong”) Note18774B

Jiangmen8775B Xinbao Kangsheng Culture and Sport Investment Co., Ltd

(“Jiangmen Kangsheng”) Note18776B

Chung8777B Hong Tai (Hong Kong) Limited (“HK CHT”) Note18778B

ECIC8779B (Tianjin) Equity Investment Fund Partnership (limited partnership)

("ECIC Limited Partnership") Note28780B

Tibet8781B ECIC Equity Investment Limited Partnership (Limited Partnership)

("Tibet ECIC") Note38782B

Foshan8783B ECIC Junya Equity Investment Limited Partnership (Limited

Partnership) ("ECIC Junya") Note48784B

Foshan8785B ECIC Chenya Equity Investment Limited Partnership (Limited

Partnership) ("ECIC Chenya") Note48786B

Tianjin8787B Xinhelongchang Note58788B Note1： a subsidiary of ECIC Fund Management, an associate of the Company.

Note2：In 2010, ECIC Fund Management, an associate of the Company, as a general partner, initiated the establishment of ECIC Limited Partnership, in which the Company was the limited partner. The total contributions subscribed and actually paid amounted to RMB 600,000,000.00, and as at December 31, 2014, the investment was fully recovered.

Note3： In December 2014, ECIC Fund Management, an associate of the Company, as a general partner, initiated the establishment of Tibet ECIC, in which the Company was the limited partner. The total contributions subscribed and actually paid amounted to RMB 600,000,000.00, and as at December 31, 2014, RMB300,000,000.00 was contributed.

Note4：ECIC Fund Management, an associate of the Company, was incorporated in the structuring body of combination.

Note5： a subsidiary of Shengshi Xinhe, a joint venture of the Company.

Notes to the Financial Statements Page 113 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 9.5 Related party transactions 9.5.1 Purchase of goods, rendering and receipt of labor services Purchase of goods / receipt of services

Content8790B of Related8789B party Year8791B 2014 Year8792B 2013 related party transactions

Poly8793B Construction Project8794B contracting 19,742,614.178795B

Poly8796B Solar Purchase8797B of goods 2,374,110.008798B 482,760.008799B

Poly8800B Auction Purchase8801B of goods 355,350.008802B 435,850.008803B

Table of sales of goods/rendering of services

Content8805B of Related8804B party Year8806B 2014 Year8807B 2013 related party transactions

Shengshi8808B Xinhe Project8809B contracting 73,137,260.948810B 90,668,912.938811B

Fuzhou8812B Zhongding Project8813B contracting 149,537,923.688814B 181,298,839.428815B

Fujian8816B Zhongliansheng Project8817B contracting 71,462,039.908818B 114,217,637.608819B

Guangzhou8820B Hongyue Project8821B contracting 1,751,000.008822B

Guangzhou8823B Zhongyao Project8824B contracting 9,640,000.008825B

Putian8826B Zhongchen Project8827B contracting 6,596,432.508828B

Poly8829B Rentai Project8830B contracting 633,726.008831B

9.5.2 Lease of related parties The Company acted as lessor:

Name8832B of leasee Type8833B of leased asset Rental8834B recognized in 2014 Rental8835B recognized in 2013

The8837B Poly Canal and Film Cinema in the South

Poly8836B Film Industry China Sea 2,555,558.048838B 2,889,326.398839B

Guangzhou8840B Poly Film Guangzhou8841B Central Plaza

Cinema Film Cinema 1,361,804.008842B 1,390,720.008843B

ECIC8844B Fund Guangzhou8845B Poly Center

Management Office Building 2,486,605.008846B 1,949,316.008847B

Guangzhou8849B Poly Center

Poly8848B Southern Office Building 1,744,136.008850B 1,715,544.008851B

Guangzhou8853B Poly Center

Poly8852B Asset Office Building 1,212,364.008854B 1,192,488.008855B

9.5.3 Related Guarantee See Note 11.2 Contingencies for details of the guarantees provided inside the Company and the guarantees provided by the Company for joint ventures.

9.5.4 Loans from/to related parties

Commencement8858B Related8856B party Amount8857B Maturity8859B date Remark8860B date

Borrowing8861B in 2013:

The8866B interest rate was the benchmark interest rate for loan during the

Poly8862B Finance 150,000,000.008863B 20148864B -05-13 20168865B -05-13 corresponding period

The8871B interest rate was the benchmark interest rate for loan during the

Poly8867B Finance 150,000,000.008868B 20148869B -05-13 20168870B -05-13 corresponding period increasing 5%

The8876B interest rate was the benchmark interest rate for loan during the

Poly8872B Finance 150,000,000.008873B 20148874B -08-14 20168875B -08-14 corresponding period increasing 5%

The8881B interest rate was the benchmark interest rate for loan during the

Poly8877B Finance 150,000,000.008878B 20148879B -09-30 20168880B -09-29 corresponding period increasing 5%

Poly8882B Finance 600,000,000.008883B 20148884B -09-09 20178885B -09-09 6.40%8886B

Notes to the Financial Statements Page 114 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014

Commencement8858B Related8856B party Amount8857B Maturity8859B date Remark8860B date

The8891B interest rate was the benchmark interest rate for loan during the

Poly8887B Finance 150,000,000.008888B 20148889B -11-24 20148890B -11-23 corresponding period increasing 5%

The8896B interest rate was the benchmark interest rate for loan during the

Poly8892B Finance 200,000,000.008893B 20148894B -12-09 20168895B -12-09 corresponding period increasing 5%

The8901B interest rate was the benchmark interest rate for loan during the

Poly8897B Finance 300,000,000.008898B 20148899B -12-31 20158900B -12-31 corresponding period increasing 5%

Poly8902B Group 1,000,000,000.008903B 20148904B -12-31 20158905B -03-31 5.88%8906B

The8911B interest rate was the benchmark interest rate for loan with a term of

Poly8907B Group 600,000,000.008908B 20148909B -03-24 20178910B -03-24 seven years decreasing 3.5%

Repayment8912B in 2013:

The8917B borrow in 2010 amounted to RMB500,000,000, which was fully

Poly8913B Group 500,000,000.008914B 20108915B -01-04 20148916B -05-04 repaid in 2014

The8922B borrow in 2012 amounted to RMB600,000,000, which was fully

Poly8918B Group 600,000,000.008919B 20128920B -01-05 20158921B -03-10 repaid in 2014

The8927B borrow in 2012 amounted to RMB2,000,000,000, which was fully

Poly8923B Finance 1,985,000,000.008924B 20128925B -04-20 20148926B -04-20 repaid in 2014

The8932B borrow in 2011 amounted to RMB190,000,000, which was fully

Poly8928B Finance 110,000,000.008929B 20118930B -01-19 20148931B -01-19 repaid in 2014

The8937B borrow in 2012 amounted to RMB100,000,000, which was fully

Poly8933B Finance 80,000,000.008934B 20128935B -06-27 20148936B -06-27 repaid in 2014

The8942B borrow in 2013 amounted to RMB200,000,000, part of which was

Poly8938B Finance 10,000,000.008939B 20138940B -02-05 20158941B -02-05 repaid in 2014

The8947B borrow in 2013 amounted to RMB200,000,000, part of which was

Poly8943B Finance 5,000,000.008944B 20138945B -08-07 20158946B -08-07 repaid in 2014

The8952B borrow in 2013 amounted to RMB100,000,000, part of which was

Poly8948B Finance 5,000,000.008949B 20138950B -12-02 20158951B -12-01 repaid in 2014

The8957B borrow in 2013 amounted to RMB100,000,000, part of which was

Poly8953B Finance 8,000,000.008954B 20138955B -03-26 20158956B -03-26 repaid in 2014

The8962B borrow in 2012 amounted to RMB100,000,000, which was fully

Poly8958B Finance 95,000,000.008959B 20128960B -10-24 20148961B -10-24 repaid in 2014

The8967B borrow in 2013 amounted to RMB300,000,000, which was fully

Poly8963B Finance 300,000,000.008964B 20138965B -04-23 20148966B -04-23 repaid in 2014

The8972B borrow in 2012 amounted to RMB150,000,000, which was fully

Poly8968B Finance 145,000,000.008969B 20128970B -11-20 20148971B -11-20 repaid in 2014

The8977B borrow in 2014 amounted to RMB150,000,000, part of which was

Poly8973B Finance 2,000,000.008974B 20148975B -05-13 20168976B -05-13 repaid in 2014

The8982B borrow in 2014 amounted to RMB150,000,000, part of which was

Poly8978B Finance 20,000,000.008979B 20148980B -05-13 20168981B -05-13 repaid in 2014

Notes to the Financial Statements Page 115 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014

Commencement8858B Related8856B party Amount8857B Maturity8859B date Remark8860B date

The8987B borrow in 2013 amounted to RMB100,000,000, part of which was

Poly8983B Finance 5,000,000.008984B 20138985B -12-11 20158986B -12-10 repaid in 2014

The8992B borrow in 2013 amounted to RMB300,000,000, which was fully

Poly8988B Finance 300,000,000.008989B 20138990B -12-31 20148991B -12-31 repaid in 2014

9.5.5 Other related transactions

Proportion8996B in the item Related8993B party Type8994B of transaction Amount8995B (%)

Poly8997B Finance Deposit8998B 2,643,923,226.478999B 6.609000B

Receipt9002B of equity

Foshan9001B Shengxin investment 93,750,000.009003B 2.449004B

Receipt9006B of equity

ECIC9005B Junya investment 49,000,000.009007B 1.289008B Note: as at December 31, 2014, deposit balance of the Company in Poly Finance amounted to RMB 2,643,923,226.47 in total, and the interest rate for deposit was subject to relevant rules of People’s Bank of China.

9.6 Accounts due from/to the related parties 9.6.1 Accounts receivable

Balance9011B as at December 31, 2014 Balance9012B as at January 1, 2014

Item9009B Related9010B party Provision9014B for Provision9016B for Book9013B balance Book9015B balance bad debt bad debt

Other9017B receivables Beijing9018B Yitai 1,665,000,000.009019B

Other9020B receivables Shunde9021B Vanke 882,654,897.559022B

Tianjin9024B

Other9023B receivables Xinhelongchang 345,015,088.409025B

Other9026B receivables Shengshi9027B Xinhe 8,319,611.029028B 415,980.559029B

ECIC9031B Limited

Other9030B receivables Partnership 593,046,486.179032B 397,219,519.869033B

Other9034B receivables ECIC9035B Chenya 8,000,000.009036B 400,000.009037B

ECIC9039B Fund

Other9038B receivables Management 495,998,155.009040B 175,385,961.459041B

Other9042B receivables Nanjing9043B Xueshang 94,170,930.409044B 4,708,546.529045B 351,892,184.209046B

Other9047B receivables Wuhan9048B Qingneng 404,900,466.679049B 230,700,000.009050B

Other9051B receivables Poly9052B Rentai 406,925,400.009053B

Guangzhou9055B

Other9054B receivables Bao’ao 157,428,468.609056B 151,955.409057B 7,597.779058B

Guangzhou9060B

Other9059B receivables Zhongyao 1,339,152,396.739061B 90,000,410.409062B 4,500,020.529063B

Guangzhou9065B

Other9064B receivables Hongyue 47,689,951.749066B 2,384,497.599067B

Dongguan9069B

Other9068B receivables Wanlong 675,281,164.009070B 647,286,000.009071B

Other9072B receivables Dongguan9073B Heyue 286,834,450.509074B

Other9075B receivables Hangzhou9076B Jinmu 129,303,062.009077B 129,303,062.009078B

Henan9080B

Other9079B receivables Tianzhidong 217,099,320.709081B

Sanya9083B

Other9082B receivables ChinaRailway 129,416,074.029084B

Other9085B receivables Luoyang9086B Liye 265,807,841.539087B

Other9088B receivables Putian9089B Zhongchen 207,071,619.509090B

Notes to the Financial Statements Page 116 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 9.6.2 Accounts payable

Balance9093B as at Balance9094B as at Item9091B Related9092B party December 31, 2014 January 1, 2014

Other9095B payables: Poly9096B Group 2,053,031,370.839097B 1,555,499,150.009098B

Other9099B payables: Shanghai9100B Sanli 40,906,070.839101B 41,589,979.179102B

Other9103B payables: Fuzhou9104B Zhongding 14,750,294.289105B 16,793,901.689106B

Other9107B payables: Fujian9108B Zhongliansheng 496,401,245.649109B 199,701,468.979110B

Other9111B payables: Foshan9112B Yongsheng 1,272,548,763.689113B 1,274,843,500.009114B

Other9115B payables: Foshan9116B Shengxin 249,073,137.609117B 187,500,000.009118B

Other9119B payables: Foshan9120B Shenghong 220,040,400.009121B

Other9122B payables: Jiangmen9123B 208,333.339124B 4,000,000.009125B

Other9126B payables: ECIC9127B Junya 57,878,824.509128B

Other9129B payables: Tianjin9130B Munan 17,000,000.009131B 17,000,000.009132B

Other9133B payables: Dongguan9134B Hehong 89,123,448.839135B

The9137B Changchun River

Other9136B payables: Valley 60,000,000.009138B

Other9139B payables: Poly9140B Rentai 53,074,600.009141B

Other9142B payables: Shengshi9143B Xinhe 33,149,176.169144B

Advances9145B from

customers Shengshi9146B Xinhe 30,862,059.339147B 47,735,150.309148B

Advances9149B from

customers Fuzhou9150B Zhongding 5,535,785.229151B 37,806,254.979152B

Advances9153B from

customers Fujian9154B Zhongliansheng 380,158.009155B

Advances9156B from

customers Nanjing9157B Xueshang 47,999,794.989158B 15,530,516.639159B

Advances9160B from

customers Guangzhou9161B Zhongyao 22,360,000.009162B

Advances9163B from

customers Putian9164B Zhongchen 1,374,256.779165B

Advances9166B from

customers Dongguan9167B Hehong 2,000,000.009168B

Advances9169B from

customers Henan9170B Tianzhidong 1,183,546.889171B

Advances9172B from

customers Poly9173B Rentai 380,000.009174B

10. Share-based payments 10.1 General information of share-based payment

Unit:9175B Dominated currency: RMB

Total9176B amount of all equity instruments granted by the Company in

2013

Total9177B amount of all equity instruments exercised by the Company

in 2013 22,753,4409178B

Total9179B amount of all null equity instruments in 2013 5,613,1209180B

As9182B at December 31, 2014, the exercise price of outstanding options by the Company was RMB

Range9181B of exercise price of outstanding options by the Company as 5.07, and the remaining contractual period is 3.34 at December 31, 2014 and the remaining contractual period years

Range9183B of exercise price of other outstanding equity instruments of the Company as at December 31, 2014 and the remaining contractual period

On April 26, 2012, the Company adopted the Stock Option Incentive Plan of Poly Real Estate Group Co., Ltd. (revised draft) at its 2011 Annual General Meeting and on the same day, the Company adopted the Motion on Related Matters to the Grants of Stock Options at its second meeting of the Fourth Session of the Board of Directors, determining that the grant date of the stock option incentive plan is May 4, 2012 and the Company has granted stock options to the

Notes to the Financial Statements Page 117 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 objects on the grant date. Option number under the stock option incentive plan is 55.67 million; the exercise price is RMB 9.97 and the fair value is RMB 310.4493 million. The waiting period lasts for two years starting from the grant date; after that, the options will be exercised at three times, during which, 30%, 30% and 40% of the total options granted will be exercised respectively.

According to the program of 2011 profit distribution and capital reserves transferred to share capital approved in general meeting of shareholders, and based on the total share capital as at December 31, 2011, the Company on June 18, 2012, distributed cash dividends of RMB2.15 (including tax) for every 10 shares to all shareholders, and transferred 2 shares for every 10 shares of capital reserves. The exercise price of share options was adjusted to RMB8.13 from RMB9.97.

In 2013, according to the profit distribution plan for 2012 deliberated and adopted at the general meeting of the Company, the Company distributed cash dividends of RMB 2.32 (including tax) for every 10 shares to all shareholders. The exercise price of share options was correspondingly adjusted to RMB 7.898 from RMB 8.13.

In 2014, according to the plan of profit distribution and conversion of capital reserves into share capitals for 2013 deliberated and adopted at the general meeting of the Company, the Company distributed cash dividends of RMB 2.94 (including tax) for every 10 shares and converted capital reserves into five shares for every 10 shares to all shareholders. The exercise price of share options was correspondingly adjusted to RMB 5.07 from RMB 7.898.

10.2 Equity-settled share-based payment

Unit:9184B Dominated currency: RMB

Determination9185B of fair value of equity instruments as at grant B9186B -S (Black-Scholes) option pricing model date

The9188B most probable exercise number was estimated according to the amount of remaining exercisable

Bases9187B for determination of the number of equity instruments instruments as at the balance sheet date and the with the exercisable rights dismissal of employees with options granted

Reason9189B for material difference between the estimates for 2013

and 2012 None.9190B

Accumulated9191B amount of equity-settled share-based payments

included in capital reserves 233,066,491.279192B

Total9193B expenses recognized for equity-settled share-based

payment for the current year 61,824,081.99194B 3

10.3 Adjustment to and termination of share-based payment There was no adjustment or termination during the reporting period.

11. Commitments or contingencies 11.1 Significant commitment events 11.1.1 There is neither outward investment contract which was signed but not performed or fully performed yet nor relevant financial expenses.

11.1.2 Signed contracting contracts with large amount under performance or to be performed and their financial effects. As at December 31, 2014, the capital expenditure items as prescribed in the contracts (most were contracts of land and construction & installation) signed by the Company but unpaid amounted to RMB78,568,279,400 in total, which need to be paid within several years when other parties concerned perform these contracts as agreed; the relevant details are as follows:

Notes to the Financial Statements Page 118 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014

(Unit:9195B RMB'0,000)

Balance9199B as Payment9200B Payment9201B Payment9202B Payment9203B Contract9197B Accumulated9198B Item9196B at December within 1 within 1-2 within 2-3 over 3 amount amount paid 31, 2014 year years years years

Land9204B transfer

contract 4,077,069.309205B 1,526,490.189206B 2,550,579.129207B 1,696,985.959208B 537,998.339209B 249,780.589210B 65,814.269211B

Construction9212B & installation

project contract 13,884,810.759213B 8,943,307.539214B 4,941,503.229215B 3,325,222.869216B 1,136,405.279217B 362,538.279218B 117,336.829219B

Other9220B agreed

expenses 1,006,087.599221B 641,341.999222B 364,745.609223B 282,744.109224B 56,963.329225B 19,290.579226B 5,747.619227B

Total9228B 18,967,967.649229B 11,111,139.709230B 7,856,827.949231B 5,304,952.919232B 1,731,366.929233B 631,609.429234B 188,898.699235B

11.1.3 There are neither signed significant lease contracts being performed or to be performed nor their financial effects in 2014.

11.1.4 There are no signed significant merger & acquisition agreements being performed or to be performed in 2014.

11.1.5 There are no signed significant restructuring plans being performed or to be performed in 2014.

11.2 Contingencies 11.2.1 Guarantees provided by the Company for subsidiaries

Guarantee9238B period Whether9239B the

Balance9237B of performance of

Guarantee9236B guarantee Starting9240B date of Maturity9241B date of guarantee has (RMB’0,000) guarantee guarantee been finished or not

5009243B 20149244B -8-14 20159245B -8-14 Not9246B mature

Hefei9242B Heheng 14,5009247B 20149248B -8-14 20169249B -8-14 Not9250B mature

9,5009252B 20139253B -12-2 20159254B -12-1 Not9255B mature

28,7009256B 20149257B -3-28 20179258B -3-27 Not9259B mature

Hefei9251B Hezhu 50,0009260B 20139261B -12-31 20169262B -12-31 Not9263B mature

14,5009265B 20139266B -8-6 20169267B -6-27 Not9268B mature

Heifei9264B Hesheng 37,5009269B 20149270B -1-25 20179271B -1-23 Not9272B mature

Hefei9273B Poly 67,0009274B 20139275B -6-27 20169276B -5-29 Not9277B mature

Poly9278B Baotou 20,0009279B 20149280B -7-16 20179281B -7-8 Not9282B mature

5,0009284B 20149285B -7-1 20239286B -12-23 Not9287B mature

8009288B 20149289B -6-23 20159290B -6-30 Not9291B mature

3,4509292B 20149293B -6-23 20249294B -6-23 Not9295B mature

Poly9283B Beijing 5,0009296B 20149297B -7-7 20239298B -12-23 Not9299B mature

99,8009301B 20139302B -8-23 20159303B -8-23 Not9304B mature

11,5009305B 20139306B -12-31 20159307B -12-31 Not9308B mature

7,5009309B 20139310B -12-31 20169311B -12-31 Not9312B mature

18,0009313B 20149314B -1-16 20169315B -12-31 Not9316B mature

8,0009317B 20149318B -3-7 20169319B -12-31 Not9320B mature

Beijing9300B Poly Xing 4,0009321B 20149322B -3-21 20169323B -12-31 Not9324B mature

19,0009326B 20139327B -8-7 20159328B -8-21 Not9329B mature

5009330B 20139331B -8-7 20159332B -2-21 Not9333B mature

50,0009334B 20139335B -8-8 20159336B -2-1 Not9337B mature

30,0009338B 20139339B -8-8 20169340B -7-10 Not9341B mature

35,0009342B 20139343B -10-9 20169344B -7-10 Not9345B mature

35,0009346B 20139347B -11-12 20169348B -7-10 Not9349B mature

Beijing9325B Shibo 30,0009350B 20139351B -12-4 20169352B -7-10 Not9353B mature

8,0009355B 20149356B -4-29 20159357B -10-28 Not9358B mature

Beijing9354B Runcheng 60,0009359B 20149360B -4-10 20179361B -4-9 Not9362B mature

Notes to the Financial Statements Page 119 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014

Guarantee9238B period Whether9239B the

Balance9237B of performance of

Guarantee9236B guarantee Starting9240B date of Maturity9241B date of guarantee has (RMB’0,000) guarantee guarantee been finished or not

5,0009363B 20149364B -4-10 20159365B -4-30 Not9366B mature

30,0009367B 20149368B -3-1 20179369B -3-1 Not9370B mature

20,0009371B 20149372B -8-12 20179373B -2-24 Not9374B mature

20,0009375B 20149376B -9-9 20179377B -2-24 Not9378B mature

10,0009379B 20149380B -7-29 20179381B -2-24 Not9382B mature

10,0009383B 20149384B -7-24 20179385B -2-24 Not9386B mature

10,0009387B 20149388B -7-30 20179389B -2-24 Not9390B mature

10,0009391B 20149392B -10-22 20179393B -2-24 Not9394B mature

5,0009395B 20149396B -9-24 20179397B -2-24 Not9398B mature

3,4009399B 20129400B -1-20 20159401B -1-19 Not9402B mature

5,0009403B 20129404B -7-30 20159405B -1-19 Not9406B mature

1,0009407B 20129408B -10-25 20159409B -1-19 Not9410B mature

5,9009411B 20129412B -12-26 20159413B -6-25 Not9414B mature

11,0009415B 20139416B -3-7 20159417B -6-25 Not9418B mature

10,0009419B 20139420B -3-18 20159421B -6-25 Not9422B mature

29,1009424B 20129425B -7-27 20159426B -7-26 Not9427B mature

5,5009428B 20139429B -4-28 20169430B -4-27 Not9431B mature

10,0009432B 20139433B -6-9 20169434B -6-8 Not9435B mature

10,0009436B 20139437B -8-14 20169438B -4-17 Not9439B mature

5,0009440B 20149441B -1-14 20169442B -4-17 Not9443B mature

5,0009444B 20149445B -2-10 20169446B -4-17 Not9447B mature

10,0009448B 20149449B -2-27 20169450B -4-17 Not9451B mature

Xindu9423B Poly 12,5009452B 20149453B -4-16 20169454B -4-17 Not9455B mature

1,0009457B 20109458B -9-21 20159459B -9-20 Not9460B mature

5009461B 20119462B -3-18 20159463B -9-20 Not9464B mature

5,0009465B 20109466B -10-11 20159467B -9-20 Not9468B mature

Chengdu9456B Stone Elephant Lake 1,1709469B 20119470B -5-19 20159471B -9-20 Not9472B mature

6,0009474B 20139475B -12-20 20169476B -5-15 Not9477B mature

2,0009478B 20149479B -3-4 20169480B -5-15 Not9481B mature

2,0009482B 20149483B -8-26 20169484B -5-15 Not9485B mature

60,0009486B 20139487B -2-27 20159488B -2-27 Not9489B mature

Chengdu9473B Real Estate 139,1009490B 20149491B -8-6 20209492B -8-5 Not9493B mature

3,0009495B 20129496B -11-16 20159497B -11-15 Not9498B mature

4,5009499B 20139500B -4-16 20169501B -4-15 Not9502B mature

4,5009503B 20139504B -4-27 20169505B -4-26 Not9506B mature

4,8009507B 20139508B -5-20 20169509B -5-19 Not9510B mature

6,0009511B 20129512B -6-29 20159513B -6-26 Not9514B mature

9,0009515B 20129516B -7-5 20159517B -7-3 Not9518B mature

Deyang9494B Property 8,0009519B 20139520B -12-20 20169521B -12-19 Not9522B mature

12,6609524B 20139525B -1-18 20169526B -1-17 Not9527B mature

14,6009528B 20139529B -2-28 20169530B -1-17 Not9531B mature

Chengdu9523B Yachi 7,4009532B 20139533B -4-24 20169534B -1-17 Not9535B mature

20,0009537B 20149538B -9-30 20179539B -8-21 Not9540B mature

Chengdu9536B Baohua 5,0009541B 20149542B -12-15 20179543B -8-21 Not9544B mature

1,0809546B 20149547B -6-26 20169548B -12-30 Not9549B mature

Chengdu9545B Baofeng 3,8009550B 20149551B -7-11 20169552B -12-30 Not9553B mature

10,0009555B 20139556B -8-5 20169557B -8-5 Not9558B mature

14,5209559B 20139560B -8-13 20169561B -8-5 Not9562B mature

10,0009563B 20139564B -9-9 20169565B -8-5 Not9566B mature

10,0009567B 20139568B -12-11 20169569B -8-5 Not9570B mature

Chengdu9554B Baoxin 15,4809571B 20149572B -1-6 20169573B -8-5 Not9574B mature

Chengdu9575B Baolong 5,0009576B 20149577B -2-12 20169578B -7-3 Not9579B mature

Notes to the Financial Statements Page 120 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014

Guarantee9238B period Whether9239B the

Balance9237B of performance of

Guarantee9236B guarantee Starting9240B date of Maturity9241B date of guarantee has (RMB’0,000) guarantee guarantee been finished or not

15,0009580B 20149581B -2-12 20169582B -7-3 Not9583B mature

16,3009584B 20149585B -3-7 20169586B -7-3 Not9587B mature

4,0009588B 20149589B -4-17 20169590B -7-3 Not9591B mature

9,7009592B 20149593B -4-24 20169594B -7-3 Not9595B mature

3,3009596B 20149597B -4-30 20169598B -7-3 Not9599B mature

9,8009601B 20149602B -1-6 20179603B -1-5 Not9604B mature

10,0009605B 20149606B -5-28 20179607B -1-5 Not9608B mature

12,0009609B 20149610B -6-18 20179611B -6-17 Not9612B mature

5,0009613B 20149614B -8-1 20179615B -6-17 Not9616B mature

5,0009617B 20149618B -8-28 20179619B -6-17 Not9620B mature

Suining9600B Baoxin 2,0009621B 20149622B -9-29 20179623B -6-17 Not9624B mature

Chengdu9625B Baoxin 3,2509626B 20149627B -11-28 20179628B -5-22 Not9629B mature

Dalian9630B Hongqi 48,0009631B 20139632B -3-29 20159633B -3-28 Not9634B mature

10,0009636B 20149637B -5-13 20159638B -5-31 Not9639B mature

Dalian9635B Henghui 3,0009640B 20149641B -5-13 20159642B -11-3 Not9643B mature

27,0009645B 20139646B -12-1 20169647B -12-21 Not9648B mature

13,0009649B 20149650B -3-31 20179651B -3-30 Not9652B mature

Poly9644B Fujian 20,0009653B 20149654B -12-9 20169655B -12-9 Not9656B mature

Gansu9657B Poly 11,7009658B 20149659B -11-13 20199660B -11-11 Not9661B mature

20,1909663B 20149664B -1-17 20179665B -1-16 Not9666B mature

Guangdong9662B Poly 4,8009667B 20149668B -1-17 20179669B -1-17 Not9670B mature

80,0009672B 20149673B -2-28 20169674B -12-27 Not9675B mature

34,3009676B 20149677B -4-23 20179678B -4-22 Not9679B mature

13,6209680B 20149681B -4-30 20159682B -4-30 Not9683B mature

31,7809684B 20149685B -4-30 20179686B -4-29 Not9687B mature

Guangzhou9671B Honghe 44,9909688B 20149689B -6-30 20179690B -6-30 Not9691B mature

27,9809693B 20129694B -7-10 20159695B -7-9 Not9696B mature

3,0429697B 20129698B -7-25 20159699B -7-9 Not9700B mature

16,0309701B 20129702B -8-7 20159703B -7-9 Not9704B mature

4,5009705B 20129706B -8-24 20159707B -7-9 Not9708B mature

6,4289709B 20129710B -8-28 20159711B -7-9 Not9712B mature

4,5009713B 20129714B -11-21 20159715B -11-19 Not9716B mature

2,0009717B 20129718B -11-28 20159719B -11-19 Not9720B mature

10,0009721B 20129722B -12-3 20159723B -11-19 Not9724B mature

10,0009725B 20129726B -12-7 20159727B -11-19 Not9728B mature

8,0009729B 20129730B -12-10 20159731B -11-19 Not9732B mature

29,8509733B 20139734B -3-29 20159735B -3-28 Not9736B mature

24,9809737B 20139738B -3-5 20169739B -3-4 Not9740B mature

10,0009741B 20139742B -3-15 20169743B -3-4 Not9744B mature

5,0009745B 20139746B -5-23 20169747B -3-4 Not9748B mature

5,0009749B 20139750B -6-14 20169751B -3-4 Not9752B mature

5,0009753B 20139754B -6-27 20169755B -3-4 Not9756B mature

5,0009757B 20139758B -8-28 20169759B -3-4 Not9760B mature

5,0009761B 20139762B -9-12 20169763B -3-4 Not9764B mature

Poly9692B Guangzhou 19,5009765B 20139766B -5-23 20169767B -5-22 Not9768B mature

29,9009770B 20139771B -1-24 20169772B -1-23 Not9773B mature

10,0009774B 20139775B -8-30 20169776B -8-29 Not9777B mature

10,0009778B 20139779B -9-12 20169780B -8-29 Not9781B mature

10,0009782B 20139783B -9-18 20169784B -8-29 Not9785B mature

10,0009786B 20139787B -9-18 20169788B -8-29 Not9789B mature

Poly9769B Zengcheng 10,0009790B 20139791B -10-1 20169792B -8-29 Not9793B mature

Zhongshan9794B Xiangyu 50,0009795B 20149796B -8-12 20179797B -8-12 Not9798B mature

Notes to the Financial Statements Page 121 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014

Guarantee9238B period Whether9239B the

Balance9237B of performance of

Guarantee9236B guarantee Starting9240B date of Maturity9241B date of guarantee has (RMB’0,000) guarantee guarantee been finished or not

8,0009800B 20129801B -11-1 20159802B -4-1 Not9803B mature

30,0009804B 20139805B -2-1 20169806B -1-31 Not9807B mature

45,0009808B 20149809B -12-30 20159810B -12-30 Not9811B mature

55,0009812B 20139813B -12-31 20169814B -12-31 Not9815B mature

Zhongshan9799B Poly 40,0009816B 20149817B -3-28 20179818B -3-28 Not9819B mature

Poly9820B Dongguan 10,0009821B 20129822B -12-22 20159823B -12-21 Not9824B mature

15,0009826B 20139827B -3-22 20159828B -3-21 Not9829B mature

9,0009830B 20139831B -8-23 20169832B -8-22 Not9833B mature

5,0009834B 20149835B -4-28 20179836B -4-27 Not9837B mature

9009838B 20139839B -9-22 20169840B -9-10 Not9841B mature

2,0009842B 20139843B -9-27 20169844B -9-10 Not9845B mature

8,0009846B 20139847B -9-30 20169848B -9-10 Not9849B mature

18,9009850B 20139851B -9-30 20169852B -9-10 Not9853B mature

Dongguan9825B Investment 57,0009854B 20149855B -2-1 20179856B -1-31 Not9857B mature

9,9809859B 20139860B -7-19 20159861B -6-20 Not9862B mature

49,9909863B 20139864B -7-19 20169865B -7-18 Not9866B mature

Zhuhai9858B Polies 70,0009867B 20139868B -3-26 20159869B -3-25 Not9870B mature

11,9919872B 20139873B -11-21 20169874B -11-21 Not9875B mature

6,0009876B 20149877B -2-8 20169878B -11-21 Not9879B mature

18,0009880B 20149881B -5-23 20169882B -11-21 Not9883B mature

6,0009884B 20149885B -4-8 20169886B -11-20 Not9887B mature

3,0009888B 20149889B -4-8 20179890B -2-28 Not9891B mature

6,0009892B 20149893B -4-8 20169894B -2-28 Not9895B mature

3,0009896B 20149897B -4-8 20169898B -8-28 Not9899B mature

3,0009900B 20149901B -4-18 20169902B -8-28 Not9903B mature

Zhuhai9871B Tianyue 9,0009904B 20149905B -4-18 20179906B -2-28 Not9907B mature

Poly9908B International Trade 20,0009909B 20149910B -9-23 20169911B -9-22 Not9912B mature

5,0009914B 20149915B -7-10 20179916B -7-10 Not9917B mature

5,0009918B 20149919B -7-30 20179920B -7-30 Not9921B mature

5,0009922B 20149923B -8-29 20179924B -8-29 Not9925B mature

5,0009926B 20149927B -10-8 20179928B -10-8 Not9929B mature

2,0009930B 20149931B -10-30 20179932B -10-30 Not9933B mature

16,0009934B 20149935B -12-3 20179936B -12-3 Not9937B mature

Sanya9913B Forum 50,0009938B 20149939B -12-22 20179940B -12-22 Not9941B mature

30,0009943B 20129944B -11-19 20159945B -11-18 Not9946B mature

30,0009947B 20139948B -6-7 20159949B -6-7 Not9950B mature

9,0009951B 20139952B -3-26 20159953B -3-26 Not9954B mature

34,0009955B 20139956B -3-12 20169957B -3-11 Not9958B mature

19,0009959B 20139960B -4-3 20169961B -4-2 Not9962B mature

50,0009963B 20139964B -9-3 20169965B -9-3 Not9966B mature

14,8009967B 20149968B -5-13 20169969B -5-13 Not9970B mature

25,0009971B 20149972B -8-29 20179973B -8-20 Not9974B mature

Hebei9942B Poly 25,0009975B 20149976B -8-29 20169977B -8-29 Not9978B mature

5,0009980B 20149981B -2-21 20179982B -1-23 Not9983B mature

7,0009984B 20149985B -4-3 20179986B -1-23 Not9987B mature

8,0009988B 20149989B -4-22 20179990B -1-23 Not9991B mature

6509992B 20149993B -6-25 20179994B -6-24 Not9995B mature

2,5609996B 20149997B -6-30 20179998B -6-29 Not9999B mature

1,30010000B 201410001B -7-15 201710002B -7-14 Not10003B mature

16,00010004B 201410005B -7-28 201710006B -7-27 Not10007B mature

7,00010008B 201410009B -7-28 201710010B -7-27 Not10011B mature

Zhengzhou9979B Poly 1,00010012B 201410013B -11-25 201710014B -11-24 Not10015B mature

Notes to the Financial Statements Page 122 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014

Guarantee9238B period Whether9239B the

Balance9237B of performance of

Guarantee9236B guarantee Starting9240B date of Maturity9241B date of guarantee has (RMB’0,000) guarantee guarantee been finished or not

6,00010016B 201410017B -12-10 201710018B -12-9 Not10019B mature

23,00010021B 201210022B -9-21 201510023B -9-21 Not10024B mature

5,25010025B 201210026B -4-9 201510027B -4-9 Not10028B mature

37,00010029B 201410030B -3-5 202210031B -3-5 Not10032B mature

47,23010033B 201310034B -7-16 201610035B -7-16 Not10036B mature

Poly10020B Hailindao 11,00010037B 201410038B -4-10 201710039B -4-9 Not10040B mature

20,00010042B 201410043B -11-4 201510044B -5-3 Not10045B mature

Poly10041B Zhanjiang 10,50010046B 201410047B -11-28 201710048B -11-27 Not10049B mature

24,00010051B 201410052B -11-28 201510053B -5-27 Not10054B mature

Poly10050B Shaoguan 15,00010055B 201410056B -5-29 201710057B -5-28 Not10058B mature

Foshan10059B Hengshun 20,00010060B 201310061B -3-22 201610062B -3-14 Not10063B mature

9,99510065B 201410066B -2-28 201510067B -2-27 Not10068B mature

45,00010069B 201310070B -10-21 201610071B -10-20 Not10072B mature

35,00010073B 201310074B -10-21 201610075B -10-20 Not10076B mature

10,00010077B 201310078B -10-21 201610079B -10-20 Not10080B mature

10,00010081B 201410082B -11-21 201610083B -11-20 Not10084B mature

8,60010085B 201310086B -10-21 201610087B -10-20 Not10088B mature

8,00010089B 201310090B -10-21 201610091B -10-20 Not10092B mature

6,00010093B 201310094B -10-21 201610095B -10-20 Not10096B mature

5,00010097B 201310098B -10-21 201610099B -10-20 Not10100B mature

5,00010101B 201310102B -10-21 201610103B -10-20 Not10104B mature

4,90010105B 201310106B -10-21 201610107B -10-20 Not10108B mature

4,50010109B 201310110B -10-21 201610111B -10-20 Not10112B mature

3,00010113B 201310114B -10-21 201610115B -10-20 Not10116B mature

2,00010117B 201310118B -10-21 201610119B -10-20 Not10120B mature

1,48510121B 201310122B -10-21 201610123B -10-20 Not10124B mature

1,00010125B 201310126B -10-21 201610127B -10-20 Not10128B mature

1,00010129B 201310130B -10-21 201610131B -10-20 Not10132B mature

1,00010133B 201310134B -10-21 201610135B -10-20 Not10136B mature

Foshan10064B Hongsheng 50010137B 201310138B -10-21 201610139B -10-20 Not10140B mature

19,00010142B 201310143B -9-4 201610144B -3-22 Not10145B mature

14,00010146B 201410147B -10-10 201610148B -3-14 Not10149B mature

11,00010150B 201310151B -4-1 201610152B -3-22 Not10153B mature

5,00010154B 201310155B -3-22 201610156B -3-22 Not10157B mature

5,00010158B 201410159B -4-2 201610160B -3-14 Not10161B mature

Foshan10141B Zhenge 5,00010162B 201410163B -6-25 201610164B -3-14 Not10165B mature

30,00010167B 201310168B -5-3 201610169B -4-2 Not10170B mature

30,00010171B 201310172B -5-7 201610173B -4-2 Not10174B mature

17,50010175B 201310176B -4-12 201610177B -4-2 Not10178B mature

17,00010179B 201310180B -6-9 201610181B -4-18 Not10182B mature

15,00010183B 201310184B -5-2 201610185B -4-18 Not10186B mature

Nanhai10166B Hairong 1,78910187B 201310188B -4-19 201610189B -4-18 Not10190B mature

50010192B 201410193B -9-11 201510194B -6-30 Not10195B mature

50010196B 201410197B -9-11 201510198B -12-30 Not10199B mature

20,00010200B 201410201B -9-11 201710202B -9-10 Not10203B mature

15,50010204B 201410205B -9-11 201710206B -9-10 Not10207B mature

Foshan10191B Sanshui 8,00010208B 201410209B -9-11 201710210B -9-10 Not10211B mature

20,00010213B 201410214B -3-31 201510215B -3-30 Not10216B mature

1,95010217B 201410218B -2-28 201510219B -2-27 Not10220B mature

1,95010221B 201410222B -2-28 201510223B -2-27 Not10224B mature

1,95010225B 201410226B -2-28 201510227B -2-27 Not10228B mature

Foshan10212B Hengxin 1,95010229B 201410230B -2-28 201510231B -2-27 Not10232B mature

Notes to the Financial Statements Page 123 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014

Guarantee9238B period Whether9239B the

Balance9237B of performance of

Guarantee9236B guarantee Starting9240B date of Maturity9241B date of guarantee has (RMB’0,000) guarantee guarantee been finished or not

1,95010233B 201410234B -2-28 201510235B -2-27 Not10236B mature

14,85010237B 201310238B -10-31 201510239B -10-30 Not10240B mature

2,35010241B 201310242B -11-29 201510243B -11-28 Not10244B mature

2,35010245B 201310246B -11-29 201510247B -11-28 Not10248B mature

19,95010249B 201410250B -1-26 201610251B -1-25 Not10252B mature

13,00010253B 201210254B -12-20 201610255B -9-28 Not10256B mature

10,00010257B 201310258B -1-1 201610259B -9-28 Not10260B mature

6,95010261B 201210262B -9-29 201610263B -9-28 Not10264B mature

3,90010265B 201210266B -10-2 201610267B -9-28 Not10268B mature

3,00010269B 201210270B -12-28 201610271B -9-28 Not10272B mature

3,00010273B 201210274B -12-31 201610275B -9-28 Not10276B mature

Foshan10277B Xincheng 35,00010278B 201310279B -1-14 201610280B -1-13 Not10281B mature

10,00010283B 201410284B -6-26 201510285B -6-25 Not10286B mature

Foshan10282B Jingyuan 9,99510287B 201410288B -7-10 201510289B -7-9 Not10290B mature

30,00010292B 201310293B -5-20 201510294B -5-20 Not10295B mature

28,00010296B 201210297B -12-31 201510298B -12-31 Not10299B mature

15,00010300B 201210301B -6-4 201510302B -6-3 Not10303B mature

11,46010304B 201210305B -3-13 201510306B -3-13 Not10307B mature

8,00010308B 201210309B -12-28 201510310B -12-28 Not10311B mature

5,00010312B 201210313B -10-8 201510314B -2-7 Not10315B mature

4,00010316B 201210317B -11-2 201510318B -11-2 Not10319B mature

39,00010320B 201410321B -5-29 201710322B -5-29 Not10323B mature

20,00010324B 201410325B -5-29 201710326B -5-29 Not10327B mature

15,00010328B 201310329B -3-22 201610330B -3-22 Not10331B mature

15,00010332B 201410333B -5-29 201710334B -5-29 Not10335B mature

15,00010336B 201410337B -5-29 201710338B -5-29 Not10339B mature

10,00010340B 201310341B -5-30 201610342B -5-10 Not10343B mature

9,97010344B 201310345B -3-22 201610346B -3-22 Not10347B mature

8,00010348B 201310349B -6-1 201610350B -5-10 Not10351B mature

5,90010352B 201410353B -1-6 201610354B -5-10 Not10355B mature

4,95010356B 201310357B -5-24 201610358B -5-23 Not10359B mature

3,10010360B 201410361B -5-18 201610362B -5-10 Not10363B mature

3,00010364B 201310365B -3-22 201610366B -3-22 Not10367B mature

3,00010368B 201310369B -3-22 201610370B -3-22 Not10371B mature

3,00010372B 201410373B -1-6 201610374B -5-10 Not10375B mature

3,00010376B 201310377B -11-6 201610378B -5-10 Not10379B mature

Shunde10291B Poly 2,00010380B 201310381B -5-28 201610382B -5-23 Not10383B mature

28,40010385B 201410386B -7-11 201710387B -6-25 Not10388B mature

27,00010389B 201410390B -5-19 201710391B -5-18 Not10392B mature

26,00010393B 201410394B -6-26 201710395B -6-25 Not10396B mature

16,80010397B 201310398B -8-9 201610399B -8-8 Not10400B mature

11,30010401B 201410402B -5-30 201610403B -6-30 Not10404B mature

10,00010405B 201310406B -7-1 201610407B -6-30 Not10408B mature

9,00010409B 201310410B -11-1 201610411B -10-31 Not10412B mature

7,00010413B 201410414B -7-29 201610415B -7-28 Not10416B mature

6,60010417B 201410418B -9-25 201710419B -6-25 Not10420B mature

6,50010421B 201410422B -4-22 201610423B -10-31 Not10424B mature

6,00010425B 201310426B -7-3 201610427B -6-30 Not10428B mature

6,00010429B 201310430B -11-8 201610431B -10-31 Not10432B mature

6,00010433B 201410434B -1-14 201610435B -10-31 Not10436B mature

5,00010437B 201410438B -2-28 201610439B -10-31 Not10440B mature

Jiangmen10384B Hongxin 3,50010441B 201410442B -4-8 201610443B -10-31 Not10444B mature

Notes to the Financial Statements Page 124 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014

Guarantee9238B period Whether9239B the

Balance9237B of performance of

Guarantee9236B guarantee Starting9240B date of Maturity9241B date of guarantee has (RMB’0,000) guarantee guarantee been finished or not

3,00010445B 201410446B -8-15 201610447B -7-28 Not10448B mature

3,00010449B 201410450B -7-7 201710451B -5-18 Not10452B mature

1,00010453B 201410454B -5-19 201610455B -10-31 Not10456B mature

15,00010458B 201310459B -12-17 201510460B -6-16 Not10461B mature

5,00010462B 201310463B -12-17 201510464B -12-16 Not10465B mature

30010466B 201410467B -3-26 201510468B -3-25 Not10469B mature

50010470B 201410471B -3-26 201510472B -3-30 Not10473B mature

30,00010474B 201310475B -12-17 201610476B -12-16 Not10477B mature

Qingxin10457B Xinghai 14,00010478B 201410479B -3-26 201710480B -3-25 Not10481B mature

1,00010483B 201010484B -1-27 201510485B -1-26 Not10486B mature

1,10010487B 201010488B -1-27 201510489B -4-26 Not10490B mature

1,10010491B 201010492B -1-27 201510493B -7-26 Not10494B mature

1,10010495B 201010496B -1-27 201510497B -10-26 Not10498B mature

2,00010499B 201310500B -11-7 201510501B -5-6 Not10502B mature

2,00010503B 201310504B -11-7 201510505B -11-6 Not10506B mature

72,00010507B 201310508B -11-7 202510509B -11-6 Not10510B mature

Southern10482B China Industrial 47,60010511B 201010512B -1-27 202210513B -1-26 Not10514B mature

8,00010516B 201210517B -5-24 201510518B -4-26 Not10519B mature

15,00010520B 201210521B -5-29 201510522B -5-26 Not10523B mature

10,00010524B 201310525B -4-1 201510526B -5-26 Not10527B mature

10,00010528B 201310529B -4-2 201510530B -5-26 Not10531B mature

4,00010532B 201310533B -2-28 201610534B -2-28 Not10535B mature

1,60010536B 201310537B -2-28 201510538B -8-27 Not10539B mature

5,10010540B 201210541B -6-28 201510542B -6-27 Not10543B mature

4,20010544B 201210545B -11-8 201510546B -11-7 Not10547B mature

Jiangsu10515B Ningsheng 8,00010548B 201310549B -7-24 201510550B -6-28 Not10551B mature

3,00010553B 201310554B -7-16 201610555B -6-28 Not10556B mature

27,00010557B 201310558B -7-17 201610559B -6-28 Not10560B mature

9,50010561B 201310562B -9-18 201610563B -9-9 Not10564B mature

5,00010565B 201310566B -10-11 201610567B -9-9 Not10568B mature

10,00010569B 201310570B -10-28 201610571B -9-9 Not10572B mature

6,00010573B 201310574B -10-17 201510575B -12-31 Not10576B mature

1,00010577B 201310578B -10-29 201610579B -9-11 Not10580B mature

Jiangsu10552B Ningxiang 9,00010581B 201410582B -2-13 201610583B -9-11 Not10584B mature

8,39010586B 201410587B -3-25 201710588B -1-16 Not10589B mature

5,30010590B 201410591B -4-24 201710592B -1-16 Not10593B mature

3,31010594B 201410595B -7-18 201710596B -1-16 Not10597B mature

4,00010598B 201310599B -9-4 201510600B -3-31 Not10601B mature

5,00010602B 201310603B -11-1 201510604B -9-30 Not10605B mature

5,00010606B 201310607B -12-3 201510608B -9-30 Not10609B mature

2,00010610B 201410611B -1-10 201510612B -9-30 Not10613B mature

10,00010614B 201410615B -1-10 201610616B -3-31 Not10617B mature

5,00010618B 201410619B -2-20 201610620B -9-4 Not10621B mature

Poly10585B Jiangsu 3,00010622B 201410623B -3-18 201610624B -9-4 Not10625B mature

5,00010627B 201310628B -11-22 201510629B -5-21 Not10630B mature

15,00010631B 201410632B -1-10 201510633B -5-21 Not10634B mature

15,00010635B 201410636B -1-10 201510637B -11-21 Not10638B mature

13,00010639B 201410640B -3-5 201610641B -5-21 Not10642B mature

1,00010643B 201410644B -3-20 201610645B -5-21 Not10646B mature

1,00010647B 201410648B -7-17 201610649B -5-21 Not10650B mature

5,00010651B 201410652B -7-17 201610653B -11-21 Not10654B mature

Jiangsu10626B Ningheng 5,00010655B 201410656B -9-9 201610657B -11-21 Not10658B mature

Notes to the Financial Statements Page 125 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014

Guarantee9238B period Whether9239B the

Balance9237B of performance of

Guarantee9236B guarantee Starting9240B date of Maturity9241B date of guarantee has (RMB’0,000) guarantee guarantee been finished or not

10,00010659B 201410660B -5-27 201510661B -6-30 Not10662B mature

5,00010663B 201410664B -5-27 201510665B -12-31 Not10666B mature

5,00010667B 201410668B -6-26 201510669B -12-31 Not10670B mature

15,00010671B 201410672B -6-26 201610673B -6-30 Not10674B mature

16,00010675B 201410676B -12-4 201610677B -12-31 Not10678B mature

3,00010679B 201410680B -11-28 201510681B -5-28 Not10682B mature

3,00010683B 201410684B -11-28 201510685B -11-28 Not10686B mature

3,00010687B 201410688B -11-28 201610689B -5-28 Not10690B mature

3,00010691B 201410692B -11-28 201610693B -11-28 Not10694B mature

3,00010695B 201410696B -11-28 201710697B -5-28 Not10698B mature

15,00010699B 201410700B -11-28 201710701B -11-28 Not10702B mature

22,00010704B 201310705B -11-8 201610706B -10-29 Not10707B mature

3,00010708B 201310709B -12-24 201610710B -10-29 Not10711B mature

25,00010712B 201410713B -7-22 201710714B -7-21 Not10715B mature

25,00010716B 201410717B -7-31 201710718B -7-30 Not10719B mature

Ruida10703B Nanchang 12,00010720B 201310721B -3-15 201510722B -3-4 Not10723B mature

Jiangxi10724B Jintongtia 15,00010725B 201410726B -2-27 201610727B -12-31 Not10728B mature

Jiangxi10729B Jintongtia 15,00010730B 201410731B -3-6 201610732B -12-31 Not10733B mature

Tonghua10734B Poly 10,00010735B 201410736B -9-15 201710737B -9-15 Not10738B mature

Poly10739B Yingkou 29,88610740B 201310741B -1-16 201610742B -1-15 Not10743B mature

5,61010745B 201210746B -9-4 201610747B -8-26 Not10748B mature

51010749B 201410750B -1-27 201610751B -8-26 Not10752B mature

1,02010753B 201410754B -1-29 201610755B -8-26 Not10756B mature

6,32410757B 201310758B -4-2 201610759B -4-1 Not10760B mature

Dandong10744B Poly 4,08010761B 201410762B -7-30 201710763B -7-28 Not10764B mature

Shenyang10765B Xihu 18,50010766B 201310767B -2-5 201510768B -2-5 Not10769B mature

14,80010771B 201310772B -12-24 201510773B -12-24 Not10774B mature

4,30010775B 201310776B -12-30 201510777B -12-30 Not10778B mature

Shenyang10770B Wanyi 10,50010779B 201410780B -3-28 201610781B -3-28 Not10782B mature

Liaoning10783B Industrial 15,00010784B 201410785B -1-27 201710786B -1-23 Not10787B mature

4,40010789B 201210790B -11-18 201510791B -11-18 Not10792B mature

14,00010793B 201310794B -4-19 201610795B -4-19 Not10796B mature

11,50010797B 201310798B -10-21 201610799B -10-21 Not10800B mature

Shenyang10788B Xihu 6,00010801B 201410802B -1-14 201610803B -10-21 Not10804B mature

2,00010806B 201310807B -6-28 201510808B -1-20 Not10809B mature

8,00010810B 201310811B -7-3 201510812B -1-20 Not10813B mature

10,00010814B 201310815B -7-3 201510816B -7-20 Not10817B mature

12,00010818B 201410819B -1-9 201610820B -6-28 Not10821B mature

20,00010822B 201410823B -6-27 201810824B -6-26 Not10825B mature

10,00010826B 201410827B -7-1 201810828B -6-26 Not10829B mature

10,00010830B 201410831B -7-30 201810832B -6-26 Not10833B mature

20,00010834B 201410835B -9-30 201810836B -6-26 Not10837B mature

Shenyang10805B Champagne 5,00010838B 201410839B -12-1 201810840B -6-26 Not10841B mature

Poly10842B Qingdao 22,00010843B 201210844B -8-24 201510845B -8-23 Not10846B mature

Qingdao10847B Guangheng 9,50010848B 201310849B -12-11 201510850B -12-11 Not10851B mature

Qingdao10852B Guangyuan 22,70010853B 201310854B -1-30 201610855B -1-30 Not10856B mature

Qingdao10857B Shuangfeng 29,95010858B 201410859B -8-21 201710860B -8-20 Not10861B mature

Shanxi10862B Wanguo 15,00010863B 201410864B -9-30 201610865B -9-30 Not10866B mature

8,00010868B 201310869B -12-19 201610870B -12-18 Not10871B mature

20,00010872B 201310873B -12-19 201510874B -12-31 Not10875B mature

32,00010876B 201410877B -3-25 201610878B -3-24 Not10879B mature

Shanxi10867B Rong’an 30,00010880B 201410881B -12-31 201510882B -12-31 Not10883B mature

Notes to the Financial Statements Page 126 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014

Guarantee9238B period Whether9239B the

Balance9237B of performance of

Guarantee9236B guarantee Starting9240B date of Maturity9241B date of guarantee has (RMB’0,000) guarantee guarantee been finished or not

14,50010884B 201410885B -11-24 201610886B -11-24 Not10887B mature

50010888B 201410889B -11-24 201510890B -12-31 Not10891B mature

9,00010892B 201410893B -11-26 201710894B -11-25 Not10895B mature

1,00010896B 201410897B -11-26 201510898B -12-31 Not10899B mature

1,13310901B 201310902B -10-29 201610903B -10-28 Not10904B mature

3,96710905B 201310906B -10-29 201510907B -12-31 Not10908B mature

3,96710909B 201310910B -11-12 201610911B -11-11 Not10912B mature

1,70010913B 201410914B -2-27 201510915B -12-31 Not10916B mature

2,26710917B 201410918B -3-17 201510919B -12-31 Not10920B mature

2,83410921B 201410922B -4-3 201710923B -4-2 Not10924B mature

5,10010925B 201410926B -4-21 201710927B -4-20 Not10928B mature

15,30110929B 201310930B -12-6 201610931B -12-5 Not10932B mature

1,13310933B 201310934B -12-6 201510935B -12-31 Not10936B mature

4,25010937B 201410938B -5-21 201710939B -5-20 Not10940B mature

Shanxi10900B Mindong 1,13310941B 201410942B -5-21 201510943B -12-31 Not10944B mature

6,90010946B 201310947B -10-28 201610948B -10-27 Not10949B mature

8,10010950B 201310951B -10-28 201510952B -12-31 Not10953B mature

5,00010954B 201310955B -10-28 201610956B -10-27 Not10957B mature

Xi’an10945B Xinrongjia 6,50010958B 201310959B -10-28 201610960B -10-27 Not10961B mature

1,00010963B 201310964B -1-30 201510965B -6-20 Not10966B mature

Shanghai10962B Tianjin 2,40010967B 201310968B -1-30 201510969B -11-25 Not10970B mature

5,87610972B 201310973B -9-16 201510974B -11-27 Not10975B mature

12,98010976B 201310977B -3-20 201610978B -3-20 Not10979B mature

8,00010980B 201310981B -12-27 201610982B -3-19 Not10983B mature

2,00010984B 201410985B -4-3 201610986B -3-19 Not10987B mature

2,50010988B 201410989B -5-6 201610990B -3-19 Not10991B mature

5,00010992B 201410993B -6-6 201610994B -3-19 Not10995B mature

Shanghai10971B Jiancui 4,50010996B 201410997B -10-29 201610998B -3-19 Not10999B mature

7,29311001B 201211002B -8-14 201511003B -5-31 Not11004B mature

7,29311005B 201211006B -8-14 201511007B -11-30 Not11008B mature

16,37211009B 201211010B -8-14 201511011B -5-31 Not11012B mature

16,37311013B 201211014B -8-14 201511015B -11-30 Not11016B mature

2,68011017B 201311018B -1-16 201611019B -8-12 Not11020B mature

2,84011021B 201311022B -2-27 201611023B -8-12 Not11024B mature

76311025B 201311026B -3-21 201611027B -8-12 Not11028B mature

84911029B 201311030B -6-19 201611031B -8-12 Not11032B mature

86311033B 201311034B -9-21 201611035B -8-12 Not11036B mature

2,33011037B 201311038B -11-12 201611039B -8-12 Not11040B mature

1,94111041B 201311042B -11-12 201611043B -8-12 Not11044B mature

2,40011045B 201311046B -11-20 201611047B -8-12 Not11048B mature

92511049B 201311050B -12-16 201611051B -8-12 Not11052B mature

44911053B 201211054B -12-21 201611055B -8-12 Not11056B mature

45011057B 201311058B -1-16 201611059B -8-12 Not11060B mature

3,62811061B 201311062B -3-4 201611063B -8-12 Not11064B mature

38911065B 201311066B -3-21 201611067B -8-12 Not11068B mature

45411069B 201311070B -6-21 201611071B -8-12 Not11072B mature

46111073B 201311074B -9-21 201611075B -8-12 Not11076B mature

Shanghai11000B Jianrong 47511077B 201311078B -12-16 201611079B -8-12 Not11080B mature

20011082B 201211083B -12-26 201511084B -4-10 Not11085B mature

20011086B 201211087B -12-26 201511088B -10-10 Not11089B mature

4,20011090B 201211091B -12-26 202711092B -12-23 Not11093B mature

Jiashan11081B Property 1,89511094B 201311095B -4-12 202711096B -12-23 Not11097B mature

Notes to the Financial Statements Page 127 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014

Guarantee9238B period Whether9239B the

Balance9237B of performance of

Guarantee9236B guarantee Starting9240B date of Maturity9241B date of guarantee has (RMB’0,000) guarantee guarantee been finished or not

3,10511098B 201411099B -12-5 202711100B -12-23 Not11101B mature

16,00011102B 201311103B -6-28 201611104B -6-28 Not11105B mature

10011107B 201311108B -9-18 201511109B -3-17 Not11110B mature

10011111B 201311112B -9-18 201511113B -9-17 Not11114B mature

5,00011115B 201311116B -9-18 201511117B -2-25 Not11118B mature

5,00011119B 201311120B -9-18 201511121B -8-25 Not11122B mature

2,00011123B 201311124B -9-18 201511125B -6-20 Not11126B mature

2,00011127B 201311128B -9-18 201511129B -12-20 Not11130B mature

49,50011131B 201311132B -9-18 201611133B -9-17 Not11134B mature

10011135B 201311136B -9-18 201611137B -3-17 Not11138B mature

50,00011139B 201311140B -9-18 201611141B -9-17 Not11142B mature

5,00011143B 201311144B -9-18 201611145B -2-25 Not11146B mature

8,00011147B 201311148B -9-18 201611149B -8-16 Not11150B mature

2,00011151B 201311152B -9-18 201611153B -6-20 Not11154B mature

Shanghai11106B Jianxi 12,00011155B 201311156B -9-18 201611157B -9-16 Not11158B mature

Shanghai11159B Jianhao 250,00011160B 201411161B -1-22 202011162B -1-21 Not11163B mature

5,00011165B 201411166B -6-10 201511167B -6-30 Not11168B mature

5,00011169B 201411170B -6-10 201511171B -12-31 Not11172B mature

5,00011173B 201411174B -6-10 201611175B -6-30 Not11176B mature

5,00011177B 201411178B -6-10 201611179B -12-31 Not11180B mature

5,00011181B 201411182B -6-10 201711183B -6-10 Not11184B mature

17,00011185B 201411186B -7-15 201711187B -6-10 Not11188B mature

Shanghai11164B Jianheng 6,00011189B 201411190B -8-20 201711191B -6-10 Not11192B mature

20,00011194B 201411195B -7-16 201711196B -6-30 Not11197B mature

40,00011198B 201411199B -7-16 201811200B -6-30 Not11201B mature

70,00011202B 201411203B -7-16 201911204B -6-30 Not11205B mature

20,00011206B 201411207B -7-16 202011208B -7-15 Not11209B mature

Shanghai11193B Jianyin 50,00011210B 201411211B -8-15 202011212B -7-15 Not11213B mature

10011215B 201411216B -11-25 201511217B -5-24 Not11218B mature

10011219B 201411220B -11-25 201511221B -11-24 Not11222B mature

44411223B 201411224B -11-25 201511225B -11-1 Not11226B mature

1,00011227B 201411228B -11-25 201511229B -11-20 Not11230B mature

1,00011231B 201411232B -11-28 201511233B -12-20 Not11234B mature

1011235B 201411236B -11-28 201511237B -6-28 Not11238B mature

1011239B 201411240B -11-28 201511241B -12-28 Not11242B mature

40,00011243B 201411244B -11-25 201711245B -11-24 Not11246B mature

10011247B 201411248B -11-25 201611249B -5-24 Not11250B mature

10011251B 201411252B -11-25 201611253B -11-24 Not11254B mature

10011255B 201411256B -11-25 201711257B -5-24 Not11258B mature

19,50011259B 201411260B -11-25 201711261B -11-24 Not11262B mature

1011263B 201411264B -11-28 201611265B -6-28 Not11266B mature

1011267B 201411268B -11-28 201611269B -12-28 Not11270B mature

1011271B 201411272B -11-28 201711273B -6-28 Not11274B mature

9,95011275B 201411276B -11-28 201711277B -11-28 Not11278B mature

8,00011279B 201411280B -12-9 201711281B -11-28 Not11282B mature

10,00011283B 201411284B -12-16 201711285B -11-28 Not11286B mature

12,00011287B 201411288B -12-29 201711289B -11-28 Not11290B mature

1,11111291B 201411292B -11-25 201611293B -4-1 Not11294B mature

2,22211295B 201411296B -11-25 201611297B -8-1 Not11298B mature

2,88911299B 201411300B -11-25 201611301B -11-1 Not11302B mature

4,44411303B 201411304B -11-25 201711305B -7-2 Not11306B mature

Shanghai11214B Jianjing 8,89011307B 201411308B -11-25 201711309B -7-31 Not11310B mature

Notes to the Financial Statements Page 128 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014

Guarantee9238B period Whether9239B the

Balance9237B of performance of

Guarantee9236B guarantee Starting9240B date of Maturity9241B date of guarantee has (RMB’0,000) guarantee guarantee been finished or not

2,00011311B 201411312B -11-25 201611313B -4-21 Not11314B mature

2,66711315B 201411316B -11-25 201611317B -10-21 Not11318B mature

2,66711319B 201411320B -11-25 201711321B -4-21 Not11322B mature

1,66711323B 201411324B -11-25 201711325B -10-20 Not11326B mature

1,00011327B 201411328B -11-28 201611329B -6-20 Not11330B mature

1,00011331B 201411332B -11-28 201611333B -12-20 Not11334B mature

1,00011335B 201411336B -11-28 201711337B -6-20 Not11338B mature

16,00011339B 201411340B -11-28 201711341B -11-28 Not11342B mature

9,80011344B 201311345B -8-16 201611346B -8-6 Not11347B mature

19,60011348B 201311349B -9-9 201611350B -8-6 Not11351B mature

4,90011352B 201411353B -1-20 201611354B -8-6 Not11355B mature

Tianjin11343B Shengxin 1,95011356B 201411357B -6-24 201611358B -8-6 Not11359B mature

Poly11360B Rongchang 50,00011361B 201411362B -12-4 201711363B -12-3 Not11364B mature

Poly11365B Shengtai 10,00011366B 201411367B -8-4 201711368B -8-4 Not11369B mature

Tianjin11370B Sunac 30,49811371B 201311372B -9-6 201611373B -9-5 Not11374B mature

Wuhan11375B Lin Yu 7,00011376B 201211377B -12-31 201511378B -12-28 Not11379B mature

Wuhan11380B Lin Hai 5,50011381B 201211382B -11-29 201511383B -5-23 Not11384B mature

10,00011386B 201311387B -3-12 201511388B -3-11 Not11389B mature

20,00011390B 201311391B -12-25 201611392B -12-25 Not11393B mature

10,00011394B 201411395B -4-15 201611396B -4-14 Not11397B mature

4,00011398B 201411399B -5-6 201611400B -5-5 Not11401B mature

6,00011402B 201411403B -9-23 201611404B -9-22 Not11405B mature

4,00011406B 201311407B -4-1 201511408B -6-21 Not11409B mature

5,00011410B 201311411B -4-1 201611412B -3-21 Not11413B mature

6,00011414B 201411415B -5-23 201511416B -12-31 Not11417B mature

24,00011418B 201411419B -5-23 201711420B -4-29 Not11421B mature

6,00011422B 201411423B -5-23 201511424B -5-25 Not11425B mature

20,00011426B 201411427B -5-23 201611428B -5-25 Not11429B mature

10,00011430B 201311431B -1-4 201511432B -10-31 Not11433B mature

20,00011434B 201311435B -2-28 201511436B -12-31 Not11437B mature

20,00011438B 201411439B -3-19 201711440B -3-18 Not11441B mature

Wuhan11385B Kangqiao 3,00011442B 201411443B -10-24 201711444B -3-18 Not11445B mature

20,00011447B 201311448B -5-24 201611449B -5-23 Not11450B mature

20,00011451B 201311452B -9-12 201611453B -9-11 Not11454B mature

6,00011455B 201411456B -4-24 201711457B -4-23 Not11458B mature

20,00011459B 201311460B -5-21 201511461B -5-20 Not11462B mature

5,00011463B 201311464B -8-14 201511465B -8-13 Not11466B mature

10,00011467B 201311468B -12-3 201611469B -6-3 Not11470B mature

10,00011471B 201411472B -4-28 201611473B -4-27 Not11474B mature

10,00011475B 201411476B -6-24 201611477B -6-23 Not11478B mature

2,00011479B 201411480B -12-29 201711481B -12-29 Not11482B mature

2,30011483B 201411484B -8-26 201511485B -8-26 Not11486B mature

20,70011487B 201411488B -8-26 201711489B -2-26 Not11490B mature

30011491B 201311492B -7-31 201511493B -1-21 Not11494B mature

4,70011495B 201311496B -7-31 201611497B -7-31 Not11498B mature

1,00011499B 201311500B -8-27 201511501B -3-21 Not11502B mature

28,80011503B 201311504B -8-27 201611505B -8-27 Not11506B mature

11,00011507B 201311508B -12-27 201611509B -12-26 Not11510B mature

1,00011511B 201311512B -12-31 201611513B -12-1 Not11514B mature

2,50011515B 201411516B -1-3 201711517B -1-2 Not11518B mature

9,00011519B 201411520B -3-4 201711521B -3-3 Not11522B mature

Wuhan11446B Jingu 20011523B 201411524B -3-30 201511525B -3-20 Not11526B mature

Notes to the Financial Statements Page 129 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014

Guarantee9238B period Whether9239B the

Balance9237B of performance of

Guarantee9236B guarantee Starting9240B date of Maturity9241B date of guarantee has (RMB’0,000) guarantee guarantee been finished or not

20011527B 201411528B -3-24 201511529B -3-24 Not11530B mature

33,70011531B 201411532B -3-24 201711533B -3-23 Not11534B mature

5,00011535B 201411536B -8-29 201511537B -11-30 Not11538B mature

10,00011539B 201411540B -8-29 201611541B -7-31 Not11542B mature

Wuhan11543B Mayflower 9,00011544B 201211545B -8-23 201511546B -8-5 Not11547B mature

20,00011549B 201311550B -3-29 201611551B -3-28 Not11552B mature

Poly11548B Bogahua 8,24911553B 201211554B -6-27 201511555B -6-30 Not11556B mature

Poly11557B Wuhan 100,00011558B 201411559B -3-11 201911560B -3-11 Not11561B mature

49,00011563B 201311564B -7-26 201611565B -7-1 Not11566B mature

1,90011567B 201311568B -12-23 201611569B -7-1 Not11570B mature

14,39011571B 201411572B -1-8 201611573B -7-1 Not11574B mature

3,31011575B 201411576B -2-13 201611577B -7-1 Not11578B mature

Hangzhou11562B Jianjin 19,80011579B 201311580B -9-10 201611581B -9-10 Not11582B mature

28,50011584B 201311585B -10-29 201611586B -9-4 Not11587B mature

8,00011588B 201311589B -11-20 201611590B -9-4 Not11591B mature

12,00011592B 201311593B -11-28 201611594B -9-4 Not11595B mature

6,00011596B 201311597B -12-20 201611598B -9-4 Not11599B mature

5,00011600B 201411601B -1-15 201611602B -9-4 Not11603B mature

3,00011604B 201411605B -2-19 201611606B -9-4 Not11607B mature

4,00011608B 201411609B -6-20 201611610B -9-4 Not11611B mature

Hangzhou11583B Jianlin 12,00011612B 201411613B -9-29 201611614B -9-4 Not11615B mature

25,99011617B 201311618B -6-28 201611619B -4-24 Not11620B mature

64,00011621B 201311622B -7-31 201611623B -4-24 Not11624B mature

Cixi11616B Poly 10,00011625B 201311626B -7-31 201611627B -4-24 Not11628B mature

3,00011630B 201311631B -4-23 201511632B -3-18 Not11633B mature

5,00011634B 201411635B -3-20 201511636B -3-18 Not11637B mature

2,50011638B 201211639B -9-26 201511640B -3-21 Not11641B mature

1,39211642B 201311643B -4-28 201511644B -10-22 Not11645B mature

4,00011646B 201311647B -4-28 201511648B -6-21 Not11649B mature

8,00011650B 201311651B -6-28 201511652B -6-21 Not11653B mature

10,00011654B 201311655B -12-9 201511656B -6-30 Not11657B mature

3,00011658B 201411659B -2-20 201511660B -6-30 Not11661B mature

7,00011662B 201311663B -12-9 201511664B -12-31 Not11665B mature

5,00011666B 201411667B -3-13 201511668B -12-31 Not11669B mature

1,00011670B 201411671B -4-16 201511672B -12-31 Not11673B mature

17,00011674B 201411675B -4-16 201611676B -6-8 Not11677B mature

30,00011678B 201311679B -7-3 201611680B -7-2 Not11681B mature

20,00011682B 201311683B -7-11 201611684B -7-2 Not11685B mature

6,00011686B 201311687B -9-25 201611688B -9-24 Not11689B mature

8,00011690B 201311691B -11-18 201611692B -9-24 Not11693B mature

36,00011694B 201411695B -5-29 201611696B -9-24 Not11697B mature

5,00011698B 201311699B -10-10 201611700B -9-24 Not11701B mature

10,00011702B 201411703B -5-29 201611704B -4-9 Not11705B mature

10,00011706B 201411707B -5-30 201611708B -4-9 Not11709B mature

10,00011710B 201411711B -11-11 201611712B -3-24 Not11713B mature

Chongqing11629B Investment 10,00011714B 201411715B -11-13 201611716B -3-24 Not11717B mature

10,00011719B 201211720B -11-8 201511721B -10-29 Not11722B mature

9,50011723B 201311724B -1-10 201511725B -10-29 Not11726B mature

3,00011727B 201211728B -11-8 201511729B -10-29 Not11730B mature

Chongqing11718B Zhonghui 5011731B 201311732B -1-10 201511733B -10-29 Not11734B mature

2,80911736B 201311737B -12-27 201511738B -12-27 Not11739B mature

Chongqing11735B Baocheng 26,00311740B 201311741B -12-27 201611742B -11-30 Not11743B mature

Notes to the Financial Statements Page 130 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014

Guarantee9238B period Whether9239B the

Balance9237B of performance of

Guarantee9236B guarantee Starting9240B date of Maturity9241B date of guarantee has (RMB’0,000) guarantee guarantee been finished or not

93611744B 201411745B -3-11 201511746B -12-27 Not11747B mature

8,66811748B 201411749B -3-11 201611750B -11-30 Not11751B mature

1,07611752B 201411753B -4-21 201511754B -12-27 Not11755B mature

9,95911756B 201411757B -4-21 201611758B -11-30 Not11759B mature

13,40011760B 201311761B -3-20 201611762B -3-20 Not11763B mature

26,30011764B 201311765B -6-18 201611766B -3-20 Not11767B mature

11,47911769B 201411770B -3-28 201511771B -9-20 Not11772B mature

15,00011773B 201411774B -3-28 201611775B -3-21 Not11776B mature

6,00011777B 201411778B -6-20 201511779B -12-21 Not11780B mature

Chongqing11768B Baosheng 18,14711781B 201411782B -6-20 201611783B -12-9 Not11784B mature

20011786B 201411787B -9-29 201511788B -12-21 Not11789B mature

Chongqing11785B Baoxiang 72,50011790B 201411791B -9-29 201911792B -9-29 Not11793B mature

10,00011795B 201411796B -9-30 201711797B -9-25 Not11798B mature

15,00011799B 201411800B -9-30 201711801B -9-25 Not11802B mature

8,00011803B 201411804B -10-30 201711805B -9-25 Not11806B mature

1,00011807B 201411808B -12-16 201711809B -9-25 Not11810B mature

4,00011811B 201411812B -12-15 201511813B -12-15 Not11814B mature

Chongqing11794B Baofang 36,00011815B 201411816B -12-15 201711817B -12-15 Not11818B mature

1,80011820B 201411821B -12-23 201511822B -12-21 Not11823B mature

Chongqing11819B Baochang 8,20011824B 201411825B -12-23 201711826B -6-22 Not11827B mature

5,00011829B 201411830B -6-26 201511831B -6-25 Not11832B mature

9,00011833B 201411834B -4-29 201511835B -4-29 Not11836B mature

3,00011837B 201411838B -6-25 201511839B -6-25 Not11840B mature

15,00011841B 201411842B -6-26 201511843B -6-26 Not11844B mature

Fuli11828B Construction & Installation 15,00011845B 201411846B -3-13 201511847B -2-26 Not11848B mature

42,00011850B 201211851B -12-25 201511852B -12-24 Not11853B mature

8,00011854B 201411855B -1-3 201511856B -12-24 Not11857B mature

Changchun11849B Poly 30,00011858B 201311859B -4-19 201611860B -4-18 Not11861B mature

10,70011863B 201211864B -2-24 201511865B -2-24 Not11866B mature

17,00011867B 201311868B -8-31 201611869B -8-31 Not11870B mature

2,00011871B 201311872B -8-31 201511873B -8-30 Not11874B mature

9,90511875B 201411876B -5-20 201711877B -5-20 Not11878B mature

9511879B 201311880B -8-30 201511881B -6-30 Not11882B mature

7,00011883B 201411884B -7-28 201711885B -7-27 Not11886B mature

Changchun11862B Hengfu 3,00011887B 201411888B -7-28 201511889B -7-27 Not11890B mature

28,00011892B 201411893B -1-2 201611894B -12-12 Not11895B mature

10,00011896B 201411897B -3-28 201711898B -12-20 Not11899B mature

8,50011900B 201411901B -6-26 201711902B -6-27 Not11903B mature

1,00011904B 201411905B -6-26 201511906B -6-20 Not11907B mature

10,00011908B 201411909B -9-25 201711910B -9-25 Not11911B mature

Changchun11891B Hengxin 9,50011912B 201411913B -9-25 201511914B -9-25 Not11915B mature

Chenzhou11916B Qianjiasheng 13,00011917B 201311918B -12-3 201611919B -10-13 Not11920B mature

Hunan11921B Poly 9,29111922B 201211923B -9-30 201511924B -9-23 Not11925B mature

Hunan11926B Poly 3,00011927B 201211928B -11-11 201511929B -9-24 Not11930B mature

Hunan11931B Poly 5,00011932B 201311933B -1-30 201511934B -9-25 Not11935B mature

Hunan11936B Poly 2,00011937B 201311938B -8-16 201511939B -9-26 Not11940B mature

25,59811942B 201211943B -10-31 201611944B -4-30 Not11945B mature

30,00011946B 201311947B -3-29 201511948B -3-29 Not11949B mature

21,00011950B 201211951B -12-27 201511952B -12-17 Not11953B mature

12,62511954B 201211955B -12-25 201511956B -12-17 Not11957B mature

9,00011958B 201211959B -12-31 201511960B -12-17 Not11961B mature

Nanhu11941B Property 2,37511962B 201311963B -3-31 201511964B -12-17 Not11965B mature

Notes to the Financial Statements Page 131 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014

Guarantee9238B period Whether9239B the

Balance9237B of performance of

Guarantee9236B guarantee Starting9240B date of Maturity9241B date of guarantee has (RMB’0,000) guarantee guarantee been finished or not

Changsha11966B West Coast 31,62011967B 201311968B -5-30 201711969B -1-16 Not11970B mature

Changsha11971B Tianjiao 59,90011972B 201411973B -4-30 201711974B -4-29 Not11975B mature

Total11976B 8,234,76011977B

11.2.2 Guarantees provided by subsidiaries for the Company

Guarantee11980B period Whether11981B the

Balance11979B of performance of

Guarantee11978B guarantee Starting11982B date of Maturity11983B date of guarantee has (RMB’0,000) guarantee guarantee been finished or not

Poly11984B Guangzhou 21,870.0011985B 201211986B -4-25 201511987B -4-24 Not11988B mature

Southern11989B China Industrial 10,000.0011990B 201311991B -4-26 201511992B -9-11 Not11993B mature

Poly11994B Beijing 70,000.0011995B 201211996B -10-19 201511997B -10-18 Not11998B mature

Southern11999B China Industrial 70,000.0012000B 201212001B -7-17 201512002B -7-16 Not12003B mature

Poly12004B Beijing, Shanghai Jianjin,

Chongqing Investment 40,000.0012005B 201112006B -9-9 201512007B -3-21 Not12008B mature

Poly12009B Beijing, Shanghai Jianjin,

Chongqing Investment 40,000.0012010B 201112011B -9-9 201512012B -9-21 Not12013B mature

Poly12014B Beijing, Shanghai Jianjin,

Chongqing Investment 100,000.0012015B 201112016B -9-9 201612017B -9-8 Not12018B mature

Total12019B 351,870.0012020B

11.2.3 Guarantees provided by subsidiaries for subsidiaries

Guarantee12024B period Whether12025B the Balance12023B of performance of Guarantor12021B Guarantee12022B guarantee Starting12026B date of Maturity12027B date guarantee has been (RMB’0,000) guarantee of guarantee finished or not

Poly12029B Real Estate Finance

Ltd 305,95012030B 201312031B -08-06 201812032B -08-06 Not12033B mature

Hong12028B Kong Poly12034B Real Estate Finance

Hengli Ltd 305,95012035B 201412036B -04-25 201912037B -04-25 Not12038B mature

5,00012041B 201412042B -8-20 201512043B -8-20 Not12044B mature

Jinchenghua12040B 5,00012045B 201412046B -8-20 201612047B -2-20 Not12048B mature

25,00012050B 201312051B -8-20 201512052B -8-20 Not12053B mature

Beijing12049B Poly Yin 30,000.0012054B 201312055B -9-3 201512056B -8-20 Not12057B mature

505.0012059B 201412060B -1-17 201512061B -7-16 Not12062B mature

16,917.5012063B 201412064B -1-17 201712065B -1-16 Not12066B mature

7,575.0012067B 201412068B -1-29 201712069B -1-16 Not12070B mature

13,584.5012071B 201412072B -1-24 201712073B -1-16 Not12074B mature

27,775.0012075B 201412076B -2-27 201712077B -1-16 Not12078B mature

17,170.0012079B 201412080B -4-4 201712081B -1-16 Not12082B mature

Beijing12058B Poly Sunac 17,220.5012083B 201412084B -4-11 201712085B -1-16 Not12086B mature

38,250.0012088B 201312089B -8-23 201512090B -8-22 Not12091B mature

Poly12039B Beijing Beijing12087B Poly Shoukai 13,260.0012092B 201312093B -10-18 201512094B -9-18 Not12095B mature

20,000.0012098B 201312099B -5-30 201612100B -5-29 Not12101B mature

20,000.0012102B 201312103B -8-5 201612104B -5-29 Not12105B mature

3,000.0012106B 201412107B -4-24 201612108B -5-29 Not12109B mature

Chongqing12096B 3,000.0012110B 201412111B -5-16 201612112B -5-29 Not12113B mature

Investment Chengdu12097B Huayang 4,000.0012114B 201412115B -5-29 201612116B -5-29 Not12117B mature

7,673.5212120B 201412121B -1-15 201712122B -1-14 Not12123B mature

Guangdong12118B 3,657.9712124B 201412125B -7-31 201712126B -1-14 Not12127B mature

Poly Guangzhou12119B Yuehe 2,614.9112128B 201412129B -7-6 201712130B -7-6 Not12131B mature

Notes to the Financial Statements Page 132 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014

Guarantee12024B period Whether12025B the Balance12023B of performance of Guarantor12021B Guarantee12022B guarantee Starting12026B date of Maturity12027B date guarantee has been (RMB’0,000) guarantee of guarantee finished or not

2,500.0012132B 201412133B -11-20 201712134B -11-16 Not12135B mature

Qingdao12136B

Industrial Qingdao12137B Shuangyuan 5,000.0012138B 201412139B -2-7 201712140B -2-6 Not12141B mature

Southern12142B 23,000.0012144B 201212145B -9-21 201512146B -9-21 Not12147B mature China

Industrial Poly12143B Hailindao 47,230.0012148B 201312149B -7-16 201612150B -7-16 Not12151B mature

Chengdu12152B

Industry Jiangsu12153B Ningsheng 8,000.0012154B 201212155B -5-24 201512156B -4-26 Not12157B mature

Shanghai12158B

Tianjin Shanghai12159B Jianhao 250,000.0012160B 201412161B -1-22 202012162B -1-21 Not12163B mature

Total12164B 1,228,833.9012165B Note: The guarantees provided by Southern China Industrial for Poly Hailingdao are jointly provided by the Company and Southern China Industrial; the guarantees provided by Poly Chengdu for Jiangsu Ningsheng are jointly provided by the Company and Poly Chengdu; the guarantees provided by Shanghai Jianjin for Shanghai Jianhao are jointly provided by the Company and Shanghai Jianjin.

11.2.4 Guarantees provided for joint ventures

Balance12168B of Guarantee12169B period Whether12170B the performance

Guarantor12166B Guarantee12167B guarantee Starting12171B date of Maturity12172B date of guarantee has been (RMB’0,000) guarantee of guarantee finished or not

Dongguan12174B

The12173B Company Hehong 25,000.0012175B 201412176B -6-17 201612177B -6-16 Not12178B mature

Nanjing12180B

The12179B Company Xueshang 20,000.0012181B 201312182B -12-3 201612183B -10-30 Not12184B mature

Nanjing12186B

The12185B Company Xueshang 20,000.0012187B 201412188B -2-27 201612189B -10-30 Not12190B mature

Shengshi12192B

The12191B Company Xinhe 50,000.0012193B 201412194B -7-21 201912195B -7-21 Not12196B mature

Wuhan12198B

The12197B Company Qingneng 27,200.0012199B 201412200B -2-12 201612201B -10-23 Not12202B mature

Wuhan12204B

The12203B Company Qingneng 7,400.0012205B 201412206B -7-4 201612207B -5-29 Not12208B mature

Wuhan12210B

The12209B Company Qingneng 6,650.0012211B 201412212B -12-30 201712213B -12-30 Not12214B mature

Total12215B 156,250.0012216B

11.2.5 Bank mortgage loan guarantee The headquarters of the Company and its subsidiary provide mortgage loan guarantee for purchaser of commercial residential building in accordance with real estate business convention. As at December 31, 2014, the balance of accumulated guarantees amounted to RMB40,178,707,800. The guarantees are classified as phased guarantee and whole course guarantee, and period of phased guarantee starts from the effectiveness date of the guarantee contract and ends on the settlement of the mortgage registration and delivery to bank for custody. As at December 31, 2014, the phased guarantees undertaken by the Company amounted to RMB40,171,943,900, and the whole course guarantees undertaken by the Company amounted to RMB6,763,900.

11.2.6 Pledge of assets

Assets12217B type Project12218B name Book12219B value (RMB’0,000)

The12221B Guangzhou Paul Lick Lovi Square 13,181.0812222B

The12223B Guangzhou Poly West Coast Residence 10,093.4512224B

Inventories12220B The12225B Guangzhou Poly Tianyue Project 140,170.6012226B

Notes to the Financial Statements Page 133 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014

Assets12217B type Project12218B name Book12219B value (RMB’0,000)

Guangzhou12227B Poly Yuexiu Lingnan Linyu 170,685.8412228B

Guangzhou12229B Baoli Metropolitan 37,915.7812230B

The12231B Beijing Poly West Mountains Residence 10,785.5212232B

The12233B Beijing Poly Central Park 112,671.9112234B

The12235B Beijing Poly Spring Plaza 179,961.8512236B

Beijing12237B Poly Hyde Park 249,328.7812238B

Beijing12239B Poly Fengdan I 430,524.9812240B

The12241B Beijing Poly Luo Lanxiang Valley Phase II 132,171.6412242B

Beijing12243B Poly Shoukai Liwanjiayuan 221,010.6112244B

The12245B Shanghai Poly the Blue Forest Phrase 176,791.7912246B

The12247B Shanghai Poly Leaves of Forest 202,896.5512248B

Shanghai12249B Poly West Coast 170,700.0012250B

The12251B Wuhan Poly Dreams City 3,608.9312252B

The12253B Wuhan Poly Central Residence 96.5412254B

The12255B Wuhan Paul Lima Lake Project 64.2212256B

The12257B Wuhan Guri Poly Park 51,746.6112258B

The12259B Wuhan Poly Guanshan Village Project 38,695.7712260B

The12261B Chongqing Poly Garden 6,311.6312262B

The12263B Chongqing Poly Jiang on Pearl 111,289.9712264B

The12265B Chongqing Poly Flowers in City Center 18,660.9712266B

Chongqing12267B Poly Aishangli 763.0012268B

Chongqing12269B Poly Linyuxi 12,117.8712270B

Chongqing12271B Poly Guantang 18,369.7912272B

Shenyang12273B Poly Champagne Garden 85,784.0312274B

Shengyang12275B Poly Jasmine Mansion 49,598.9712276B

The12277B Changsha Poly Lugu Forest Language 22,154.2412278B

The12279B Changsha Poly International Plaza 101,540.2012280B

Changsha12281B Poly West Coast 34,835.2412282B

Changsha12283B Poly Champagne International 63,238.5812284B

The12285B Chengdu Poly Dan Xianghu Project 974.6512286B

The12287B Chengdu Poly Park 198 92,692.9712288B

The12289B Chengdu Poly Garden 236.5412290B

The12291B Chengdu Poly Beisen Mansion 5,745.5812292B

Chengdu12293B Poly Shizihu 29,900.4912294B

The12295B Chengdu Poly Lily Mansion 84,759.4712296B

The12297B Chengdu Poly City 40,923.9512298B

The12299B Chengdu Poly Champaign Guanghua 838.3912300B

The12301B Chengdu Poly Leaves Whisper 56,559.4912302B

The12303B Chengdu Poly Phoenix Tree 57,387.9112304B

The12305B Chengdu Spring Flowers Whisper 36,970.4012306B

Chengdu12307B Poly Rose Wisper 88,330.0012308B

Chengdu12309B Poly Jinhulinyu 69,807.7712310B

Chengdu12311B Poly Linyuxi 86,456.4512312B

The12313B Hangzhou Poly City Green 27,896.4312314B

Hangzhou12315B Poly Phoenix Tree 94,119.9112316B

Zhejiang12317B Poly Luo Lanxiang Valley 88,399.0012318B

The12319B International Garden Nanchang Poly

Mid-Levels 13,541.0712320B

Nanchang12321B Poly Lily Garden 20,209.4312322B

Nanchang12323B Poly Champagne 40,236.8512324B

The12325B Tianjin Poly Horizon Capital 5,028.7312326B

Tianjin12327B Poly Chanson Lake 30,361.7012328B

Tianjin12329B Poly Luolan Manor 2,727.5912330B

Tianjin12331B Poly Xihulinyu 4,883.3412332B

The12333B Qingdao Ensure Lihai on Roland 87,009.5112334B

The12335B Qingdao Poly Champagne International 56,201.8212336B

Notes to the Financial Statements Page 134 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014

Assets12217B type Project12218B name Book12219B value (RMB’0,000)

Qingdao12337B Poly Manyueshan 120,002.8312338B

Qingdao12339B Poly Leaf Mansion 81,943.1212340B

Qingdao12341B Poly Jasmine Mansion 103,655.4512342B

The12343B Yang Jiang Poly Silver Beach Project 13,738.4012344B

The12345B Nanjing Poly Phoenix Tree 5,710.0712346B

Nanjing12347B Poli Zijing Mansion 1,712.9112348B

Nanjing12349B Poly Central Park 104,445.4912350B

Wuxi12351B Poly Central Park 72,639.0012352B

The12353B Zhongshan Poly International Plaza 5,550.1812354B

The12355B Nantong Poly Champagne International 130,624.1812356B

The12357B Zhuhai Poly Lihai Mayflower 44,165.1212358B

Ningbo12359B Poly Lakeside World 165,853.9012360B

Foshan12361B Poly Zishan International 600.0012362B

The12363B Dandong Poly Jinjiang Forest Language 46,335.6312364B

Dongguan12365B Poly Lily Garden 16,350.0012366B

The12367B Dalian Paul Leisy Mountains Language 40,058.9112368B

The12369B Deyang Poly International City 105,780.0912370B

The12371B Hefei Poly Champagne International 162,572.0412372B

The12373B Hefei Poly Lafei Mansion 65,561.2112374B

Hefei12375B Poly Lihai Mayflower 104,156.2212376B

Hefei12377B Poly Dongjun 84,545.8812378B

Hefei12379B Poly Phoenic Tree 17,716.9112380B

Tonghua12381B Poly Luo Lanxiang Valley 15,236.1412382B

Zhengzhou12383B Poly Lihai Mayflower 25,863.8912384B

The12385B Shijiazhuang Poly Garden 146,627.0312386B

Xi'an12387B Poly Lafei Mansion 156,180.9612388B

Xi'an12389B Poly Spring Plaza 91,562.4312390B

Xi'an12391B Poly Gold Champagne 77,818.8112392B

Jiangmen12393B Poly Metropolitan 78,812.9512394B

The12395B Sanya Poly Forum Project 56,851.6712396B

Chenzhou12397B Poly Suxianlinyu 14,165.3012398B

Suining12399B Poly Jiangyucheng 34,946.5312400B

The12401B Qingyuan Poly Garden 13,320.0812402B

Zhanjiang12403B Poly Yuandian Square 6,317.6912404B

Beijing12405B Poly Shoukai Xiyue Spring 194,757.7412406B

Sub12407B -total 6,406,145.1412408B

The12410B Guangzhou Poly Center 35,915.6612411B

The12412B Guangzhou Poly International Plaza 14,757.4412413B

The12414B Guangzhou Poly Central Square 30,668.9412415B

The12416B Guangzhou Poly World Trade Center 238,042.8012417B

The12418B Poly Canal in the South China Sea 104,561.1312419B

Investment12409B property The12420B Beijing Poly Central Park 227,825.1712421B

Sub12422B -total 651,771.1412423B

The12425B Guangzhou Poly International Plaza 5,268.7112426B

The12427B Poly Canal in the South China Sea 1,818.8512428B

Beijing12429B Pangudaguan 19,561.7612430B

Fixed12424B assets The12431B Yang Jiang Poly Silver Beach Project 49,776.5212432B

Sub12433B -total 76,425.8412434B

Total12435B 7,134,342.1212436B

12. Post balance sheet events 12.1 There are no significant post balance sheet events.

12.2 Post balance sheet profit distribution The proposal concerning the profit distribution for year 2014 was approved by board of directors through voting on February 12, 2015, main contents of which include: based on the total

Notes to the Financial Statements Page 135 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 10,733,775,317 shares as at December 31, 2015, the Company intends to distribute cash dividends of RMB2.16 (including tax) for every 10 shares, totaling RMB2,318,495,468.47.

13. Other significant events 13.1 Correction of accounting errors in previous years There were no corrections of accounting errors in previous years as at the end of the current reporting period.

13.2 Debt restructuring None.

13.3 Asset replacement None.

13.4 Annuity plan The Company had formulated the Implementing Rules on the Annuity Plan for the Enterprise in accordance with the national policies, which was deliberated and approved at the Fifth Plenary of Fourth Board Meeting of the Company on December 13, 2012. The payment of annuities follows the principle of individual employees joining the annuity plan of their own accord and combining the enterprise payment with individual payment, and the enterprise annuity funds are under the administration by a third party of legal person institution through entrustment.

Notes to the Financial Statements Page 136 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 13.5 Segment information The Company has had no defined financial reporting segments; see the Note 5.32 Operating Income and Operating costs for the details on the Company’s income from and costs of primary businesses by industry and by region.

13.6 Others In 2011, as the China Construction Bank staffs were suspected of colluding with social lawbreakers in forging seals and illegal appropriation of funds totaling RMB90,000,000 deposited in China Construction Bank, Jiefang Park Road Sub-branch by Poly Bogaohua (Wuhan) Real Estate Co., Ltd. which had been disclosed in the 2010 annual report. The funds totaling RMB20,000,000 sealed up has been relieved from being sealed up and recovered in 2010, and RMB70,000,000 are still unrecovered. According to the current fact, evidence and relevant judicial documents, the deposit is still under the protection in conformity with laws. Now, the juridical authorities are handling the proceeds concerned in this case; after the relevant legal documents take effect, the Company’s deposits shall be recovered.

Notes to the Financial Statements Page 137 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 14. Notes to the main items of financial statements of parent company 14.1 Accounts receivable 14.1.1 Disclosure and classification of accounts receivable

Balance12438B as at December 31, 2014 Balance12439B as at January 1, 2014

Book12440B balance Provision12441B for bad debt Book12443B balance Provision12444B for bad debt

12437B Type Proportion12449B of Proportion12454B of Proportion12447B Book12442B value Proportion12452B Book12445B value Amount12446B Amount12448B provision Amount12451B Amount12453B provision (%) (%) (12450B %) (12455B %)

Accounts12456B receivable with significant single amount and provision for bad debt made on an individual basis

Accounts12457B receivable with provision for bad debt made on a portfolio with similar risk

credit characteristics basis 1,486,717.9812458B 100.0012459B 74,335.9012460B 5.0012461B 1,412,382.0812462B 8,803,351.7512463B 100.0012464B 440,167.5912465B 5.0012466B 8,363,184.1612467B

Accounts12468B receivables with insignificant single amount and provision for bad debt made on an individual basis

Total12469B 1,486,717.9812470B 100.0012471B 74,335.9012472B 1,412,382.0812473B 8,803,351.7512474B 100.0012475B 440,167.5912476B 8,363,184.1612477B

Notes to the Financial Statements Page 138 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Accounts receivable accrued for provision of bad debt by percentage of outstanding amount in portfolio:

Balance12479B as at December 31, 2014

Proportion12482B of Percentage12478B of balance Accounts12480B receivable Provision12481B for bad debt provision

(12483B %)

Within12484B 1 year (including 1 year) 873,481.9812485B 43,674.1012486B 5.0012487B

112488B -2 years (including 2 years) 613,236.0012489B 30,661.8012490B 5.0012491B

212492B -3 years (including 3 years)

Over12493B 3 years

Total12494B 1,486,717.9812495B 74,335.9012496B 5.0012497B

14.1.2 The provision for accounts receivable bad debts of RMB365,831.69 was reversed in the current year.

14.1.3 No accounts receivable were actually written off during the current year.

14.1.4 Total amount of top five accounts receivable by balance as at December 31, 2014 amounted to RMB930,392.11, accounting for 62.58% in the total balance as at December 31, 2014 of accounts receivable, and the corresponding total balance as at December 31, 2014 of provision for bad debts provided amounted to RMB46,519.61.

Notes to the Financial Statements Page 139 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 14.2 Other receivables 14.2.1 Disclosure of classification of other receivables

Balance12499B as at December 31, 2014 Balance12500B as at January 1, 2014

Book12501B balance Provision12502B for bad debt Book12504B balance Provision12505B for bad debt

Proportion12510B Proportion12514B Type12498B of Book12503B value of Book12506B value Amount12507B Proportion12508B (%) Amount12509B Amount12511B Proportion12512B (%) Amount12513B provision provision (%) (%)

Other12515B receivables with significant single amount and provision for bad debt made on an

individual basis 68,856,442,215.9712516B 97.8712517B 68,856,442,215.9712518B 48,637,975,391.6212519B 98.3612520B 48,637,975,391.6212521B

Other12522B receivables with provision for bad debt made on a portfolio with similar risk credit characteristics

basis 36,185,539.8012523B 0.0512524B 1,809,276.9912525B 5.0012526B 34,376,262.8112527B 50,963,090.0012528B 0.1012529B 2,548,154.5012530B 5.0012531B 48,414,935.5012532B

Other12533B receivables with insignificant single amount and provision for bad debt made on an

individual basis 1,463,202,785.6012534B 2.0812535B 1,463,202,785.6012536B 762,177,374.4212537B 1.5412538B 762,177,374.4212539B

Total12540B 70,355,830,541.3712541B 100.0012542B 1,809,276.9912543B 70,354,021,264.3812544B 49,451,115,856.0412545B 100.0012546B 2,548,154.5012547B 49,448,567,701.5412548B

Notes to the Financial Statements Page 140 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 Other receivables accrued for provision of bad debt by percentage of outstanding amount in portfolio:

Balance12550B as at December 31, 2014

Percentage12549B of balance Proportion12553B of Other12551B receivables Provision12552B for bad debt provision (%)

Within12554B 1 year (including 1 year) 950,725.2112555B 47,536.2612556B 5.0012557B

112558B -2 years (including 2 years) 3,309,778.6712559B 165,488.9312560B 5.0012561B

212562B -3 years (including 3 years) 18,828,662.2612563B 941,433.1212564B 5.0012565B

Over12566B 3 years 13,096,373.6612567B 654,818.6812568B 5.0012569B

Total12570B 36,185,539.8012571B 1,809,276.9912572B 5.0012573B

14.2.2 The provision for other receivables bad debts of RMB738,877.51 was reversed in the current year.

14.2.3 Top five other receivables by amount:

Proportion12578B

Relationship12575B with the in total other Nature12579B or Company12574B name Book12576B balance Aging12577B company receivables content (%)

A12581B subsidiary of the Current12585B

Guangdong12580B Poly Company 12,568,529,891.6512582B 112583B -2 years 17.8612584B account

A12587B subsidiary of the Current12591B

Poly12586B Fujian Company 5,532,015,591.8812588B 112589B -3 years 7.8612590B account

A12593B subsidiary of the Current12597B

Southern12592B China Industrial Company 4,479,825,900.0012594B 112595B -3 years 6.3712596B account

A12599B subsidiary of the Current12603B

Chongqing12598B Investment Company 3,516,121,384.2012600B 112601B -3 years 5.0012602B account

A12605B subsidiary of the Current12609B

Poly12604B Chengdu Company 3,234,600,000.0012606B 112607B -3 years 4.6012608B account

Total12610B 29,331,092,767.7312611B 41.6912612B

14.2.4 Classification of other receivables by nature of account

Nature12613B of fund Balance12614B as at December 31, 2014 Balance12615B as at January 1, 2014

Current12616B accounts with

subsidiaries 69,969,645,001.5712617B 49,400,152,766.0412618B

Current12619B accounts with partners,

associates and joint ventures 361,077,521.8212620B 2,820,822.1312621B

Others12622B 25,108,017.9812623B 48,142,267.8712624B

Total12625B 70,355,830,541.3712626B 49,451,115,856.0412627B

14.3 Long-term equity investments:

Balance12629B as at December 31, 2014 Balance12630B as at January 1, 2014

Item12628B Provision12632B for Provision12635B for Book12631B balance Book12633B value Book12634B balance Book12636B value impairment impairment

Investments12637B in

subsidiaries 12,681,270,604.9112638B 12,681,270,604.9112639B 8,849,420,669.9112640B 8,849,420,669.9112641B

Investments12642B in associates and joint

ventures 296,118,082.9212643B 296,118,082.9212644B 230,219,713.7512645B 230,219,713.7512646B

Total12647B 12,977,388,687.8312648B 12,977,388,687.8312649B 9,079,640,383.6612650B 9,079,640,383.6612651B

Notes to the Financial Statements Page 141 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 14.3.1 Investments in subsidiaries

Balance12658B of

Provision12657B for provision for Balance12653B as at Decrease12655B in Balance12656B as at 12652BInvestee 12654BIncrease in 2014 impairment impairment as January 1, 2014 2014 December 31, 2014 in 2014 at December 31, 2014

1.Poly12659B Beijing 303,687,210.3012660B 303,687,210.3012661B

2.Jinchenghua12662B 22,500,000.0012663B 22,500,000.0012664B

3.Science12665B City 60,151,633.0812666B 60,151,633.0812667B

4.Poly12668B

Guangzhou 10,200,000.0012669B 10,200,000.0012670B

5.Huachu12671B

Corporation 5,513,643.6912672B 5,513,643.6912673B

6.Poly12674B International

Trade 51,000,000.0012675B 51,000,000.0012676B

7.Fuli12677B Construction &

Installation 433,137,341.4312678B 433,137,341.4312679B

8.Jiali12680B Decoration 35,935,700.0012681B 35,935,700.0012682B

9.Poly12683B Digital 4,500,000.0012684B 4,500,000.0012685B

10.Poly12686B Property 50,000,000.0012687B 50,000,000.0012688B

11.12689B Poly Agency 12,347,853.9212690B 12,347,853.9212691B

12.12692B Guangzhou

Tianli 110,710,800.0012693B 110,710,800.0012694B

13.12695B Guangzhou

Gemdale 39,939,666.5612696B 39,939,666.5612697B

14.12698B Poly Jinhan 1,632,000.0012699B 1,632,000.0012700B

15.12701B Zhonggong

Design Institute 12,724,024.6012702B 12,724,024.6012703B

16.12704B Pazhou

investment 80,000,000.0012705B 3,175,020,735.0012706B 3,255,020,735.0012707B

17.12708B Guangzhou

jinnuo 9,000,000.0012709B 9,000,000.0012710B

18.12711B Ziwei Garden Project of

Guangzhou Poly 65,000,000.0012712B 65,000,000.0012713B

19.12714B Poly

Zengcheng 50,000,000.0012715B 50,000,000.0012716B

20.Guangdong12717B

Poly 200,000,000.0012718B 200,000,000.0012719B

21.12720B Poly

Commerce 100,000,000.0012721B 100,000,000.0012722B

22.12723B Poly Urban

Renewal 100,000,000.0012724B 100,000,000.0012725B

23.12726B Shanghai

Poly 60,870,386.2612727B 60,870,386.2612728B

24.12729B Junlan

Property 4,000,000.0012730B 4,000,000.0012731B

25.12732B Shanghai

Jianqiao 18,000,000.0012733B 18,000,000.0012734B

26.12735B Shanghai

Jianjing 50,000,000.0012736B 50,000,000.0012737B

27.12738B Shanghai

Jianlin 100,000,000.0012739B 100,000,000.0012740B

28.12741B Tianjin Poly 200,000,000.0012742B 200,000,000.0012743B

29.12744B Chongqing

Investment 500,000,000.0012745B 500,000,000.0012746B

Notes to the Financial Statements Page 142 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014

Balance12658B of

Provision12657B for provision for Balance12653B as at Decrease12655B in Balance12656B as at 12652BInvestee 12654BIncrease in 2014 impairment impairment as January 1, 2014 2014 December 31, 2014 in 2014 at December 31, 2014

30.12747B Chongqing

Golf 46,301,526.2312748B 46,301,526.2312749B

31.12750B Poly

Shenyang 60,000,000.0012751B 60,000,000.0012752B

32.12753B Liaoning

Poly 80,000,000.0012754B 80,000,000.0012755B

33.12756B Shenyang

Hirota 201,080,853.5512757B 201,080,853.5512758B

34.12759B Liaoning

industrial 200,000,000.0012760B 200,000,000.0012761B

35.12762B Poly Jiangsu 100,000,000.0012763B 100,000,000.0012764B

36.12765B Jiangsu

Ningyuan 50,000,000.0012766B 50,000,000.0012767B

37.12768B Wuxi

Zhiyuan 51,000,000.0012769B 51,000,000.0012770B

38.12771B Poly Wuhan 108,280,000.0012772B 108,280,000.0012773B

39.12774B Poly

Bogaohua 105,000,000.0012775B 105,000,000.0012776B

40.12777B Poly

Chengdu 200,000,000.0012778B 200,000,000.0012779B

41.12780B Chengdu

Baorong 25,500,000.0012781B 25,500,000.0012782B

42.12783B Poly Xi’an 700,000.0012784B 700,000.0012785B

43.12786B Shanxi

Mindong 102,000,000.0012787B 102,000,000.0012788B

44.12789B Xi’an

Xinrongjia 130,460,000.0012790B 130,460,000.0012791B

45.12792B Shaanxi Poly 500,000,000.0012793B 500,000,000.0012794B

46.12795B Shanxi Poly 100,000,000.0012796B 100,000,000.0012797B

47.12798B Zhengzhou

Hengtian 100,000,000.0012799B 100,000,000.0012800B

48.12801B Poly Dalian 100,000,000.0012802B 100,000,000.0012803B

49.Changchun12804B

Liuhe 80,000,000.0012805B 80,000,000.0012806B

50.12807B Changchun

Hengfu 50,000,000.0012808B 50,000,000.0012809B

51.12810B Poly Baotou 44,000,000.0012811B 44,000,000.0012812B

52.12813B Qingdao

Anxin 51,000,000.0012814B 51,000,000.0012815B

53.12816B Poly Qingdao 500,000,000.0012817B 500,000,000.0012818B

54.12819B Hefei Poly 51,000,000.0012820B 51,000,000.0012821B

55.12822B Hefei Hexin 17,000,000.0012823B 17,000,000.0012824B

56.12825B Hefei Heheng 331,509,750.0012826B 331,509,750.0012827B

57.12828B Anhui Baoli 500,000,000.0012829B 500,000,000.0012830B

58.12831B Zhejiang Poly 100,000,000.0012832B 100,000,000.0012833B

59.12834B Hangzhou

Jianyi 49,000,000.0012835B 49,000,000.0012836B

60.12837B Poly Fujian 100,000,000.0012838B 100,000,000.0012839B

61.12840B Yangjiang

Poly 60,000,000.0012841B 60,000,000.0012842B

62.12843B Poly

Hailingdao 50,000,000.0012844B 50,000,000.0012845B

63.12846B Hunan Poly 42,603,534.6112847B 42,603,534.6112848B

Notes to the Financial Statements Page 143 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014

Balance12658B of

Provision12657B for provision for Balance12653B as at Decrease12655B in Balance12656B as at 12652BInvestee 12654BIncrease in 2014 impairment impairment as January 1, 2014 2014 December 31, 2014 in 2014 at December 31, 2014

64.12849B Hunan

Investment 500,000,000.0012850B 500,000,000.0012851B

65.12852B Zhuhai Poly 50,000,000.0012853B 50,000,000.0012854B

66.12855B Southern

China Industrial 100,000,000.0012856B 100,000,000.0012857B

67.12858B Foshan Poly 200,000.0012859B 200,000.0012860B

68.12861B Zhanjiang

Xingsheng 14,000,000.0012862B 14,000,000.0012863B

69.Zhongshan12864B

Poly 50,000,000.0012865B 50,000,000.0012866B

70.Qingyuan12867B

Xinrui 100,000,000.0012868B 100,000,000.0012869B

71.Poly12870B

Dongguan 50,000,000.0012871B 50,000,000.0012872B

72.Dongguan12873B

Investment 80,000,000.0012874B 80,000,000.0012875B

73.Jiangxi12876B

Jintongtia 22,500,000.0012877B 22,500,000.0012878B

74.Nanchang12879B

Minya 112,894,545.6812880B 112,894,545.6812881B

75.Nanchang12882B

Ruida 635,400,000.0012883B 635,400,000.0012884B

76.Poly12885B Jiangxi 500,000,000.0012886B 500,000,000.0012887B

77.Hong12888B Kong

Hengli 915,200.0012889B 915,200.0012890B

78.Hong12891B Kong

Hengfu 6,225,000.0012892B 6,225,000.0012893B

79.Poly12894B Sanya 200,000,000.0012895B 200,000,000.0012896B

80.Sanya12897B Baoxin 150,000,000.0012898B 150,000,000.0012899B

81.12900B Gansu Poly 200,000,000.0012901B 200,000,000.0012902B

82.12903B Xinjiang Poly 200,000,000.0012904B 200,000,000.0012905B

Total12906B 8,849,420,669.9112907B 4,275,020,735.0012908B 443,170,800.0012909B 12,681,270,604.9112910B

Notes to the Financial Statements Page 144 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 14.3.2 Investments in associates and joint ventures

12913B Changes in the period Balance12916B as at

profits12919B and losses Balance12914B as at Provision12915B for December 31, Balance12912B as at Other12920B Changes12921B Declaration12922B of Investee12911B Increase12917B in Decrease12918B in on investments December 31, impairment 2014 of January 1, 2014 comprehensive in other cash dividends Others12923B investment investment recognized under 2014 in 2014 provision for income equity or profits the equity method impairment

Associates12924B

ECIC12925B Fund

Management 230,219,713.7512926B 145,941,391.6312927B -12928B 43,022.46 80,000,000.0012929B 296,118,082.9212930B

Sub12931B -total 230,219,713.7512932B 145,941,391.6312933B -12934B 43,022.46 80,000,000.0012935B 296,118,082.9212936B

Total12937B 230,219,713.7512938B 145,941,391.6312939B -12940B 43,022.46 80,000,000.0012941B 296,118,082.9212942B

Notes to the Financial Statements Page 145 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014 14.4 Operating income and operating costs

Year12944B 2014 Year12945B 2013 Item12943B Income12946B Costs12947B Income12948B Costs12949B

Income12950B from primary

business 7,918,339,568.8112951B 4,973,428,559.0612952B 8,962,516,965.3012953B 5,680,516,660.9612954B

Income12955B from other businesses 302,229,216.8512956B 188,916,075.9112957B

Total12958B 8,220,568,785.6612959B 4,973,428,559.0612960B 9,151,433,041.2112961B 5,680,516,660.9612962B

14.5 Investment income

Item12963B Year12964B 2014 Year12965B 2013

Long12966B -term equity investment income calculated by cost method 4,518,501,157.2312967B 1,364,061,751.9312968B

Long12969B -term equity investments measured under equity method 145,941,391.6312970B 110,086,933.2012971B

Investment12972B income from disposal of long-term equity investments 1,629,200.0012973B

Investment12974B income from financial assets measured at fair value through current profit and loss during the

Investment12975B income from disposal of financial assets measured at fair value through current profit and loss

Investment12976B income from holding of held-to-maturity investments

Investment12977B income from holding of available-for-sale financial

assets 304,373,670.8912978B 3,301,232.8612979B

Investment12980B income obtained from the disposal of the financial assets available for sale

Gains12981B from re-measurement of residual equity at fair value after the loss of control right

Total12982B 4,970,445,419.7512983B 1,477,449,917.9912984B

15. Supplementary information 15.1 Detailed statement of current non-recurring profit and loss

Item12985B Amount12986B Remark12987B

Profits12988B or losses from disposal of non-current assets 157,560,692.7312989B

Tax12990B returns, deduction and exemption approved beyond the authority or without official approval documents

Government12991B grants included in current profits and losses (except for government grants closely related to the enterprise business, obtained by quota or quantity at unified state standards)

Payment12992B for use of state funds received from non-financial institutions recorded in current profits and losses

Gains12993B from the difference between the investment costs of acquisition of subsidiaries, associates and joint ventures and share in the net fair value of the

identifiable assets of the investee when investing 655,826.4112994B

Gains12995B or losses from non-monetary asset exchange

Gains12996B or losses from entrusting the investments or management of asset

Impairment12997B provision for force majeure such as natural calamities

Profits12998B or losses from debt restructuring

Restructure12999B expenses, such as the compensation for employee relocation and integration costs

Gains13000B or losses from transactions with obvious unfair transaction price

Year13001B -to-date net profits or losses of subsidiaries arising from business combination under common control

Profits13002B or losses arising from contingencies not related to the company’s normal business

Except13003B for effective hedging business related to the normal business of the company, profits or losses from fair value changes in held-for-trading financial assets and held-for-trading financial liabilities, and investment income from disposal of held-for-trading financial assets, held-for-trading financial liabilities and available-for-sale financial assets

Reversal13004B of the impairment provision for receivables subject to separate impairment test

Notes to the Financial Statements Page 146 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014

Item12985B Amount12986B Remark12987B

Profits13005B or losses from entrusted loans

Profits13006B or losses from fair value changes in investment property subsequently calculated with the fair value mode

Impacts13007B of one-time adjusting the current profits or losses in accordance with requirements of tax and accounting laws and regulations on the current profits and losses

Custodian13008B income from entrusted management

Other13009B non-operating income and expenditure except for the above items 51,433,276.7213010B

Other13011B profits or losses which can be deemed as non-recurring profits or losses

Income13012B tax effects -13013B 8,256,375.92

Minority13014B interest effects -13015B 13,839,839.57

Total13016B 187,553,580.3713017B

15.2 Rate of return on net assets and earnings per share:

Yield13019B rate of net Earnings13020B per share (RMB/share)

Profit13018B for the current year weighted average Basic13021B earnings per share Diluted13022B earnings per share assets (%)

Net13023B profit attributable to ordinary

shareholders of the Company 21.6513024B 1.1413025B 1.1413026B

Net13027B profit attributable to ordinary shareholders of the Company after

deducting non-recurring gains and losses 21.3113028B 1.1213029B 1.1213030B Note: The Company granted a share option on May 4, 2012. The exercise price upon adjustment as at the end of the current reporting period was RMB 5.07. Such option scheme might lead to the potential existence of diluted ordinary shares in subsequent period, etc.

15.3 Accounting data differences due to the application of domestic and overseas accounting standards Not applicable.

15.4 Supplementary information relating to the adjustments to the accounting policies The Company adjusted the relevant accounting policies in accordance with the Accounting Standards for Business Enterprises No. 2 – Long-term Equity Investment promulgated by the Ministry of Finance in 2014 and other accounting standards, and carried out a retroactive restatement for the comparative financial statements; the consolidated balance sheets as at January 1, 2013 and December 31, 2013 upon restatement are as follows:

Item13031B January13032B 1, 2013 December13033B 31, 2013 December13034B 31, 2014

Current13035B assets:

Cash13036B and cash equivalents 32,672,702,564.7113037B 33,752,969,830.8013038B 40,069,512,626.0013039B

Balances13040B with clearing companies

Loans13041B to banks and other financial institutions

Financial13042B assets measured at fair value through current profit and loss

Derivative13043B financial assets

Notes13044B receivable 450,000.0013045B 3,224,500.0013046B 3,150,000.0013047B

Accounts13048B receivable 1,880,283,617.1013049B 2,331,813,449.7613050B 3,349,567,715.2813051B

Advances13052B to suppliers 16,418,546,908.3313053B 19,275,863,743.9113054B 22,565,616,676.9913055B

Premiums13056B receivable

Reinsurance13057B accounts receivable

Reinsurance13058B contract reserves receivable

Interests13059B receivable

Dividends13060B receivable

Other13061B receivables: 2,512,219,395.5513062B 7,736,887,404.0813063B 17,678,063,008.8013064B

Financial13065B assets purchased under resale agreements

Inventories13066B 189,643,823,082.9713067B 239,907,295,955.8613068B 267,192,101,934.6913069B

Notes to the Financial Statements Page 147 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014

Item13031B January13032B 1, 2013 December13033B 31, 2013 December13034B 31, 2014

Divided13070B into held-for-sale assets

Non13071B -current assets maturing within one year

Other13072B current assets

Total13073B current assets 243,128,025,568.6613074B 303,008,054,884.4113075B 350,858,011,961.7613076B

Non13077B -current assets:

Disbursement13078B of advances and loans

13079BAvailable-for-sale financial assets 655,554,214.5313080B 535,554,214.5313081B 399,554,214.5313082B

Held13083B -to-maturity investments

Long13084B -term receivables

Long13085B -term equity investments 695,240,025.6113086B 2,846,528,728.3713087B 3,545,764,026.7213088B

Investment13089B property 4,717,957,237.1213090B 4,714,890,472.1313091B 7,038,840,353.4013092B

Fixed13093B assets 1,378,431,326.7413094B 1,985,039,517.3213095B 2,477,630,766.4913096B

Construction13097B in progress

Project13098B goods and materials

Disposal13099B of fixed assets

Productive13100B biological assets

Oil13101B and gas assets

Intangible13102B assets 10,865,134.4613103B 14,535,584.9213104B 18,488,958.6213105B

Research13106B and development expenses

Goodwill13107B 10,342,507.3013108B 10,342,507.3013109B 10,342,507.3013110B

Long13111B -term deferred expenses 36,575,772.8013112B 27,485,719.4813113B 31,407,816.2213114B

Deferred13115B income tax assets 535,625,795.0213116B 797,422,692.0613117B 1,385,602,725.3113118B

Other13119B non-current assets

Total13120B non-current assets 8,040,592,013.5813121B 10,931,799,436.1113122B 14,907,631,368.5913123B

Total13124B assets 251,168,617,582.2413125B 313,939,854,320.5213126B 365,765,643,330.3513127B

Current13128B liabilities

Short13129B -term borrowings 1,348,000,000.0013130B 1,370,000,000.0013131B 3,257,400,000.0013132B

Borrowings13133B from central bank

Absorption13134B of deposits and interbank deposit

Loans13135B from banks and other financial institutions

Financial13136B liabilities measured at fair value through the current profit and loss

Derivative13137B financial liabilities

Notes13138B payable 25,720,679.7713139B

Accounts13140B payable 12,792,887,608.5713141B 18,670,703,415.1713142B 22,579,456,096.6913143B

Advances13144B from customers 90,547,363,466.0813145B 107,167,841,700.0813146B 113,301,490,370.5613147B

Financial13148B assets sold under repurchase agreement

Handling13149B charges and commissions payable

Salary13150B and welfare payable 94,122,306.3513151B 124,633,442.3413152B 96,397,774.4313153B

Taxes13154B and surcharges payable -13155B 4,084,597,633.60 -13156B 6,218,525,196.99 -13157B 7,422,362,073.58

Interests13158B payable 151,141,842.9413159B 55,170,317.9713160B 119,463,155.5913161B

Dividends13162B payable 6,158,426.0013163B 4,812,626.0013164B 228,905,375.0313165B

Other13166B payables: 15,292,027,631.3913167B 25,835,195,792.5513168B 29,715,269,658.0513169B

Reinsurance13170B accounts payable

Reserves13171B for insurance contracts

Receivings13172B from vicariously traded securities

Receivings13173B from vicariously sold securities

Liabilities13174B classified as held-for-sale liabilities

Non13175B -current liabilities maturing within one

year 24,324,029,407.3913176B 19,624,724,743.0013177B 25,411,752,181.0013178B

Other13179B current liabilities

Total13180B current liabilities 140,471,133,055.1213181B 166,634,556,840.1213182B 187,313,493,217.5413183B

Non13184B -current liabilities:

Long13185B -term borrowings 55,850,413,333.1313186B 75,101,300,578.3713187B 90,494,984,084.5213188B

Notes to the Financial Statements Page 148 POLY REAL ESTATE GROUP CO., LTD. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014

Item13031B January13032B 1, 2013 December13033B 31, 2013 December13034B 31, 2014

Bonds13189B payable 2,989,548,695.8213190B 7,030,420,966.2213191B

Including:13192B Preferred stock

Perpetual13193B debt

Long13194B -term payables

Long13195B -term employee compensation payable

Special13196B payables

Estimated13197B liabilities

Deferred13198B income

Deferred13199B income tax liabilities 67,550,710.1913200B 61,272,278.9713201B 54,460,117.5413202B

Other13203B non-current liabilities

Total13204B non-current liabilities 55,917,964,043.3213205B 78,152,121,553.1613206B 97,579,865,168.2813207B

Total13208B liabilities 196,389,097,098.4413209B 244,786,678,393.2813210B 284,893,358,385.8213211B

Owners'13212B equity:

Share13213B capital 7,137,994,391.0013214B 7,137,994,391.0013215B 10,729,745,027.0013216B

Other13217B equity instruments

Including:13218B Preferred stock

Perpetual13219B debt

Capital13220B reserve 10,776,925,472.6313221B 10,963,714,559.1113222B 6,916,930,399.4213223B

Less:13224B treasury stock

Other13225B comprehensive income 1,449,354.8213226B 2,028.0013227B -13228B 40,994.46

Special13229B reserves

Surplus13230B reserve 811,701,777.2513231B 1,100,917,160.0213232B 1,714,475,367.2713233B

General13234B risk reserves

Retained13235B earnings 23,758,309,752.5013236B 32,560,241,225.2913237B 42,048,427,771.0513238B

Total13239B equity attributable to owners of the

parent company 42,486,380,748.213240B 51,762,869,363.4213241B 61,409,537,570.2813242B

Minority13243B equity 12,293,139,735.6013244B 17,390,306,563.8213245B 19,462,747,374.2513246B

TOTAL13247B OWNESR' EQUITY 54,779,520,483.8013248B 69,153,175,927.2413249B 80,872,284,944.5313250B

TOTAL13251B LIABILITIES AND OWNERS'

EQUITY 251,168,617,582.2413252B 313,939,854,320.5213253B 365,765,643,330.3513254B

Poly13255B Real Estate Group Co., Ltd.

March13256B 15, 2015

Notes to the Financial Statements Page 149