Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
Full Text of 2015 Semiannual Report
Announcement No.: [CMPD] 2015－064
Section One Important Notice, Contents and Interpretation
Important Notes:
Board of Directors, Board of Supervisors, Directors, Supervisors and Officers of the Company hereby
guarantee the Report as truthful, accurate, complete, and free from any fault record, misleading statement or
major omission and bear joint and several liabilities.
The seventh interim meeting of the 7th BOD in 2015 reviewed and approved 2015 Semiannual Report and
abstracts and all directors attended the meeting.
The legal representative Sun Chengming, Chief Financial Director Wu Zhenqin and Manager of Finance
Department Li Shifang hereby state that: the financial statements under the Report are authentic and complete.
During the reporting period, the Company will not distribute any cash bonus, bonus shares or convert
capital reserve to share capital.
The Report is made in Chinese and English. In case of any discrepancy, the Chinese version shall prevail.
The Report involves future plan and other forward-looking statements, and does not constitute substantial
commitment for the investor against the Company. Investors shall be aware of investment risks.
Contents
Section One Important Notice, Contents and Interpretation ....................................................................................................................1
Section Two Company Profile .................................................................................................................................................................3
Section Three Summary of Financial Data and Financial Index ..............................................................................................................5
Section Four Directors' Report ................................................................................................................................................................7
Section Five Important Events...............................................................................................................................................................30
Section Six Capital Changes and Shareholders' Information ..............................................................................................................42
Section Seven Information about the Company's Directors, Supervisors, and Officers ........................................................................46
Mr. Liu Wei resigns his his position of vice-general manager of the Company as a result of job transfer. ............................................48
Section Eight Financial Report ..............................................................................................................................................................48
The semi-annual Financial Report of the Company has not been audited. ............................................................................................48
Section Nine Contents of Reference Files ...........................................................................................................................................209
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Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
Abbreviation and Interpretation
Unless otherwise stated, the meanings of following abbreviations in this report are as follows:
Item means Interpretation
SASAC means State-owned Assets Supervision and Administration Commission of State
Council
CSRC means China Securities Regulatory Commission
SSE means Shenzhen Stock Exchange
The Company and Company means China Merchants Property Development Co., Ltd.
China Merchants Group means China Merchants Group Co., Ltd.
China Merchants Shekou means China Merchants Shekou Industrial Zone Holdings Co., Ltd.
Dafeng International means Dafeng International Limited Liability Company
Full Space Investment Limited means Full-space Investment Limited Co., Ltd.
Zhangzhou Development Zone means China Merchants Zhangzhou Development Zone Co., Ltd.
China Merchants (Shenzhen) means
China Merchants (Shenzhen) Power Supply Co., Ltd.
Power Supply
China Merchants (Shenzhen) means
China Merchants (Shenzhen) Property Development Co., Ltd.
Property
CMOCTPM means Shenzhen CMOCTPM Co., Ltd.
CMPI means China Merchants Property Investment Co., Ltd.
CMLL means China Merchants Land Limited
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Section Two Company Profile
I. Company profile
Chinese name in full: 招商局地产控股股份有限公司 (Chinese name in short: 招商地产)
English name in full: CHINA MERCHANTS PROPERTY DEVELOPMENT CO., LTD. (English name in
short: CMPD_
Legal representative: Sun Chengming
Stock Listing Exchange of the Company: SZSE, Secondary stock listing exchange of the Company: SGX
Stock short name: ZSDC, ZSJB
Stock code: 000024, 200024
II. Contact person and contact information
Secretary of the Board of Directors: Liu Ning
Representatives for Securities Affairs of the Company: Chen Jiang
Contact address: Building 3, Nanhaiyiku, No. 6, Xinghua Road, Shekou, Nanshan District, Shenzhen City
Post code: 518067
Tel: 0755-26819600
Fax: 0755-26818666
E-mail: cmpdir@cmhk.com
III. Others
1. Contact information
Registered address of the Company: Building 3, Nanhaiyiku No. 6, Xinghua Road, Shekou, Nanshan
District, Shenzhen City
Office address of the Company: Building 3, Nanhaiyiku, No. 6, Xinghua Road, Shekou, Nanshan District,
Shenzhen City
Post code: 518067
Website: http://www.cmpd.cn
E-mail: cmpdir@cmhk.com
2. Information disclosure and designated place
China Securities Journal, Securities Times, Shanghai Securities News, Securities Daily and Hong Kong
Commercial Daily
Internet website to disclose information selected by CSRC: http://www.cninfo.com.cn
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Location to prepare and store annual report of the Company: secretariat of Board of Directors of the
Company
3. Change of registration
1. Date of initial registration: September 19, 1990
2. Place of initial registration: Shenzhen
3. Registered Number of Business License of the Corporate Legal Entity: 440301503287841
4. Registered number for taxation: SSDZ 440300618845136
5. Organization code: 61884513-6
6. Changes of main business and previous dominant stockholders since company’s listing
The company’s predecessor is ―CHINA MERCHANTS SHEKOU PORT SERVICE CO., LTD.‖, mainly
engaged in port business. On June 7, 1993, the Company’s A shares and B shares were traded on SSE.
From 1998 to 1999, the Company changed its own port-related assets with equity of China Merchants
(Shenzhen) Property, China Merchants (Shenzhen) Power Supply, etc. under China Merchants Shekou, holding 70%
of respective accumulative equity transferred from above companies.
On July 21, 2000, the Company changed its name to ―CHINA MERCHANTS SHEKOU HOLDINGS CO.,
LTD.‖
On July 13, 2001, the Company changed its own remaining port-related assets with 25% of equity of China
Merchants (Shenzhen) Property, China Merchants (Shenzhen) Power Supply, etc. under China Merchants Shekou.
On June 24, 2004, the Company changed its name to ―CHINA MERCHANTS PROPERTY
DEVELOPMENT CO., LTD.‖, becoming a listed company mainly engaged in real estate development and
management.
Since the Company’s listing, the dominant stockholders did not change.
4. Other relevant information
Accounting Firm appointed by the Company
Name: Shinewing Certified Public Accountants (Special Ordinary Partnership)
Address: 8/F, Block A. Fu Hua Mansion, No.8, Chaoyangmen Beidajie, Dongcheng District, Beijing
Signed CPA: Guo Jinlong Wang Yaming
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Section Three Summary of Financial Data and Financial Index
I. Main accounting data and financial index
No retroactive adjustment or restatement of accounting data for previous years due to change in accounting policies and correction of
accounting errors
Unit: yuan
Increase or decrease
Main Accounting Data Reporting period Amount of last year of the end of this
reporting period
Operating incomes compared with the
17,973,948,437.46 16,047,155,730.99 12.01 %
same period of
Net profits attributable to the listed company previous year %
2,145,502,164.69 1,785,434,748.85 20.17
shareholders
Net profit attributable to shareholders of listed
company after deducting non-recurring profits and 1,977,585,479.54 1,842,876,971.45 7.31 %
losses
Net cash flows from operating activities -7,361,095,087.22 -7,332,324,397.12 -0.39 %
Basic earnings per share (Yuan/share) 0.83 0.69 20.29 %
Diluted earnings per share (Yuan/share) 0.83 0.69 20.29 %
Weighted average rate of return on equity (％) 6.76 % 6.53 % Increased 0.23 percent
End of reporting Year-on-year increase
End of previous year or decrease
period
Total assets 168,809,263,726.54 151,692,365,118.58 11.28 %
Net assets attributable to the listed company 32,777,691,121.78 31,094,416,110.82 5.41 %
shareholders
II. Data differences due to differences in Chinese and overseas accounting standards
Unit: yuan
Net profits attributable to the listed company Net assets attributable to the listed company
shareholders shareholders
End of reporting
Reporting period Amount of last year End of previous year
period
By International Financial
2,145,502,164.69 1,785,434,748.85 34,117,520,350.78 32,434,245,339.82
Reporting Standards
By Chinese accounting
2,145,502,164.69 1,785,434,748.85 32,777,691,121.78 31,094,416,110.82
standard
Difference between
domestic and foreign - - 1,339,829,229.00 1,339,829,229.00
accounting standards
Including: adjustment of
- - 1,339,829,229.00 1,339,829,229.00
goodwill value
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There is no deviation of net profit of listing Company’s shareholders calculated as per International
Financial Reporting Standards and Chinese Accounting Standards. Main reasons for the adjustment of
Description of Deviation
the net profit of listing Company’s shareholders subject to International Financial Reporting Standards
between Domestic and
are: in accordance with Chinese Accounting Standards and relevant regulations, for equity investment
Foreign
difference caused by business merger of the same control, the capital reserve shall be adjusted, while the
Accounting Standards
goodwill against merger caused by International Financial Reporting Standards shall be separately listed
as assets.
III Items and amount of extraordinary profit or loss
Unit: yuan
Amount from beginning of year to end
Items of extraordinary profit or loss
of reporting period
Losses and profits on disposal of non-current assets 141,917.96
Government subsidies 6,716,629.90
Profit or loss acquired by outward entrusted loan 6,562,957.96
Other non-operating incomes and expenditures except the foregoing items 3,147,300.31
Other profit or loss items recognized by CSRC 275,247,008.70
Affected amount of minority interest income -43,272,269.14
Affected amount of income taxes -80,626,860.54
Total 167,916,685.15
Note 1: the long-term equity investment after change in control of Shenzhen Overseas Chinese Town Co., Ltd. (OCT) by the
Company is measured by fair value. The equity fair value was mainly inventory evaluation appreciation. From January to June 2014,
based on the ratio of actual carried-forward inventory area in the total salable area of inventory to be carried forward on the date of
control right change of OCT, the appreciation of long-term equity investment acknowledged by assessed appreciation subject to
corresponding written off is RMB 16,539,852.23.
Note 2: The Company acquired control over Beijing Guangying Residential Property Development Limited and consolidated
the financial statements on May 01, 2015. Its identifiable net assets was measured as per the fair value by the Company on the date of
control right change and the investment income of RMB 432,538,803 was included due to inventory evaluation appreciation. In May
and June 2015, based on the ratio of actual carried-forward inventory area in the total salable area of inventory to be carried forward
on the date of control right change, the inventory evaluation appreciation subject to corresponding written off is RMB
152,529,191.21. Due to control right change, other owners' equity in connection with the previously held equities transferred and
included in the investment income is RMB 11,777,249.14.
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Section Four Directors' Report
I. Summary
Analysis of market situation
In the first half of 2015, the economic operation in China is slow and stabilized, the policy environment of
real estate market was further eased. In an overall trend of low opening and high going, the sales volume of
commercial houses is RMB 3.4 trillion in the first half year with year-on -year growth of 10.0%. The favorable
situation of the sales failed to fully reach the upstream development and investment links. In the first half year,
RMB 4.4 trillion of development investment in real estate industry was completed in China, with the year-on-year
growth of 4.6% and the rate of growth was slower.
From January to June, the new construction area for housing in China was 670 million m2 with the
year-on-year growth of 15.8%, which meant that the real estate market was still at the de-stocking stage in the first
half year. The inter-regional and inter-city differentiation is more obvious from the perspective of the quantity and
price of sales of commercial housing. While sales in the first and second-tier core cities were quickly warming up,
the de-stocking process of the third and fourth-tier cities was relatively slow due to high inventory level. In the
first half year, as the value increasing of former Haishekou Free Trade Area fueled a high rebound of sales
quantity and price of the overall real estate market in Shenzhen, a place with abundant reserves of the Company.
Generally, main real estate companies all kept sales high in the first half year. However, as the industry is
more prudent on the manner of acquiring land resources before development, optimized asset-heavy strategy is
adopted universally, and the asset- light strategy mode is being probed. With the tendency of "Mass Venturing and
Innovation", lots of Internet companies focusing on exploiting new values of upstream and downstream industry
chains in real estate industry are established, which further expand the way of thinking in transformation of
traditional real estate companies.
Operating and management conditions of the Company
In the context of gradually recovering of national real estate market in the first half of 2015, the Company
drove the improvement of marketing management through "Five Strong Steps", that is, strong steps to analyze
customers' effective demands, to enhance user experience and creation, to construct marketing channel, to reform
the marketing mechanism and to build marketing team. Moreover, through launching the first real estate mobile
Internet, which is the first matrix member marketing service own-media platform in China, the Company made a
firm step toward internal resources integration and Internet-based process to help effectively improve the overall
marketing capacity and performance. During the reporting period, the Company accumulatively achieved a
contracted sales area of 1,566,600 m2 with a year-on-year growth of 29.60 %; the contracted sales amount of
RMB 20.56 billion with a year-on-year growth of 14.86 %.
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With a structure of obvious inter-city differentiation, the Company focused on supplementing the project
resources of strategically important cities with a moderate and prudent attitude for acquiring lands. During the
reporting period, an area of 988,300 m2 in cities like Shanghai was supplemented as the project resources, wherein
the interest area is 503,100 m2. Meanwhile, we are also actively tracking the high-quality projects in Shenzhen,
Beijing, Guangzhou, Xiamen, etc.
In the respect of project management, the Company continued to perfect operational "lighting" guide to take
lighting warm control from seven dimensions, i.e., progress, quality, safety, marketing , cost, customer service,
efficiency and monitored the process of lighting,, which effectively improve the overall control ability of the
projects.
During the reporting period, the Company continued to strengthen the implementation of product R&D and
standardization, optimized standardization product line based on market demands and creatively put forward the
product design concept of "Two Children House". The implementation of relevant standardization product in
cities like Nanjing had been well received by our customers.
Under the complicated market situation, the Company vigorously developed direct financing channels,
actively supplemented high quality capital resources and ensure to meet the capital demands of operating
activities. Since the beginning of this year, the Company grasped the favorable time window of cutting bank
reserve requirement ratio and lowering interest rate and successfully issued three-year medium-term notes in two
tranches with a total amount of RMB 3 billion at an interest of 4.55% and 4.12% respectively. CMLL, a holding
subsidiary of the Company, successfully issued the 290 billion dollars convertible bonds with a nominal annual
interest rate of 0.5%, which further effectively lowered the cost of funds of the Company. In recent years, both the
interest rate and exchange rate market greatly fluctuated due to the economic situation changes at home and
abroad and the effect of policy adjustment of national currency and foreign exchanges. This puts forward higher
requirements for reasonable matching between monetary assets and monetary liabilities of capital-intensive real
estate companies and the Company will pay close attention to market changes and strengthen risk prevention.
During the reporting period, the Company further refined the business strategy of ―One Foundation, Two
New Paths, Three Fertile Lands‖ and launched the decomposition of functional strategy, regional strategy, city
company strategy and specialized subsidiary-strategy of the Company to form a headquarter to optimize the top
design, create specialized platform and actually implement the risk management and control. The regional
management headquarters should play a proper role in decision-making, strengthen the platform relay. All city
companies should ensure a sustained growth in effective business and profits. All specialized subsidiary-strategies
should reinforce the links of value chain and create complete strategy system where the value of asset-heavy
business is increased by operation service. All companies will work together to promote the achievement of
strategic targets of the Company.
During the reporting period, the Company mainly focused on retirement, medical treatment, culture, science
and technology, consumption of imports, enhanced the study and practices of innovative business related to the
above fields, actively developed strategic partners and promoted the model study and implementation of projects
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of the themed industrial parks, healthy aging life industry, mobile Internet smart cities, etc. Meanwhile, we also
smoothly implemented the combination of industry and finance and the combination of industry and the Internet,
realized the effective coincidence of real estate business and financial capital and accelerated the promotion and
application the online service platform on the Internet, such as http://www.cmpmc.com/, Investment Fair, etc.
Furthermore, the Company preliminarily established a risk investment system with the combination of industry
and the Internet and strove to inject new vigor into strategic transformation of the Company.
In the face of transformation, in addition to self-thinking and efforts, China Merchants Group, the actual
controller of the Company, launched consolidation of the Company with China Merchants Shekou, striving to
build a broader platform combining the flagship company of real estate sector of China Merchants Group with
core assets from the perspective of resources integration and coordinated development during the reporting period.
We are now processing the related work in an orderly manner and will release the announcement and resume
trading after performing the appropriate procedures.
The comprehensive strength and brand value of the Company has been widely recognized by the market.
During the reporting period, the Company won the ―2015 TOP 10 Shanghai and Shenzhen Listed Real Estate
Companies with Comprehensive Strength‖, ―TOP 10 Companies with Sound Finance‖, ―TOP 10 Companies with
Wealth Creation Ability‖ and ―TOP 10 Companies with Investment Value‖ which was jointly evaluated and
selected by the Enterprise Institute of Development Research Center of the State Council, Real Estate Institute of
Tsinghua University and China Index Academy; ―2014 – 2015 Most Admirable Companies in China‖ that is
evaluated and selected by the Economic Observer; ―2015 TOP 100 Companies with Capital Brand Value‖ that is
jointly evaluated and selected by China Association for Public Companies, SIPF, Securities Association of China
and Asset Management Association of China, ―2014 TOP 30 Real Estate Listed Companies in China‖ and ―TOP
100 Excellent Real Estate Companies in China‖ that is evaluated and selected by Guandian New Media, ―Gallup
Global Most Devoted Organizations‖ that is evaluated and selected by Gallup Inc., ―2015 TOP 100 Companies
with Capital Brand Value‖ that is evaluated and selected by China Center for Market Value Management, ―Golden
Bee Companies‖ and ―Golden Bee Sustainable Development Prize‖ that is evaluated and selected by WTO
Economic Herald of the Ministry of Commerce and ―China Blue Chip Enterprise Award in Real Estate‖ that is the
evaluated and selected by The Economic Observer. The operation and management performance of the Company
is fully affirmed by the outside.
Operational environment forecast and business concepts of the Company
Currently, as the national economy is at a critical stage of adjusting structure and transferring mode, the pain
of structure adjustment is still lasting. The new power can hardly offset the effect caused by the decrease of
traditional power, so that the pressure of the economic downturn is high. In this context, a stable and wide policy
environment of real estate market is basically established, which will promote the consistent and steady
recovery of real estate market in the second half year.
The top priority of our work in the second half year is to strive to achieve the annual sales target. Based on
the implementation of "Five Strong Steps" in marketing, the Company will ensure the improvement of the
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marketing capability of companies of all cities, continue to organize crossover marketing, take advantage of the
resources integration force of "CM companies", thus helping to realize the sales target.
While high quality resources should be continuously obtained from multiple channels, the resources in
strategically important cities, especially Shenzhen, Beijing and other key cities should be further effectively
configured. Furthermore, the Company will steadily undertake overseas expansion and focus on countries and
regions with great economic development potential and along the line of "One Belt and One Road".
Efforts will be made to realize new breakthrough in transformation development. The Company will
continuously improve structural layout and major commercial project promotion of the first and second-tier cities
and constantly promote the construction of asset-light platforms, such as operation service platform of parks and
real estate fund management platform with combination of industry and finance. In addition, the Company will
energetically develop the cooperation in real estate finance fields, explore the possibility and feasibility of
securitization of remnant assets, vitalize remnant assets as soon as possible to improve efficiency of operation and
management.
At the same time of carrying out normal production and operation, the Company will fully cooperate to
promote the integration of the real estate sector of China Merchants Group, profoundly consider and develop
development strategy and target for the new company to accelerate the realization of the integration effects of "1 +
1 > 2".
II. Analysis of main business
In the first half of 2015, the total operating income of the Company reached RMB 17.974 billion, and the net
profit attributable to shareholders of listed companies was RMB 2.146 billion. In operating income, the sales
income of real estate is RMB 16.448 billion with a carried-over area of 1,329,500 m2; the investment property
rental income is RMB 542 million with a total rental area of 4,997,500 m2; the income of park power supply is
RMB 306 million with the sale of 372,310,000 kWh. Property management income is RMB 428 million with
property area of 23.01 million mat the end of June.
III. Main business structures
Industrial division of main businesses
Unit: RMB 10,000
Increase
or Percentage
decrease of increase or
Year-to-year
Gross the decrease of
Operating increase/decrease
By industry Operating costs profit operating gross
incomes of the operating
margin costs margin
income
compared over last
to previous year
year
Real estate development
1,644,830 1,080,761 23 % 12 % 16 % -3
and sales
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Rental property
54,179 27,177 44 % 19 % 19 % 3
management
Power supply in the park 30,607 24,009 21 % 3% 3% 0
Property management 42,838 40,036 1% -8 % -4 % -3
Hotel management 17,490 19,503 -17 % 39 % 8% 28
Real estate agency 5,056 4,317 9% 117 % 38 % 74
Others 2,395 2,848 -44 % 70 % 40 % -8
Note 1: Due to the changes of carried-over distribution for real estate projects, the unit costs of the Company’s carried-over
projects declined slightly in the first half of 2015, mainly including more carried-over projects with low land price. Meanwhile, due
to may rigid demand projects, the unit sales price of carried-over projects also went down, and the carried-over average price
declined faster than the unit cost, leading to the year-on-year decrease of the gross profit margin of real estate development and sales;
Note 2: As the renting rate increased, the gross profit margin for rental of investment property rental had a year-on-year
increase;
Note 3: Due to the rapid growth of management costs, such as the labor costs of property management, the gross profit margin
of property management went down;
Note 4: Main business of hotels of the Company includes Hilton Nanhai Hotel, Beijing Conrad Hotel & Resorts, Haitao Hotel
and Zhangzhou Meillen Health Resort. The occupancy rate of the above hotels needs to be improved. However, due to the higher
pre-operating costs for hotels, the gross margin is negative, but the gross margin has been greatly improved year on year. The NCF
(net cash flow) gradually becoming positive.
Regional division of main business
Unit: RMB 10,000
Percentage
increase or
Year-to-year Year-to-year decrease of
Operating Gross profit increase/decrease increase/decrease
By regions Operating costs gross margin
incomes margin (%) of the operating of the operating
income (%) cost (%) over the same
period of last
year
South China 796,888 438,850 31 % -22 % -28 % 1
North China 202,802 158,423 11 % 43 % 92 % -21
East China 561,164 421,595 17 % 132 % 119 % 5
Central China 236,541 179,783 16 % 20 % 14 % 3
Note 1: The gross margin is derived from income minus operating costs and business taxes and surcharges
Note 2: Because the gross margin of the rigid demand products for carried-over projects is low in north China, and the added value
of amortization evaluation for Beijing Guangying Zhenyuan resulted in the decrease of the gross margin decrease of RMB 152
million, the gross margin declined greatly in north China.
Year-on-year changes of the main financial data
Unit: RMB 10,000
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Increase and
Items of financial December 31,
June 30, 2015 decrease Main cause of changes
liabilities 2014
(±%)
Prepayment 231,925 361,919 -36 % Decrease of land prepayment
The increase of payable intercourse funds of
Other receivables 1,309,421 894,186 46 %
joint ventures and associated companies
Short-term loans 66,136 388,690 -83 % Payment of short-term debt
The increase of the payable project funds
Notes payable 13,584 4,734 187 %
settled with bills
The payment of employees’ salaries
Payroll payable 22,855 39,875 -43 %
un-accrued at the end of last year
Tax payable 137,932 313,369 -56 % The payment of unpaid taxes
Interests payable 30,595 19,214 59 % Increase of borrowings
Non-current liabilities due The increase of long-term bank loans due
879,100 597,010 47 %
within one year within one year
Issuing the medium term notes and
Bonds payable 542,823 301,808 80 %
convertible bonds
The increasing payables by transferring the
Long-term payables 357,506 10,435 3,326 %
rights and interests of subsidiary companies
Deferred income tax The fair-value adjustment of assets by
43,387 3,582 1,111 %
liabilities corporate merger
January - June January - June Increase and
Items of profit or loss Main cause of changes
2015 2014 decrease(±%)
Financial expenses 45,574 32,610 40 % Year-on-year increase of interest expense
Assets impairment losses -122 89 -237 % The reversal of bad debt provision
The original holding shares shall be
remeasured at the fair value on the date of
Investment income 49,311 14,332 244 %
the changes of control right of the
newly-added subsidiary companies.
January - June January - June Increase and
Cash flow items Main cause of changes
2015 2014 decrease(±%)
Sub-total of cash inflows Consolidation of newly-added subsidiaries'
69,561 2,059 3,278 %
from investing activities cash at the beginning of period
Sub-total of cash outflows The increasing investment spending of joint
49,632 8,627 475 %
from investing activities ventures and associated enterprises
The increased net cash of investment
Net cash flows from
19,929 -6,568 403 % subsidiaries is greater than the increased
investing activities
investment spending
Sub-total of cash inflows
1,719,393 997,697 72 % The increase of bank loans and bonds
from financing activities
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Net cash flows from The year-on-year increase of bank loans and
791,331 173,756 355 %
financing activities bonds are more than that of return loans
IV. Analysis of Core Competitiveness
1. Strong China Merchants and more collaboration
China Merchants Group owns a number of outstanding companies, including China Merchants Holdings
(International) Co., Ltd., China Merchants Ships Co., Ltd., China Merchants Roads Co., Ltd., China Merchants
Bank Co., Ltd., China Merchants Securities Co., Ltd., and China Merchants Capital for Direct Investment Fund
Management Platform. In recent years, China Merchants Group, specialized in industrial and financial field,
vigorously promotes the combination of industry and finance. Through the effective interaction between capital
and industry, it gives play to synergy benefits so as to develop by leaps and bounds. On the base that the Group
vigorously practiced the strategy of synergetic development and innovative development, the Company and
counterparts strived to exploit the opportunity of synergetic cooperation. So far, a solid strategic cooperation
alliance has been built in project cooperation, financial innovation, brand linkage, etc. In the future, the Company
will further strengthen industrial and financial combination to realize the resource sharing win-win situation and
mutual development.
2. First-class capability of urban development, upgrading and operation
Having been developed in Shekou for 30 years, China Merchants Shekou Industrial Zone has become an
excellent domestic park operator by accumulating abundant experiences and capabilities in first-class
development, operation and upgrading of parks. The experiences of "30 years and 30 cities" in property
development and operation enable the CMPD y to become a leading company of comprehensive development of
property. In effective combination with such experiences, the Company has become a top service supplier in urban
development, upgrading and operation.
3. Abundant property assets and land resources of FTA and FTA policy on try prior to implementation
In December 2014, Qianhai & Shekou area was officially designated as Guangdong FTA. In July 2015, the
Construction Implementation Plan on China (Guangdong) Pilot FTA was formally issued, proposing to give
priority to developing the strategic emerging service industries such as finance, modern logistics, information
service and technology service in Qianhai & Shekou area, and build an experimental and demonstrative window
for Chinese financial industry open to the world, an important base of world service trade and an international hub
port. As the largest main body of development and construction in the Qianhai & Shekou FTA, the Company and
China Merchants Shekou possess plenty of business assets in Qianhai & Shekou, covering the office buildings,
shopping malls, apartments, factories, etc. ensuring the possession of stable operation and management income, as
well as the asset appreciation generated by the development of FTA. The Company will comply with the FTA
policy advantage to reasonably plan the development pace of the plenty of land resources to be developed in the
FTA (except as the properties which have been constructed) and industry development path, realizing the
innovation and promotion of a multi-level value.
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V. Analysis of Investment Situations
1. Foreign equity investment
(1) External investment
The Company holds 3,646,889,329 outstanding shares of China Merchants Land Limited(CMLL)(0978.HK),
the holding subsidiary of the Company, without holding shares of other listed companies.
(2) Equity of financial enterprise held
Not applicable
(3) Security investment
Not applicable
2. Consigned financing, investment in derivatives and consignment loan
(1) Status of consigned financing
Not applicable
(2) Investment in derivatives
Not applicable
(3) Status of consignment loan
Not applicable
3. Utilization of raised fund
Within five years as of June 30, 2015, the Company has no fund-raising situations by publicly issuing shares.
4. Analysis of main subsidiaries and equity participation companies
Unit: RMB 10,000
Company Type of Industr Main Registere Total Net Operatin Operatin Net
name enterpris y product or d capital assets assets g incomes g profit profit
e service
China Subsidiar Real Commercia 300,000 2,463,72 1,152,19 163,041 73,548 58,19
Merchants y estate l residential 6 7 4
(Shenzhen) building
Property
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Development
Co., Ltd.
China Subsidiar Real Commercia 20,000 915,080 282,756 59,216 37,358 28,02
Merchants y estate l residential 1
Property building
Investment
Co., Ltd.
China Subsidiar Public Power 5,700 371,128 149,199 30,976 6,564 4,413
Merchants y utility supply in
(Shenzhen) the park
Power Supply
Co., Ltd.
Shanghai Subsidiar Real Commercia 3,000 175,919 64,973 129,297 49,519 37,16
Fengyang Real y estate l residential 2
Estate building
Development
Co., Ltd.
Guangzhou Subsidiar Real Commercia 10,000 265,566 31,017 88,347 25,552 19,23
Wanshang Real y estate l residential 3
Estate Co., Ltd. building
Fujian Subsidiar Real Commercia 5,000 233,338 69,103 102,448 38,615 28,99
Zhonglianshen y estate l residential 3
g Real Estate building
Co., Ltd.
China Subsidiar Real Commercia 20,000 1,030,88 94,585 62,277 29,572 22,27
Merchants y estate l residential 9 2
(Guangzhou) building
Property
Development
Co., Ltd.
Beijing Subsidiar Real Commercia 1,515 436,204 22,250 72,473 23,102 17,46
Guangying y estate l residential 4
Residential building
Property
Development
Limited
China Subsidiar Real Commercia 3,000 36,076 20,985 147,578 27,123 21,18
Merchants y estate l residential 5
(Suzhou) building
Magnificent
House
Development
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Co., Ltd.
Shanghai CM Subsidiar Real Commercia 3,000 52,228 20,997 72,090 18,209 13,66
Hongfa y estate l residential 6
Property Co., building
Ltd.
5. Description of key projects not invested by the raised fund
(1) Equity investment
During the reported period, there were 13 newly increased real estate project subsidiaries; the newly increased investment amount is
RMB 971,360,000; the investment situations are as follows:
Unit: RMB 10,000
Proportion of
Actual
Registered rights and
Company name investment Business scope
capital interests of
amount
the Company
Xiamen Jinghucheng Real Estate Development
10,000 95 % 9,500 Real estate development
Co., Ltd.
Beijing Guangying Residential Property
1,515 34 % 515 Real estate development
Development Limited
China Merchants (Shanghai) Baoxin Property
6,000 51 % 3,060 Real estate development
Co., Ltd.
China Merchants (Suzhou) Ruiying Property
40,000 51 % 20,400 Real estate development
Development Co., Ltd.
China Merchants (Suzhou) Mancheng Property
3,000 100 % 3,000 Real estate development
Development Co., Ltd.
China Merchants (Chongqing) Yicheng Property
2,700 100 % 2,700 Real estate development
Development Co., Ltd.
China Merchants (Chengdu) Boshi Property
40,000 51 % 20,400 Real estate development
Development Co., Ltd.
Shenzhen Zhaopingruisheng Investment
20,000 51 % 10,200 Investment in industry
Holdings Co., Ltd.
Xiamen Zhaogang Real Estate Development Co.,
1,000 60 % 600 Real estate development
Ltd.
Foshan Evian Guanyuan Property Development
1,050 100 % 1,050 Real estate development
Co., Ltd.
Nanjing Zhaopinglisheng Investment Co., Ltd. 10,000 51 % 5,100 Investment in industry
China Merchants (Nanjing) Zhaosheng Property
20,000 100 % 20,000 Real estate development
Development Co., Ltd.
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Tiansheng investment co., LTD USD 100 100 % 611 Investment in industry
(2) During the reported period, accumulated investments of major projects are as follows:
Unit: RMB 10,000
Investment Accumulated
Total planned amount input amount
Project name investment during the as of the end Project progress Project earnings
amount reporting of reporting
period period
Shenzhen
Imperial Park 886,837 22,885 310,159 Main body construction Not yet carried over
Phase I
Shenzhen
Pingshan Garden 302,634 15,642 245,480 Main body construction Not yet carried over
City
Zone I, II, IV and V have
Gross margin in this period
Shenzhen Yihai been completed and the
735,678 25,576 452,418 has reached RMB -178.87
City main body of Zone III and
million
VI is under construction.
Jingshan The Gross margin in this period
Ninth in 292,370 4,515 231,625 Completed has reached RMB 514.29
Shenzhen million
Gross margin in this period
Shenzhen Jinxiu
107,117 1,630 83,569 Completed has reached RMB 31.47
Kwun Town
million
Phase-IV and Phase-VIII
Gross margin in this period
Guangzhou have been completed, and
398,447 15,918 377,007 has reached RMB 256.02
Jinshan Valley the main bodies of the rest
million
are under construction.
Phase-I has been
completed; part of Phase-II Gross margin in this period
Donghuicheng in
289,176 7,476 188,702 has been completed; the has reached RMB 258.75
Guangzhou
main body of Phase-III is million
under construction.
Foshan Park 1872 241,783 8,896 179,506 Main body construction Not yet carried over
Evian Riviera in
226,175 8,224 132,610 Main body construction Not yet carried over
Foshan
Foshan Evian
199,561 7,068 120,097 Main body construction Not yet carried over
Kingbay
Foshan Evian Main body construction of
135,468 6,871 63,624 Not yet carried over
Mansion Phase-I
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Evian
International in 89,261 5,406 46,698 Main body construction Not yet carried over
Foshan
Gross margin in this period
Evian Buena Phase-I and Phase-II have
206,677 7,382 164,632 has reached RMB 12.49
Vista in Foshan been completed.
million
Foshan Evian
205,315 6,108 82,840 Main body construction Not yet carried over
Property Center
Phase-I has been
completed; part of Phase-II Gross margin in this period
Zhangzhou
349,353 17,870 189,537 has been completed; the has reached RMB 125.26
Cadaques
main body of Phase-III is million
under construction.
Gross margin in this period
Xiamen Hyde
233,354 7,457 221,442 Completed has reached RMB 42.89
Park
million
Phase-I and Phase-II have
Gross margin in this period
Xiamen Sea May been completed, and the
256,949 7,422 205,716 has reached RMB 383.75
Flower main body of Phase-III is
million
under construction.
Phase-I to Phase-III have
Beijing Xicheng Gross margin in this period
been completed, and the
Homeland and 507,456 12,154 405,559 has reached RMB 13.6
main body of Phase-IV is
Longyuan million
under construction.
Gross margin in this period
Beijing Park 1872 448,505 7,177 393,633 Completed has reached RMB 73.33
million
Phase-I has been
Gross margin in this period
Tianjin Beacon completed, and the main
512,700 23,435 295,737 has reached RMB -6.16
Hill body of Phase-II is under
million
construction.
Gross margin in this period
Tianjin Diamond Phase-I to Phase-V have
359,494 9,141 338,331 has reached RMB 4.94
Hill been completed
million
Phase-I has been
Gross margin in this period
Tianjin Evian completed, and the main
41,757 9,133 48,694 has reached RMB 24.52
County body of Phase-II is under
million
construction.
Beacon Hill in Main body construction of
975,539 11,794 304,133 Not yet carried over
Harbin Phase-I and Phase -II
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Phase-I has been
Gross margin in this period
Harbin Notting completed, and the main
311,787 15,676 180,329 has reached RMB -3.72
Hill body of Phase-II is under
million
construction.
Orchid Valley in
128,518 8,417 87,742 Main body construction Not yet carried over
Dalian
Phase-I has been
Gross margin in this period
Qingdao Hyde completed, and the main
45,201 6,056 43,560 has reached RMB 34.07
Garden body of Phase-II is under
million
construction.
Phase-I has been
Gross margin in this period
Qingdao LAVIE completed, and the main
140,367 4,745 98,664 has reached RMB 7.87
Commune body of Phase-II is under
million
construction.
Maerbeila of
308,068 4,646 147,374 Main body construction Not yet carried over
Yantai Merchants
Rizhao Leyden Main body construction of
493,351 9,918 193,880 Not yet carried over
Town Phase-I
Gross margin in this period
Head Garden in
187,254 12,491 122,094 Main body construction has reached RMB
Shanghai
494,820,000
Phase-I and Phase-II have
Shanghai Gross margin in this period
been completed, and the
Sheshan 308,041 10,871 289,854 has reached RMB -39.59
main body of Phase-III is
Longyuan million
under construction.
China Merchants
Gross margin in this period
Haiting in 166,326 7,322 160,019 Completed
has reached RMB 530,000
Shanghai
Magnificent Gross margin in this period
Times in 146,328 5,498 133,428 Completed has reached RMB 184.62
Shanghai million
Phase-I has been
Suzhou Gross margin in this period
completed, and the main
Magnificent 148,119 6,435 129,879 has reached RMB 276.22
body of Phase-II is under
House million
construction.
Phase-I to Phase-VII have
been completed, and the Gross margin in this period
Suzhou Small
485,432 22,970 456,602 main bodies of Phase-VIII has reached RMB 17.69
Stone City
and Phase-IX are under million
construction.
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Phase-I has been
Gross margin in this period
completed, and the main
Suzhou Yishanjun 174,038 22,556 128,934 has reached RMB 68.79
body of Phase-II is under
million
construction.
Suzhou Evian
162,401 14,343 117,990 Main body construction Not yet carried over
Riviera
Gross margin in this period
Changzhou Phase-I has been
300,031 15,564 134,191 has reached RMB 46.07
Garden City completed.
million
Nanjing
Magnificent 335,945 11,056 264,658 Main body construction Not yet carried over
House
Phase-I and Phase-II have
Gross margin in this period
Throne Bay in been completed, and the
621,044 18,601 478,900 has reached RMB -4.92
Zhenjiang main body of Phase-III is
million
under construction.
Wuhan Jiangwan
358,575 11,957 186,638 Main body construction Not yet carried over
International
Moshui Lake,
923,480 32,069 476,759 Main body construction Not yet carried over
Wuhan
Wuhan Gross margin in this period
Magnificent 99,183 62 95,356 Completed has reached RMB 8.59
House million
Evian Uptown in Main body construction of
425,234 7,912 100,864 Not yet carried over
Chengdu Phase-I
Magnificent Gross margin in this period
House in 275,371 5,711 298,615 Completed has reached RMB 71.8
Chengdu million
Phase-I has been
completed, and the main Gross margin in this period
Chongqing Land
1,281,749 20,247 525,918 bodies of Phase-II and has reached RMB -10.59
Mark Riverside
Phase-III are under million
construction.
Chongqing Evian
333,988 13,491 135,103 Main body construction Not yet carried over
Bay
Chongqing Park Main body construction of
1,179,807 8,257 421,278 Not yet carried over
Avenue Phase-I
Phase-I has been Gross margin in this period
Chongqing
425,195 16,131 305,019 completed; part of Phase-II has reached RMB 87.93
Garden City
has been completed; the million
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main body of Phase-III is
under construction.
Zone A has been completed Gross margin in this period
Bijie Garden City 280,578 23,659 140,935 and Zone B is under has reached RMB 76.76
construction. million
Kunming Sea
320,099 17,694 66,428 Main body construction Not yet carried over
Club House
VI. Explanation of the Board of Directors and Board of Supervisors on the Non-standard
Audit Report" for reporting period by the accounting firm
Not applicable
VII. Description of the Board of Directors on the "Non-standard Audit Report" of the
Previous Year
Not applicable
VIII. Performance of Profit Distribution during Reporting Period
The Company held the annual general meeting of stockholders of 2014 on May 7, 2015, approving the 2014 profit
distribution plan:
The statutory surplus reserve of RMB 112,712,864.73 is withdrawn based on 10% of the net profit of RMB
1,127,128,647.31 of the parent company;
Based on total equity stock of 2,575,950,754 at the end of the year, paying out RMB 3.20 cash dividend (including tax) per 10
shares, that is, paying out RMB 824,304,241.28 cash dividend.
The remaining undistributed profit RMB 4,797,962,659.92 was carried over to the next year;
The Company was not going to conduct capital stock increasing from public reserve funds in this year.
Details are contained in the Announcement on Implementation of 2014 Profit Distribution Plan published in China
Securities Journal, Securities Times, Shanghai Securities News, Securities Daily, Hong Kong Commercial Daily and CNINFO
(http://www.cninfo.com.cn) by the Company on May 15, 2015. Until the report disclosure date, the above plan of
dividend distribution has been completed.
IX. Proposal for profit distribution and for converting capital reserve to share capital for the
reporting period
The Company will not distribute profits and covert capital reserves for share capitals in the middle of 2015.
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X. Registration form of reception of research, communication, interview, etc. during the
reporting period
Category of Main discussion points and
Reception time Reception place Reception way Reception object
reception object information provided
INDUSTRIAL
SECURITIES,
Telephone
January 04, 2015 Shenzhen Institution investors Haitong Securities,
communication
Pacific Insurance,
New China Asset
Zeal Asset
January 05, 2015 Shenzhen Field research Institution investors ① Introduction of the
Management
business condition of the
Telephone
January 06, 2015 Shenzhen Individual investors Individual investors Company; ② Discussion on
communication industrial development; ③
Telephone Provision of declared
January 06, 2015 Shenzhen Institution investors Orient Securities
communication information and the project
brochure of the Company;
Citic-prudential
Fund, PINGAN ④ Visit to the on-sale
January 07, 2015 Shenzhen Field research Institution investors Securities, Ping An buildings of the Company
of China Asset and provision of sales
Management brochure.
Ping An of China
Telephone
January 08, 2015 Shenzhen Institution investors Asset Management,
communication
GF Securities
Telephone
January 09, 2015 Shenzhen Individual investors Individual investors
communication
SHENYIN &
Telephone WANGUO
January 11, 2015 Shenzhen Institution investors
communication SECURITIES,
BOSERA FUNDS
Telephone
January 12, 2015 Shenzhen Institution investors GF Securities
communication
January 13, 2015 Shenzhen Strategic Meeting Institution investors Guosen Securities
January 14, 2015 Beijing Strategic Meeting Institution investors Deutsche Bank AG
January 14, 2015 Shanghai Strategic Meeting Institution investors UBS Securities
SINOLINK
January 15, 2015 Shenzhen Strategic Meeting Institution investors
SECURITIES
Telephone
January 15, 2015 Shenzhen Individual investors Individual investors
communication
January 16, 2015 Chongqing Field research Institution investors Deutsche Bank AG
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CITIC Securities,
Telephone
January 16, 2015 Shenzhen Institution investors SINOLINK
communication
SECURITIES
Telephone
January 19, 2015 Shenzhen Individual investors Individual investors
communication
HUA
January 21, 2015 Shenzhen Field research Institution investors
INSURANCE, etc.
Telephone Credit Suisse
January 22, 2015 Shenzhen Institution investors
communication Founder Securities
BOCI Securities,
CHINA
January 23, 2015 Shenzhen Field research Institution investors MERCHANTS
FUND, AIA China,
China AMC
Telephone First Shanghai
January 23, 2015 Shenzhen Institution investors
communication Securities
January 26, 2015 Shenzhen Field research Institution investors China AMC
Telephone
January 27, 2015 Shenzhen Individual investors Individual investors
communication
SHENWAN
January 28, 2015 Shenzhen Field research Institution investors HONGYUAN
SECURITIES
Telephone
January 29, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
January 29, 2015 Shenzhen Institution investors Libang Investment
communication
Telephone
February 04, 2015 Shenzhen Individual investors Individual investors
communication
February 05, 2015 Shenzhen Field research Institution investors Galaxy Securities
Telephone Orient Securities,
February 09, 2015 Shenzhen Institution investors
communication GF Securities
Telephone China Investment
February 11, 2015 Shenzhen Institution investors
communication Securities
Telephone
February 13, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
February 25, 2015 Shenzhen Institution investors GF Securities
communication
Telephone Ping An of China
February 26, 2015 Shenzhen Institution investors
communication Asset Management
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Telephone
February 28, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
February 28, 2015 Shenzhen Institution investors Kingdon Capital
communication
Telephone
March 02, 2015 Shenzhen Institution investors GF Securities
communication
Telephone
March 03, 2015 Shenzhen Individual investors Individual investors
communication
Shenwan
Hongyuan
Securities, CICC,
Telephone
March 09, 2015 Shenzhen Institution investors Pingan Securities,
communication
China Galaxy
Securities, and
Haitong Securities
GF Securities,
Telephone Galaxy Securities,
March 10, 2015 Shenzhen Institution investors
communication Guotai Junan
Securities, etc.
Telephone Pacific Asset
March 10, 2015 Shenzhen Institution investors
communication Management
Telephone
March 10, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
March 11, 2015 Shenzhen Individual investors Individual investors
communication
PINGAN Securities
March 12, 2015 Beijing Strategic Meeting Institution investors
etc.
Telephone
March 12, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
March 13, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
March 13, 2015 Shenzhen Institution investors Yuanta Securities
communication
China Merchants
Securities, Telligent
March 16, 2015 Shenzhen Field research Institution investors
Capital
Management
Telephone
March 17, 2015 Shenzhen Individual investors Individual investors
communication
March 17, 2015 Shenzhen Telephone Institution investors Pacific Asset
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Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
communication Management
Telephone
March 18, 2015 Shenzhen Institution investors GTJA
communication
Telephone
March 22, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
March 23, 2015 Shenzhen Institution investors GTJA
communication
March 24, 2015 Shenzhen Field research Institution investors Shinhan Investment
China Securities,
China AMC,
March 25, 2015 Shenzhen Field research Institution investors Huatai Asset
Management and
GR Asset
Telephone
March 25, 2015 Shenzhen Institution investors GF Securities
communication
Telephone
March 25, 2015 Shenzhen Individual investors Individual investors
communication
March 27, 2015 Shenzhen Field research Institution investors Huatai Securities
Telephone
March 30, 2015 Shenzhen Individual investors Individual investors
communication
March 31, 2015 Shenzhen Field research Institution investors Samsung Securities
Shenwan
Telephone Hongyuan
March 31, 2015 Shenzhen Institution investors
communication Securities, Yuanta
Securities
Telephone
March 31, 2015 Shenzhen Individual investors Individual investors
communication
Telephone CICC, Pingan
April 01, 2015 Shenzhen Institution investors
communication Securities
Telephone
April 01, 2015 Shenzhen Individual investors Individual investors
communication
China AMC,
Galaxy Securities,
CICC, Industrial
Securities, GF
Telephone
April 02, 2015 Shenzhen Institution investors Securities, Orient
communication
Securities, Guotai
Junan Securities,
CITICS, Shenwan
Hongyuan
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Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
Securities, Haitong
Securities, Pingan
Securities, China
Investment
Securities
Jefferies, Credit
Telephone
April 03, 2015 Shenzhen Institution investors Suisse Founder
communication
Securities
Telephone
April 03, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
April 07, 2015 Shenzhen Individual investors Individual investors
communication
Pacific Asset
Telephone Management, Ping
April 07, 2015 Shenzhen Institution investors
communication An Asset
Management
Telephone
April 08, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
April 09, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
April 09, 2015 Shenzhen Institution investors GF Securities
communication
Telephone
April 10, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
April 13, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
April 14, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
April 15, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
April 16, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
April 17, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
April 20, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
April 21, 2015 Shenzhen Individual investors Individual investors
communication
April 22, 2015 Shenzhen Telephone Individual investors Individual investors
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Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
communication
Telephone
April 23, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
April 24, 2015 Shenzhen Individual investors Individual investors
communication
Guotai Junan
Telephone Securities,
April 27, 2015 Shenzhen Institution investors
communication Industrial
Securities
Telephone
April 28, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
April 29, 2015 Shenzhen Individual investors Individual investors
communication
UBS Securities,
April 30, 2015 Hong Kong Strategic Meeting Institution investors
etc.
Telephone
May 04, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
May 05, 2015 Shenzhen Individual investors Individual investors
communication
May 06, 2015 Nanning Field research Institution investors Gao Hua Securities
Telephone
May 06, 2015 Shenzhen Individual investors Individual investors
communication
May 07, 2015 Shenzhen Field research Institution investors Credit Suisse
Telephone
May 07, 2015 Shenzhen Individual investors Individual investors
communication
May 08, 2015 Hong Kong Strategic Meeting Institution investors Citi, etc.
Telephone
May 10, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
May 11, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
May 12, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
May 13, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
May 14, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
May 14, 2015 Shenzhen Institution investors GF Securities
communication
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Telephone
May 15, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
May 18, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
May 19, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
May 20, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
May 20, 2015 Shenzhen Institution investors GTJA
communication
Telephone
May 21, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
May 22, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
May 25, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
May 26, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
May 27, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
May 28, 2015 Shenzhen Individual investors Individual investors
communication
Morgan Stanley,
May 29, 2015 Beijing Strategic Meeting Institution investors
etc.
Telephone
June 01, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
June 02, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
June 03, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
June 04, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
June 05, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
June 08, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
June 09, 2015 Shenzhen Individual investors Individual investors
communication
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Telephone
June 10, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
June 11, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
June 12, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
June 15, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
June 16, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
June 17, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
June 18, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
June 19, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
June 22, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
June 23, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
June 24, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
June 25, 2015 Shenzhen Individual investors Individual investors
communication
June 26, 2015 Hong Kong Strategic Meeting Institution investors Citigroup, etc.
Telephone
June 26, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
June 29, 2015 Shenzhen Individual investors Individual investors
communication
Telephone
June 30, 2015 Shenzhen Individual investors Individual investors
communication
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Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
Section Five Important Events
(I) Corporate governance
In compliance with the Company Law, Securities Law and other securities regulations, the Company
constantly improves the corporate governance and internal control system, deeply carries out governance activities
and promotes its governance level. Based on the favorable corporate governance, the Company establishes a trust
and win-win relationship with a large number of investors.
During reporting period, the holding shareholders and actual controller of company strictly fulfill their
commitments all the time and support the sound development of company.
The corporate governance structure is sound; and the General Meeting of Stockholders, Board of Directors
and Board of Supervisors are in the standardized operation and perform function and power in accordance with
stipulations of laws and regulations as well as Articles of Association of company.
The Company discloses information timely and fairly in strict compliance with the principle of disclosing authentic,
accurate and complete information. Awarded the title of excellent company in assessment of information disclosure of 2014
(Class A) by Shenzhen Stock Exchange, the Company adheres to linkage of the information disclosure of CMLL (0978.HK),
ensuring the timely access to and consistency of the information of investors from Shenzhen and Hong Kong market.
II. Major lawsuit and arbitration
The Company was free from significant lawsuit and arbitration during reported period.
III. Query from the media
The Company was free from media query during reported period.
IV. Bankruptcy reorganization
Not applicable
V. Asset transactions
1. Purchase of assets
Not applicable
30
Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
2. Sales condition of assets
Not applicable
3. Combination of enterprises
On May 01, 2015, the Company obtained majority voting rights in the board of directors of Beijing
Guangying Residential Property Development Limited, thus having control over such company. The control right
was included into the consolidation scope of the consolidated statements after being altered.
On June 30, 2015, the Company has control over Xiamen Jinghucheng Real Estate Development Co., Ltd.
by increasing capital and share.
Details for the above consolidation matters are stated in the Notes to the Financial Statements "VII. Change
in Consolidation Scope".
VII. Implementation of stock option incentive and the impact
On September 17, 2014, the Company conducted the 11th interim meeting of the 7th BOD in 2014 and the
22nd meeting of the 7th BOS, reviewed and adopted the Proposal on Change of Incentive Objects and Granting
Quantities for Plan of Initial Granting of Stock Options; the meeting also reviewed and adopted the Proposal on
Determination of Related Matters for Plan of Initial Granting of Stock Option, and the BOD determined to grant
23.2283 million shares of stock option to 143 incentive objects on September 18, 2014, with exercise price as
RMB11.24 /share.
On December 12, 2014, the Company completed the registration of initial stock option granting, stock option
short name: China Merchants JLC1, Code: 037036.
The exercise price of the stock option granted in the incentive plan was adjusted to RMB 10.92/share since
completion of equities distribution of 2014. So far, the Company has not yet executed rights during the first exercise
period of stock option.
For details about stock option incentive plan, please see Notices on China Securities Journal, Securities Time,
Shanghai Securities News, Hong Kong Commercial Daily, Securities Daily and http://www.cninfo.com.cn/.
VII. Material related transactions
1. Related transaction related to normal operation
During the reporting period, as approved by the 16th Meeting of the 7th Board of Directors, the Company
established the following leasing transaction with China Merchants Shekou:
The Company and part of its subsidiaries in Shenzhen leases the land use right of operation sites from China
Merchants Shekou, with the total rental of RMB 3.7820 million for the reporting period, accounting for 13.09% of the amount
of similar transactions; China Merchants Property Investment, a wholly-owned subsidiary of the Company, leases the land use right
and top head estates of the 1st, 2nd, 5th and 6th building of Property in Huajian area of Shekou (Shenzhen ) owned by China
Merchants Shekou, with the total rental of RMB 10.6544 million for the reporting period, accounting for 36.88 % of the amount of
similar transactions; China Merchants (Shenzhen) Property, a wholly-owned subsidiary of the Company, releases land use right and
superstructures estates of the 3rd building of Property in Huajian area of Shekou (Shenzhen ) owned by China Merchants Shekou,
with the total rental of RMB 2.6636 million for the reporting period, accounting for 9.22 % of the amount of similar transactions;
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affiliated companies including China Merchants Shekou lease the rental properties including New Era Plaza of the Company with the
total rental of RMB 7.5995 million for the reporting period, accounting for 1.40 % of the amount of similar transactions.
2. Related transaction of asset acquisition and sale
Not applicable
3. Important related transactions with joint investments
Reviewed and approved on the 18th Interim meeting of the 7th BOD in 2014, China Merchants (Chengdu) Beihu Land Ltd.
(―China Merchants Beihu‖), China Merchants (Shenzhen) Property Investment Co., Ltd. and China Merchants Kunlun Capital Co.,
Ltd. (―China Merchants Kunlun‖), which are subsidiaries of the Company, jointly acquire 100 % shares rights and creditors’ rights of
all shareholders of Chengdu China MCC5 Wentou Land Ltd. As of the end of the reporting period, China Merchants Beihu, China
Merchants Property Investment and Ganzhou Yuankang Investment Partnership (hereinafter referred to as "Ganzhou Yuankang", the
executive partner of China Merchants Kunlun, in place of China Merchants Kunlun in project acquisitions upon establishment of the
Auction Consortium) have jointly acquired 100% equities and all creditor's rights of shareholders of Chengdu China MCC5 Wentou
Land Ltd., among which, China Merchants Beihu and China Merchants Investment respectively acquired 31% and 20% of the
equities and creditor's rights of shareholders of Chengdu China MCC5 Wentou Land Ltd. China Merchants Beihu and China
Merchants Property Investment pay a total of RMB 906 million with respect to such acquisition respectively as
per the equity ratio and the ratio of creditor's rights ratio. The Company and China Merchants Kunlun Capital Co.,
Ltd. are controlled by China Merchants Group and transactions stated above constitute related party transactions.
Disclosure: For the detailed disclosure of the above said transaction, please refer to http://www.cninfo.com.cn.
4. Current associated rights of credit and liabilities
As of June 30, 2015, main current funds between the Company and related parties include:
Unit: RMB 10,000
Beginn
i
n
g
Whether Balan
there is Amount ce at
b
Category of non-operati incurre the
a
Related party Relationship credits and Reason ng d in the end of
l
debts occupation current the
a
of funds or period perio
n
not d
c
e
Balanc
e
China Ocean Shipping Agency Under Accounts Current
No - 821 821
Shenzhen common receivable account
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ultimate
control
Foshan Merchants Longyuan Real Other Current 67,36
Joint venture No 67,369 -
Estate Co., Ltd. receivables account 9
China Merchants Shekou Industrial Controlling Accounts Current
No 255,394 -254,009 1,385
Zone Holdings Co., Ltd. shareholder payable account
Under
China Merchants Zhangzhou common Current 50,50
Other payables No 38,000 12,500
Development Zone Co., Ltd. ultimate account 0
control
Under
Shenzhen China Merchants common Current 33,19
Other payables No 81,106 -47,916
Financial Service Co., Ltd. ultimate account 0
control
Under
Ganzhou Yuankang Investment common Current 21,31
Other payables No - 21,312
Partnership ultimate account 2
control
Current 20,58
Shanghai Ledu Property Co., Ltd. Associates Other payables No 24,601 -4,019
account 2
Under
Dafeng International Limited common Current 13,18
Other payables No 20,995 -7,808
Liability Company ultimate account 7
control
Tianjin Xinghai Real Estate Current 10,60
Associates Other payables No 10,608 -
Development Co., Ltd. account 8
Shanghai New South Mountain Current
Associates Other payables No 4,488 4,125 8,613
Real Estate Development Co., Ltd. account
Non-controlli
ORIENTURE HOLDINGS Current
ng Other payables No - 7,789 7,789
COMPANY LIMITED account
shareholder
Tianjin Munanqiushi Industrial Current
Associates Other payables No 1,700 - 1,700
Co., Ltd. account
China Merchants Shekou Industrial Controlling Current
Other payables No 16 267 283
Zone Holdings Co., Ltd. shareholder account
China Merchants Overseas Chinese Current
Associates Other payables No 47,972 -47,972 -
Town account
As of June 30, 2015, related parties have provided the following bank loan guarantees for the Company and the Company's
subsidiaries:(Unit: RMB)
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Names of related parties The guaranteed Amount of guarantee
Long-term loan guarantee
China Merchants Group Co., Ltd. The Company RMB 5,500,000,000
China Merchants Shekou Industrial Zone
The Company RMB 1,394,200,000
Co., Ltd.
China Merchants Shekou Industrial Zone China Merchants (Shenzhen) Property
RMB 500,000,000
Co., Ltd. Development Co., Ltd.
China Merchants Shekou Industrial Zone Wuhan Aoming Property Development Co.,
RMB 287,000,000
Co., Ltd. Ltd.
China Merchants Shekou Industrial Zone Beijing Conrad Property Development Co.,
RMB 105,560,000
Co., Ltd. Ltd.
China Merchants Shekou Industrial Zone Shenzhen Shekou Seaworld Hotel
RMB 230,300,000
Co., Ltd. Management Co., Ltd.
China Merchants Shekou Industrial Zone Shenzhen Jinyurongtai Investment
RMB 470,500,000
Co., Ltd. Development Co., Ltd.
China Merchants Shekou Industrial Zone
Shenzhen Merchants Construction Co., Ltd. RMB 50,000,000
Co., Ltd.
China Merchants Shekou Industrial Zone
Foshan Merchants Real Estate Co., Ltd. RMB 249,000,000
Co., Ltd.
China Merchants Group (Hongkong) Co.,
Eureka Investment Company Ltd. USD 1,039,000,000
Ltd.
5. Other major affiliated transactions
See other related transaction occurred during the reporting period in notes to financial statements.
VIII. Occupation of non-operating funds of the listed company by controlling shareholders
and their related parties
Not applicable
IX. Important contract and its performance
1. Description on trust, contracting and lease matters
No major items of collocating, contracting and leasing other corporate assets have occurred during the
reporting period.
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2. Guarantee
Unit: RMB 10,000
External guarantee of the Company (excluding guarantee for the subsidiaries)
Disclosure date of Whether
Name of Actual occurrence Actual Completing
announcement Guarantee Type of guaranteed for
guaranteed date (agreement guarantee Guarantee period fulfillment
regarding limit guarantee related party
object date) amount or not
guarantee limit (yes or no)
From the day the
mortgage bank released
Since the day the
Mortgaged Phased joint loans to the day the Real
None mortgage bank 661,188.14 No No
house owner 661,188.14 guarantee Estate ownership
released loans
certificate is issued for
house buyers
November 03, 2011 14,700 March 15, 2012 1,002.47 Two years from the date No Yes
China
Several after the expiration date
Merchants
March 20, 2012 19,110 May 18, 2012 9,465.09 liability of the loan term No Yes
Guangming
Guaranty specified in loan
Science Park
March 18, 2014 4,900 June 12, 2014 3,381 contract. No Yes
China
Merchants Two years from the date
Several
Group Industrial when debt performance
November 14, 2014 9,800 March 31, 2015 490 liability No Yes
Park (Qingdao) period under the loan
Guaranty
Development contract expires
Co., Ltd.
Guarantee for the subsidiaries
Disclosure date Whether
Name of Actual occurrence Actual Completing
of announcement Guarantee Type of guaranteed for
guaranteed date (agreement guarantee Guarantee period fulfillment
regarding limit guarantee related party
object date) amount or not
guarantee limit (yes or no)
Including:
US$30
China 30 days from the date
million US$30 million
Merchants when debt
(equivalent (equivalent to
(Shenzhen) March 19, 2013 June 11, 2013 Several performance period No Yes
to RMB RMB 183.408
Power Supply liability agreed under the loan
183.408 million)
Co., Ltd. Guaranty contract expires
million)
China Two years from the date
September 26, 2014 50,000 September 26, 2014 49,980 No Yes
Merchants when the period of debt
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(Shenzhen) performance by the
Property debtor which is agreed
Development under the master
Co., Ltd. contract expires
China
Merchants
(Harbin) Jiatian
March 18, 2014 12,500 November 27, 2014 12,500 No Yes
Property
Development
Co., Ltd.
Shenzhen
Jinyurongtai
Investment March 10, 2015 25,000 March 18, 2015 25,000 No Yes
Development
Co., Ltd.
Beijing Conrad
Property
May 15, 2012 30,000 May 15, 2012 15,834 No Yes
Development
Co., Ltd.
Shenzhen Vanke
Binhai Property December 26, 2013 40,000 December 06, 2013 20,000 No Yes
Co., Ltd.
China
Merchants
(Guangzhou)
June 25, 2014 60,000 April 23, 2014 28,700 No Yes
Property
Development
Co., Ltd.
China
Merchants
(Foshan)
June 25, 2014 12,000 April 30, 2014 11,940 No Yes
Xincheng From the effective date
High-tech Co., of contract till two years
Ltd. from the date when all
loans under Credit
Foshan Kaida Agreement are due
Town
Investment September 29, 2014 60,000 September 26, 2014 14,950 No Yes
Development
Co., Ltd.
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Foshan Shunde
Evian Zhenyuan
September 29, 2014 22,000 September 29, 2014 5,445 No Yes
Property Co.,
Ltd.
From the effective
date of guarantee
contract till the date
when China
Merchants
Commercial goes
through security
guarantee procedures,
with China Merchants
Shenzhen China Bank as mortgagee,
Merchants of No.1, No.2 and
Business January 13, 2015 15,300 December 23, 2014 12,495 No.3 buildings No Yes
Development (specific names
Co., Ltd. subject to the real
estate ownership
certificate issued by
related authorities) of
Shenzhen Haishang
Shijie
Plaza-Chuanqian
Plaza which it is
legally entitled to
own or dispose of.
Shenzhen
Shekou
Seaworld Hotel December 26, 2013 25,500 October 22, 2013 23,970 No Yes
Management
Co., Ltd.
Two years upon the
China
period of performance
Merchants
of all guaranteed debts
(Nanjing )
March 05, 2014 60,000 August 26, 2013 60,000 expires from the No Yes
Property
effective date of
Development
guarantee contract
Co., Ltd.
Nanjing China
Merchants
March 05, 2014 17,000 January 27, 2014 16,700 No Yes
Ruisheng
Property Co.,
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Ltd.
Nanjing China
Merchants
Ruisheng March 05, 2014 58,000 January 27, 2014 57,700 No Yes
Property Co.,
Ltd.
Shenzhen
Jinyurongtai
Investment June 25, 2014 25,000 June 27, 2014 22,050 No Yes
Development
Co., Ltd.
US$60 The period from the
million US$60 million effective date of
Huitai
(equivalent (equivalent to guarantee contract to the
Investment Co., April 18, 2015 March 03, 2015 No Yes
to RMB RMB 366.816 date when borrowers
Ltd.
366.816 million) repay all debts under
million) the loan contract
Total corporate guarantee amount is RMB 11,078,130,900
(1) Illegal external guarantee of the Company
The Company was free from illegal guarantee during the reported period.
3. Other important contracts
The Company has successively signed loan contract with Agricultural Bank of China, China Construction Bank, Bank of
Communication and China Merchants Bank; as of the end of the reported period, total amount of line of credit equals to RMB 81.5
billion.
4. Other major transactions
Not applicable
X. Existing commitments made by the Company or shareholder holding 5% and above
in/before the reporting period
Commitment Commitment
Commitments Commitment content Commitment time Performances
party term
Commitment of China After reform of non-tradable shares, land Till two years During the
December 9, 2005
equity division Merchants and other high-quality assets will be after the reporting
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reform Shekou continued to be input to support the shareholder no period,
Company development. longer holds the commitments
shares of the have been
Company strictly
fulfilled.
Not to (directly or indirectly) engage in or
develop any businesses or projects with
business scopes similar to the Company;
not to establish, develop, participate in or
assist in any enterprises with any direct or
Till two years Till two years
indirect competition with the Company for
after the after the
Other commitments China the China Merchants Group and the
shareholder no shareholder no
for non-majority Merchants related parties or on behalf of any third March 19, 2008
longer holds the longer holds the
shareholders Shekou parties; not to engage in or participate in
shares of the shares of the
(directly or indirectly in) activities that
Company Company
compete with the Company by taking
advantages of the information obtained
from the Company; and not to have any
other competing behaviors that infringe or
may infringe the Company interests.
WHEREAS, the convertible bonds to be
issued by CMPD in public in 2015 are
required for issuance of convertible bond
During the
this time, as the holding stockholder of
reporting
CMPD, China Merchants Shekou makes a
China period,
Commitment made commitment: where the Company and Long-term
Merchants March 11, 2015 commitments
in IPO/refinancing investors suffer losses arising out of the effective
Shekou have been
violation of laws and rules including the
strictly
matter of leaving non-disclosed land idle
fulfilled.
during the reporting period by CMPD,
the committing party shall undertake the
corresponding liability for damage.
Has the commitment
performed in a Yes
timely manner
XI. Employment and dismissal of the accounting firm
As approved in the annual general meeting of shareholders of the Company of 2014, the Company continues to employ
Shinewing Certified Public Accountants (Special Ordinary Partnership) as the external audit institution of Company of 2015.
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XII. Punishment and rectification
Not applicable
XIII. Risk disclosure on delisting violating laws and rules
Not applicable
XIV. Other important events
Major asset restructuring
China Merchants Group, the practical controller of the Company, is planning for the major assets restructuring involving
unprecedented matters which is associated with the Company. The shares of the Company were continually suspended from April 3,
2015. China Merchants Group is actively promoting the consolidation of the Company with China Merchants
Shekou Industrial Zone Holdings Co., Ltd. (a holding company of the Company, originally named "China
Merchants Shekou Industrial Zone Co., Ltd."). As of the disclosure date, the proposed plan is that China
Merchants Shekou will merge the Company and apply to Shenzhen Stock Exchange for listing.
Document on Application for Cancellation of Issuing of Convertible Bonds of the Company
The Company, upon approval by the third extraordinary general shareholders' meeting 2014, proposed to apply to China
Securities Regulatory Commission for the issuance of RMB 8 billion's convertible bonds and authorized the board of directors to
submit the Report on Applying for the Issuance of Convertible Bonds By China Merchants Property Development Co., Ltd. and other
application documents in December 2014 and obtained the CSRC No.141796 Notice on Acceptance of the Administrative
License Application by China Securities Regulatory Commission.
Whereas China Merchants Group is discussing and working on the major assets restructuring plan to advance
the integration of the Company and the Shekou Industrial Zone, the issuance of convertible bonds is not
applicable. Approved in the 6th Temporary Conference of the 7th Board of Directors of the Company in 2015, the
Company has applied to China Securities Regulatory Commission for withdrawal of the documents on applying
for the public issuance of convertible bonds in 2014 . The Company has received the Notice on Review
Termination of the Administrative Licensing Application by China Securities Regulatory Commission ([2015]
No.131) before the report disclosure date. Pursuant to the applicable provisions in Article 20 of the Regulation on
Procedure Implementation of the Administrative Licensing by China Securities Regulatory Commission, China
Securities Regulatory Commission decided to terminate the review for the above administrative license
application.
Phase II medium-term notes of 2015 issued by the Company
The matter on issuance of the debt financing instruments no less than RMB 5 billion by the Company has
been approved at the Second Extraordinary General Meeting of 2014 on October 24，2014, for which details are
contained in the Notice on the Resolution at the Second Extraordinary General Meeting of 2014 by China
Merchants Property Development Co., Ltd. (Announcement No. [CMPD] 2014-070) published in China
Securities Journal, Shanghai Securities News, Securities Times, Securities Daily, Hong Kong Commercial Daily
and CNINFO (http://www.cninfo.com.cn) by the Company on October 25, 2014.
On December 15, 2014, the Company received the Notice of Registration Acceptance (Z.S.X.Z. [2014] No.
MTN458) issued by National Association of Financial Market Institutional Investors (NAFMII), agreeing to
accept the registration of medium-term notes with a registered amount of RMB 5 billion. The registration limit
shall be effective within 2 years from the date of issuance of the Notice of Registration Acceptance by NAFMII.
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Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
The Company successfully issued the phase II medium-term notes of 2015 on July 9, 2015, for which details
are contained in the Notice on the Resolution at the Second Extraordinary General Meeting of 2014 by China
Merchants Property Development Co., Ltd. (Announcement No. [CMPD] 2015-052) published in China
Securities Journal, Shanghai Securities News, Securities Times, Securities Daily, Hong Kong Commercial Daily
and CNINFO (http://www.cninfo.com.cn) by the Company on July 14, 2015.
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Section Six Capital Changes and Shareholders' Information
I. Changes in equity
Unit: share
Prior to this change Changes (+/-) in this time After this change
Shares
converted
Stock Dividend
Quantity Proportion from Others Subtotal Quantity Proportion
issue stock
reserved
funds
I. Shares with trading
1,337,166,996 51.91 % 9,975 9,975 1,337,176,971 51.91 %
limited conditions
1. Share held by the state
2. Shares held by
1,040,128,975 40.38 % 1,040,128,975 40.38 %
state-owned corporate
3. Other domestic-held
380,487 0.02 % 9,975 9,975 390,462 0.02 %
shares
Including: shares held by
domestic corporate
Shares held by
380,487 0.02 % 9,975 9,975 390,462 0.02 %
domestic natural person
4. Share held by foreign
296,657,534 11.51 % 296,657,534 11.51 %
capital
Including: shares held by
296,564,159 11.51 % 296,564,159 11.51 %
overseas corporate
Shares held by
93,375 0% 93,375 0%
foreign natural person
II. Shares without trading
1,238,783,758 48.09 % -9,975 -9,975 1,238,773,783 48.09 %
limited conditions
1. Ordinary shares in RMB 1,026,426,357 39.85 % -9,975 -9,975 1,026,416,382 39.85 %
2. Domestically-listed
shares held by foreign 212,357,401 8.24 % 212,357,401 8.24 %
investors
3. Overseas-listed shares
held by foreign investors
4. Others
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III. Total shares 2,575,950,754 100 % 2,575,950,754 100 %
During the reporting period, the officers of the Company have left the Company and part of officers have increased stocks of the
Company through the secondary market; and according to related stipulations, Shenzhen Branch of China Securities Depository and
Clearing Corporation Limited (CSDC) has increased the restricted stocks held by corresponding senior managers, which has caused
changes to the limited and unlimited stocks of the Company.
II. Number of shareholders and shareholding status
Unit: share
Total number of
common
shareholders as of 98,350 (A-shares: 87,713, B-shares: 10,637)
the end of the
reporting period
Information of shares held by the top ten shareholders
Quantity of Pledged or frozen
Quantity of
shares held at Increase/decreas Quantity of status
Name of Nature of the Shareholdin held
the end of e during this restricted
shareholders shareholder g ratio un-restricte Shareholdin Quantit
this reporting reporting period share held
d share g status y
period (%)
China Merchants State-owned 1,040,128,97 1,040,128,97
40.38 % None None None None
Shekou corporate 5 5
Full Space
Overseas
Investment 5.48 % 141,216,075 None 141,216,075 None None None
corporate
Limited
China Merchants
Overseas
Securities (HK) 2.92 % 75,241,545 36,468 73,863,367 1,378,178 None None
corporate
Co., Ltd.
FOXTROT
Overseas
INTERNATIONA 1.61 % 41,580,000 None 41,580,000 None None None
corporate
L LIMITED
ORIENTURE
Overseas
INVESTMENT 1.55 % 39,904,717 None 39,904,717 None None None
corporate
LTD
GOLDEN CHINA Overseas
1.03 % 26,487,893 None None 26,487,893 None None
MASTER FUND institutions
National Social Domestic
Security Fund 118 non-state-owne 0.86 % 22,189,608 5,053,220 None 22,189,608 None None
Portfolio d corporate
Invesco Great Wall Domestic
0.58 % 15,000,052 11,999,980 None 15,000,052 None None
Selective Blue non-state-owne
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Chip Share d corporate
Securities
Investment Funds
Fullgoal Tianbo Domestic
Innovative Theme non-state-owne 0.54 % 13,849,442 -4,950,558 None 13,849,442 None None
Stock Fund d corporate
GREENWOODS
Overseas
CHINA ALPHA 0.51 % 13,031,565 None None 13,031,565 None None
institutions
MASTER FUND
Shareholding status of top ten un-restricted shareholders
Quantity of held unrestricted share Class of shares
Name of shareholders
as of the end of the reporting period Class of shares Quantity
GOLDEN CHINA MASTER FUND 39,904,717 B share 39,904,717
National Social Security Fund 118 Portfolio 22,189,608 A share 22,189,608
Invesco Great Wall Selective Blue Chip Share A share
15,000,052 15,000,052
Securities Investment Funds
Fullgoal Tianbo Innovative Theme Stock Fund 13,849,442 A share 13,849,442
GREENWOODS CHINA ALPHA MASTER B share
13,031,565 13,031,565
FUND
Rongtong New Blue Chip Securities Investment A share
12,000,056 12,000,056
Funds
NORGES BANK 11,641,091 B share 11,641,091
Invesco Great Wall Domestic Needs Growth No A share
10,490,450 10,490,450
Two Shares Securities Investment Funds
National Social Security Fund 413 Portfolio 10,000,000 A share 10,000,000
National Social Security Fund 101 Portfolio 8,736,473 A share 8,736,473
1. China Merchants Shekou and its subsidiaries - FOXTROT INTERNATIONAL
LIMITED and ORIENTURE INVESTMENT LTD are Persons Acting in Concert;
GOLDEN CHINA MASTER FUND and GREENWOODS CHINA ALPHA
MASTER FUND are Persons Acting in Concert. Dafeng International, a
Statement on related relationship and acting in
subsidiary of China Merchants Shekou, has entrusted 73,863,367 shares of the
concert of the above-mentioned shareholders
Company to China Merchants Securities (Hongkong) Co., Ltd.
2. Both the Invesco Great Wall Blue-chip Stock Securities Investment Fund and
the Invesco Great Wall Domestic Demand Growth No. 2 Stock Securities
Investment Fund are run by the same funds management company.
III. Changes in the Controlling Shareholder or Actual Controllers
During the reporting period, there is no change in controlling shareholder or actual controller of the Company.
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On June 26, 2015, the Company was renamed China Merchants Shekou Industrial Zone Holdings Co., Ltd.
Block Diagram of Property and Control Relations between the Company and Actual Controller is as follows:
State-owned Assets
Supervision 100 % and
Administration Commission of
China Merchants
State Council
Group 100 %
40.38 %
China Merchants
C Shekou 100 %
hi 2.87 %
na Dafeng
M
er Internationa
100 %
ch OrienturelHoldings Co. Ltd
an
ts
5.48 % 100 %
Pr Full Space Investment Limited
op
er
ty 1.61 % 100 %
Foxtrot International Limited
De
ve
lo 1.55 % 100 %
p OrientureInvestment Limited
m
en
t
C
o.,
IV. Stock Overweight Plan Proposed or Implemented by Shareholders of the Company and
Lt
d.
Persons Acting in Concert during the Reporting Period
During the reporting period, the shareholders of the Company and persons acting in concert have not
proposed or implemented the stock overweight plan.
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Section Seven Information about the Company's Directors,
Supervisors, and Officers
I. Changes in ownership of directors, supervisors and officers
Number of shares Number of increased Number of decreased Number of shares
Position held at the beginning shares held during shares held during held at the end of the
Name Title
status of the period (share) current period (share) current period (share) period (share)
A share B share A share B share A share B share A share B share
Sun
Chairman Incumbent
Chengming
Fu Incumbent
Vice-chairman
Gangfeng
Yang Incumbent
Vice-chairman
Tianping
Managing Incumbent
He Jianya 187,306 187,306
Director
Hu Yong Director Incumbent
Director and Incumbent
Wu Chief
7,500 7,500
Zhenqin Financial
Director
Chen Gang Director Incumbent
Independent Incumbent
Chai Qiang
director
Liu Independent Incumbent
Hongyu director
Lu Independent Incumbent
Weixiong director
Independent Incumbent
Zhang Wei
director
Chairman of Incumbent
Hua Li Board of
Supervisors
Liu Incumbent
Supervisor
Qingliang
Huang Incumbent
Supervisor
Junlong
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Employee Incumbent
Chen Yan
Supervisor
Employee Incumbent
Chen Qing
Supervisor
Deputy Incumbent
Yang
General 100,192 49,500 100,192 49,500
Zhiguang
Manager
Chief Green Incumbent
Hu Jianxin Low-carbon 38,600 38,600
Officer
Deputy Incumbent
Zhu
General 41,500 8,375 33,125
Wenkai
Manager
Deputy Incumbent
Meng Cai General 108,523 108,523
Manager
Deputy Incumbent
Zhang Lin General 18,300 17,250 18,300 17,250
Manager
Wang Chief Incumbent
30,000 30,000
Zhengde Economist
Deputy Incumbent
He Fei General 3,000 3,000
Manager
Deputy Incumbent
Wang Xi General 10,000 10,000
Manager
Secretary of Incumbent
Liu Ning the Board of 20,251 20,251
Directors
Former Quitted
Deputy
Liu Wei 9,900 9,900
General
Manager
Total -- -- 507,321 124,501 10,000 - 8,375 - 508,946 124,501
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II. Personnel changes of directors supervisors and officers
Mr. Liu Wei resigns his his position of vice-general manager of the Company as a result of job change.
Section Eight Financial Report
The semi-annual Financial Report of the Company has not been audited.
Unit in statements in financial notes: RMB
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Financial Statements
Consolidated Balance Sheet
June 30, 2015
Prepared by: China Merchants Property Development Co., Ltd. Unit: yuan
Balance at the end of
Item Note Beginning balance
the period
Current assets:
Monetary fund VI. 1 23,752,513,388.51 22,983,386,443.02
Financial assets measured at fair value with
changes included in profits and losses
Notes receivable VI. 2 13,120,000.00 4,390,000.00
Accounts receivable VI. 3 75,738,101.42 68,311,944.30
Prepayments VI. 4 2,319,248,549.47 3,619,194,870.49
Interests receivable VI. 5 17,574,533.16
Dividends receivable VI. 6 64,195,980.00
Other receivables VI. 7 13,094,208,594.56 8,941,860,794.39
Inventories VI. 8 112,708,539,725.92 101,018,636,735.26
Divided into assets held for sale
Non-current assets due within one year
Other current assets VI. 9 4,014,013,467.72 3,550,695,892.97
Total current assets 155,994,956,360.76 140,250,672,660.43
Non-current assets:
Available-for-sale financial assets
Held-to-maturity investment
Long-term accounts receivable VI. 10 1,197,613,748.94
Long-term equity investments VI. 11 2,016,904,362.05 1,905,735,901.68
Investment property VI. 12 5,340,268,772.92 5,447,243,949.46
Fixed assets VI. 13 1,785,900,854.51 1,845,537,869.92
Construction in progress VI. 14 80,437,759.42 84,973,050.61
Engineering material
Liquidation of fixed assets
Intangible assets VI. 15 503,207,197.99 511,546,467.17
Development expenses
Goodwill VI. 16 159,560,861.23 159,560,861.23
Long-term deferred expenses VI. 17 248,867,341.99 247,265,491.47
Deferred income tax assets VI. 18 1,336,712,299.28 1,239,828,866.61
Other non-current assets VI. 19 144,834,167.45
Total non-current assets 12,814,307,365.78 11,441,692,458.15
Total assets 168,809,263,726.54 151,692,365,118.58
The Notes are the integral part of the financial statement, and the financial statement is signed by the
following persons
Legal representative: Sun Chengming Accounting supervisor: Wu Zhenqin Legal representative of the
accounting firm: Li Shifang
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Consolidated Balance Sheet (Continued)
June 30, 2015
Prepared by: China Merchants Property Development
Unit: yuan
Co., Ltd.
Balance at the end of
Item Note Beginning balance
the period
Current liabilities:
Short-term loans VI. 20 661,360,000.00 3,886,900,000.00
Financial liabilities measured at fair value with
changes included in current profits and losses
Notes payable VI. 21 135,838,559.70 47,344,138.00
Accounts payable VI. 22 11,398,328,029.62 15,213,477,059.40
Account received in advance VI. 23 44,331,491,628.00 35,599,290,811.40
Payroll payable VI. 24 228,547,487.17 398,745,343.32
Tax payable VI. 25 1,379,322,049.30 3,133,693,418.62
Interests payable VI. 26 305,950,402.18 192,136,769.30
Dividends payable VI. 27 118,244,875.70 160,730,318.08
Other payables VI. 28 12,994,818,432.01 11,782,505,874.39
Divided into liabilities held for sale
Non-current liabilities due within one year VI. 29 8,790,998,800.00 5,970,100,938.48
Other current liabilities VI. 30 3,450,912,959.45 3,729,367,673.26
Total current liabilities 83,795,813,223.13 80,114,292,344.25
Non-current liabilities:
Long-term loans VI. 31 28,108,117,424.75 24,666,515,200.02
Bonds payable VI. 32 5,428,232,355.96 3,018,076,924.57
Long-term payables VI. 33 3,575,058,351.11 104,353,146.52
Long-term remuneration payable
Special payables:
Estimated liabilities
Deferred income VI. 34 8,001,340.28 6,526,053.33
Deferred income tax liabilities VI. 18 433,869,872.83 35,822,337.24
Other non-current liabilities VI. 35 61,341,172.42
Total non-current liabilities 37,614,620,517.35 27,831,293,661.68
Total liabilities 121,410,433,740.48 107,945,586,005.93
Owners' equity:
Share capital VI. 36 2,575,950,754.00 2,575,950,754.00
Other equity instruments
Capital reserve VI. 37 8,891,695,526.72 8,529,757,654.36
Less: treasury stocks
Other comprehensive income VI. 38 79,040,568.71 78,901,353.52
Special reserves
Surplus reserve VI. 39 1,246,228,257.72 1,246,228,257.72
Undistributed profit VI. 40 19,984,776,014.63 18,663,578,091.22
Total owners' equity attributable to parent
32,777,691,121.78 31,094,416,110.82
company
Minority shareholders' equity 14,621,138,864.28 12,652,363,001.83
Total shareholders' equity 47,398,829,986.06 43,746,779,112.65
Total liabilities and shareholders' equity 168,809,263,726.54 151,692,365,118.58
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Consolidated Balance Sheet of Parent Company
June 30, 2015
Prepared by: China Merchants Property
Unit: yuan
Development Co., Ltd.
Balance at the end of
Item Note Beginning balance
the period
Current assets:
Monetary fund 6,548,407,550.60 8,893,516,594.16
Financial assets measured at fair value with
changes included in profits and losses
Notes receivable
Accounts receivable
Prepayments
Interests receivable 13,695,834.47 25,144,020.00
Dividends receivable 2,096,966,208.84 2,037,168,805.28
Other receivables XVI. 1 24,687,852,992.53 29,205,557,475.48
Inventories
Divided into assets held for sale
Non-current assets due within one year
Other current assets
Total current assets 33,346,922,586.44 40,161,386,894.92
Non-current assets:
Available-for-sale financial assets
Held-to-maturity investment
Long-term accounts receivable 3,241,036,294.96
Long-term equity investments XVI. 2 9,047,225,858.39 8,926,259,288.07
Investment property
Fixed assets 1,014,639.49 1,153,721.49
Construction in progress
Engineering material
Liquidation of fixed assets
Intangible assets
Development expenses
Goodwill
Long-term deferred expenses
Deferred income tax assets
Other non-current assets
Total non-current assets 12,289,276,792.84 8,927,413,009.56
Total assets 45,636,199,379.28 49,088,799,904.48
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Balance Sheet of Parent Company (continued)
June 30, 2015
Prepared by: China Merchants Property
Unit: yuan
Development Co., Ltd.
Balance at the end of
Item Note Beginning balance
the period
Current liabilities:
Short-term loans 50,000,000.00 3,275,000,000.00
Financial liabilities measured at fair value
with changes included in current profits and
losses
Notes payable 37,059,280.36
Accounts payable 173,765,648.91 320,143,894.81
Account received in advance
Payroll payable -420,070.35 9,402,578.82
Tax payable 29,133,542.72 656,908.61
Interests payable 207,280,933.56 139,423,235.44
Dividends payable
Other payables 13,504,078,979.52 14,165,111,926.02
Divided into liabilities held for sale
Non-current liabilities due within one year 2,592,610,800.00 4,012,581,100.00
Other current liabilities
Total current liabilities 16,593,509,114.72 21,922,319,643.70
Non-current liabilities:
Long-term loans 11,173,809,920.00 9,695,442,200.00
Bonds payable 1,000,000,000.00
Long-term payables
Long-term remuneration payable
Special payables:
Estimated liabilities
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 12,173,809,920.00 9,695,442,200.00
Total liabilities 28,767,319,034.72 31,617,761,843.70
Owners' equity:
Share capital 2,575,950,754.00 2,575,950,754.00
Other equity instruments
Capital reserve 8,080,172,222.38 8,077,543,540.86
Less: treasury stocks
Other comprehensive income
Special reserves
Surplus reserve 1,195,276,864.72 1,195,276,864.72
Undistributed profit 5,017,480,503.46 5,622,266,901.20
Total shareholders' equity 16,868,880,344.56 17,471,038,060.78
Total liabilities and shareholders' equity 45,636,199,379.28 49,088,799,904.48
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Consolidated profit statement
January - June 2015
Prepared by: China Merchants Property Unit: yuan
Development Co., Ltd.
Amount of current Amount of the same
Item Note
period period of last year
I. Total operating income 17,973,948,437.46 16,047,155,730.99
Including: operating income VI. 41 17,973,948,437.46 16,047,155,730.99
II. Total operating cost 14,998,019,532.62 12,845,676,701.45
Including: operating cost VI. 41 11,986,510,250.36 10,391,068,273.47
Operating taxes and surcharges VI. 42 1,950,243,032.76 1,614,019,700.29
Sales expenses VI. 43 334,261,066.67 281,938,248.45
Administrative expenses; VI. 44 272,488,851.73 231,659,798.70
Financial expenses VI. 45 455,736,062.10 326,102,386.55
Assets impairment losses VI. 46 -1,219,731.00 888,293.99
Add: income from changes in fair
value(―-‖indicates the loss)
Investment profit (―-‖ indicates the loss) VI. 47 493,114,654.44 143,318,415.51
Including: investment income from
VI. 47 42,235,644.34 143,318,415.51
affiliated enterprises and joint ventures
III. Operating profit (“-” indicates the loss) 3,469,043,559.28 3,344,797,445.05
Add: non-operating income VI. 48 27,355,516.15 35,496,879.63
Including: gains from disposal of
VI. 48 150,369.00 14,184.22
non-current assets
Less: non-operating expenditure VI. 49 17,349,667.98 21,725,415.49
Including: loss from disposal of
VI. 49 8,451.04 175,062.57
non-current assets
IV. Total profit (“-” indicates the total loss) 3,479,049,407.45 3,358,568,909.19
Less: income tax VI. 50 1,090,902,279.86 964,496,768.41
V. Net profit (―-‖ indicates the net loss) 2,388,147,127.59 2,394,072,140.78
Net profits attributable to the parent company
2,145,502,164.69 1,785,434,748.85
shareholders
Gain and loss of minority shareholders 242,644,962.90 608,637,391.93
VI. After-tax net of other comprehensive
187,243.03
incomes
After-tax net of other comprehensive incomes
139,215.19
owned by the owner of the parent company
(I) Other comprehensive incomes that
cannot be classified into profit and loss in the
future
1. Re-measurement of changes in net
liabilities or net assets in defined benefit plan
2. Share in other comprehensive incomes
that cannot be reclassified into profit and loss in
investee by equity method
(II) Other comprehensive incomes that
139,215.19
would be classified into profit and loss in the future
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1. Shares in other comprehensive incomes
that can be reclassified into profit and loss in
investee by equity method in the future
2.Loss and profit of change in fair value of
available-for-sale financial assets
3. Loss and profit of available-for-sale
financial assets of held-to-maturity investments
4. Effective part of hedge profit and loss of
cash flow
5. Translation difference in the foreign
139,215.19
currency financial statement
6. Others
Net of tax from other comprehensive incomes
48,027.84
owned by minority stockholders
VII. Total comprehensive income 2,388,334,370.62 2,394,072,140.78
Total consolidated income attributable to the
2,145,641,379.88 1,785,434,748.85
shareholder of the parent company
Total consolidated income attributable to
242,692,990.74 608,637,391.93
minority shareholders
VIII. Earnings per share:
(I) Basic earnings per share 0.83 0.69
(II) Diluted earnings per share 0.83 0.69
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Profit Statement of Parent Company
January - June 2015
Prepared by: China Merchants Property Development Co.,
Unit: yuan
Ltd.
Amount of the
Amount of current
Item Note same period of
period
last year
I. Operating income XVI. 3 6,240,000.00 500,000.00
Less: operating cost XVI. 3 1,228,912.37 1,057,252.16
Operating taxes and surcharges 1,119,189.10 2,240,568.26
Sales expenses
Administrative expenses; 20,395,505.54 20,151,253.94
Financial expenses -16,619,737.45 83,121,614.09
Assets impairment losses
Add: income from changes in fair value(―-‖indicates the
loss)
Investment profit (―-‖ indicates the loss) XVI. 4 218,361,212.94 53,839,437.84
Including: investment income from affiliated
XVI. 4 69,929.10 -359,190.17
enterprises and joint ventures
II. Operating profit (―-‖ indicates the loss) 218,477,343.38 -52,231,250.61
Add: non-operating income 1,040,500.16
Including: gains from disposal of non-current
assets
Less: non-operating expenses 2,000.00
Including: loss from disposal of non-current
assets
Ⅲ. Total profit ("-"indicates the total loss) 219,517,843.54 -52,233,250.61
Less: income tax
IV. Net profit (―-‖ indicates the loss) 219,517,843.54 -52,233,250.61
V. After-tax net of other comprehensive incomes
(I) Other comprehensive incomes that cannot be
classified into profit and loss in the future
1. Re-measurement of changes in net liabilities or net
assets in defined benefit plan
2. Share in other comprehensive incomes that cannot
be reclassified into profit and loss in investee by equity
method
(II) Other comprehensive incomes that would be
classified into profit and loss in the future
1. Shares in other comprehensive incomes that can be
reclassified into profit and loss in investee by equity method
in the future
2.Loss and profit of change in fair value of
available-for-sale financial assets
3. Loss and profit of available-for-sale financial assets
of held-to-maturity investments
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4. Effective part of hedge profit and loss of cash flow
5. Translation difference in the foreign currency
financial statement
6. Others
VI. Total Comprehensive Income 219,517,843.54 -52,233,250.61
VII. Earnings per share
(I) Basic earnings per share
(II) Diluted earnings per share
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Consolidated Cash Flow Statement
January - June 2015
Prepared by: China Merchants Property Development Co., Ltd. Unit: yuan
Amount of current Amount of the same
Item Note
period period of last year
I. Cash flows from operating activities:
Cash received from sales of commodities and
22,919,760,919.87 18,355,477,590.23
provision of services
Refunds of taxes and levies
Cash received from other operating activities VI. 51 4,950,861,844.21 3,871,017,979.61
Sub-total of cash inflows from operating activities 27,870,622,764.08 22,226,495,569.84
Cash paid for purchasing goods and services 20,261,758,470.60 20,625,105,111.33
Cash paid to and for employees 1,161,424,042.43 854,694,963.32
Payments of taxes 6,010,179,943.53 5,455,155,348.46
Other cash paid relating to operating activities VI. 51 7,798,355,394.74 2,623,864,543.85
Sub-total of cash outflows from operating activities 35,231,717,851.30 29,558,819,966.96
Net cash flows from operating activities -7,361,095,087.22 -7,332,324,397.12
II. Cash flows from investing activities:
Cash received from withdrawal of investments
Cash received from returns on investments 65,195,980.00 20,548,073.61
Net cash received from disposal of fixed assets,
174,843.10 46,854.00
intangible assets and other long-term assets
Net cash received from disposal of subsidiaries and
other business units
Other cash received relating to investing activities VI. 51 630,235,033.61
Sub-total of cash inflows from investing activities 695,605,856.71 20,594,927.61
Cash paid to acquire fixed assets, intangible assets &
12,390,482.84 27,602,326.34
other long-term assets
Cash paid to acquire investments 483,925,736.00 58,671,105.19
Net cash received from payment of subsidiaries and
other business units
Cash payments relating to other investment activities
Sub-total of cash outflows from investing activities 496,316,218.84 86,273,431.53
Net cash flows from investing activities 199,289,637.87 -65,678,503.92
III. Cash flows from financing activities:
Cash received from capital contribution 889,181,567.06 52,690,666.19
Including: cash from the investment of minority
889,181,567.06 52,690,666.19
shareholders of the subsidiaries
Cash received from borrowings 13,555,217,307.88 9,924,282,155.82
Cash from issue of bonds 2,749,531,871.47
Other cash received relating to financing activities
Sub-total of cash inflows from financing activities 17,193,930,746.41 9,976,972,822.01
Cash repayment for debts 7,149,750,641.35 6,715,774,121.48
Cash paid for distribution of dividends and profits or
2,130,870,039.43 1,522,713,038.14
payment of interests
Including: dividends and profits paid by 161,873,738.11 232,862,000.00
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subsidiaries to minority shareholders
Other cash payments relating to financing activities 922,920.00
Sub-total of cash outflows from financing activities 9,280,620,680.78 8,239,410,079.62
Net cash flows from financing activities 7,913,310,065.63 1,737,562,742.39
IV. Influence of exchange rate change on cash and cash
27,172,033.42 10,709,264.21
equivalents
V. Net increase of cash and cash equivalents 778,676,649.70 -5,649,730,894.44
Add: balance of cash and cash equivalents at the
22,947,760,259.27 24,235,680,921.50
beginning of period
VI. Balance of cash and cash equivalents at the end of
VI. 51 23,726,436,908.97 18,585,950,027.06
period
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Cash Flow Statement of Parent Company
January - June 2015
Prepared by: China Merchants Property Development
Unit: yuan
Co., Ltd.
Amount of current Amount of the same
Item Note
period period of last year
I. Cash flows from operating activities:
Cash received from sales of commodities and
6,245,000.00 500,000.00
provision of services
Refunds of taxes and levies -
Cash received from other operating activities 40,879,009,183.66 5,154,554,447.21
Sub-total of cash inflows from operating activities 40,885,254,183.66 5,155,054,447.21
Cash paid for purchasing goods and services -
Cash paid to and on behalf of employees 30,224,753.14 36,214,887.14
Payments of taxes 4,140,137.42 4,271,957.18
Other cash paid relating to operating activities 36,733,046,791.70 7,456,488,650.15
Sub-total of cash outflows from operating activities 36,767,411,682.26 7,496,975,494.47
Net cash flows from operating activities 4,117,842,501.40 -2,341,921,047.26
II. Cash flows from investing activities:
Cash received from withdrawal of investments -
Cash received from returns on investments 11,048,172.61 216,213,570.06
Net cash received from disposal of fixed assets,
-
intangible assets & other long-term assets
Net cash received from disposal of subsidiaries
and other business units
Other cash received relating to investing
-
activities
Sub-total of cash inflows from investing activities 11,048,172.61 216,213,570.06
Cash paid to acquire fixed assets, intangible
9,448.00 20,880.00
assets and other long-term assets
Cash paid to acquire investments 269,633,231.99 88,671,105.19
Net cash received from payment of subsidiaries
-
and other business units
Cash payments relating to other investment
2,780,870,504.49 -
activities
Sub-total of cash outflows from investing activities 3,050,513,184.48 88,691,985.19
Net cash flows from investing activities -3,039,465,011.87 127,521,584.87
III. Cash flows from financing activities:
Cash received from capital contribution -
Cash received from borrowings 2,050,000,000.00 4,917,261,400.00
Cash from issue of bonds 1,000,000,000.00 -
Other cash received relating to financing
activities
Sub-total of cash inflows from financing activities 3,050,000,000.00 4,917,261,400.00
Cash repayments of amounts borrowed 5,215,972,250.00 3,158,976,000.00
Cash payments for interest expenses and
797,121,299.64 674,974,230.45
distribution of dividends or profit
Other cash payments relating to financing
457,078,758.74 -
activities
Sub-total of cash outflows from financing activities 6,470,172,308.38 3,833,950,230.45
Net cash flows from financing activities -3,420,172,308.38 1,083,311,169.55
IV. Influence of exchange rate change on cash and -3,314,224.71 -11,144,685.25
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cash equivalents
V. Net increase of cash and cash equivalents -2,345,109,043.56 -1,142,232,978.09
Add: balance of cash and cash equivalents at the
8,893,516,594.16 6,296,121,745.68
beginning of period
VI. Balance of cash and cash equivalents at the end
6,548,407,550.60 5,153,888,767.59
of period
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Consolidated Statement of Owners' Equity Changes
January - June 2015
Prepared by: China Merchants Property Development Co., Ltd. Unit: yuan
Current year
Total shareholders' equity attributed to parent company
Item Minority
Less: Other General Total owners'
Undistributed shareholders'
Share capital Capital reserve treasury comprehensive Surplus reserve risk equity
profit equity
stocks income provisions
I. Balances at the end of previous year 2,575,950,754.00 8,529,757,654.36 78,901,353.52 1,246,228,257.72 18,663,578,091.22 12,652,363,001.83 43,746,779,112.65
Add: profit or loss from accounting policy changes
Fund for corrections of errors of previous period
Corporate merge under common control
Others
II. Balances at the beginning of this year 2,575,950,754.00 8,529,757,654.36 78,901,353.52 1,246,228,257.72 18,663,578,091.22 12,652,363,001.83 43,746,779,112.65
III. Increased/decreased amount this year (“-” indicates decrease) 361,937,872.36 139,215.19 1,321,197,923.41 1,968,775,862.45 3,652,050,873.41
(I) Total comprehensive income 139,215.19 2,145,502,164.69 242,692,990.74 2,388,334,370.62
(II) Capital paid in and reduced by shareholders 373,715,121.50 1,845,471,167.44 2,219,186,288.94
1. Ordinary share invested by shareholders 49,615,778.95 1,739,195,664.69 1,788,811,443.64
2. Capital invested by other equity instruments holders 308,053,942.66 106,275,502.75 414,329,445.41
3. Amounts of share-based payments recognized in shareholders' equity 16,045,399.89 16,045,399.89
4. Others
(III) Profit distribution - -824,304,241.28 -119,388,295.73 -943,692,537.01
1. Appropriation to surplus reserves
2. Appropriation of general risk reserves
3. Distribution to owners (or shareholder) -824,304,241.28 -119,388,295.73 -943,692,537.01
4. Others
(IV) Internal carried-forward of shareholders’ equity -
1. Capital reserves transferred to share capital
2. Surplus reserves transferred to share capital
3. Surplus reserves for making up losses
4. Others
(V) Special reserve -
1. Withdrawn amount of this year
2. Utilization amount of this year
(VI) Others -11,777,249.14 -11,777,249.14
IV. Balance at the ending of this year 2,575,950,754.00 8,891,695,526.72 79,040,568.71 1,246,228,257.72 19,984,776,014.63 14,621,138,864.28 47,398,829,986.06
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Consolidated Statement of Owners' Equity (continued)
January - June 2015
Prepared by: China Merchants Property Development Co., Ltd. Unit: yuan
2009
Total shareholders' equity attributed to parent company
Item Minority
Less: Other General Total owners'
Undistributed shareholders'
Share capital Capital reserve treasury comprehensive Surplus reserve risk equity
profit equity
stocks income provisions
I. Balances at the end of previous year 1,717,300,503.00 8,458,826,075.70 78,901,353.52 1,133,515,392.99 15,336,958,642.03 12,191,665,237.52 38,917,167,204.76
Add: profit or loss from accounting policy changes
Fund for corrections of errors of previous period
Corporate merge under common control
Others
II. Balances at the beginning of this year 1,717,300,503.00 8,458,826,075.70 78,901,353.52 1,133,515,392.99 15,336,958,642.03 12,191,665,237.52 38,917,167,204.76
III. Increased/decreased amount this year (“-” indicates decrease) 858,650,251.00 70,931,578.66 112,712,864.73 3,326,619,449.19 460,697,764.31 4,829,611,907.89
(I) Total comprehensive income 4,263,636,555.36 1,246,213,906.48 5,509,850,461.84
(II) Capital paid in and reduced by shareholders 929,581,829.66 439,818,386.34 1,369,400,216.00
1. Ordinary share invested by shareholders 1,360,260,617.14 1,360,260,617.14
2. Capital invested by other equity instruments holders -
3. Amounts of share-based payments recognized in shareholders' equity 9,113,603.33 9,113,603.33
4. Others 920,468,226.33 -920,442,230.80 25,995.53
(III) Profit distribution 112,712,864.73 -937,017,106.17 -1,225,334,528.51 -2,049,638,769.95
1. Appropriation to surplus reserves 112,712,864.73 -112,712,864.73
2. Appropriation of general risk reserves
3. Distribution to owners (or shareholder) -824,304,241.44 -1,225,334,528.51 -2,049,638,769.95
4. Others
(IV) Internal carried-forward of shareholders’ equity 858,650,251.00 -858,650,251.00
1. Capital reserves transferred to share capital 858,650,251.00 -858,650,251.00
2. Surplus reserves transferred to share capital
3. Surplus reserves for making up losses
4. Others
(V) Special reserve
1. Withdrawn amount of this year
2. Utilization amount of this year
(VI) Others
IV. Balance at the ending of this year 2,575,950,754.00 8,529,757,654.36 78,901,353.52 1,246,228,257.72 18,663,578,091.22 12,652,363,001.83 43,746,779,112.65
63
Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
Statement of Equity Changes of Parent Company Owner
January - June 2015
Prepared by: China Merchants Property Development Co., Ltd. Unit: yuan
Current year
Item Other
Less: treasury Special Undistributed Total owners'
Share capital Capital reserve comprehensiv Surplus reserve
stocks reserves profit equity
e income
2,575,950,754.0 8,077,543,540.8 1,195,276,864.7 17,471,038,060.7
I. Balances at the end of previous year 5,622,266,901.20
0 6 2 8
Add: profit or loss from accounting policy changes
Fund for corrections of errors of previous period
Others
2,575,950,754.0 8,077,543,540.8 1,195,276,864.7 17,471,038,060.7
II. Balances at the beginning of this year 5,622,266,901.20
0 6 2 8
III. Increased/decreased amount this year (“-” indicates
2,628,681.52 -604,786,397.74 -602,157,716.22
decrease)
(I) Total comprehensive income 219,517,843.54 219,517,843.54
(II) Capital paid in and reduced by shareholders 2,628,681.52 2,628,681.52
1. Ordinary share invested by shareholders
2. Capital invested by other equity instruments holders
3. Amounts of share-based payments recognized in shareholders'
2,628,681.52 2,628,681.52
equity
4. Others
(III) Profit distribution -824,304,241.28 -824,304,241.28
1. Appropriation to surplus reserves
2. Distribution to shareholders -824,304,241.28 -824,304,241.28
3. Others
(IV) Internal carried-forward of shareholders’ equity
1. Capital reserves transferred to share capital
2. Surplus reserves transferred to share capital
3. Surplus reserves for making up losses
4. Others
(V) Special reserve
1. Withdrawn amount of this year
2. Utilization amount of this year
(VI) Others
2,575,950,754.0 8,080,172,222.3 1,195,276,864.7 16,868,880,344.5
IV. Balance at the ending of this year 5,017,480,503.46
0 8 2 6
64
Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
Statement of Equity Changes of Parent Company Owner (continued)
January - June 2015
Prepared by: China Merchants Property Development Co., Ltd. Unit: yuan
2009
Item Other
Less: treasury Special Undistributed Total owners'
Share capital Capital reserve comprehensiv Surplus reserve
stocks reserves profit equity
e income
1,717,300,503.0 8,927,054,193.0 1,082,563,999.9 17,159,074,056.0
I. Balances at the end of previous year 5,432,155,360.06
0 0 9 5
Add: profit or loss from accounting policy changes -
Fund for corrections of errors of previous period -
Others -
1,717,300,503.0 8,927,054,193.0 1,082,563,999.9 17,159,074,056.0
II. Balances at the beginning of this year 5,432,155,360.06
0 0 9 5
III. Increased/decreased amount this year (“-” indicates
858,650,251.00 -849,510,652.14 112,712,864.73 190,111,541.14 311,964,004.73
decrease)
(I) Total comprehensive income 1,127,128,647.31 1,127,128,647.31
(II) Capital paid in and reduced by shareholders 9,139,598.86 9,139,598.86
1. Ordinary share invested by shareholders
2. Capital invested by other equity instruments holders
3. Amounts of share-based payments recognized in shareholders'
9,113,603.33 9,113,603.33
equity
4. Others 25,995.53 25,995.53
(III) Profit distribution 112,712,864.73 -937,017,106.17 -824,304,241.44
1. Appropriation to surplus reserves 112,712,864.73 -112,712,864.73
2. Distribution to shareholders -824,304,241.44 -824,304,241.44
3. Others
(IV) Internal carried-forward of shareholders’ equity 858,650,251.00 -858,650,251.00
1. Capital reserves transferred to share capital 858,650,251.00 -858,650,251.00
2. Surplus reserves transferred to share capital
3. Surplus reserves for making up losses
4. Others
(V) Special reserve
1. Withdrawn amount of this year
2. Utilization amount of this year
(VI) Others
2,575,950,754.0 8,077,543,540.8 1,195,276,864.7 17,471,038,060.7
IV. Balance at the ending of this year 5,622,266,901.20
0 6 2 8
65
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
I. Company profile
China Merchants Property Development Co., Ltd (hereinafter referred to as the Company and the Group when
the subsidiaries are referred to), originally named China Merchants Shekou Holdings Co., Ltd and founded in
Shenzhen, China, September 1990, is a joint venture through restructuring of China Merchants Shekou Port Service
Co., Ltd by China Merchants Shekou Industrial Zone Holdings Co., Ltd. (hereinafter referred to China Merchants
Shekou).
In February 1993, the Company issued 27,000,000 Class A shares by way of public offering within the territory
of People's Republic of China and 50,000,000 Class B shares outside the territory of People's Republic of China as
approved by SFBF (1993) No. 358 Document issued by the General Office of the People’s Government of Shenzhen.
This made the total shares of the Company aggregate to 210,000,000 shares. A share and B share issued by
the Company were listed on the Shenzhen Stock Exchange in June 1993.
In July 1995, part of B shares of the Company was listed on the Singapore Stock Exchange
in the form SDR (Singapore Depository Receipts).
In June 2004, the Company was renamed as China Merchants Property Development Co.,
Ltd. As of December 31, 2004, the total shares of the Company aggregated to 618,822,672
shares through dividend payout and distribution from 1994 to 2004.
On January 18, 2006, the scheme of split structure reform of Class A shares was adopted at
relevant shareholder’ meetings of the Company, namely each holder of outstanding Class A
shares of the Company can acquire two Class A shares and cash of RMB 3.14 from
non-outstanding shareholders for every 10 outstanding Class A shares he or she held. After the
implementation of the scheme, the total shares of the Company remained unchanged.
As approved by Doc.No.67 (ZJFZ[2006]) of China Securities Regulatory Commission, on
August 30, 2006, the Company preferably placed the full amount to the shareholders of the
original A share who waive part of 15,100,000 convertible bonds (with the par value of
RMB100 for each) of the Company which was distributed by the way of public offering to
institutional investors offline at fixed prices. This part of convertible bonds of the Company was
listed on Shenzhen Stock Exchange for trading from September 11, 2006 (―China Merchants
Convertible Bond‖ for short) and these bonds were converted into shares on March 1, 2007.
On May 25 2007, the China Merchants convertible bond stopped trading and converted,
the non-converted bonds were repurchased by the Company. As result, the Company had a total
of 15,093,841 convertible bonds with the par value of RMB 1,509,384,100 converted to
115,307,691 shares; the remaining non-converted 6,159 bonds with the par value of RMB
66
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
615,900 were repurchased by the Company. As result, the total shares of the Company
aggregated to 734,130,363 shares.
As approved by Doc.No.299 (ZJFXZ [2007]) of China Securities Regulatory Commission,
the Company issued 110,736,639 non-public shares to China Merchants Shekou (the
shareholder of the Company) on September 19, 2007. After this issuance, the total shares of the
Company aggregated to 844,867,002 shares.
On March 17, 2008, the Scheme of Profit Distribution and Capitalization from Capital
Public Reserve for 2007 was reviewed and adopted at the annual shareholder meeting in 2007,
in which the Company made a profit contribution for every 10 shares with 3 shares based on
844,867,002 shares in total on December 31, 2007 and every 10 shares were distributed with 2
shares from capitalization of capital public reserve. After this distribution and conversion, the
total shares of the Company aggregate to 1,267,300,503 shares.
As approved by Doc.No.989 (ZJXK [2008]) of China Securities Regulatory Commission ,
the Company publicly issued 450,000,000 shares to the shareholders of the original A share
on November 26, 2008, of which China Merchants Shekou purchased 279,349,288 shares. After
this issuance, the total shares of the Company aggregated to 1,717,300,503 shares.
On April 14, 2014, the Scheme of Profit Distribution and Capitalization from Capital
Public Reserve to Capital Stock 2013 was reviewed and adopted at the annual shareholder
meeting in 2013, in which every 10 shares were distributed with 5 ordinary shares from
capitalization from capital public reserve based on the total 1,717,300,503 share at the end of
2013 . After this, a total of 858,650,251 shares were added and the total shares of the Company
aggregated to 2,575,950,754 shares.
As of June 30, 2015, the total shares of the Company aggregated to 2,575,950,754 shares, of which there were
1,337,176,971 shares with trading limited conditions (accounting for 51.91% of total shares) and 1,238,773,783
shares without trading limited conditions (accounting for 48.09% of total shares).
The Company is a property development company, mainly engaging in the property
development, operation and management and utilities (power) supply services.
The controlling shareholder of the Company is China Merchants Shekou, and the ultimate
controller is China Merchants Group. The Shareholder's General Committee is the Company's
organ of authority and shall exercise decision right of such major events as preparation of
operational guideline, financing, investment, profit distribution, etc. The Board of Directors is
accountable to the Shareholder's General Committee and shall exercise the rights of
67
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
management and decision-making; the management is liable for the organization and
implementation of decisions of Shareholder's General Committee and Board of Directors, and
organization of production, operation and management of the Company.
II. Scope of consolidated financial statements
The consolidated financial statements of the Group involve 191 companies such as the Company and China
Merchants Real Estate (Shenzhen) CO., LTD. Compared to last year, 11 companies including China
Merchants (Shanghai) Baoxin Property Co., Ltd. are added due to establishment, as well as 2
companies including Beijing Guangying Residential Property Development Limited due to
combination of enterprises not under the common control.
For details, see Note ―VII Change in consolidation scope‖ and ―VIII Rights and interests in
other parties‖.
III. Formulation basis of financial statements
The financial statements were prepared on the basis of going-concern assumption, actual
trades, Enterprise Accounting System issued by the Ministry of Finance as well as accounting
policies and accounting estimates based on Note IV "Significant Accounting Policies and
Accounting Estimates".
IV. Significant Accounting Policies and Accounting Estimates
1. Statement for Compliance with Enterprise Accounting System
The financial statements prepared by the Company fully comply with Accounting
Standards for Business Enterprise and demonstrate truly and completely the financial status of
the Company and the Group, operating performance and cash flow.
2. Accounting period
The fiscal year of the Group runs from January 1 to December 31 of each calendar year.
3. Functional Currency
Except as the overseas operational entity in the Note of "53.(2) under VI.", the Company
and other subsidiaries recognize RMB as their functional currency.
68
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
4. Accounting methods for corporate merger under the same control and not under the
same control
The assets and debts acquired by the Group (as the merging party) through merging with
other enterprises under common control shall be measured as per the book value of the merged
party in the consolidated financial statements of the ultimate controller on the day of merger.
The difference between the book value of net assets acquired and the book value of the
combination paid is used to adjust the capital reserves, and the retained earnings are adjusted in
case of insufficient capital reserves.
Regarding combination not under common control, the recognizable assets, liabilities and
contingent liabilities of the seller are measured upon fair value on the purchase day. The
merger cost is the sum of cash or the fair value of non-cash assets, issued or borne debts and
issued equity securities paid by the Group for acquiring the control over the acquiree on the
purchase day and all of the expenses incurred to the Group directly relevant to the merging. In
case of merging by step, the merger cost is the sum of the cost of every single transaction.
Where the merger cost is more than acquired definable net assets fair proportion of the
acquiree, the balance is recognized as goodwill. Where the merger cost is less than acquired
definable net assets fair proportion of the acquiree, the definable assets, debts, fair value of
contingent liabilities and the fair value of the non-cash assets or issued equity securities as
merger consideration are rechecked first, and in case the merger cost is less than acquired
definable net assets fair proportion of the acquiree after recheck, the balance is included in
current nonrevenue receipt.
5. Preparation method of consolidated financial statements
The Group incorporates all of the subsidiaries and structured entities under its control into
the consolidated financial statements.
For any difference occurring in accounting policies and accounting periods between the
Company and its subsidiaries when preparing consolidated financial statements, necessary
adjustments shall be made based on accounting policies and periods of the Company.
All transactions, significant balances and unrealized gains within the consolidation range
are reduced in the preparation of consolidated financial statements. For the subsidiaries, the
proportion of ownership equity not belonging to the parent company, current net profits and
losses, other comprehensive income and the proportion of the total comprehensive income
belonging to minority shareholder are included in ―Equity for minority shareholder‖, ―Profits
and losses for minority shareholder‖, ―Other comprehensive income for minority shareholder
69
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
―and ―Total comprehensive income for minority shareholder‖ respectively in the consolidated
financial statements.
For the subsidiaries under common control merged by the Group, the operation results and
cash flow of such subsidiaries are incorporated into the consolidated financial statements from
the beginning of the current period in which the merger is carried out. When preparing the
comparative consolidated financial statements, the relevant items in the financial statements of
the last year are adjusted based on the assumption that the reporting entity exists since the
ultimate controller has obtained the controlling right
For the subsidiaries not under common control merged by the Group, the operation results
and cash flow of such subsidiaries are incorporated into the consolidated financial statements
from the day of the Group acquiring the control over the subsidiary. In preparation of
consolidated financial reports, financial statements of subsidiaries shall be adjusted based on the
fair value of recognizable net assets, liabilities and contingent liability defined on the purchasing
date.
Where the Group disposed part of long-term equity investment in the subsidiaries without
losing control over of such subsidiaries, in the financial statements, the balance between the
income from disposal and the net assets proportion of the subsidiaries entitled by the disposed
long-term equity investment and continually calculated from the purchase day or day of merger
is adjusted as the capital stock premium of the capital public reserve and retained earnings is
adjusted in case of the capital public reserve not enough for deduction.
Where the Group lost the control over the invested party for such reason as disposing
partial equity investment, the remaining equity was re-measured as per the fair value of such
equity on the day of losing controlling right when preparing the consolidated financial
statements. The balance between the sum of the consideration from the disposal of equity and
the fair value of the remaining equity and the net assets proportion of the subsidiaries entitled by
the disposed long-term equity investment and continually calculated from the purchase day or
day of merger is included in the investment income for the period and the goodwill is deducted.
Other consolidated income related to the equity investment of the original subsidiary shall be
transferred into current investment profit and loss upon losing control.
Where the Group lost control over a subsidiary through multiple transactions and
step-by-step disposal of the equity of the subsidiary, and such multiple transactions to a package
deal, the multiple transactions shall be deemed one transaction in which the control in the
subsidiary was lost; however, the balance between the disposal price and the net assets
proportion of the subsidiaries entitled by the disposed long-term equity investment prior losing
70
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
control over the subsidiary was recognized as other comprehensive income and was transferred
to the profits and losses of current period at the time of losing control.
6. Classification of joint arrangement and accounting methods for joint operation
The joint arrangement of the Group includes joint operation and joint venture. For jointly
operated projects, the Group as a partner recognizes the assets and debts it holds independently
and proportionally as well as recognizes the income and expenses as agreed. Where purchase
and sale of an asset during joint operation does not constitute a business, only the part in the
profits and losses from the transaction belonging to other partners is recognized.
7. Cash and cash equivalent
Cash in the Cash Flow Statement refers to cash in hold and deposits which can be used for
payment at any time. Cash equivalents in the Cash Flow Statements refer to short-lived
(generally not more than 3 months) and highly liquid investments that are readily convertible to
known amounts of cash and which are subject to an insignificant risk of change in value.
8. Foreign currency transaction and foreign currency statement translation
(1) Foreign currency transactions
The transactions denominated in foreign currency of the Group are converted in the initial
recognition at the rate which is approximate to the spot exchange rate on the transaction day,
which shall be the spot exchange rate of the beginning of the month when the transaction
occurs.
At the balance sheet date, the monetary items denominated in foreign currency are
translated to RMB at the spot exchange rate at the balance sheet date, and the balance between
the spot exchange rate at the balance sheet date and the rate in the initial recognition or on the
last balance sheet date is included in current profits and losses except for 1) the balance from
exchange of specific borrowings that is capitalized and included as part of the cost qualifying
asset; 2) the balance from exchange of hedge instrument adopted for evading the exchange risks
that is treated according to hedge accounting; 3) the balance from exchange arising from the
foreign currency non-monetary items available for sale (e.g. the stock) and that arising from the
change in the book value of the monetary items available for sale except for amortized cost is
recognized as other comprehensive income.
Non-monetary items of foreign currency measured by historical cost still adopt spot
exchange rate of transaction date for conversion with functional currency amount unchanged.
71
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
As for the foreign currency non-monetary items measured by fair value, the spot exchange rate
on the date when the fair value is confirmed is adopted for conversion. The amount differences
between functional currency amount after conversion and the original functional currency
amount, processed as fair value changes (including change in exchange rate), are recognized
into current profits and losses or recognized into other comprehensive incomes.
(2) Foreign currency financial statement translation
For the purpose of preparing the consolidated financial statements, the foreign currency
statements for overseas business will be converted into RMB, that is all assets and liabilities in
the balance sheet will be converted as per the exchange rate near to spot exchange rate on the
balance sheet date; the shareholders’ equity except for ―undistributed profit‖ will be converted
as per the spot exchange rate when it is incurred; all items in the income statement and those
reflecting the incurred amount of profit distribution will be converted as per the spot exchange
rate on transaction date; undistributed profit at beginning of the year should be the undistributed
profit at the end of last year after translation; undistributed profit at end of the year will be
calculated as per various items of profit distribution after translation, and; difference between
assets & liabilities after translation and total amount of shareholders’ equity will be listed
separately, as the translation difference in foreign currency statements, under the shareholders’
equity in the balance sheet.
Cash flow of foreign currency and overseas subsidiaries will be converted as per the
exchange rate near to spot exchange rate on the date when cash flow is incurred; amount of cash
and cash equivalents affected by exchange rate changes will be listed separately, as the
adjusting item, under ―influence of exchange rate changes on cash and cash equivalent‖ in the
cash flow statement. Financial assets and liabilities are adopted under the asset and liability in
the balance sheet
9. Financial assets and liabilities
The Group recognizes one item of financial asset or financial liability when it becomes a
party of any financial instruments contract.
(1) Financial assets
1） Classification, recognition basis and measurement method of financial assets
The financial assets of the Group are divided into the following categories in accordance
with investment purposes and economic substance: the financial assets at fair value through
72
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
profit or loss; held-to-maturity investments, loans and receivables; and available-for-sale
financial assets.
The financial assets that are measured by fair value and the changes are recognized into
current profit or loss include trading financial assets and the financial assets that are measured
by fair value and the changes are recognized into current profit or loss when they are initially
recognized. The financial assets meeting any of the following conditions can be classified as trading financial
assets by the Group: they are acquired for the purpose of selling in the near future; they are derivative instruments,
other than the designated derivative instruments which are effective hedging instruments, or derivative instruments to
financial guarantee contracts, and the derivative instruments which are connected with the equity instrument
investments for which there is no quoted price in the active market, of which the fair value cannot be reliably
measured, and which should be settled by delivering the said equity instruments. The financial instruments
meeting any of the following conditions can be designated, when they are initially recognized,
as financial assets which are measured at their fair value and of which the variation is
recognized into the current profits and losses: the designation can eliminate or obviously reduce
the discrepancies in the recognition or measurement of relevant gains or losses arisen from the
different measurement basis of such financial assets; mixed instrument containing one or more
embedded derivative instruments is designated, unless the embedded derivative instrument does
not significantly change the cash flow of the mixed instrument, or the derivative instruments
embedded in similar mixed instruments shall obviously not be separated from the relevant
mixed instruments; mixed instrument containing the embedded derivative instruments which
need to be split but could not be separately measured as of the acquisition date or subsequent
balance sheet dates. Such financial assets designated by the Group currently only include the
call option of convertible bond. For such financial assets, fair value is adopted for subsequent
measurement. Variations of fair value are recognized in the fair value variation profits and
losses; interest or cash dividends acquired during the asset holding period are recognized as
investment income; and the difference between its fair value and initial recognition amount shall
be recognized as investment profits and losses upon disposal, and fair value variation profits and
losses shall be adjusted simultaneously.
Held-to-maturity investment refers to non-derivative financial assets which have fixed due
date and fixed or confirmed recovery amount and which the Group is determined and able to
hold till maturity. As to held-to-maturity investment, effective interest method is adopted for
subsequent measurement as per amortized cost. The profit or loss occurred by amortization,
impairment or derecognition are all recognized into current profit or loss.
Receivables refer to non-derivative financial assets which have no quotation in active
market and fixed or determined recovery amount. Effective interest method is adopted for
73
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
subsequent measurement as per amortized cost. The profit or loss occurred by amortization,
impairment or derecognition are all recognized into current profit or loss.
Available-for-sale financial assets are those non-derivative financial assets that are
designated as available-for-sale at initial measurement or are not classified in any of the three
preceding categories. For this kind of assets, the equity instrument investment with no price in
active market and its fair value not reliably measured and the derivative financial assets linked
with the equity instrument and settled through the delivery of the equity instrument are
subsequently measured as per the cost; those with quotation in active market and the fair value
reliably measured are measured as per the fair value and the changes in fair value are included
in other comprehensive income. Fair value is adopted for subsequent measurement for such
financial assets. In addition to exchange gains or losses generated from impairment loss and
foreign currency financial assets, changes in fair value of available-for-sale financial assets will
be directly included in shareholder' equity and the accumulative amount of the changes in the
fair value that is originally directly included in equity shall be transferred in current profit or
loss upon the derecognition of the financial assets. For the available-for-sale liability
instruments, the interest is calculated with actual interest rate during the holding period, together
with the cash dividend of the available-for-sale equity instrument investments shall be
recognized into current profits and losses as investment incomes when the invested company
distributes the dividend. The investments in equity instruments not quoted in an active market
and whose fair value cannot be reliably measured is subsequently measured based on the cost.
2） Recognition basis and measurement method for financial asset transfer
Where a financial asset satisfies any of the following requirements, the recognition shall be
terminated: (1) the contractual rights for collecting the cash flow of the said financial asset are
terminated; (2) the said financial asset has been transferred with almost all risks and
remunerations thereof transferred to the transferee; (3) the said financial asset has been
transferred and the Group gives up the control over the financial assets even though it neither
transfers nor retains almost all risks and remunerations thereof.
Where the Company neither transfers/retains almost all risks and remunerations in
connection with the financial assets nor gives up the control over the financial assets, it shall
recognize related financial assets as well as related financial liabilities according to its
continuing involvement in the transferred financial assets.
If the overall transfer of financial assets meets the conditions for derecognition, the balance
between the following two amounts shall be recognized into current profits and losses: (1) book
value of transferred financial assets; (2)the sum of the consideration received from the transfer
74
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
and the accumulative amount of changes in the fair value that is originally and directly
recognized into other comprehensive income.
If the partial transfer of financial assets does not meet the conditions of derecognition, the
overall book value of transferred financial assets between derecognition and non-derecognition
shall be amortized based on relative fair value. The balance between following two amounts
shall be recognized into current loss and profit; (1) the sum of the consideration received from
the transfer and the accumulative amount of changes in fair value that shall be amortized for
derecognition and recognized into other comprehensive income and (2) the balance of the
amortized of the aforesaid carrying amount.
3） Financial asset depreciation test and accounting methods
The Group examines the book value of other financial assets except those which are
measured at their fair value and of which the variation is recorded into the profits and losses of
current period on each balance sheet date and accrues the provisions for impairment if any
objective evidences prove the impairment of the financial assets.
In case of impairment of financial assets measured by amortized cost, the impairment
provision of assets is accrued based on the shortfall of book value over its present value
(excluding future credit losses that have not been incurred). The formerly recognized
impairment shall be reversed and recognized into the current profit or loss if there is objective
evidence showing that the financial assets are recovered and it objectively has relations with the
items happened after the impairment is recognized.
If there is impairment loss of available-for-sale financial assets, the accumulated loss due
to the decline of fair value that is previously and directly included in the owners' equity shall be
transferred and recognized into impairment loss. As for available-for-sale debt instruments with
impairment affirmed, the fair value has been increased in the subsequent accounting period and
objectively has relations with the items happened after the recognition of former impairment,
the formerly recognized impairment shall be reversed and recognized into the current profit or
loss. As for available-for-sale debt instruments with impairment affirmed, the increased fair
value in the subsequent accounting period shall be directly included in the shareholder's equity.
(2) Financial liabilities
1） Classification, recognition basis and measurement method of financial liabilities
75
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Financial liabilities are divided into the following categories at the initial recognition: the
financial liabilities that are measured by fair value and whose changes are included in current
profit or loss, and other financial liabilities.
For the financial liabilities measured with fair value and the changes recognized into
current profit or loss including trading financial liabilities and the financial liabilities that are
measured with fair value and the changes recognized into current profit or loss on initial
recognition, fair value is adopted for subsequent measurement; and all profits or losses from
change in fair value as well as dividend and interest income relevant to such financial liabilities
shall be recognized into current profits and losses.
Other financial liabilities adopt effective interest method for subsequent measurement
according to amortized cost.
2） Derecognition of financial liabilities
All of or part of the current obligations of financial liabilities have been canceled.
Derecognize the financial liabilities or part with obligations being derecognized. The balance
between partial book value and the consideration paid shall be included in the current profit or
loss.
10. Provision for bad debts of accounts receivable
The following standards shall be followed to determine the provision for bad debts of
accounts receivable: debt unit cancellation, bankruptcy, insolvency, serious shortage of cash
flow, production halt due to serious natural disaster and failure to pay back debts within
foreseeable times; the debt unit fails failure to perform its obligations three (3) years after due;
and other conclusive evidences showing that such debt cannot or is unlikely to be withdrawn.
Possible bad debt losses are accounted by allowance method with separate impairment test
or that by portfolio taken at the end of the year, and provision for bad debts are accrued are
included in current profits and losses. For accounts receivable with conclusive evidence
showing that such accounts receivable cannot be recovered, such accounts receivable are
included into bad debt losses with the approval from the Group's management and bad debt
reserves are offset.
(1) Receivables of individual account with significant amount and accrued provision
for bad debt
Judgment basis or amount Receivable more than RMB 5 million shall be deemed as a
76
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
standard for significant single significant single account
amount
Individual impairment test will be made on the financial assets with
significant single account. Financial assets with no impairment in
Accounts receivable with
separate impairment test are included into financial assets portfolios
significant single amount and
with similar characteristics of credit risk for impairment test.
accrued method for provision of
Receivables with impairment recognized after individual testing are
bad debts by single account
no longer included into financial assets portfolios with similar
characteristics of credit risk for impairment test.
(2) Receivables for which the bad debts reserve is withdrawn based on the credit risk
feature portfolio
Basis for portfolio determination
The portfolios are classified according to the credit risk features of
the debtors and include mainly the receivables confirmed as not to be
depreciated by independent test (including the single significant or
Portfolio 1
insignificant receivable from the associated parties of the Group,
government agencies and the joint venture, such as reserve funds and
deposits). Such receivables are least impossible to become bad debts
This portfolio includes receivables except for Portfolio 1 and the
receivables for which single bad debts reserve is withdrawn. When
Portfolio 2 withdrawing the bad debts reserve for the receivables of this
portfolio, the Group adopts aging analysis method in combination
with the past experience in this regard.
Accrued method for provision of bad account by portfolio
Portfolio 1 No provision for bad debts
Portfolio 2 Aging analysis
1) Provisions for bad debts can be accrued with aging analysis method and the accruing
proportion is as follow:
Aging Accruing rate of account Accruing rate of other receivables
receivable (%) (%)
Within 6 months
2 2
(inclusive)
From 6 to 12 months 5 5
77
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Aging Accruing rate of account Accruing rate of other receivables
receivable (%) (%)
1-2 years 20 20
2-3 years 50 50
Over 3 years 100 100
(3) Receivables for which single amount is insignificant but the bad debts reserve is
withdrawn independently
Reason for bad debt provision by The single amount is insignificant and there is evidence showing that
single account it is possible not to recover contractual cash flow.
Method to charge provision for The provision for bad debts is accrued based on the balance of the
bad debt present value of future cash flow lower than the book value balance.
11. Inventories
The inventories of the Group include mainly property development products, raw materials,
commodity stocks, low-value consumables and others.
The property development products include the properties under construction (including
the land to be developed) and as-built properties (including the leased property available for
sale). Actual costs of real estate development products include land-transferring cost, supporting
infrastructure cost, construction & installation cost, loans before completion of the development
projects and other relevant cost during development. Actual costs of delivered real estate
development products are determined by specific identification of costs.
Actual cost accounting is adopted for construction contract, including direct costs and
indirect costs from contract signing to completion of the contract and related to fulfillment of
the contract. The net amount after the offset of accumulated cost and accumulated recognized
gross profits (loss) for the properties under construction and the settlement is listed as net
amount after offset in the balance sheet. Where the sum of accumulated cost and accumulated
recognized gross profits (loss) for the properties under construction is more than the settlement,
the balance is listed as inventories; where the latter is more than the former, the balance is listed
as account received in advance.
Travel expenses, tender expenses, etc. for construction contract signing can be separately
distinguished and reliably calculated. For contracts probably to be concluded, expenses are
recognized into contract cost upon receiving the contract; otherwise, expenses are recognized
into current profits or losses.
78
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
One-off amortization method is adopted for receipt of low-value consumables and other
inventories.
The ending inventory is measured by the cost and net reliable value whichever is lower.
When the net reliable value of the property development product is less than the cost, the
inventory devaluation provision shall be withdrawn. Net reliable value refers to the amount of
the predicted sale price less predicted as-built cost and expenses arising from sale and taxes
during normal production and operation process. Estimates of net realisable value are based on
the most reliable evidence available at the time the estimates are made and take into
consideration the purpose for which the inventory is held and the influences of events occurring
after the balance sheet day.
After the accrual of devaluation provision for inventory, where affecting factors for former
write-down of inventory value has disappeared, the write-down amount shall be recovered and
reversed in the formerly accrued depreciation provision , and reversed amount shall be included
in current profit or loss.
12. Long-term equity investments
The long-term equity investment of the Group includes mainly the investment to the
subsidiaries, associated enterprises and joint ventures.
The basis for the Group to define joint control is that all participating parties or the
combination of the parties control the arrangement jointly and the policies relevant to the
activities of the arrangement must be agreed by such parties.
The Group will be generally deemed to have significant impact on the invested entity if the
Group holds 20% (inclusive) to 50% of voting right of an invested entity directly or indirectly
through its subsidiaries. Where the Group holds less than 20% of voting right of an invested
entity, the Group’s significant impact on the invested entity will depend on whether the Group
has its representative in the Board of Director or any similar organ of power of the invested
entity, whether the Group participates in the formulation of financial and operation policies of
the invested entity, whether the Group has important deals with the invested entity, whether the
Group dispatches management personnel to the invested entity or whether the Group provides
the invested entity with key technical data.
Any entity under the control of the Group is the subsidiary of the Group. The long-term
equity investment acquired through merging with an enterprise under common control, the book
value of net asset of the acquiree in the consolidated financial statements of the ultimate
79
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
controller on the day of merger is taken as the initial investment cost of the long-term equity
investment. Where the book value of net asset of the acquiree on the day of merger is negative,
the cost of the long-term equity invest is recognized as zero.
Where the long-term equity investment is acquired thorough merging with an enterprise
not under common control, the merger cost is taken as initial investment cost. The merger cost
is the fair value of the assets given, debt occurred or borne and equity securities issued by the
Group for acquiring the controlling right of the acquiree on the day of merger
Aside from the above long-term equity investment acquired by the merger of enterprises,
long-term equity investment acquired by cash payment adopts the actual paid purchase amount
as the investment cost; long-term equity investment acquired by issuance of equity securities
adopts the fair value of issued equity securities as the investment cost; long-term equity
investment invested by investors adopts the value reached in the investment contract or
agreement as the investment cost.
The investment of the Group to the subsidiaries is calculated with cost method, and equity
method is applied for joint ventures and associated enterprises.
For the long-term equity investment with cost method applied for subsequent measurement,
in case investment is added, the book value of the long-term equity investment cost is added
with the fair value of additional investment cost and resulting transaction expenses. The cash
dividend or profit distributed by an invested entity is recognized as current return on investment
based on the distributed amount.
For the long-term equity investment with equity method applied for subsequent
measurement, the book value of the long-term equity investment is increased or decreased with
the change in the ownership equity of the invested entity. The proportion of net profit or loss of
the invested company to be enjoyed or assumed by the Group is confirmed by taking the fair
value of recognizable assets of the invested company upon obtaining the investments as the base,
and offsetting the proportion of internal transaction profits and losses occurring between the
associated enterprises and joint ventures which is due to the investing enterprise according to
shareholding proportion and adjusting the net profit of the invested unit.
For disposal of long-term equity investment, the difference between the book value and the
actual received payment shall be recognized into current income. For the disposal of the
long-term equity investments which are calculated with equity method and recognized into the
owner equity due to the changes in owner equity other than the net profits and losses of the
80
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
invested company, the part initially recognized into the owner equity shall be carried over to
current income and losses in corresponding proportion.
Where losing joint control over or significant impact on the invested entity is a result of
such fact as disposing partial equity investment, the remaining equity is calculated as the
finance asset available for sale and the balance between the fair value and the book value of the
remaining equity on the day of losing joint control or significant impact is included in current
profits and losses. For other comprehensive income of the original equity investment recognized
with equity method, the basis same as that of the invested entity directly disposing relevant asset
or debts is applied for accounting when the equity method is ceased to be used.
Where losing control over the invested entity is a result of disposing partial long-term
equity investment and the Group has a common control over or have significant impact on the
invested entity by using the remaining equity, the equity method is applied, the balance between
the book value and disposal consideration of the disposed equity is included in the return on
investment, and the remaining equity is adjusted as if it was calculated with equity method since
the acquiring of such equity. In case the Group cannot have a common control over or have
significant impact on the invested entity by using the remaining equity, regulations for financial
assets available for sale are applied and the balance between the book value and disposal
consideration of the disposed equity is included in the return on investment, and the balance
between the fair value and book value of the remaining equity on the day of losing control is
included in current profits and losses.
13. Investment property
The investment property of the Group includes the leased land use right, the land use right
it is entitled to for assignment after appreciation, the leased properties and the properties it holds
for sale. Cost model is applied for measurement.
The investment property of the Group is amortized with the average service life method.
Estimated service life, net residual value rate and annual amortization rate of investment
property are as follows:
Estimated
residual Annual depreciation rate
Type Asset class Depreciation years
value rate (%)
(%)
Determined as per
Land use Remaining service life of
—— 0 calculation of depreciation
rights land use right
year
Houses and 30 years or duration of land
Steel structure 5 ≥3.17
buildings use whichever is shorter
81
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Reinforced
25 years or duration of land
cement 5 ≥3.8
use whichever is shorter
structure
Brick-concrete 20 years or duration of land
5 ≥4.75
structure use whichever is shorter
14. Fixed assets
The Group's fixed assets are tangible assets that: (i) are held for use in the production or
supply of goods or services, for rental to others, or for administrative purposes; (ii) have useful
lives more than one year; and (iii) have unit value more than RMB 5,000.
The fixed assets can be recognized only when their economic interests may flow into the
Group and their costs can be reliably measured. Fixed assets of the Group are classified as
houses and buildings, machines and equipment, transportation equipment, office facility, etc.
All fixed assets, apart from those fixed assets that have been depreciated and accrued but
are still in use and those lands that are transferred into fixed assets separately according to actual
values, are depreciated and accrued by the Group. The average service life method is applied for
accrual of depreciation. The classification, depreciation years, estimated net residual value rate
and depreciation rate of fixed assets are as follows:
Estimated Annual
Type Asset class Depreciation years residual value depreciation
rate (%) rate (%)
30 years or duration of land ≥3.17
Steel structure 5
use whichever is shorter
Houses and Reinforced cement 25 years or duration of land ≥3.8
5
buildings structure use whichever is shorter
Brick-concrete 20 years or duration of land ≥4.75
5
structure use whichever is shorter
Plant
—— 5 to 20 years 5 4.75-19
equipment
Passenger car 5 5 19
Vehicles for 11.88-19
Transportati 5
production 5 to 8 years
on equipment
Auxiliaries of 19
5
vehicles 5
Office Instruments 5 5 19
equipment Office goods 5 5 19
82
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Estimated Annual
Type Asset class Depreciation years residual value depreciation
rate (%) rate (%)
Computer 5
3 to -10 years 9.5-31.67
equipment
Furniture and 5
5 19
appliances
Others 5 to -10 years 5 9.5-19
The Group shall check the useful life of fixed assets, expected net salvage value and
depreciation method not later than the end of the year. Any change will be disposed as
accounting estimation change.
15. Construction in progress
The constructions in progress shall be transferred into the fixed assets based on the
estimated value since the date when they are in the intended use state, according to project
budget, cost or actual cost of the project, etc., and be withdrew and depreciated since the next
month. The estimated value then is adjusted according to the actual cost after the completion
settlement has not been handled.
16. Borrowing costs
The borrowings used for fixed assets, investment property and inventories needing more
than 1 year to construct or product for intended use or sale are capitalized after the capital is
paid, borrowings are obtained and the construction or production begins, and are ceased to be
capitalized after the intended use or sale of the same is available. The subsequent borrowings
are in included in current profits and losses. If the asset in conformity with capitalization
conditions suffers abnormal disruption during the process of purchase and construction or
production, and the duration of the disruption exceeds three (3) consecutive months, the
capitalization of borrowing costs shall be suspended until the purchase and construction or
production activity of the asset resumes.
In the property development project of the Group, the construction or production necessary
for intended use or sale of the assets mean that the land use right required for the construction
has been obtained and the construction (such as the pile foundation works or other substantial
construction works) has commenced; the asset available for intended use or sale mean the return
receipt of final acceptance records of the property project is received and the delivery conditions
has been met.
83
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
In the case of loan specially borrowed for the acquisition and construction or production of
assets conforming to capitalization conditions, the capitalized amount is equal to actual interests
of the loan specially borrowed minus the interest income of the borrowed capital that has not
been used in the bank deposit or the income from temporary investment from the actual interests
incurred in the current period of specially borrowed capital. The interest amount of general loan
to be capitalized is calculated by multiplying the weighted average of the part of aggregate
assets expenditure in excess of the special loan expenditure of assets by the capitalization rate of
utilized general loan. The capitalization rate is determined on the basis of weighted average
interest rate of general loans.
17. Intangible assets
The intangible assets of the Group include the land use right and software acquired for the
construction of self-used properties. The land use right acquired for daily operation is calculated
as the inventory. Intangible assets are measured at actual cost upon acquisition, where, the
actual cost of intangible assets purchased consists of the actual payment and relevant expenses;
and the cost input by the investors in intangible assets is determined in accordance with the
value stipulated in the investment contract or agreement; unless the contract or agreement
stipulates that the value is not fair, then the actual cost is measured at the fair value.
Land use right is amortized averagely according to transfer term counted from transferring
date; software and other intangible assets shall be amortized averagely according to the shortest
term among anticipated service life, beneficiary years stipulated in contract and valid terms
formulated by law. Amortized amount is included in relevant asset cost and current profit or loss
by beneficiaries. Estimated service life and amortization method of intangible assets with
limited service life are recheck at the end of each year, treatment of changes in accounting
estimates is adopted for any change.
18. Impairment of non-financial asset excluding goodwill
When the Group found that there was an indication of impairment of long-term equity
investment, investment property, fixed assets, project under construction, and intangible assets
with limit service life on each balance sheet date, the Group conducted impairment test. The
intangible assets with uncertain service life shall be tested in impairment at the end of the year,
no matter whether there is any sign of impairment.
The recoverable amount of assets should be estimated on a single asset basis, or the
recoverable amounts of a single asset cannot be estimated, it is allowed to estimate the
recoverable amount of the asset group to which they said asset belongs. The recoverable amount
84
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
is determined to be the fair value of the asset or asset group with the disposal expense deducted
or the present value of estimated cash flow of the asset or asset group, whichever is higher. If
the book value of the asset is more than the recoverable amount, the difference will be
recognized as the impairment loss; and once the impairment loss is recognized, it shall not be
reversed in the later accounting periods.
19. Goodwill
The balance of the equity investment costs or consolidation costs not under the same
control greater than the fair value of the share of net assets or recognizable net assets of the
invested unit or seller acquired from enterprise consolidation is recognized as goodwill.
Goodwill related to the subsidiary is separately listed on the consolidated financial
statements; goodwill related to the associated enterprises and joint ventures is included in the
book value of long-term equity investment.
Impairment test is carried out for goodwill at the end of the year, no matter whether there is
any sign of impairment. The goodwill was, together with the related asset group or combination
of asset groups, subject to the impairment test. That is, the book value of goodwill was
reasonably apportioned to the asset group or combination of asset groups which benefit from the
synergy of business merger from the purchase date. If the recoverable amount of the asset group
or combination of asset groups of goodwill with apportionment is less than its book value, the
related impairment loss shall be recognized. Impairment loss is firstly amortized to the book
values of goodwill in asset group or asset group portfolio, and then deducted for the carrying
value of other assets in according to the percentage occupied of other assets (except goodwill) in
the asset group or asset group portfolio.
20. Long-term deferred expenses
The long-term unamortized expenses of the Group include the improvement expenditure of
fixed assets under operating lease and other expenses with a benefit period over 1 year. Such
expenses were amortized averagely in the benefit period. Where the long-term deferred
expenses fail to benefit the subsequent accounting periods, all amortized value that has not been
amortized yet shall be transferred to the current profits and losses.
21. Employee remuneration
The remuneration of employees in the Group includes short-term remuneration, welfare
after dimission, dismissal welfare and other long-term welfare.
85
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
The short-term remunerations mainly include the employee’s salary and welfare expense of
employee. The actual short-term remunerations shall be recognized as the debt during the
accounting period when the employees provide service and included in current profits and
losses or related asset costs according to the benefit object.
The welfare after demission mainly includes the basic endowment insurance premium and
unemployment insurance expense and is classified into the defined contribution plan and the
defined benefit plan according to the risk an obligation undertaken by the Company. For the
defined contribution plan, the sinking fund deposited to an independent entity for the service
provided by employee in the accounting period on the balance sheet date is recognized as the
debt and included in current profits and losses or related asset costs according to the benefit
object. There is no defined benefit plan in the Company.
When the Group cannot unilaterally withdraw the dismissal welfare provided for the plan
on the cancellation of labor relationship or layoff proposal, or recognize the cost or expense
involved with the recombination of dismissal welfare or payment of such dismissal welfare
(whichever is earlier), the employee’s remuneration incurred by the dismissal welfare is
recognized as the debt and included in current profits and losses or related asset costs.
22. Estimated liabilities
When the businesses related to contingencies like external guarantee and pending actions
or arbitrations conform to the following conditions at the same time, they will be recognized as
the debt by the Group: the obligation is the current obligation undertaken by the Group; the
implementation of such obligation may probably cause the outflow of economic interests from
the Group; and the amount of that obligation can be measured reliably.
23. Share payment
The equity-settled share-based payment to exchange the provision of service by employees
is measured by the fair value of the equity instrument conferred to the employees on the grant
date. Where it is exercisable upon finishing the service within the waiting period or satisfying
the regulated performance conditions, based on the optimal estimation of the exercisable equity
instrument quantity within the waiting period, the fair value amounts are included in relevant
cost or expense after calculation by the method of line, with relevant capital surplus increased.
24. Recognition and measurement of income
The operation income of the Group mainly include the sales revenue, lease revenue and
property management revenue of real estate development products, utilities (electric power
86
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
supply) revenue and construction contract revenue and revenue recognition policies are as
follows:
1） The revenue of real estate development products are recognized under the
following conditions:
A. Seller and Purchaser sign the sales contract and file a record in the land department;
B. The revenue of real estate development products are completed and are qualified in
acceptance;
C. The Company has received full house-purchase price or obtained the right of collecting
the full purchase price (e.g. the written commitment letter for releasing mortgage payment from
bank);
D. The formalities of property delivery are handled or the customers are deemed to accept
the property according to the terms in the purchase contract.
2） Lease revenue: the lease revenue of investment property is recognized as the lease
revenue by the method of line according to rent agreed in the contract or agreement over the
lease term.
3） Utilities revenue: when electric power supply service has been provided and its
relevant economic benefit has obtained by the Company, meanwhile, relevant revenue and cost
can be measured reliably, the realization of utilities revenue is recognized.
4） Property management revenue: when property management service has been provided and its relevant
economic benefit has obtained by the Company, meanwhile, relevant revenue and cost can be measured reliably, the
realization of utilities revenue is recognized .
25. Government subsidies
Government subsidies refer to monetary assets and non-monetary assets acquired without
any charge from the government. Government subsidies can only be recognized upon meeting
the condition that the Company meets all conditions of government subsidy and is able to
receive the government subsidy.
If government subsidies are monetary assets, it shall be calculated according to the
received; if the government subsidy is distributed subject to fixed quota standard or if there is
definite evidence showing that it is in conformity with relevant requirements of the financial
support policies, it shall be calculated according to the receivable amount; and if the
87
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
government subsidy is non-monetary assets, it shall be measured at the fair value; and if the fair
value fails to be obtained reliably, it shall be calculated according to nominal amount (RMB 1).
Government subsidies in relation to assets are recognized as deferred income and allocated
equally within the service life of relevant assets, which will then be included in current profit or
loss. Government subsidies relevant with incomes and that are used to make up future expenses
or losses will be recognized as deferred income and recognized into current profits and losses
within the recognition period of relevant expenses; government subsidies used to make up
incurred relevant expenses or losses are included into current profits or losses directly.
26. Deferred income tax assets and deferred income tax liabilities
Deferred income tax assets and deferred income tax liabilities are measured in accordance
with the tax base of assets and liabilities and difference of its book value (temporary difference).
Deferred income tax assets shall be recognized based on the deductible losses of the income tax
payable in the following year in accordance with the tax law. A deferred tax liability shall not be
recognized if the temporary difference arises from the initial recognition of goodwill. The
deferred income tax assets and liabilities shall not be recognized to the extent that the temporary
difference arises from the initial recognition of an asset or liability in a transaction which
contains both of the following characteristics (i): the transaction is not a business combination
and (ii) at the time of the transaction, it affects neither accounting profit nor taxable profit (or
deductible loss). At the balance sheet date, the deferred income tax assets and deferred tax
liabilities shall be measured at the tax rates that are expected to apply to the period when the
asset is realized or the liability is settled, according to the requirements of tax laws.
Deferred tax assets are recognized with a limit of the future taxable income which is likely
to be used by the Group for deducting any deductible temporary difference, deductible loss and
tax deduction.
27. Leasing
The leasing business of the Group is operating lease.
The rent paid by the Group as the Lessee in the operating lease is included in related asset
costs or current profits and losses by the method of line over the lease term.
28. Change in significant accounting policies and accounting estimates
(1) Significant changes in accounting estimates
88
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
The Company approved the Proposal for Alteration of Accounting Estimation on Fixed
Assets at the 18th Interim Meeting of the 7th Board of Directors on December 27, 2014,
allowing to include at a time the fixed assets with the unit value not more than RMB 5,000 into
the current cost, for which the depreciation calculation by year is not required. Such matter is
executed as of January 1, 2015. The Company adopts the prospective application.
V. Taxation
1. Main taxes and tax rates
Taxes Tax calculation basis Tax rate
Enterprise income tax Note1 Taxable income Note 1
Sales revenue of real estate and property
Business tax 5%
lease revenue
Commodity sales revenue and power
Value-added tax 17 %
supply revenue
Sales revenue of real estate - sum of As per 30%-60% of progressive
Land value increment tax
deductible items tax rate of super-rate
Transfer amount of land use rights and
Deed tax 3%
property
70% of original value of the property or rent
Housing property tax 1.2 % or 12 %
revenue Note 2
City maintenance and
Business tax (or paid value added tax) 1%-7%
construction tax
Education surtax Business tax (or paid value added tax) 3%
Note 1: The profit tax rate of the Company’s subsidiary in Hong Kong is 16.5% as per the
Inland Revenue Ordinance of Hong Kong and the profit tax rate of the Company and other
subsidiaries in the Chinese Mainland is 25%.
Note 2: The housing property tax is paid according to 70% of initial book value of assets
and specified tax rate for the fixed assets like house and rental property of the Company and the
subsidiaries in Shenzhen, and the new houses are exempted from the housing property tax three
years after the houses are filed a record in the tax authority; the housing property tax of the
subsidiaries in the other place shall be paid according to the local regulations.
VI. Notes to Major Items in Consolidated Financial Statement
With respect to the following data disclosed in the Financial Statements, unless otherwise
stated, "the beginning of the year" refers to January 1, 2015; "the end of the period" refers to
89
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
June 30, 2015; "this period" refers to the period between January 1, 2015 to June 30, 2015, and
the "previous year" refers to the period between January 1, 2014 to December 31, 2014. The
currency unit is RMB.
1. Monetary fund
Balance at the end of the Balance at the beginning of
Item
period the year
Cash 289,924.34 372,572.19
Bank deposit 19,039,335,443.97 19,547,572,224.50
Other monetary fund 4,712,888,020.20 3,435,441,646.33
Total 23,752,513,388.51 22,983,386,443.02
Including: total amount deposited
1,882,938,967.60 920,105,484.28
in the foreign countries
Note: The balance of housing sales amount received in advance which is regulated under the Regulatory
Measures on Pre-sale Funds in the other monetary fund is RMB 4,686,811,540.66; the restricted monetary fund's is
RMB 26,076,479.54.
2. Notes receivable
(1) Category of notes receivable
Balance at the end of the Balance at the beginning of the
Item
period year
Bank acceptance bill 13,120,000.00 4,390,000.00
Total 13,120,000.00 4,390,000.00
3. Accounts receivable
(1) Types of accounts receivable
Balance at the end of the period
Book balance Provision for bad debts
Type
Proportion Proportion Book value
Amount Amount
(%) (%)
Accounts receivable of
individual account with
significant amount and 6,974,970.60 7.50 6,974,970.60 100.00
accrued provision for
bad debts
Receivables of
individual account with
insignificant amount 5,872,817.05 6.31 5,872,817.05 100.00
but accrued for
provision of bad debts
Accounts receivable
with provision for bad
debts withdrawn based
on the credit risk
90
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Balance at the end of the period
Book balance Provision for bad debts
Type
Proportion Proportion Book value
Amount Amount
(%) (%)
feature portfolio
Portfolio 1 36,827,991.84 39.59 36,827,991.84
Portfolio 2 43,346,034.72 46.60 4,435,925.14 10.23 38,910,109.58
Subtotal of portfolio 80,174,026.56 86.19 4,435,925.14 5.53 75,738,101.42
Total 93,021,814.21 100.00 17,283,712.79 75,738,101.42
Continued:
Amount at the beginning of the year
Book balance Provision for bad debts
Type
Proportion Proportion Book value
Amount Amount
(%) (%)
Accounts receivable of
individual account with
significant amount and 6,974,970.60 8.17 6,974,970.60 100.00
accrued provision for
bad debts
Receivables of
individual account with
insignificant amount but 5,872,817.05 6.88 5,872,817.05 100.00
accrued for provision for
bad debts
Accounts receivable
with provision for bad
debts withdrawn based
on the credit risk feature
portfolio
Portfolio 1 33,254,915.38 38.96 33,254,915.38
Portfolio 2 39,250,012.81 45.99 4,192,983.89 10.68 35,057,028.92
Subtotal of portfolio 72,504,928.19 84.95 4,192,983.89 5.78 68,311,944.30
Total 85,352,715.84 100.00 17,040,771.54 68,311,944.30
1） Accounts receivable which single amount is significant and bad debts reserve is
withdrawn at the end of period
Balance at the end of the period
Company name Provision for bad Accruing Reason for
Accounts receivable
debts proportion (%) accruing
Customer I 6,974,970.60 6,974,970.60 100.00 Unrecoverable
Total 6,974,970.60 6,974,970.60
2） Accounts receivable with bad debts provisions accrued by aging analysis method in
the portfolio
Aging Balance at the end of the period
91
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Provision for bad Accruing
Accounts receivable
debts proportion (%)
Within one year 38,880,242.91 864,467.12 2.22
1 to -2 years 680,085.13 136,017.03 20.00
2 to -3 years 700,531.40 350,265.71 50.00
Over 3 years 3,085,175.28 3,085,175.28 100.00
Total 43,346,034.72 4,435,925.14 10.23
(2) Provision for bad debts withdrawn and returned back (or taken back) in this period
Provision for bad debts withdrawn in this period is RMB 362,533.28; bad debts reserve
returned back or taken back in this period is RMB 119,592.03.
(3) Top five arrears balance of accounts receivable by the end of the period
Proportion in
total ending Ending balance of
Balance at the end
Company name Aging balance of provision for bad
of the period
accounts debts
receivable (%)
Within one
Customer I 9,148,304.51 9.84 182,966.09
year
Within one
Customer II 8,210,200.80 8.83
year
Customer III 6,974,970.60 Over 3 years 7.50 6,974,970.60
Customer IV 4,472,118.20 Over 3 years 4.81 4,472,118.20
Within one
Customer V 4,433,375.91 4.77
year
Total 33,238,970.02 35.75 11,630,054.89
4. Prepayments
(1) Aging of prepayments
Balance at the end of the period Balance at the beginning of the year
Item Proportion Proportion
Amount Amount
(%) (%)
Within one year 2,317,508,059.28 99.92 3,618,208,580.30 99.97
1 to -2 years 1,246,080.00 0.06 119,980.00 0.01
2 to -3 years 494,410.19 0.02 866,310.19 0.02
Total 2,319,248,549.47 100.00 3,619,194,870.49 100.00
(2) Top five prepaid balance of accounts receivable by the end of the year:
Proportion in total
Balance at the end of the
Company name Aging ending balance of
period
prepayment(%)
Supplier I 1,520,000,000.00 Within one year 65.54
92
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Proportion in total
Balance at the end of the
Company name Aging ending balance of
period
prepayment(%)
Supplier II 602,000,000.00 Within one year 25.96
Supplier III 123,250,000.00 Within one year 5.31
Supplier IV 28,119,489.00 Within one year 1.21
Supplier V 10,124,928.06 Within one year 0.44
Total 2,283,494,417.06 98.46
5. Interests receivable
(1) Classification of interests payable
Balance at the end of the Balance at the beginning of
Item
period the year
Fixed-term deposits 7,070,231.80
Entrusted loan 1,367,282.91
Others 9,137,018.45
Total 17,574,533.16
6. Dividends receivable
(1) Details of dividends receivable
Balance at the end of the Balance at the beginning of
Invested company
period the year
Shanghai Ledu Property Co., Ltd. 40,195,980.00
Shenzhen TCL Opto-electronic Tech
24,000,000.00
Co., Ltd.
Total 64,195,980.00
7. Other receivables
(1) Classification of other receivables
Ending amount
Book balance Provision for bad debts
Type
Proportion Proportion Book value
Amount Amount
(%) (%)
Other
receivables of
individual
account with
significant 11,270,000.00 0.09 11,270,000.00 100.00
amount and
accrued for
provision for bad
debts
Other
receivables of
individual
93
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Ending amount
Book balance Provision for bad debts
Type
Proportion Proportion Book value
Amount Amount
(%) (%)
account with
insignificant
amount and
accrued for
provision for bad
debts
Other accounts
receivable
withdrawn
provision for bad
debts based on
credit risk
feature
combination
Portfolio 1 13,057,467,043.73 99.53 13,057,467,043.73
Portfolio 2 50,118,811.68 0.38 13,377,260.85 26.69 36,741,550.83
Subtotal of
13,107,585,855.41 99.91 13,377,260.85 0.10 13,094,208,594.56
portfolio
Total 13,118,855,855.41 100.00 24,647,260.85 13,094,208,594.56
Continued:
Amount at the beginning of the year
Book balance Provision for bad debts
Type
Proportion Proportion Book value
Amount Amount
(%) (%)
Other receivables
of individual
account with
significant amount 11,270,000.00 0.13 11,270,000.00 100.00
and accrued for
provision for bad
debts
Other receivables
of individual
account with
insignificant
13,313.37 3,994.01 30.00 9,319.36
amount and
accrued for
provision for bad
debts
Other accounts
receivable
withdrawn
provision for bad
debts based on
credit risk feature
combination
Portfolio 1 8,913,924,206.56 99.40 8,913,924,206.56
94
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Amount at the beginning of the year
Book balance Provision for bad debts
Type
Proportion Proportion Book value
Amount Amount
(%) (%)
Portfolio 2 42,763,207.56 0.47 14,835,939.09 34.69 27,927,268.47
Subtotal of
8,956,687,414.12 99.87 14,835,939.09 0.17 8,941,851,475.03
portfolio
Total 8,967,970,727.49 100.00 26,109,933.10 8,941,860,794.39
1） Other receivables of individual account with significant amount and accrued for
provision for bad debts at the end of the period
Balance at the end of the period
Company name Accruing
Other Provision for Reason for
proportion
receivables bad debts accruing
(%)
Huizhou Taitong Real Estate
11,270,000.00 11,270,000.00 100.00 Unrecoverable
Investment Co., Ltd
Total 11,270,000.00 11,270,000.00
2） Other receivable with provisions of bad debts accrued by aging analysis method in the
portfolio
Balance at the end of the period
Aging Provision for bad Accruing
Other receivables
debts proportion (%)
Within one year 31,574,724.09 799,547.63 2.53
1 to -2 years 4,697,705.45 939,541.10 20.00
2 to -3 years 4,416,420.04 2,208,210.02 50.00
Over 3 years 9,429,962.10 9,429,962.10 100.00
Total 50,118,811.68 13,377,260.85 26.69
(2) Bad debts reserve withdrawn and returned back (taken back) in this year
Provision for bad debts withdrawn in this period is RMB 16,150.28; bad debts reserve
returned back or taken back in this period is RMB 1,478,822.53.
(3) Classification of other receivables by nature
Book balance at the
Fund nature Ending book value
beginning of the year
Current account transferred from
5,408,708,454.44 4,782,132,352.57
shareholder in subsidiary
Current account of associated enterprise 4,822,943,433.01 977,673,455.25
Imprest 927,277,452.60 865,536,014.75
Cash deposit and pledge 919,473,770.91 1,712,390,760.99
Earnest money for cooperation 876,322,790.20 602,933,039.29
Others 105,982,349.58 27,305,104.64
Tax rebate payment 58,147,604.67
95
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Book balance at the
Fund nature Ending book value
beginning of the year
Total 13,118,855,855.41 8,967,970,727.49
Other accounts receivable at the end of the year increased by RMB 415,088,510,000 than
the beginning of the year, with an increase rate of 46.29 % due to the prepaid land funds.
(4) Other accounts receivable in top five based on year-end balance collected from
arrear party:
Proportion
Ending
in total
balance
ending
Balance at the end of
Company name Fund nature Aging balance of
of the period provision
other
for bad
receivables
debts
(%)
Beijing
Yalindong Real
Current account of Within
Estate 1,203,130,596.01 9.17
associated enterprise one year
Development
Co., Ltd.
Current account
transferred from 2 to -3
Company II 1,140,000,000.00 8.69
shareholder in years
subsidiary
Beijing Yalinxi
Real Estate Current account of Within
1,038,744,000.00 7.92
Development associated enterprise one year
Co., Ltd.
Current account
transferred from Within
Company IV 1,023,137,822.69 7.80
shareholder in one year
subsidiary
Current account Over 3
367,021,018.01 2.80
transferred from years
Company V
shareholder in 1 to -3
subsidiary 464,598,452.93 3.54
years
Total 5,236,631,889.64 39.92
8. Inventories
(1)Classifications of inventories
Balance at the end of the period
Item Devaluation
Book balance Book value
provision
Cost of real estate
102,285,837,168.87 490,895,505.03 101,794,941,663.84
development
Real estate development
11,086,986,092.03 187,025,082.29 10,899,961,009.74
product
Raw material 5,598,880.06 121,581.66 5,477,298.40
96
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Balance at the end of the period
Item Devaluation
Book balance Book value
provision
Low-price consumables 8,201,153.94 41,400.00 8,159,753.94
Total 113,386,623,294.90 678,083,568.98 112,708,539,725.92
Continued:
Balance at the beginning of the year
Item Devaluation
Book balance Book value
provision
Cost of real estate
89,269,182,505.62 528,579,913.07 88,740,602,592.55
development
Real estate development
12,450,610,550.75 186,041,798.10 12,264,568,752.65
product
Raw material 7,371,922.75 7,371,922.75
Low-price consumables 6,256,448.97 162,981.66 6,093,467.31
Total 101,733,421,428.09 714,784,692.83 101,018,636,735.26
The inventory at the end of the period increased by RMB 1,168,990,300,000 than the beginning of the year, with
an increase rate of 11.57 % due to the real estate project of the Group.
(2)Inventory composition
Amount at the
Increase of this Decrease of this Amount at the end
Item beginning of the
period period of the period
period
Cost of real
estate 89,269,182,505.62 22,406,134,853.05 9,389,480,189.80 102,285,837,168.87
development
Real estate
development 12,450,610,550.75 9,515,928,329.44 10,879,552,788.16 11,086,986,092.03
product
Raw
7,371,922.75 16,726,404.38 18,499,447.07 5,598,880.06
material
Low-price
6,256,448.97 10,111,195.37 8,166,490.40 8,201,153.94
consumables
Total 101,733,421,428.09 31,948,900,782.24 20,295,698,915.43 113,386,623,294.90
A. Property projects under construction
Estimated Estimated
time of total
Commencement Beginning Balance at the end
Project name completion investment
date balance of the period
of next (RMB
phase 10,000)
Beijing Xicheng
Homeland and May 2013 Feb. 2017 161,143 331,761,127.45 397,061,554.08
Longyuan
Beijing Park January 2006 December 212,765 13,664,595.65 19,681,825.52
97
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Estimated Estimated
time of total
Commencement Beginning Balance at the end
Project name completion investment
date balance of the period
of next (RMB
phase 10,000)
1872 2015
Beijing Guangying
Zhenyuan Note 1
July 2013 Feb. 2016 474,209 3,555,835,295.41
Tianjin Moti December
August 2012 336,994 1,942,897,727.70 2,139,879,065.89
Garden 2015
Tianjin August
May 2014 233,677 1,664,794,978.36 1,716,755,128.48
Yonghaiyuan 2016
Harbin Notting December
April 2013 77,448 417,466,046.36 596,719,552.36
Hill 2015
Beacon Hill in
May 2014 Jun. 2016 275,002 996,801,309.48 1,179,651,235.45
Harbin
Diamond Hill
Plaza of Mar. 2015 July 2018 229,867 562,479,863.84
Shenyang
Orchid Valley in December
July 2013 129,972 782,338,145.47 892,084,923.65
Dalian 2015
Yantai Merchant August
Jun. 2014 578,060 461,520,676.50 510,442,850.49
East Coast 2016
Yantai China
December
Merchant West May 2014 182,927 594,362,574.05 726,791,275.18
2017
Coast
Qingdao Hyde
May 2013 Jun. 2017 49,905 606,867,492.26 250,799,138.82
Garden
Qingdao LAVIE September
April 2012 140,367 518,059,485.68 381,638,596.59
Commune 2019
Rizhao Leyden August
Jun. 2014 183,654 912,702,949.70 865,307,359.80
Town 2016
Shanghai China
Merchants May 2011 July 2015 39,333 327,851,154.90 380,564,203.23
Haiwan Garden
Sheshan
August
Longyuan Project October 2010 132,395 1,018,900,771.99 1,108,871,457.89
2016
in Shanghai
Head Garden in
May 2006 July 2015 79,831 1,274,672,206.47 621,548,748.78
Shanghai
Phase I of
Shanghai Garden Mar. 2015 Mar. 2017 184,161 1,170,342,147.62
City
Nanjing Evian December
August 2014 151,400 662,921,300.07 753,081,328.84
County 2015
Nanjing
Magnificent December 2012 July 2015 323,423 2,619,284,586.06 2,639,786,699.40
House
Nanjing
Fangshanli October 2014 Jun. 2016 75,055 356,149,325.62 431,871,520.89
Garden
Evian Riviera in January 2015 October 136,500 738,004,931.01
98
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Estimated Estimated
time of total
Commencement Beginning Balance at the end
Project name completion investment
date balance of the period
of next (RMB
phase 10,000)
Naning 2017
Orchid Valley in October
April 2015 68,875 274,536,276.96
Nanjing 2017
Throne Bay in November
May 2011 621,044 2,125,278,500.58 2,265,166,070.46
Zhenjiang 2015
Zhenjiang Evian September
July 2014 193,063 240,628,200.95 340,554,308.38
Uptown 2016
Changzhou Park November
Feb. 2013 108,614 1,134,843,521.43 795,322,198.94
1872 2015
Changshu November
Jun. 2014 159,434 852,189,554.31 1,042,967,486.41
Xicheng Garden 2015
Suzhou
November
Magnificent Mar. 2013 27,211 1,198,208,447.53 116,255,951.47
2016
House
Suzhou December
Jun. 2013 71,516 662,293,393.57 665,396,162.18
Yishanjun 2015
Suzhou Small August
Mar. 2010 163,194 1,150,455,971.39 1,283,739,602.89
Stone City 2015
Suzhou Evian November
Feb. 2014 184,495 1,104,232,661.19 1,208,707,107.25
Riviera 2015
Suzhou Zhuyuan
Mar. 2015 May 2017 122,947 778,934,566.54
Road project
Suzhou Science
December
and Technology Mar. 2015 70,041 301,274,754.17
2016
City Project
Hangzhou
Magnificent May 2014 April 2016 136,176 1,008,682,215.82 1,083,319,456.47
House
Hangzhou November
Mar. 2014 265,743 1,903,307,211.89 1,977,063,049.41
Kingbay 2016
Ningbo Park
July 2014 Mar. 2016 384,688 2,543,063,760.07 2,795,314,233.28
1872
Xiamen
Magnificent Mar. 2014 Jun. 2016 101,006 796,816,368.04 847,366,969.71
House
Xiamen Sea May December
March 2011 269,298 612,580,190.75 277,988,193.42
Flower 2016
Holiday 365,
Jun. 2010 July 2015 37,298 133,525,527.09 19,040,520.46
Zhangzhou
Zhangzhou August
May 2010 229,313 1,277,717,672.53 994,829,692.03
Cadaques 2015
Land Plot 1872A November
Mar. 2012 369,791 1,284,084,823.48 1,593,441,109.50
of Park, Wuhan 2015
Land Plot 1872 B August
October 2014 227,607 676,535,803.13 802,874,229.27
of Park, Wuhan 2015
Land Plot 1872C August
October 2014 314,888 61,044,729.94 209,056,920.93
of Park, Wuhan 2015
99
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Estimated Estimated
time of total
Commencement Beginning Balance at the end
Project name completion investment
date balance of the period
of next (RMB
phase 10,000)
Glory of the City, October
May 2014 335,829 1,746,814,179.73 1,924,809,608.23
Wuhan 2016
Xi’an Evian October
September 2014 138,455 541,490,612.80 653,084,791.48
Qujiang 2016
Chongqing Land October
May 2011 420,970 2,828,918,135.31 2,993,582,727.82
Mark Riverside 2015
Chongqing November
August 2011 160,430 1,254,938,677.85 1,002,981,773.01
Garden City 2015
September
Chongqing Evian May 2014 107,924 628,825,958.94 726,678,615.40
2015
Chongqing
Central Park July 2014 May 2016 520,957 3,025,832,005.41 3,114,368,954.67
Project
Evian Uptown in August
Feb. 2014 118,837 425,799,461.39 536,464,853.17
Chengdu 2016
Chengdu
Merchants
January 2015 May 2017 113,143 536,446,092.29
Magnificent
House
Bijie China
Merchants April 2012 Mar. 2017 181,167 532,279,432.91 741,341,041.40
Garden City
Yunnan December
January 2013 244,289 1,354,648,970.66 1,537,805,559.86
Haigongguan 2015
December
Kunming Kingbay May 2015 251,520 278,034.06
2018
Nanning Kingbay July 2014 Mar. 2016 151,109 854,730,395.09 959,056,043.43
Evian
October
International in Feb. 2013 89,261 412,924,897.45 513,050,521.31
2015
Foshan
Foshan Evian November
October 2013 208,043 687,319,284.40 1,146,341,205.34
Property Center 2016
Evian Buena September
December 2010 130,083 454,370,725.05 695,226,184.61
Vista in Foshan 2015
Foshan Park
September 2013 Feb. 2016 261,701 1,706,096,128.86 1,819,749,644.62
1872
Foshan Kingbay Mar. 2014 Mar. 2016 215,572 758,826,483.42 1,262,720,633.90
Foshan Evian
Feb. 2014 Mar. 2016 106,107 344,782,063.71 503,090,175.03
Mansion
Evian Riviera in November
April 2014 159,809 568,241,550.30 1,049,750,972.50
Foshan 2015
Guangzhou
Jinshan Valley September
July 2009 315,955 1,037,816,619.77 1,226,024,868.01
and Creative 2015
Park
Wanbo Mansion September
August 2014 238,545 1,574,263,261.28 1,649,669,202.07
in Guangzhou 2016
100
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Estimated Estimated
time of total
Commencement Beginning Balance at the end
Project name completion investment
date balance of the period
of next (RMB
phase 10,000)
Donghuicheng in October
Mar. 2012 276,969 1,539,701,580.31 1,136,896,752.24
Guangzhou 2015
Zhuhai Yishui August
April 2014 169,425 670,638,863.80 808,508,810.80
Yun'an 2016
Sanya Haitang
January
Bay Qingtian January 2013 208,088 184,170,478.62 214,753,474.74
2016
Town
Shenzhen
TBD TBD TBD 278,385,884.46 281,943,647.36
Yuercun Project
Shenzhen One September
November 2011 735,678 2,060,034,689.63 1,819,698,724.56
City Project 2016
Renovation of
Sanlian Village TBD TBD TBD 83,450,363.05 103,129,234.52
of Shenzhen
Shenzhen Xiyong
TBD TBD TBD 5,727,898.28 6,877,771.08
Project
Shenzhen
November
Pingshan Garden April 2013 321,816 2,200,442,700.46 2,443,188,805.94
2015
City
Shenzhen
Jun. 2013 Mar. 2016 211,046 1,269,675,944.66 1,441,285,580.71
Prince’s Building
Shenzhen Sea
July 2013 Feb. 2016 1,203,461 8,045,513,371.93 8,257,780,179.28
World Residence
Shenzhen August
August 2015 24,013 85,082,840.38 79,234,991.28
Chuantou Plaza 2016
Shenzhen
August
Merchants Plaza Feb. 2015 3,887 9,491,032.46 10,400,109.45
2015
Club
Shenzhen Sea August
May 2013 113,969 302,471,062.30 286,369,855.90
World Museum 2016
Municipal Works
December
of Shenzhen Sea July 2013 7,541 25,283,531.16 29,517,651.14
2015
World
Others Note 1,528,913,322.00 48,683,968.05
Total 73,296,407,415.29 82,873,138,622.61
Note 1: As of June 30,2015, the Company held 34% equity of Beijing Guangying
Residential Property Development Limited and had control over such company in the current
period, thus including such company into the consolidation scope and acquiring the Beijing
Guangying Zhenyuan project.
Note 2: others stand for the developed commodities which the projects of Xiamen Hyde
Park, Evian County in Tianjin and Magnificent House in Chengdu are transferred into upon
completion in the current period.
101
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
B. As of June 30, 2015, the Group’s land reserve area is 5,180,400 m2, and land cost is RMB
19,412,698,546.26.
Estimated Estimated
Scheduled time of total
Beginning Balance at the end
Project name commencement completion investment
balance of the period
time of next (RMB
phase 10,000)
Tianjin
August 2015 May 2017 188,061.84 1,244,160,000.00 1,244,970,999.00
Yonghaiyuan
Beacon Hill in
May 2016 Jun. 2018 742,758.00 2,176,227,707.50 2,176,227,707.50
Harbin
Land Plots 3-7
December
of Harbin September 2015 194,317.00 405,446,215.43 319,725,971.98
2016
Notting Hill
Yantai China
November
Merchant West Feb. 2018 307,373.14 832,919,800.00 832,919,800.00
2020
Coast
Rizhao Leyden
August 2015 July 2017 346,253.00 1,030,525,477.63 1,126,070,100.00
Town
Baoshan Garden December
Feb. 2016 327,419.06 1,604,825,500.00
City of Shanghai 2017
October
Nanjing Yanziji October 2015 171,859.00 1,228,973,612.55 556,308,317.80
2019
Orchid Valley in
Feb. 2016 August 2018 196,943.00 645,030,686.67
Nanjing
Nanshan,
Zhenjiang
Mar. 2016 Jun. 2017 52,855.65 61,688,493.41 65,237,845.13
Creative
Industry Park
Phase II of
Suzhou Ruiying
November 2015 May 2018 169,946.00 1,000,967,031.21
Zhuyuan Road
Project
Zhangzhou
Feb. 2016 August 2018 253,423.00 958,930,000.00 959,029,800.00
Banshan
Laidun Town of
Zhangzhou November 2015 July 2017 90,684.77 494,474,703.34
Property
Land Plot C of
October
Wuhan Moshui Mar. 2016 314,887.53 1,165,000,000.00 1,032,195,259.59
2017
Lake
Land Plot B of
Wuhan Moshui January 2016 April 2018 227,606.56 265,602,240.90 265,602,240.90
Lake
Xi’an Evian October
October 2015 160,265.00 427,089,500.00 453,670,055.12
Qujiang 2017
Evian Uptown in
May 2016 July 2018 306,397.16 516,798,812.93 520,088,880.92
Chengdu
Chengdu Central
Huacheng May 2016 May 2018 364,061.00 1,393,759,007.14
Project
102
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Estimated Estimated
Scheduled time of total
Beginning Balance at the end
Project name commencement completion investment
balance of the period
time of next (RMB
phase 10,000)
Yunnan December
November 2015 102,228.00 341,064,823.18 344,152,198.15
Haigongguan 2016
Chongqing
July 2015 July 2018 682,294.00 1,227,830,000.00 1,267,946,308.86
Central Park Plot
Banan Land Plot October
September 2015 208,549.00 752,112,428.94 752,112,428.94
of Chongqing 2016
Chongqing
Jinxinghui October 2015 July 2017 82,700.00 376,531,118.70
Project
Foshan Evian December
Mar. 2016 37,494.00 222,746,891.47 133,500,447.46
Mansion 2017
Evian Riviera in September
January 2016 63,630.01 675,617,296.70 333,536,302.20
Foshan 2017
Foshan Evian
July 2015 January 2017 112,368.18 646,179,914.45
Guanyuan
Bo’ao Big Lake
Mar. 2017 January 2020 312,854.00 856,186,960.65 867,635,921.20
of Hainan
Others 1,583,854,829.04
Total 15,972,775,090.33 19,412,698,546.26
Note 1: Others stand for the projects which have been transferred into those under
construction, including the projects of Noble Hill in Suzhou, Diamond Plaza in Shenyang,
Foshan Kingbay, Evian Buena Vista in Foshan, etc.
C. Real estate development products are as follows:
As-built date
Debit in this Credit in this
Project name of the last Initial amount Ending amount
period period
phase
Beijing Park
July 2014 127,081,879.73 45,798,014.17 81,283,865.56
1872
Beijing Xicheng September
87,892,147.13 4,295,294.36 83,596,852.77
Garden 2010
Beijing Park
July 2013 15,333,804.36 8,108,770.27 7,225,034.09
Lounge
Beijing
Guangying April 2015 1,319,147,101.38 564,003,708.86 755,143,392.52
Zhenyuan
Tianjin Star City July 2014 853,731,221.06 42,652,065.72 811,079,155.34
Tianjin
Magnificent October 2012 165,621,697.18 500,867.30 166,122,564.48
House
Tianjin Beacon
August 2014 195,506,331.33 150,979,123.97 44,527,207.36
Hill
Tianjin Evian
April 2015 4,922,143.84 406,907,035.94 142,734,641.67 269,094,538.11
County
No. 36, Xikang November 1,907,351.03 1,907,351.03
103
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
As-built date
Debit in this Credit in this
Project name of the last Initial amount Ending amount
period period
phase
Road, Tianjin 2009
Harbin Notting
July 2014 224,268,028.86 100,989,649.06 123,278,379.80
Hill
Qingdao LAVIE
Jun. 2015 292,388,927.41 221,405,993.67 42,296,971.34 471,497,949.74
Commune
Qingdao Hyde
April 2015 487,625,796.89 336,914,221.56 150,711,575.33
Garden
Shanghai China
Merchants Jun. 2014 504,936,620.47 96,455,047.53 408,481,572.94
Haiwan Garden
Shanghai
Sheshan August 2014 1,513,603,886.28 16,296,044.38 504,709,394.68 1,025,190,535.98
Longyuan
Head Garden in
January 2015 41,490,196.98 762,211,801.13 706,722,313.55 96,979,684.56
Shanghai
Shanghai
Hongqiao August 2014 515,254,589.35 478,126,371.00 37,128,218.35
Mansion
Nanjing Purple
December 2013 909,258,053.07 12,609,172.68 36,936,910.38 884,930,315.37
Mountain No.1
Throne Bay in
July 2014 310,466,183.72 85,180,299.30 225,285,884.42
Zhenjiang
Changzhou
China Merchants April 2015 487,179,470.12 305,508,947.06 181,670,523.06
Garden City
November
Suzhou Kingbay 102,623,803.98 -8,958,394.53 59,053,220.04 34,612,189.41
2014
Suzhou Evian
December 2009 5,767,993.29 925,730.41 4,842,262.88
Town
Suzhou Small
December 2014 41,942,730.24 -4,948,998.08 28,879,100.60 8,114,631.56
Stone City
Suzhou
Magnificent April 2015 1,138,781,958.13 1,118,388,434.03 20,393,524.10
House
Suzhou
May 2015 813,687,941.43 786,016,473.28 27,671,468.15
Yishanjun
Cadaques,
Mar. 2015 83,949,754.05 447,924,598.50 320,384,298.67 211,490,053.88
Zhangzhou
Xiamen May
Jun. 2015 287,960,383.03 441,989,508.10 475,695,745.03 254,254,146.10
Flower
Xiamen Hyde
Jun. 2015 169,710,108.52 844,400,058.01 50,060,503.69 964,049,662.84
Park
Zhangzhou
China Merchants Jun. 2013 23,445,031.68 1,192,662.59 1,688,114.46 22,949,579.81
Garden City
Sunshine
Garden, Jun. 2006 2,656,378.89 2,656,378.89
Zhangzhou
Golden Triangle
Commercial
December 2004 1,439,657.00 1,439,657.00
Apartment,
Zhangzhou
Zhangzhou
Mar. 2015 14,278,323.16 141,912,159.96 673,651.24 155,516,831.88
Holiday 365
104
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
As-built date
Debit in this Credit in this
Project name of the last Initial amount Ending amount
period period
phase
Land Plot 1872A
December 2014 758,150,521.52 -48,780,932.65 499,964,875.96 209,404,712.91
of Park, Wuhan
Wuhan
Magnificent May 2014 51,216,792.74 12,394,444.70 38,822,348.04
House
Chongqing
China Merchants Feb. 2015 382,159,020.02 497,380,618.49 580,851,721.48 298,687,917.03
Garden City
Chongqing September
118,443,940.57 6,868,017.52 111,575,923.05
Jiangwancheng 2013
Chongqing Land
April 2014 93,090,462.64 6,010,838.07 37,277,500.21 61,823,800.50
Mark Riverside
China Merchants
(Chengdu)
April 2015 355,823,057.12 402,899,160.32 335,258,632.66 423,463,584.78
Magnificent
House
Chengdu
September
International 26,305,882.29 56,792.00 26,362,674.29
2012
East City
Bijie China
Merchants December 2014 544,559,000.19 237,258,734.54 307,300,265.65
Garden City
Evian Riviera in
July 2014 407,845,490.21 46,044,987.74 311,332,470.68 142,558,007.27
Foshan
Evian Town in September
79,494,610.27 19,694,114.42 59,800,495.85
Foshan 2012
Evian Uptown in
Jun. 2013 95,098,057.68 41,006,589.22 54,091,468.46
Foshan
Evian Buena September
133,271,625.41 57,271,163.25 76,000,462.16
Vista in Foshan 2014
Guangzhou
Jun. 2013 263,092,732.45 141,330,012.38 121,762,720.07
Jinshan Valley
Guangzhou September
419,333,557.52 54,960,933.63 364,372,623.89
Creative Park 2014
Donghuicheng in
Jun. 2015 115,393,572.10 557,814,348.54 552,599,047.71 120,608,872.93
Guangzhou
Zhuhai Garden
January 2014 490,453,093.68 603,355.87 218,910,662.63 272,145,786.92
City
Shenzhen
Gorgeous October 2010 1,063,834.85 1,063,834.85
Garden
China Merchants
(Shenzhen) Jun. 2013 20,277,468.26 11,080,743.62 9,196,724.64
Green Garden
Shenzhen Yihai
August 2014 490,192,890.17 494,133,607.86 657,451,206.15 326,875,291.88
City
Shenzhen China
Merchants Guan January 2012 71,702,381.86 38,602,276.01 33,100,105.85
Garden
Shenzhen
August 2012 1,714,823.10 -4,781.47 1,719,604.57
Kingbay
Shenzhen
Woods Jun. 2013 72,246,159.69 23,610,685.70 48,635,473.99
Apartment
105
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
As-built date
Debit in this Credit in this
Project name of the last Initial amount Ending amount
period period
phase
Jingshan The
Ninth in Jun. 2014 619,489,489.36 532,880,135.89 86,609,353.47
Shenzhen
Shenzhen Jinxiu
Jun. 2014 80,330,997.10 14,776,585.34 65,554,411.76
Kwun Town
Sea World
December 2014 77,717,929.82 -3,393,807.64 74,324,122.18
Riverside
Shenzhen
December 2014 56,576,597.22 5,469,291.19 62,045,888.41
Central Plaza
Sea World
December 2014 42,825,888.41 1,982,041.41 44,807,929.82
Public Space
Shenzhen
September
Huanchuan 83,769,461.86 25,843,250.64 109,612,712.50
2013
Plaza
Others 1,533,987.00 1,533,987.00
Total 12,450,610,550.75 9,515,928,329.44 10,879,552,788.16 11,086,986,092.03
(3)Provision for inventory devaluation
Increase in current
Decrease in current period
Balance at the period Balance at the
Item beginning of the Counting end of the
year Write-back or Other period
and Others
write-off transfer out
drawing
Cost of real
estate 528,579,913.07 37,684,408.04 490,895,505.03
development
Real estate
development 186,041,798.10 37,684,408.04 36,701,123.85 187,025,082.29
product
Raw material 121,581.66 121,581.66
Low-price
162,981.66 121,581.66 41,400.00
consumables
Total 714,784,692.83 37,805,989.70 36,701,123.85 37,805,989.70 678,083,568.98
Note 1: The estimated sale price applied to calculate net realizable value of inventory is
divided into the presold and unsold parts, the estimated sale price of the presold part is
confirmed according to the actual contracting price, and the estimated sale price of the unsold
part according to the recently average contracting price or sale price of similar products.
Note 2: Qingdao Zhongrunde Auto Trade Co., Ltd., a subsidiary of the Company, has its
phase II of Qingdao LAVIE community project be carried over in advance upon completion in
the current period, and the falling price reserves of RMB 37,684,408.04 of Phase II transferred
into the developed commodities as development cost, and the accrued impairment loss of
RMB 2,030,650.10 written off as a result of carryover of sales ratio.
106
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Note 3: Shanghai Jingyuan Property Development Co., Ltd., a subsidiary of the Company,
writes off the accrued impairment loss of RMB 34,670,473.75 as a result of carryover of sales
ratio in the current period.
(4)Accumulative capitalized interest payments in real estate development costs are RMB 2,943,166,308.40,
including the interest payments of RMB 789,183,253.10 included in real estate development costs for this period.
(5)Inventory used as mortgage is listed as follows.
Including:
Lending long-term loan
Borrower Loan amount Collateral
institution amount due
within one year
Qingdao LAVIE Commune (Phase
Qingdao I) site (corresponding land use
Zhongrunde right certificate number: QFDQSZ
Bank 133,000,000.00 133,000,000.00
Auto Trade Co., No. 20081844) and project under
Ltd. construction (ownership certificate
number: QFDJS No. 201274753)
Qingdao LAVIE Commune (Phase
II) site (corresponding land use
Qingdao
right certificate number: QFDQSZ
Zhongrunde
Bank 71,800,000.00 29,800,000.00 No. 201013560) and project under
Property Co.,
construction (corresponding
Ltd.
ownership certificate number: JZ
No. 370200201316034)
Land use right (corresponding land
Tianjin CM use right certificate: JZ No.
Taida Investment Bank 68,000,000.00 1,200,000.00 114051200160, No.
Co., Ltd. 114051300109, and No.
11405130007)
Harbin Yinkai Beacon Hill project in Harbin
Real Estate under construction (corresponding
Bank 200,000,000.00
Development ownership certificate No.: HFJSZ
Co., Ltd. No. 1410000033)
Harbin Notting Hill site
China Merchants (corresponding ownership
(Harbin) Jiatian certificate No.: HGY (2014) No.
Property Bank 250,000,000.00 10000012) and project under
Development construction (corresponding
Co., Ltd. ownership certificate No.: HFJSZ
No. 1410000036)
China Merchants Changshu Taigongwang Garden
(Changshu) Project site (corresponding land
Bank 198,700,000.00 2,800,000.00
Xicheng Real certificate No.: CGY (2014) No.
Estate Co., Ltd. 13137)
Ningbo Jiangwan 3#-1 Site for Ningbo Park 1872
Property Project (corresponding land
Bank 45,000,000.00 15,000,000.00
Development certificate No.: YGY (2014) No.
Co., Ltd. 0101150)
China Merchants Land use right of CY-07 plot
& Jiaming Bank 130,000,000.00 [JCGY (issued in 2014) No.
(Beijing) 00178], Land use right of CY-10
107
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Including:
Lending long-term loan
Borrower Loan amount Collateral
institution amount due
within one year
Property plot [JCGY (issued in 2014) No.
Development 00179]
Co., Ltd
China Merchants Certificate of land use right of
(Chongqing) Chongqing Evian Bay Jiangwan
Pvian Property Bank 100,000,000.00 15,000,000.00 (Land Certificate No: 202 D
Development certificate of real estate, 2014 Zi
Co., Ltd. No.00548)
Total 1,196,500,000.00 196,800,000.00
9. Other current assets
Item Balance at the end of Balance at the Nature
the period beginning of the year
Amount withhold
Provisional tax 4,003,623,269.15 3,535,041,730.18
for tax
Other expenses
Others 10,390,198.57 15,654,162.79
prepaid
Total 4,014,013,467.72 3,550,695,892.97
10. Long-term accounts receivable
(1) Long-term accounts receivable
Balance at the beginning of Range
Balance at the end of the period
the year of
Item
Impairment Book Impairment Book discount
Book balance Book value rate
provision balance provision value
Long-term
accounts
1,197,613,748.94 1,197,613,748.94
receivable
Note
Total 1,197,613,748.94 1,197,613,748.94
Note: long-term receivables at the end of the period are entrust loans provided by the Company and
subsidiaries for associates and joint ventures, of which details are contained in the Note of " (II) 4. Inter-bank lending
of affiliated parties under X".
1.
108
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
11. Long-term equity investments
Increase or decrease in this period
Profit and Depreciation
Balance at the loss on Other Profit or cash Balance at the
Other Withdrawing reserves at
Invested company beginning of the Additional Negative investments comprehensive dividend end of the
equity depreciation Others the end of
year investments investment confirmed income declared to be period
change reserves this period
with equity adjustment distributed
method
I. Joint ventures
Shenzhen Dehan
Investment 12,723,194.94 -581,130.58 12,142,064.36
Development Co., Ltd.
Shenzhen Yihaicheng
Property Management
Co., Ltd Note 1
China Merchants
(Foshan) Longyuan
Property Development
Co., Ltd Note 1
Shenzhen CMOCTPM
3,958,043.25 354,757.67 -1,000,000.00 3,312,800.92
Co., Ltd
Shanghai FTZ Pushen
13,137,162.77 -4,393,349.26 8,743,813.51
Property Co., Ltd.
Ningbo Dingfeng Real
Estate Development 38,899,500.00 -467,453.90 38,432,046.10
Co., Ltd.Note 3
Beijing Yalindong
Real Estate
26,000,000.00 -275,745.46 25,724,254.54
Development Co., Ltd.
Note 4
Beijing Yalinxi Real
Estate Development 24,000,000.00 -148,182.10 23,851,817.90
Co., Ltd. Note 5
Beijing Guangying
Residential Property 16,274,321.30 -16,274,321.30
Development Limited
109
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Increase or decrease in this period
Profit and Depreciation
Balance at the loss on Other Profit or cash Balance at the
Other Withdrawing reserves at
Invested company beginning of the Additional Negative investments comprehensive dividend end of the
equity depreciation Others the end of
year investments investment confirmed income declared to be period
change reserves this period
with equity adjustment distributed
method
Note 2
II. Affiliated
enterprises
China Merchants
Overseas Chinese 576,229,417.22 36,100,012.04 -397,719,804.44 214,609,624.82
Town
Guangzhou Panyu
Innovation Science 309,970,191.37 -4,634,137.64 305,336,053.73
Park Co., Ltd.
Huizhou Taitong Real
Estate Investment Co.,
Ltd Note 1
Shanghai New South
Mountain Real Estate 113,571,029.74 5,514,648.20 119,085,677.94
Development Co., Ltd.
China Merchants
Guangming Science 162,076,268.45 537,383.00 162,613,651.45
Park
China Merchants
(Beijing) Tianping 2,518,100.23 6,859.43 2,524,959.66
Property Co., Ltd.
Tianjin Xinghai Real
Estate Development 104,129,413.64 104,129,413.64
Co., Ltd.
Shanghai Ledu
183,105,407.55 2,126,494.33 185,231,901.88
Property Co., Ltd.
Jones Tech Limited 73,165,485.47 -5,748,194.49 67,417,290.98
Holly Profit Limited 86,781,997.45 -6,096,838.10 80,685,159.35
Station Fortune
88,618,103.34 726,909.05 89,345,012.39
Limited
110
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Increase or decrease in this period
Profit and Depreciation
Balance at the loss on Other Profit or cash Balance at the
Other Withdrawing reserves at
Invested company beginning of the Additional Negative investments comprehensive dividend end of the
equity depreciation Others the end of
year investments investment confirmed income declared to be period
change reserves this period
with equity adjustment distributed
method
Chief Master Limited 44,355,471.92 -801,039.38 43,554,432.54
TCL Opto-electronic
Tech (Shenzhen) Co., 114,397,235.92 8,988,117.11 123,385,353.03
Ltd.
Tianjin Munanqiushi
16,999,378.42 -129.11 16,999,249.31
Industrial Co., Ltd.
China Merchants
Zhangzhou
Development Zone
South Taiwu Industrial 2,450,000.00 -51,712.08 2,398,287.92
Park Property
Management Service
Co., Ltd.Note6
Nanjing Aojian
Property Co., Ltd. 6,030,000.00 6,030,000.00
Note 7
Nanjing
Shizhaoquansheng
14,700,000.00 14,700,000.00
Property Co., Ltd.
Note 8
Guangzhou Liansen
Real Estate Co. ,Ltd 68,000,000.00 -2,810,954.24 65,189,045.76
Note 9
Guangzhou Lianzhou
Real Estate Co., Ltd 68,000,000.00 -2,383,785.68 65,616,214.32
Note 10
Chengdu China MCC5
Wentou Land Ltd Note 235,846,236.00 235,846,236.00
11
Total 1,905,735,901.68 483,925,736.00 42,236,850.11 -398,719,804.44 -16,274,321.30 2,016,904,362.05
111
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Note 1: the long-term equity investments with the calculated book value depreciated to zero due to equity method applied are as follows:
Invested company Shareholding ratio Investment cost Accrual equity method adjustment
Foshan Merchants Longyuan Real Estate Co.,
Ltd.
50 % 50,000,000.00 -50,000,000.00
Huizhou Taitong Real Estate Investment Co.,
Ltd
49 % 25,484,900.00 -25,484,900.00
Shenzhen Yihaicheng Property Management
Co., Ltd
50 % 500,000.00 -500,000.00
Note 2: Beijing Guangying Residential Property Development Limited was changed into a subsidiary in the current period. See Seven 1, Corporate merger not
under the common control.
Note 3: On February 4, 2015, the company and Ningbo Global Properties Co., Ltd., Shanghai Shimao Co., Ltd signed an agreement propose to increase
investment in Ningbo Dingfeng Real Estate Development Co., Ltd., which now has a registered capital up to RMB 125 million, of which RMB 38.8995 million was
from the company and RMB 1.3995 million is included as the capital reserve of Ningbo Dingfeng Real Estate Development Co., Ltd. in a ratio of 30%.
Note 4: On February 11, 2015, China Merchants (Beijing) Property Development Co., Ltd., a subsidiary of the company, and Beijing Resources Shuguang Real
Estate Development Co., Ltd, Shenzhen New Alliance Investment Management Co., Ltd, Zhichang (Beijing) Enterprise Management Co., LTD jointly invested to
set up Beijing Yalindong Real Estate Development Co., Ltd with a registered capital of RMB 100 million, of which RMB 26 million is from China Merchants
(Beijing) Property Development Co., Ltd. in a equity share of 26%.
Note 5: On February 11, 2015, China Merchants (Beijing) Property Development Co., Ltd., a subsidiary of the company, and Beijing Resources Shuguang Real
Estate Development Co., Ltd, Shenzhen New Alliance Investment Management Co., Ltd, Zhichang (Beijing) Enterprise Management Co., LTD jointly invested to
set up Beijing Yalinxi Real Estate Development Co., Ltd with a registered capital of RMB 100 million, of which RMB 24 million is from China Merchants (Beijing)
Property Development Co., Ltd. in a equity share of 24 %.
112
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Note 6: On February 26, 2015, China Merchants Property Management Co., Ltd., a subsidiary of the Company, and China Merchants Zhangzhou Development
Zone Co., Ltd. jointly invested to set up China Merchants Zhangzhou Development Zone South Taiwu Industrial Park Property Management Service Co., LTD. with
a registered capital of RMB 5 million of which RMB 2.45 million is from China Merchants Property Management Co., Ltd. in a equity share of 49 %.
113
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Note 7: On January 30, 2015, China Merchants (Nanjing ) Property Development Co., Ltd.,
a subsidiary of the company, and Shenzhen New Alliance Investment Management Co., Ltd,
Nanjing Aohe Real Estate Development Co., Ltd., Nanjing Bozhixing Investment Management
Co., Ltd. jointly invested to set up Nanjing Aojian Property Co., Ltd. with a registered capital of
RMB 100 million, of which RMB 6.03 million is from China Merchants (Nanjing ) Property
Development Co., Ltd. in a equity share of 6.03 %.
Note 8: On January 27, 2015, China Merchants (Nanjing ) Property Development Co., Ltd.,
a subsidiary of the company, and Shanghai Qingyu Investment Management Co., Ltd. jointly
invested to set up Nanjing Shizhaoquansheng Property Co., Ltd. with a registered capital of
RMB 30 million, of which RMB 14.7 million is from China Merchants (Nanjing ) Property
Development Co., Ltd. in a equity share of 49 %.
Note 9: On May 5, 2015, Guanhua Port Trade (Shenzhen) Co., Ltd., a subsidiary of the
company, and Shenzhen New Alliance Investment Management Co., Ltd., China Resources
Land One Two Three Four (Shenzhen) Operation and Management Co., Ltd. jointly increased
investment in Guangzhou Liansen Real Estate Co.,Ltd, with an increased amount of RMB 19
million and a registered capital increased to RMB 200 million, of which RMB 68 million is
from Guanhua Port Trade (Shenzhen) Co., Ltd. in a shareholding ratio of 34%.
Note 10: On May 5, 2015, Guanhua Port Trade (Shenzhen) Co., Ltd., a subsidiary of the
company, and Shenzhen New Alliance Investment Management Co., Ltd., China Resources
Land One Two Three Four (Shenzhen) Operation and Management Co., Ltd. jointly increased
investment in Guangzhou Lianzhou Real Estate Co.,Ltd, with an increased amount of RMB 19
million and a registered capital increased to RMB 200 million, of which RMB 68 million is
from Guanhua Port Trade (Shenzhen) Co., Ltd. in a shareholding ratio of 34%.
Note 11: On June 18, 2015,China Merchants (Chengdu) Beihu Land Ltd. and China
Merchants (Shenzhen) Property Investment Co., Ltd., two subsidiaries of the company, and
Ganzhou Yuankang Investment Partnership Co., Ltd. jointly acquired from Chengdu Mass
Media Group 49% of the shares of Chengdu China MCC5 Wentou Land Ltd, which has a
registered capital of RMB 943,762,448.98, of which RMB 143,357,516.00 is from China
Merchants (Chengdu) Beihu Land Ltd. in a shareholding ratio of 15.19% and RMB
92,488,720.00 is from China Merchants (Shenzhen) Property Investment Co., Ltd. in a
shareholding ratio of 9.80% and RMB 235,846,236.00 is from the company in a shareholding
ratio of 24.99%.
114
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
12. Investment property
(1) Investment property of cost measurement model
Houses and
Item Land use rights Total
buildings
I. Original carrying value
1. Beginning balance 4,615,710,249.78 2,481,288,278.48 7,096,998,528.26
2. Increase of this period 14,267,764.89 964,385.00 15,232,149.89
(1) Outsourcing 964,385.00 964,385.00
(2) Carried over from inventory/fixed
14,267,764.89 14,267,764.89
assets/ intangible assets
(3) Other increases
(4) Increase of corporate
combination
3. Decrease of this period 29,696,745.23 5,178,522.26 34,875,267.49
(1) Disposal 29,696,745.23 5,178,522.26 34,875,267.49
(2) Carried over to inventory/fixed
assets/ intangible assets
(3) Other decreases
4. Ending balance 4,600,281,269.44 2,477,074,141.22 7,077,355,410.66
II. Accumulative depreciation and
amortization
1. Beginning balance 1,333,537,147.48 316,217,431.32 1,649,754,578.80
2. Increase of this period 79,099,717.40 32,057,102.86 111,156,820.26
(1) Withdrawing or amortization 79,099,717.40 32,057,102.86 111,156,820.26
(2) Carried over from inventory/fixed
assets/ intangible assets
(3) Other increases
(4) Increase of corporate combination
3. Decrease of this period 22,251,945.50 1,572,815.82 23,824,761.32
(1) Disposal 22,251,945.50 1,572,815.82 23,824,761.32
(2) Other transfer-out
(3) Other decreases
4. Ending balance 1,390,384,919.38 346,701,718.36 1,737,086,637.74
III. Provision for impairment
1. Beginning balance
2. Increase of this period
(1) Withdrawing
(2) Carried over from inventory/fixed
assets/ intangible assets
(3) Increase of corporate combination
3. Decrease of this period
(1) Disposal
(2) Carried over to inventory/fixed
assets/ intangible assets
4. Ending balance
115
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Houses and
Item Land use rights Total
buildings
IV. Book value
1. Ending book value 3,209,896,350.06 2,130,372,422.86 5,340,268,772.92
2. Beginning book value 3,282,173,102.30 2,165,070,847.16 5,447,243,949.46
(2) Investment property without proper certificate of title
Item Book value Reasons for uncompleted property
right certificate
China Merchants Plaza 1,131,793,562.41
Chuanqian Plaza 368,760,320.78
Chuanwei Plaza 348,303,872.19
Chuanhou Plaza 347,128,654.75
Maillen Apartment 242,733,150.80
Refined decoration club in Zone
46,503,031.25
D, Zhangzhou Cadaques Handling ownership certificate
Stores at exhibition area of
29,209,352.19
Zhangzhou Cadaques
The Hills Garden (Phase II) 22,507,921.87
Zhangzhou Cadaques C3
11,797,161.23
Shopping Street
Golden Triangle Commercial
462,561.23
Apartment
Crape Myrtle Garden (Phase I) 35,089,782.24
Main body of culture and sports
13,308,916.22
center For the property premise is obtained
Asian plant 6,690,052.19 under operating lease, relevant
Swimming pool in culture and ownership certificate cannot be issued
1,334,948.24 for the property.
sports center
New Energy Dormitory 406,760.46
Duty free building 53,809.91
Negative 1st F to 8th F and 10th
47,617,137.30
F of Peninsula Tower
Wal-Mart 44,095,584.57
Jingshan Villa (Phase VIII)
35,945,080.24
(#145-#180)
Beike Venture Building 19,494,496.44
No.5 building of Jingshan No ownership certificate obtained for
14,245,449.31 historical reasons and the missing of
Apartment
source material
Store at Spring Plaza 4,378,568.99
No. 50 ~ 52 buildings of Mid
3,073,084.59
Ocean View Villa
Store in Lanxi Valley 2,204,546.68
Nanyou Plant 184,618.31
Bayview Court 84,169.83
Store in Mountain of Flowers and It is a temporary building, and
870,933.30
Fruit ownership registration cannot be
Rose Garden warehouse 34,220.84 issued before reconstruction as per
116
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Item Book value Reasons for uncompleted property
right certificate
urban planning.
Total 2,778,311,748.36
13. Fixed assets
(1) Statement of Fixed Assets
Item Houses and Plant Transportation Office
Total
buildings equipment equipment equipment
I. Original
carrying value
1. Beginning
1,772,678,440.90 277,121,588.54 110,000,582.97 188,287,473.96 2,348,088,086.37
balance
2. Increase of
9,263,858.07 45,150.00 2,790,317.60 3,959,697.37 16,059,023.04
this period
(1) Purchasing 470,000.00 17,000.00 2,308,617.60 3,042,176.00 5,837,793.60
(2) Carried-over
from
construction
under
construction
(3) Increase of
corporate 481,700.00 530,888.37 1,012,588.37
combination
(4) Carried-over
8,790,008.07 26,926.00 8,816,934.07
from other titles
(5) Other
3,850.00 28,150.00 359,707.00 391,707.00
increases
3. Decrease of
94,384.50 697,420.00 19,540,504.61 20,332,309.11
this period
(1) Disposal or
696,420.00 365,346.88 1,061,766.88
discard as useless
(2) Decrease of
corporate
combination
(3) Transfer-in
investment
property
(4) Carried over
53,942.50 15,769,362.04 15,823,304.54
to other titles
(5) Other
40,442.00 1,000.00 3,405,795.69 3,447,237.69
decreases
4. Ending
1,781,942,298.97 277,072,354.04 112,093,480.57 172,706,666.72 2,343,814,800.30
balance
II. Accumulated
depreciation
1. Beginning
181,402,782.79 156,796,801.96 59,611,684.11 104,738,947.59 502,550,216.45
balance
2. Increase of
36,421,723.41 12,084,977.50 7,221,112.73 13,629,250.24 69,357,063.88
this period
(1) Withdrawing 36,421,723.41 12,054,691.32 7,182,978.13 13,235,826.23 68,895,219.09
(2) Increase of
corporate 38,134.60 269,048.29 307,182.89
combination
117
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Item Houses and Plant Transportation Office
Total
buildings equipment equipment equipment
(3) Carried-over
from other titles
(4) Other
30,286.18 124,375.72 154,661.90
increases
3. Decrease of
64,249.09 661,599.00 13,267,486.45 13,993,334.54
this period
(1) Disposal or
661,599.00 266,014.84 927,613.84
discard as useless
(2) Decrease of
corporate
combination
(3) Transfer-in
investment
property
(4) Carried over
49,633.85 12,035,282.69 12,084,916.54
to other titles
(5) Other
14,615.24 966,188.92 980,804.16
decreases
4. Ending
217,824,506.20 168,817,530.37 66,171,197.84 105,100,711.38 557,913,945.79
balance
III. Provision for
impairment
1. Beginning
balance
2. Increase of
this period
(1) Withdrawing
(2) Increase of
corporate
combination
3. Decrease of
this period
(1) Disposal or
discard as useless
(2) Decrease of
corporate
combination
4. Ending
balance
IV. Book value
1. Ending book
1,564,117,792.77 108,254,823.67 45,922,282.73 67,605,955.34 1,785,900,854.51
value
2. Beginning
1,591,275,658.11 120,324,786.58 50,388,898.86 83,548,526.37 1,845,537,869.92
book value
(2) Fixed assets without proper certificate of title
Reasons for uncompleted property
Item Book value
right certificate
Zhangzhou Maillen Health Resort 113,123,723.76
Shenzhen Sea World Hilton Hotel 617,412,203.57
New property, in progress…
Office at 26th F of China Merchants
19,984,213.49
Plaza
118
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Mawan Transformer Substation
16,212,291.60
building
Phase I club of Zhuhai Merchants
7,597,842.35
Garden City
Haitao Hotel 701,070.92
The third transformer station (civil Ownership certificate can be issued after
6,312,370.66
works) rectification or improvement on relevant
Civil works for CEEG’s third cable construction application formalities
1,391,309.24
project
House ownership certificate cannot be
Maillen Club 15,971,590.79 issued for relevant policy reasons of
local government sectors
Part transformer station warehouse For property premise is land of lease,
and distribution substation of China 4,566,663.13 house ownership certificate cannot be
Merchants Power Supply issued.
It is a temporary building and
Substation and underground tank in
926,153.01 unqualified in handling ownership
Zones 34 and 35 of Huangjintai
registration.
Total 804,199,432.52
14. Construction in progress
(1) Breakdown of construction in progress
Balance at the end of the period Balance at the beginning of the year
Item Impairmen Impairmen
Book balance Book value Book balance Book value
t provision t provision
Transformer 77,501,716.0 77,501,716.0 77,450,226.1 77,450,226.1
station project 3 3 2 2
Reconstructio
n of plant in 2,936,043.39 2,936,043.39 2,936,043.39 2,936,043.39
Zone 34
Reconstructio
n of
4,586,781.10 4,586,781.10
Zengcheng
Training Base
80,437,759.4 80,437,759.4 84,973,050.6 84,973,050.6
Total
2 2 1 1
(2) Change of significant construction in progress
Balance at the Increase in Decrease in current period Balance at the
Project name beginning of current Transfer-in Other end of the
the year period fixed assets decreases period
Qianhai 110KV
Mawan
66,795,305.56 51,489.91 66,846,795.47
Transformer
Station
Reconstruction of
Zengcheng 4,586,781.10 2,894,327.60 7,481,108.70
Training Base
Reconstruction of 2,936,043.39 2,936,043.39
119
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Balance at the Increase in Decrease in current period Balance at the
Project name beginning of current Transfer-in Other end of the
the year period fixed assets decreases period
plant in Zone 34
Total 74,318,130.05 2,945,817.51 7,481,108.70 69,782,838.86
(Continued)
Includin
Proportio
g:
n of
amount Capitalizat
accumulat Accumula
Projec of ion rate of
ive ted
Project t capitaliz interest for Capital
Budget engineerin amount of
name Progre ed current sources
g capitalized
ss (%) interest period
investmen interest
in (%)
t in budget
current
(%)
period
Qianhai
110KV Self
135,000,000.
Mawan 61.89 90.00 financi
00
Transforme ng
r Station
Reconstruct
ion of Self
Zengcheng 7,481,108.70 100.00 100.00 financi
Training ng
Base
Reconstruct Self
1,457,485,20
ion of plant 0.20 financi
0.00
in Zone 34 ng
1,599,966,30
Total
8.70
15. Intangible assets
(1) Details of intangible assets
Item Land use rights Software Total
I. Original carrying
value
1. Beginning balance 543,856,173.97 7,638,448.00 551,494,621.97
2. Increase of this
600,000.00 600,000.00
period
(1) Purchasing 600,000.00 600,000.00
(2) Increase of
corporate combination
(3) Other increases
3. Decrease of this
15,120.00 15,120.00
period
(1) Disposal
120
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Item Land use rights Software Total
(2) Decrease of
corporate combination
(3) Other decreases 15,120.00 15,120.00
4. Ending balance 543,856,173.97 8,223,328.00 552,079,501.97
II. Accumulated
amortization
1. Beginning balance 34,974,403.61 4,973,751.19 39,948,154.80
2. Increase of this
8,016,064.10 923,205.08 8,939,269.18
period
(1) Withdrawing 8,016,064.10 923,205.08 8,939,269.18
(2) Increase of
corporate combination
(3) Other increases
3. Decrease of this
15,120.00 15,120.00
period
(1) Disposal
(2) Decrease of
corporate combination
(3) Other decreases 15,120.00 15,120.00
4. Ending balance 42,990,467.71 5,881,836.27 48,872,303.98
III. Provision for
impairment
1. Beginning balance
2. Increase of this
period
(1) Withdrawing
(2) Other increases
3. Decrease of this
period
(1) Disposal
(2) Other decreases
4. Ending balance
IV. Book value
1. Ending book value 500,865,706.26 2,341,491.73 503,207,197.99
2. Beginning book
508,881,770.36 2,664,696.81 511,546,467.17
value
16. Goodwill
(1) Original value of goodwill
Balance at the
Increase in Decrease in Balance at the
Invested company beginning of the
current period current period end of the period
year
China Merchants Land
159,560,861.23 159,560,861.23
Limited
Total 159,560,861.23 159,560,861.23
121
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
(2) The Group determines the difference between the expected present value of future
cash flow of goodwill asset group and book value of such group as the impairment loss of the
group. Goodwill impairment did not occur after impairment test.
17. Long-term deferred expenses
Balance at the Amortization Other Balance at the
Increase in
Item beginning of of the current decreases of end of the
current period
the year period this period period
Improvement
expenditure
of rented 189,219,274.40 21,062,800.51 11,224,148.01 199,057,926.90
fixed assets
for operation
Others 58,046,217.07 12,070,933.64 18,061,315.62 2,246,420.00 49,809,415.09
Total 247,265,491.47 33,133,734.15 29,285,463.63 2,246,420.00 248,867,341.99
18. Deferred income tax assets and deferred income tax liabilities
(1) Non-offset deferred income tax assets
Balance at the end of the period Balance at the beginning of the year
Item Deductible Deductible
Deferred income Deferred income
temporary temporary
tax assets tax assets
difference difference
Provision for
assets 20,317,546.60 5,079,386.65 19,921,208.20 4,980,302.05
impairment
Withdrawing
increment tax 3,381,600,633.20 845,400,158.30 3,019,735,278.84 754,933,819.71
on land value
Assets 1,831,111,563.40 457,777,890.85
assessment
1,803,423,651.65 450,855,912.91
appreciation
note 1
Others 141,507,365.65 35,376,841.42 88,547,416.00 22,136,854.00
Total 5,346,849,197.10 1,336,712,299.28 4,959,315,466.44 1,239,828,866.61
Deferred income tax assets increased by RMB 96.8834 million, with an increase rate of
7.81 %, mainly from investment property investment, mainly as a result of the deductible
temporary difference that comes from withholding of the land value increment tax.
Note 1: In 2014,China Merchants (Shenzhen) Property Investment Co., Ltd., a subsidiary
of the Company, set up five subsidiaries: CMBC Sci-tech Building, Phase II of CMBC Sci-tech
Building ,Garden City Digital Building, Shekou Garden City Commercial Center, and New
Times Plaza with the assets owned by China Merchants (Shenzhen) Investment Co., Ltd., and
the income taxes arising therefrom will be deducted in a deferred manner from the newly
122
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
accrued depreciations during subsequent operation periods of such newly established companies.
So the Company included them in the deferred tax assets.
(2) Non-offset deferred income tax liabilities
Balance at the end of the period Balance at the beginning of the year
Item Taxable Deferred Taxable Deferred
temporary income tax temporary income tax
difference liabilities difference liabilities
Undistributed profits
825,902,463.88 47,944,520.63 644,221,885.52 35,822,337.24
of invested company
The fair-value
adjustment of assets 1,543,701,408.79 385,925,352.20
by enterprise merger
Total 2,369,603,872.67 433,869,872.83 644,221,885.52 35,822,337.24
Note 1: The fair-value adjustment of assets obtained through enterprise merger is the
taxable temporary difference in the current period that results from the asset evaluation
increment upon acquisition of Beijing Guangying Residential Property Development Limited.
(3) Unconfirmed details of deferred income tax assets
Balance at the end of the Balance at the beginning of the
Item
period year
Deductible temporary difference 940,561,786.22 520,839,909.32
Deductible losses 3,911,649,292.05 3,001,387,433.54
Withdrawing increment tax on 701,035,574.42
60,715,506.25
land value
Total 4,912,926,584.52 4,223,262,917.28
(4) Unrecognized deductible losses of deferred income tax assets will be expired at the
end of following years:
Year Balance at the end of Balance at the Remarks
the period beginning of the year
2015 17,196,247.51 17,196,247.51
2016 164,439,209.37 164,439,209.37
2017 552,233,100.29 581,372,066.72
2018 465,208,916.08 620,681,602.32
2019 1,465,950,361.37 1,617,698,307.62
2020 1,246,621,457.43
Total 3,911,649,292.05 3,001,387,433.54
19. Other non-current assets
Balance at the end of the Balance at the beginning of
Item
period the year
Right of conversion to convertible
bonds
144,834,167.45
Total 144,834,167.45
123
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Redemption right of convertible bonds is the right enjoyed by CMLL, the subsidiary of the Company, in the
capacity of bond issuer to redeem the bonds in advance, see Note 1 of “VI. 32. Bonds payable”.20.
Short-term loans
(1) Classification of short-term loans
Loan type Balance at the end of the Balance at the beginning of the
period year
Guaranteed loan Note1 50,000,000.00 650,000,000.00
Credit loans 611,360,000.00 3,236,900,000.00
Total 661,360,000.00 3,886,900,000.00
Note 1: China Merchants (Shenzhen) Construction Co., Ltd., a subsidiary of the
Company, borrowed a total of RMB 50,000,000 from the bank at the end of the period, which is
guaranteed by China Merchants Shekou.
21. Notes payable
Type of notes Balance at the end of the Balance at the beginning of the
period year
Bank acceptance bill 11,474,672.15 15,573,202.50
Commercial acceptance bill 124,363,887.55 31,770,935.50
Total 135,838,559.70 47,344,138.00
Amount of the payable bill at the end of the period is increased by RMB 88.4944 million
(186.92%), mainly include the 6-month commercial acceptance bills issued to the construction
contractor in the current period. The due and unpaid payable note at the end of the period is
RMB 7,179,500.
22. Accounts payable
(1) Accounts payable
Balance at the beginning of the
Item Balance at the end of the period
year
Payment of construction 9,096,602,808.14 8,862,113,986.73
Land cost 1,467,389,923.22 4,886,745,741.64
Equity acquisition cost 455,793,894.81
Warranty fund 502,241,985.00 794,692,588.57
Others 332,093,313.26 214,130,847.65
Total 11,398,328,029.62 15,213,477,059.40
Including: more than 1 year 1,407,833,217.95 1,503,999,912.80
(1) Significant accounts payable with age of more than one year
Reasons for
Balance at the end of the
Company name outstanding or
period
non-carryover
124
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Reasons for
Balance at the end of the
Company name outstanding or
period
non-carryover
Payment for China Merchants (Shenzhen)
159,837,631.08 Unsettled for the project
Plaza
Payment for Beijing Park 1872 Project
143,168,881.76 Pre- carried-over cost:
(Phase III)
Pre-settled project payment under the
142,915,273.93 Unsettled for the project
Beijing Conrad Hotel & Resorts project
Payment for Shenzhen Woods Apartment
79,305,709.75 Unsettled for the project
Project
Payment for Beijing Park 1872 Project
78,910,728.29 Pre- carried-over cost:
(Phase II)
Engineering payment of Nanjing Purple
55,289,254.40 Settlement not yet due
Mountain No.1
Foshan Jiulongcang Evian Buena Vista
47,032,765.82 Settlement not yet due
Phase I project payment
Presettlement warranty payment for Meiyue
Real Estate Shenzhen Green Garden 36,675,862.18 Unsettled for the project
Project
Project Payment for Zhangzhou Exhibition
30,568,346.10 Unsettled for the project
Area Apartment
Zhangzhou Exhibition Area Apartment
27,965,563.33 Unsettled for the project
Project Payment
Payment for Foshan Xinjie Evian Uptown
27,779,216.32 Unsettled for the project
Project (Phase I)
Land price due by Shanghai Fengyang to the
People’s Government of Yanghang Town, 19,982,218.60 Unsettled for the project
Baoshan District, Shanghai City
Payment for Foshan Xinjie Evian Uptown
18,018,068.20 Unsettled for the project
Project (Phase III)
Project Payment due by Tianjin Zhangsheng
to China Construction Third Engineering 17,734,311.24 Unpaid
Division CO., Ltd.
Fails to meet terms of
Nantong Construction General Contracting
17,481,353.61 settlement for warranty
CO., Ltd.
payment
Fails to meet terms of
Payment for Shanghai Royal Sea Villa
17,311,822.64 settlement for warranty
Project
payment
Payment for Foshan Evian Uptown Project
16,636,499.25 Unsettled for the project
(Phase II)
Payment for Shenzhen Chuanwei Plaza
16,228,819.30 Unsettled for the project
Project
Payment for Shenzhen Chuanhou Plaza
15,887,944.16 Unsettled for the project
Project
Fails to meet terms for
Zhongtian Construction Group Co., Ltd. 15,747,008.70 settlement of warranty
payment
Fails to meet terms for
Guanlan A909-0097 (Guanyuan) Project
15,521,377.49 settlement of warranty
Payment
payment
125
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Reasons for
Balance at the end of the
Company name outstanding or
period
non-carryover
Fails to meet terms for
Payment for Evian Town Project in Foshan
15,383,534.44 settlement of warranty
(Phase I)
payment
Payment for Zhangzhou Holiday 365
14,802,245.46 Pre- carried-over cost:
Project (Phase I)
Fails to meet terms of
Payment for Shenzhen Kingbay Project 14,620,445.00 settlement for warranty
payment
Payment for Beijing Park 1872 Project
14,349,444.21 Pre- carried-over cost
(Phase I)
Zhuhai Jiancheng Constructional
13,192,300.20 Unsettled for the project
Engineering Co., Ltd.
Payment for Shanghai Sheshan Longyuan
12,385,771.93 Unsettled for the project
Project
Payment for Zhangzhou Meillen Health
12,035,320.58 Pre- carried-over cost:
Resort Project
Fails to meet terms of
Payment for Shenzhen Evian County
10,317,411.51 settlement for warranty
Project (Phase III)
payment
Progress Payment for expected project visual
10,209,234.67 Unsettled for the project
progress due by Shanghai Minsheng
Third Construction Engineering Co., Ltd of
9,963,648.94 Unsettled for the project
China Construction Second Engineering Bureau
Fails to meet terms of
Warranty payment of Chongqing
9,428,497.06 settlement for warranty
Jiangwancheng project
payment
Tianjin Songjiang Tuanbo Investment Fails to meet terms of
8,957,522.87
Development Co., Ltd. payment
Third Construction Engineering Co., Ltd.
Balance of project
of China Construction Second Engineering 8,846,267.18
settlement
Bureau
Fails to meet terms of
Payment for Evian Town Project in Foshan
8,118,339.48 settlement for warranty
(Phase II)
payment
Zhangzhou Real Estate Cadaques Phase I
7,053,721.78 Pre- carried-over cost
Project Payment
Fails to meet terms of
Payment for Shenzhen Lanyuan Project 7,032,669.43 settlement for warranty
payment
Fails to meet terms of
Payment for Suzhou Shuanghu Project 6,854,339.59 settlement for warranty
payment
Fails to meet terms of
Payment for Evian Town Project in Foshan
6,053,515.08 settlement for warranty
(Phase IV)
payment
Fails to meet terms of
Shenzhen Real Estate Orchid Valley
5,867,345.77 settlement for warranty
Project (Phase I)
payment
Payment for Evian Town Project in Foshan 5,510,529.99 Fails to meet terms of
126
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Reasons for
Balance at the end of the
Company name outstanding or
period
non-carryover
(Phase III) settlement for warranty
payment
Fails to meet terms of
Zhuhai Yuanfeng Garden City project
5,499,520.17 settlement for warranty
payment
payment
Nantong Second Construction and other Fails to meet terms of
contractors employed by Tianjin Real 5,310,518.20 settlement for warranty
Estate payment
The Third Construction Engineering Co.,
Ltd of China Construction Third 5,138,739.27 Pre- carried-over cost
Engineering Bureau
Fails to meet terms of
Project payments for other old real estate
5,028,108.42 settlement for warranty
buildings in Shenzhen
payment
Total 1,221,957,647.38
23. Account received in advance
(1) Account received in advance
Balance at the end of the Balance at the beginning of
Item
period the year
Total 44,331,491,628.00 35,599,290,811.40
Including: more than 1 year 5,412,875,335.21 4,411,610,430.80
Note: deferred revenue is mainly presale payment, and non-carried-over deferred revenue
with age of more than one year is presale payment for properties that are not completed and
accepted.
(2) Presale payment in deferred revenue
Amount at the Scheduled Presale
Amount at the end of
Project name beginning of the completion proportion
the period
period time (%)
Beijing Guangying
3,685,686,480.00 2016 77.08
Zhenyuan project
Beijing Park 1872 32,184,389.00 128,418,004.00 2015 99.00
Beijing Park Lounge 5,882,759.00 22,606,271.00 2017 99.00
Beijing Xicheng Garden 167,045.00 2017 100.00
Tianjin Beacon Hill 771,132,889.01 411,402,611.75 Completed 90.00
Tianjin Evian County 108,975,294.00 263,907,134.00 Completed 68.97
Tianjin Magnificent
491,379.00 443,409.00 Completed 99.31
House
Tianjin Yonghaiyuan 552,153,504.15 230,583,050.08 2016 16.15
Tianjin Diamond Hill 394,926,059.92 444,019,034.52 Completed 99.19
Beacon Hill in Harbin 703,563,119.00 389,398,545.00 2016 10.64
Harbin Notting Hill 68,920,316.68 44,781,812.94 2015 22.72
127
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Amount at the Scheduled Presale
Amount at the end of
Project name beginning of the completion proportion
the period
period time (%)
Orchid Valley in Dalian 437,535,366.00 133,735,308.00 2015 100.00
Yantai China Merchant
72,175,518.00 28,669,149.00 2017 26.68
West Coast
Qingdao LAVIE 92,981,739.00 86,089,259.00 2019 51.90
Qingdao Hyde Garden 16,371,348.00 354,631,079.00 2017 83.13
Rizhao Leyden Town 421,889,575.00 219,234,939.00 2016 70.00
Head Garden in
615,154,961.00 1,508,430,536.00 2015 93.37
Shanghai
Shanghai China
Merchants Haiwan 420,784,116.70 196,029,163.00 2015 91.49
Garden
Magnificent Times in
36,799,029.00 715,461,752.00 Completed 92.00
Shanghai
Shanghai Sheshan
300,270,148.00 349,677,488.00 2016 58.45
Longyuan
Nanjing Qisheng Evian
62,773,715.25 2017 5.57
Riviera
Nanjing Fangshanli 302,348,170.16 78,625,082.11 2016 79.29
Nanjing Magnificent
3,748,605,854.23 3,335,751,999.82 2015 98.00
House
Nanjing Evian County 259,968,256.86 57,192,099.86 2015 27.48
Nanjing Purple Mountain
24,876,249.01 28,724,940.69 Completed 64.98
No.1
Throne Bay in Zhenjiang 376,227,401.61 256,804,595.52 2015 43.00
Zhenjiang Evian Uptown 466,293,666.37 218,095,171.00 2016 22.00
Changshu Xicheng
105,264,269.40 10,706,787.00 2015 11.00
Garden
Changzhou Park 1872 149,441,902.00 307,367,922.00 2015 31.97
Suzhou Small Stone City 2,241,917,425.21 1,753,131,248.21 2015 98.00
Suzhou Yishanjun 558,061,875.08 865,817,249.38 2015 91.28
Evian House in Suzhou 720,495,872.13 296,166,734.00 2015 62.00
Suzhou Magnificent
9,357,493.00 1,377,423,670.00 2016 84.00
House
Suzhou Kingbay 12,436,511.03 59,818,068.03 Completed 99.37
Hangzhou Magnificent
237,721,941.45 2,940,000.00 2016 17.53
House
Hangzhou Kingbay 52,509,098.00 2016 12.11
Ningbo Park 1872 389,138,698.00 181,988,399.00 2016 16.08
Xiamen Hyde Park 1,199,364,562.00 1,193,238,299.00 Completed 91.49
Xiamen Sea May Flower 1,443,813,303.57 1,952,288,013.57 2016 91.99
Xiamen Magnificent
201,698,449.00 25,567,577.00 2016 26.00
House
Zhangzhou Garden City 1,204,020.20 2,024,714.20 Completed 99.43
Zhangzhou Holiday 365 95,474,712.26 282,985,711.26 2015 100.00
Zhangzhou Cadaques 1,278,338,555.32 1,371,272,755.21 2015 31.00
Other old projects in 1,990,733.00 Completed 100.00
128
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Amount at the Scheduled Presale
Amount at the end of
Project name beginning of the completion proportion
the period
period time (%)
Zhangzhou
Wuhan Park 1872 1,074,016,159.00 1,079,491,952.00 2015 67.00
Wuhan Magnificent
206,230.00 13,908,980.00 Completed 99.89
House
Wuhan Jiangwan
259,322,311.00 2016 11.69
International
Phase I of Xi’an Evian
60,000.00 2016 0.09
Qujiang
Chongqing Central Park
398,955,116.60 129,891,750.46 2016 1.98
Project
Glory of the City,
55,752,060.00 58,260,929.00 Completed 92.33
Chongqing
Chongqing Evian Bay 104,422,322.00 25,266,310.00 2015 14.29
Chongqing Land Mark
94,079,155.76 78,624,903.93 2015 0.85
Riverside
Chongqing Garden City 670,207,635.73 751,598,184.30 2015 78.53
Chengdu International
5,183,150.00 5,000,000.00 Completed 87.33
East City
Evian Town in Chengdu 271,014,587.00 163,324,242.00 2016 9.12
Magnificent House in
282,214,962.05 611,167,659.65 Completed 86.24
Chengdu
Bijie Garden City 606,059,800.00 606,208,960.00 2017 86.06
Yunnan Haigongguan 876,290,714.10 565,746,889.10 2015 48.54
Nanning Kingbay 267,978,327.00 69,468,321.00 2016 100.00
Foshan Park 1872 86,168,395.00 33,228,661.00 2016 10.47
Foshan Evian Mansion 208,232,264.00 60,020,372.00 2016 21.90
Evian International in
132,765,353.00 91,381,308.00 2015 100.00
Foshan
Evian Riviera in Foshan 297,956,186.00 60,029,110.00 2015 49.52
Evian Uptown in Foshan 13,657,068.54 45,082,629.92 Completed 100.00
Evian Town in Foshan 26,666,955.00 38,291,024.00 Completed 99.90
Evian Riviera in Foshan 9,369,858.00 436,319,911.00 Completed 92.39
Evian Buena Vista in
709,187,474.00 351,179,700.00 2015 77.53
Foshan
Evian Kingbay in Foshan 302,642,141.00 79,793,457.00 2016 12.67
Foshan Evian Property
45,861,152.00 45,000,000.00 2016 3.23
Center
Donghuicheng in
1,830,228,470.62 2,471,609,158.92 2015 82.39
Guangzhou
Guangzhou Jinshan
2,474,537,850.15 1,373,895,995.44 2015 78.36
Valley Garden
Zhuhai Garden City 26,484,203.00 173,923,714.00 Completed 86.37
China Merchants (Zhuhai)
3,698,084.00 2016 0.58
Evian Town Garden
Shenzhen Jingshan The
85,593,602.00 957,081,135.00 Completed 99.00
Ninth
129
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Amount at the Scheduled Presale
Amount at the end of
Project name beginning of the completion proportion
the period
period time (%)
Shenzhen Green Garden 916,294.00 Completed 100.00
Shenzhen Jinxiu Kwun
5,151,831.00 41,454,328.00 Completed 94.00
Town
Shenzhen Lanxi Valley 6,756,284.00 Completed 100.00
Shenzhen Pingshan
3,113,630,587.00 2,082,993,734.60 2015 72.90
Garden City
Shenzhen Imperial Park 4,743,119,526.85 1,823,269,341.19 2016 43.00
Shenzhen Woods
23,358,109.00 9,306,522.00 Completed 97.00
Apartment
Shenzhen Yihai City 2,307,032,008.00 1,728,058,899.00 2016 53.94
Shenzhen Kingbay 21,656,266.00 64,865,615.00 Completed 100.00
Shenzhen Guanyuan 55,916,383.01 57,514,019.17 Completed 100.00
Old projects in Shenzhen 79,440,000.00 Completed 100.00
Other old buildings in
7,741,234.00 2,980,153.88 Completed
Shenzhen
Total 44,173,618,256.01 35,457,967,075.71
(3) Significant deferred revenue with age of more than one year
Company name Reasons for outstanding or
Balance at the end of the period
non-carryover
Nanjing Magnificent House 1,932,963,422.63 Not completed for occupation
Zhangzhou Cadaques 1,026,097,265.29 Not completed for occupation
Fails to meet carry-over terms
Xiamen Hyde Park 918,445,161.00
of the project
Donghuicheng in Guangzhou 908,452,679.00 Not completed for occupation
Project fails to meet terms of
Tianjin Diamond Hill 376,541,483.92
Carry-over
Xiamen Sea May Flower 144,756,449.57 Not completed for occupation
Bijie Garden City 65,044,577.00 Not completed for occupation
Shenzhen Kingbay 21,656,266.00 Kingbay parking lot
Total 5,393,957,304.41
24. Payroll payable
(1) Classification of employee remuneration payable
Item Balance at the Increase in Decrease in Balance at the
beginning of the current period current period end of the
year period
Short-term
395,571,883.85 914,505,721.16 1,084,168,413.97 225,909,191.04
remuneration
Post-employment
benefit-defined 80,072,813.52 80,607,976.86 1,541,323.87
contribution plans 2,076,487.21
Dismiss welfares 1,096,972.26 1,497,660.03 1,497,660.03 1,096,972.26
Total 398,745,343.32 996,076,194.71 1,166,274,050.86 228,547,487.17
130
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Remunerations due to the staff reduce RMB 170,197,900 by 42.68% and are mainly last year's year-end bonuses
to be paid in the current period.
.
(2) Short-term remuneration
Item Balance at the Increase in Decrease in Balance at the
beginning of the current period current period end of the
year period
Salaries, bonus,
allowances and 360,425,651.04 791,702,624.82 968,892,101.36 183,236,174.50
subsidies
Staff welfare expenses 35,558,369.07 35,558,369.07
Social insurance
459,805.77 30,201,373.13 30,326,747.16 334,431.74
premium
Including: medical
234,823.73 25,257,825.31 25,342,713.49 149,935.55
insurance premiums
Supplementary
67,994.97 67,994.97
medical insurance
Industrial
injuries insurance 124,088.42 2,198,685.95 2,220,352.78 102,421.59
premiums
Maternity
100,893.62 2,676,866.90 2,695,685.92 82,074.60
insurance premiums
Housing fund 1,621,952.74 34,148,922.97 34,606,258.77 1,164,616.94
Union expenses and
employee educational 31,178,861.20 18,320,934.80 9,934,929.18 39,564,866.82
expenditure
Others 1,885,613.10 4,573,496.37 4,850,008.43 1,609,101.04
Total 395,571,883.85 914,505,721.16 1,084,168,413.97 225,909,191.04
(3) Defined contribution plans
Balance at the Balance at the
Increase in Decrease in
Item beginning of the end of the
current period current period
year period
Basic endowment
62,119,878.70 62,495,827.99 918,576.51
insurance premiums 1,294,525.80
Unemployment
insurance 3,578,114.05 3,607,790.10 120,146.64
premiums 149,822.69
Company annuity
14,374,820.77 14,504,358.77 502,600.72
payment 632,138.72
Total 2,076,487.21 80,072,813.52 80,607,976.86 1,541,323.87
25. Tax payable
Item Balance at the end of Balance at the
the period beginning of the year
Corporate income tax 1,120,455,976.80 2,716,968,054.61
Land value increment tax 104,523,595.90 132,380,068.16
131
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Item Balance at the end of Balance at the
the period beginning of the year
Business tax 27,597,283.36 116,989,102.66
Individual income tax 39,587,487.86 9,782,656.35
Value-added tax 2,493,675.02 -8,028,492.66
Urban maintenance and construction tax 1,869,386.44 7,455,038.25
Land use tax 3,765,418.29 6,740,627.63
Others 79,029,225.63 151,406,363.62
Total 1,379,322,049.30 3,133,693,418.62
26. Interests payable
(1) Classification of interests payable
Balance at the end of the Balance at the beginning
Item
period of the year
Long-term loan interest involving repayment
298,127,106.96
of capital with interest paid by installment 184,805,572.64
Interests of enterprise bonds 6,712,485.81 6,834,583.27
Interest payable for short-term loan 1,110,809.41 496,613.39
Total 305,950,402.18 192,136,769.30
27. Dividends payable
Item Balance at the end of the Balance at the beginning
period of the year
Dividends on common stock 118,244,875.70 160,730,318.08
Total 118,244,875.70 160,730,318.08
Note: The amount remained outstanding for more than 1 year is RMB 4.6923 million,
which will be paid by a subsidy of the company, China Merchants(Tianjin) Real Estate Co., Ltd.,
after the transferred cash flows back from ARIVA HOTEL.
28. Other payables
(1) Classification of other payment payable by nature
Balance at the end of the Balance at the beginning of
Fund nature
period the year
Incomings and outgoings of
10,236,819,791.32 9,212,749,641.79
cooperative companies
Incomings and outgoings of
460,096,638.62 893,701,823.10
affiliated companies
Margin 730,024,708.79 530,709,209.31
Agency fund and suspense receipts 998,574,275.98 894,937,739.43
Others 259,989,351.54 250,407,460.76
Equity acquisition cost 309,313,665.76
Total 12,994,818,432.01 11,782,505,874.39
132
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Balance at the end of the Balance at the beginning of
Fund nature
period the year
Including: more than 1 year 3,632,378,943.72 3,654,937,124.85
Note 1: share acquisition payment is mainly the residual payment payable for the Company’s acquisition project,
including Shenyang Golden Road Project, Beacon Hill Project in Harbin, Shanghai Hyde Project, and China
Merchants (Shenzhen) Runde Project.
(2) Other significant accounts payable with age of more than one year
Company name Balance at the end of Reasons for outstanding or
the period non-carryover
Advances paid in early stage of project
Shanghai Langda Industrial Co,.
730,230,768.56 will be gradually repaid by project
Ltd.
payables.
Advances paid in early stage of project
Tianjin TEDA Development Co.,
520,905,285.78 will be gradually repaid by project
Ltd.
payables.
Advances paid in early stage of project
Yunnan Metropolitan Real Estate
499,991,245.00 will be gradually repaid by project
Development Co., Ltd.
payables.
Advances paid in early stage of project
Guangdong New Nanda Cable
261,401,273.14 will be gradually repaid by project
Industrial Co., Ltd.
payables.
Project receivables to be transferred
Shanghai Ledu Property Co., Ltd. 205,816,823.57
upon settlement
Tianjin Hedong District
Carried over after signing a contract
Construction Management 199,763,144.64
formally
Committee
Foshan Henglun Property
167,208,465.34 Unqualified in payment
Investment Co., Ltd
Shenzhen China Merchants
140,795,301.95 Shareholders’ advances
Financial Service Co., Ltd.
Foshan Jincheng Frozen Food
104,560,814.00 Unqualified in payment
Co., Ltd
Tianjin Xinghai Real Estate Dividends distributed in advance to the
106,081,398.67
Development Co., Ltd. associated company
Beijing Yintai Properties
101,881,165.76 Unqualified in payment
Commercial Co., Ltd.
Total 3,038,635,686.41
29. Non-current liabilities due within one year
Item Balance at the end of the Balance at the beginning
period of the year
Long-term loan due within one year 8,790,998,800.00 5,970,100,938.48
Credit loan 3,948,510,800.00 2,955,112,375.02
Assured loans 4,645,688,000.00 2,703,260,000.00
Mortgage loans 196,800,000.00 311,728,563.46
Total 8,790,998,800.00 5,970,100,938.48
133
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
See 31 - long-term loan in Note 6 for description of long-term loan which is due within one
year.
30. Other current liabilities
(1) Classification of other current liabilities
Item Balance at the end of the Balance at the beginning
period of the year
Withdrawing increment tax on land value 3,442,316,139.45 3,720,770,853.26
Government subsidies 8,596,820.00 8,596,820.00
Total 3,450,912,959.45 3,729,367,673.26
(2) Items of government subsidies
Amount
Balance at Amount of
Items of s of new Other Balance at Related to
the non-operatin
governmen subsidies movement the end of assets/incom
beginning g income in
t subsidies in this s the period e
of the year this period
period
Special
support fund 4,710,020.0 4,710,020.0 Related to
for hotel 0 0 assets
project
Subsidy for
green
building
3,380,000.0 3,380,000.0 Related to
design label
0 0 assets
standardized
technology
research
Car awarded
by
Related to
Chenghua 506,800.00 168,933.33 506,800.00
168,933.33 assets
District
Government
Total 8,596,820.0 8,596,820.0
168,933.33 168,933.33
0 0
Note: other changes are the governmental subsidies carried over from deferred income and
the profit statement within a year.
31. Long-term loans
(1) Classification of long-term loans
Loan type Balance at the end of the Balance at the beginning of the
period year
Mortgage loan Note 1 999,700,000.00 655,000,000.00
Guaranteed loan Note 2 16,358,966,400.02 15,927,176,000.02
Credit loans 7,381,649,920.00 7,347,477,200.00
134
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Loan type Balance at the end of the Balance at the beginning of the
period year
Entrusted loan Note 3 3,367,801,104.73 736,862,000.00
Total 28,108,117,424.75 24,666,515,200.02
Long-term loan increased 3,441,602,200 at the end of the period, with an increase rate of
14 %, and mainly coming from the increase of long-term loan according to fund demand due to
the scale expansion of the Group.
Note 1: see 8 - inventory (5) in Note 6.
Note 2: see the following table for the statement of guaranteed loan.
Including:
Lending long-term loan
Borrower Loan amount Guarantor
institution amount due within
one year
Huatai Asset
China Merchants
The Company Management 5,500,000,000.00
Group Co., Ltd.
Co., Ltd.
Eureka China Merchants
Investment Banks 6,352,030,400.00 2,139,760,000.00 Group (Hongkong)
Company Ltd. Co., Ltd.
China Merchants
The Company Banks 1,394,200,000.00 392,100,000.00
Shekou
China Merchants
(Shenzhen) Property
The Company Banks 1,274,000,000.00 209,000,000.00
Development Co.,
Ltd.
China Merchants
(Guangzhou)
Property
China Merchants
Development Co.,
(Nanjing )
Ltd. and China
Property Banks 600,000,000.00 600,000,000.00
Merchants
Development
(Shenzhen) Land
Co., Ltd.
Investment Co., Ltd.
provided a 51%:49%
guarantee.
China Merchants
(Guangzhou)
Property
Nanjing China Development Co.,
Merchants Ltd. and China
Banks 744,000,000.00 744,000,000.00
Ruisheng Merchants
Property Co., Ltd. (Shenzhen) Land
Investment Co., Ltd.
provided a 51%:49%
guarantee.
China Merchants
(Shenzhen) China Merchants
Banks 500,000,000.00 2,000,000.00
Property Shekou
Development
135
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Including:
Lending long-term loan
Borrower Loan amount Guarantor
institution amount due within
one year
Co., Ltd.
The Company and
Shenzhen Jinyu
China Merchants
Rongtai
Banks 500,000,000.00 Shekou provided
Investment Co.,
guarantee according
Ltd.
to shareholding ratio.
China Merchants
(Shenzhen)
Property Banks 499,800,000.00 200,000.00 The Company
Development
Co., Ltd.
China Merchants
Shekou and China
Shenzhen Shekou
Merchants Property
Seaworld Hotel
Banks 470,000,000.00 20,000,000.00 Investment Co., Ltd.
Management Co.,
provided guarantee
Ltd.
according to
shareholding ratio.
China Merchants
(Shenzhen) Property
Shenzhen Jinyu
Investment Co., Ltd.
Rongtai
Banks 441,000,000.00 18,000,000.00 and China Merchants
Investment Co.,
Shekou provided
Ltd.
guarantee according
to shareholding ratio.
China Merchants
(Shenzhen) Property
Development Co.,
Shenzhen Vanke
Ltd. and Shenzhen
Binhai Property Banks 400,000,000.00
Vanke Real Estate
Co., Ltd.
Co., Ltd. provided
guarantee according
to shareholding ratio.
Huitai Investment China Merchants
Banks 366,816,000.00
Co., Ltd. Land Limited
Wuhan Aoming
Property China Merchants
Banks 287,000,000.00 10,020,000.00
Development Shekou
Co., Ltd.
China Merchants
(Shenzhen) Property
China Merchants
Development Co.,
(Guangzhou)
Ltd. and China
Property Banks 287,000,000.00 10,000,000.00
Merchants Land
Development
Limited provided
Co., Ltd.
guarantee according
to shareholding ratio.
Beijing Conrad China Merchants
Property (Shenzhen) Property
Banks 263,900,000.02 109,200,000.00
Development Development Co.,
Co., Ltd. Ltd. and China
136
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Including:
Lending long-term loan
Borrower Loan amount Guarantor
institution amount due within
one year
Merchants Shekou
provided guarantee
according to
shareholding ratio.
The Company and
HEC Estate Co., Ltd.
provided guarantee
according to
shareholding ratio,
and Harbin Notting
China Merchants
Hill land and project
(Harbin) Jiatian under construction
Property Banks 250,000,000.00 (land certificate No.:
Development HGY (2014) No.
Co., Ltd. 10000012; planning
permit of construction
engineering: HFJSZ
No. 1410000036) were
mortgaged to the bank
for the loan, which was
listed in mortgage loan.
Foshan
China Merchants
Merchants Real Banks 249,000,000.00 4,000,000.00
Shekou
Estate Co., Ltd.
China Merchants
Property Investment
Shenzhen China Co., Ltd. and
Merchants Shenzhen Sea World
Business Banks 245,000,000.00 Industrial
Development Development Co.,
Co., Ltd. Ltd. provided
guarantee according
to shareholding ratio.
China Merchants
(Shenzhen) Property
China Merchants Development Co.,
(Foshan) Ltd. and Foshan New
Xincheng Banks 199,000,000.00 199,000,000.00 City Development
High-tech Co., and Construction
Ltd. Co., Ltd. provided
guarantee according
to shareholding ratio.
China Merchants
(Shenzhen)
Banks 183,408,000.00 183,408,000.00 The Company
Power Supply
Co., Ltd.
China Merchants
(Shenzhen) Property
Foshan Kaida
Development Co.,
Town Investment
Banks 149,500,000.00 3,000,000.00 Ltd. provided full
Development
guarantee, and
Co., Ltd.
Foshan Jincheng
Frozen Food Co.,
137
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Including:
Lending long-term loan
Borrower Loan amount Guarantor
institution amount due within
one year
Ltd. and Guangdong
New Nanda Cable
Industrial Co., Ltd.
provided guarantee
according to
shareholding ratio.
China Merchants
(Shenzhen) Property
Development Co.,
Foshan Shunde Ltd. and Foshan
Evian Zhenyuan Banks 99,000,000.00 2,000,000.00 Henglun Property
Property Co., Ltd. Investment Co., Ltd.
provided guarantee
according to
shareholding ratio.
Total 21,254,654,400.02 4,645,688,000.00
Note 3: interest rate interval for long-term RMB loan was between 10% below benchmark
loan rate in the corresponding period and 20 % above such benchmark loan rate, and that for
long-term foreign currency loan was between Libor +1% and +4%.
32. Bonds payable
(1) Classification of bonds payable
Item Balance at the end of the Balance at the beginning of the
period year
Medium-term note 1,000,000,000.00
Credit enhancement bond of
3,031,285,700.65 3,018,076,924.57
China Merchants Land Limited
Convertible bonds of CMLL
1,396,946,655.31
Note1
Total 5,428,232,355.96 3,018,076,924.57
Note 1: The bonds are 5-year convertible corporate bonds issued on June 23, 2015 by Cosmos Boom Investment
Limited, a wholly owned subsidiary of China Merchants Land Limited, the principal of which is USD
290,000,000.00, equivalent to RMB 1,772,451,000.00. The issued net amount after deducting the issuing expenses is
RMB 1,727,852,374.02. The annual interest rate is 0.5%, and interests will be paid on June 23 and
December 23 for the past half year's period.
The bond holder shall have the debt-for-equity swap and put-back right in accordance with the subscription
agreement. Debt-for-equity swap: The bonds holder shall be entitled to convert his bond into
shares of China Merchants Land Limited Co., Ltd. on August 2, 2015 or at any time from August
2, 2015 (inclusion) to business hours ended on the tenth day before the expiry date (subject to
138
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
the location where the bond certificate is submitted for conversation); or if the company requires
to redeem the bond before the expiry date, to the fifteenth day before the redemption date. The
number of convertible shares shall be determined by dividing the principal of convertible bonds
(converted into Hong Kong dollars as per the fixed exchange rate of an USD at a price of HKD
7.7559) with the conversion price on the date when the bonds are converted and the issued share
price for conversion is initially priced at HKD 2.9875. The initial conversion price shall be
negotiated by the parties and determined by referencing the latest price and the prospective of
China Merchants Land Limited. Put-back right: On June 23,2018, the bond holders have the
right to choose to request the issuer to redeem all or part of the bonds with the principal and
unpaid interests accrued till the specified redemption date on June 23,2018. Unless redeemed,
converted, purchased or canceled prior to the expiry date, the bonds will be redeemed by the
issuer with the principal amount together with the unpaid interests accrued till the expiry date.
Unless the issuer exercises his redemption right, the issuer shall not redeem the bonds before the
expiry date.
Redemption right of the convertible bonds: If the closing share price on the 20th day of the
month covered by the 30 consecutive business days before the issuance of a redemption
announcement is equal to at least 130% of the principal divided by the conversion ratio, the
issuer may redeem all of the bonds, which are not yet converted at the time, with the principal
amount and interests accrued till the specified redemption date after sending to the bond holder
an irrevocable announcement not less than 30 days but not more than 90 days in advance on
December 23, 2016 or at any time between December 23, 2016 and the expiry date. If 90% or
more of the bond principal has been redeemed, converted, purchased or canceled, the issuer may
redeem all of the bonds which are not yet converted at the time with the principal amount and
interests accrued till the specified redemption date.
Fair values of the above derivatives are determined by the estimates of Jones Lang LaSalle Corporate Appraisal
and Advisory Limited in accordance with models, with the key indicators adopted by the models shown as below:
Total principal US$ 290,000,000
Conversion Price HK$2.9875
Risk-free interest rate 1.7 %
Fluctuation of share price 60 %
Expected exercise period 23 June 2015 to 23 June 2020
The debt-for-equity swap and put-back right of the bond holders and the redemption right of the issuer have been
listed subject to the fair values respectively as: RMB 414,329,445.41 of equities, RMB 61,341,172.42 of other
non-current liabilities and RMB 144,834,167.45 of other non-current assets. The debt-for-equity swap of the bond
holders has been listed as RMB 308,053,942.66 of capital reserve as per the shares held by the company.
139
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
(2) Changes in bonds payable
Balance at the Interests Amortization of
Par value in Issuing Bond Amount issued in Payment in Exchange Balance at the end
Name of bonds Issuing amount beginning of the accrued at par premium or
total date duration this period this period impact of the period
year value discount
Credit enhancement
bond of China
3,048,450,000.00 2013-12-11 5 3,003,382,977.23 3,018,076,924.57 61,622,368.04 15,916,629.03 61,744,465.50 -2,707,852.95 3,031,285,700.65
Merchants Land
Limited
Medium-term note 1,000,000,000.00 2015-02-05 5 1,000,000,000.00 1,000,000,000.00 1,000,000,000.00
Convertible bonds of
1,772,451,000.00 2015-06-23 5 1,396,157,001.27 1,396,157,001.27 196,993.76 408,204.69 196,993.76 381,449.35 1,396,946,655.31
the CMLL
Total 5,820,901,000.00 5,399,539,978.50 3,018,076,924.57 2,396,157,001.27 61,819,361.80 16,324,833.72 61,941,459.26 -2,326,403.60 5,428,232,355.96
140
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
33. Long-term payables
(1) Classification of long-term payables by fund nature
Fund nature Balance at the end of Balance at the beginning
the period of the year
Property maintenance fund 104,741,277.07 103,153,146.52
Financing funds Note 3,469,117,074.04
China Merchants Entrepreneurship
1,200,000.00 1,200,000.00
(Shenzhen) Co., Ltd.
Total 3,575,058,351.11 104,353,146.52
Note: Long-term payables at the end of the period is increase by RMB 3.574 billion than at
the beginning of the period, mainly as a result of transferring equities of five real estate equities
by the CMLL and receiving RMB 3.386 billion of equity transfer money and interests. In 2014,
the company set up five subsidiaries, i.e. Shekou Technology Building, China Merchants
Technology Building (Phase II), Garden City Digital Building, Shekou Garden City
Commercial Center, and New Times Plaza and proposed to transfer in a public listing 100% of
the equities at the equity exchange. In February, 2015, the company concluded the transaction
as per the relevant agreement on the transfer of equities. Since the maximum investment term
and buy-back clauses are agreed under the equity transfer agreement, accounting calculation
will be done as per the financing after-sales buy-back. Equity transfer prices were determined as
long-term payables, and for the difference between buy-back price and selling price, the
straight-line method is adopted to calculate interests, and the net profits of all subsidiaries will
be recognized as the financial expense in the consolidated level during the investment period.
34. Deferred income
(1) Classification of deferred income
Item Balance at the Increase in Decrease in Balance at the
beginning of current period current period end of the Reason
the year period
Received
Government
6,526,053.33 2,750,000.00 1,274,713.05 8,001,340.28 government
subsidies
appropriation
Total 6,526,053.33 2,750,000.00 1,274,713.05 8,001,340.28
(2) Items of government subsidies
Balance at Amounts of Amount of
Items of Balance at
the new non-operating Other Related to
government the end of
beginning of subsidies in income in this movements assets/income
subsidies the period
the year this period period
Special Related to
4,710,020.00 4,710,020.00
support fund assets
141
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Balance at Amounts of Amount of
Items of Balance at
the new non-operating Other Related to
government the end of
beginning of subsidies in income in this movements assets/income
subsidies the period
the year this period period
for hotel
project
Car awarded
by Chenghua Related to
1,816,033.33 -168,933.33 1,647,100.00
District assets
Government
Subsidies for
green
Related to
building 1,250,000.00 1,105,779.72 144,220.28
income
demonstration
projects
Special fund
for 2014
Nanshan
Related to
independent 1,500,000.00 1,500,000.00
innovation income
industry
development
Total 6,526,053.33 2,750,000.00 1,105,779.72 -168,933.33 8,001,340.28
Note: other changes are the governmental subsidies carried over as other current liabilities
within a year.
35. Other non-current liabilities
Item Ending amount Initial amount
Convertible bond buy-back
61,341,172.42
obligation
Total 61,341,172.42
Note: Refer to the Note "VI. 32. Bonds payable" note 1.
36. Share capital
Changes (+/-) in this period
Balance at the Shares Balance at the
Item beginning of the converted end of the
Stock Dividend
year from Others Subtotal period
issue stock
reserved
funds
Share
2,575,950,754.00 2,575,950,754.00
capital
37. Capital reserve
Item Balance at the Increase in Decrease in Balance at the end
beginning of the current period current period of the period
year
Note 1 to 8,334,214,466.92 119,856,355.92 8,454,070,822.84
142
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Premium on
capital stock
Capital reserves
104,411,758.00 104,411,758.00
transfer-in
Other capital
91,131,429.44 324,099,342.55 82,017,826.11 333,212,945.88
reserves Note 2
Total 8,529,757,654.36 443,955,698.47 82,017,826.11 8,891,695,526.72
Note 1: The increase in the current period is that Ningbo Jiangwan Real Estate Development Co., Ltd., a
subsidiary of the company, has absorbed minority equities, and after such increase, the difference between net
asset shares owned by the company and the par value of the original long-term equity investment is adjusted as the
capital reserve - the share premium.
Note 2: What is new in the current period include: China Merchants Land Limited, a subsidiary of the
company, issued a convertible bond on June 23, 2015 with a debt-for-equity swap value that increases RMB
308053942.66 of other capital reserves (refer to the Note "six, 32.Bond payable" note 1 for details) and
share-based payments included in the equity amount in the current period are RMB 16,045,399.89. The decrease
in the current period is mainly from the reclassification into the capital share premium. What is
reduced otherwise in the current period is an acquisition of the Beijing Guangying Residential
Property Development Limited with different control and all other changes in equities of the
investee confirmed with the equity method of the held shares before the acquisition date are
turned into current profit and loss, others are mainly from the reclassification into the share
premium.
38. Other comprehensive income
Item Balance at the Amount incurred in the current period Balance at the
143
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
beginning of Less: the end of the
the year amount period
calculated
in other
Accru comprehe
Attributab
al nsive
Attributabl le to
before income in Less:
e to parent minority
incom earlier incom
company shareholde
e tax period and e tax
after tax rs after
of this carried
tax
period over to
profit and
loss in
current
period.
I Other
comprehen
sive
income that
couldn’t be
classified
into profit
and loss in
the future
II Other
comprehen
sive
income that
187,24
would be 78,901,353.52 139,215.19 48,027.84 79,040,568.71
3.03
classified
into profit
and loss in
the future
Where: 78,901,353.52 187,24
Exchange 3.03
differences
on foreign 139,215.19 48,027.84 79,040,568.71
currency
financial
statements
Other total 78,901,353.52 187,24
comprehen 3.03
139,215.19 48,027.84 79,040,568.71
sive
income
39. Surplus reserve
Item Balance at the Increase in Decrease in Balance at the end of
beginning of the current period current period the period
year
Legal surplus
1,106,108,219.72 1,106,108,219.72
reserves
Any surplus
140,120,038.00 140,120,038.00
reserves
Total 1,246,228,257.72 1,246,228,257.72
144
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
40. Undistributed profit
Item Current period 2009
Ending balance of previous year 18,663,578,091.22 15,336,958,642.03
Add: Adjustment of undistributed profits at the
beginning of the year
Balance at the beginning of this year 18,663,578,091.22 15,336,958,642.03
Plus: Net profit owned by parent company
2,145,502,164.69 4,263,636,555.36
owners in the year
Less: withdrawal of legal surplus reserves 112,712,864.73
Profit payable 824,304,241.28 824,304,241.44
Other decreases
Balance at the end of the year 19,984,776,014.63 18,663,578,091.22
41. Operation incomes and operation costs
Amount incurred in the current period Amount incurred in the previous period
Item
Income Cost Income Cost
Primary 16,047,155,730.99 10,391,068,273.47
11,986,510,250.36
businesses 17,973,948,437.46
Total 17,973,948,437.46 11,986,510,250.36 16,047,155,730.99 10,391,068,273.47
(1) Classification of operation revenue by industry
Industry Amount of current period Amount of the same period of last year
name Operating incomes Operating costs Operating incomes Operating costs
Real estate 17,239,500,161.22 11,346,058,028.67 15,286,741,029.90 9,740,634,674.02
Public
306,065,742.43 240,087,300.42 296,760,432.45 232,485,479.31
utilities
Property
428,382,533.81 400,364,921.27 463,654,268.64 417,948,120.14
management
Total 17,973,948,437.46 11,986,510,250.36 16,047,155,730.99 10,391,068,273.47
(2) List of sales revenues from top 5 customers of the Company
Name of customer Operating incomes Proportion in total sales revenues (%)
Customer I 119,346,683.00 0.66
Customer II 115,000,000.00 0.64
Customer III 107,100,000.00 0.60
Customer IV 105,000,000.00 0.58
Customer V 70,000,000.00 0.39
Total 516,446,683.00 2.87
42. Operating taxes and surcharges
Item Amount incurred in the Amount incurred in the
current period previous period
Land value increment tax 946,318,241.95 715,462,580.01
Business tax 896,779,034.91 795,233,571.24
Urban maintenance and construction
55,418,586.12 52,643,579.68
tax
145
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Item Amount incurred in the Amount incurred in the
current period previous period
Education surtax 44,333,090.79 31,521,296.26
Others 7,394,078.99 19,158,673.10
Total 1,950,243,032.76 1,614,019,700.29
43. Sales expenses
Item Amount incurred in the Amount incurred in the
current period previous period
Advertising expenses 164,189,204.40 131,573,936.41
Fees and commissions for sales
agency 155,017,531.36 136,056,065.25
Others 15,054,330.91 14,308,246.79
Total 334,261,066.67 281,938,248.45
44. Administrative expenses;
Item Amount incurred in the Amount incurred in the
current period previous period
Labor cost 191,640,504.68 142,440,093.58
Office and administrative fees 40,418,233.54 43,358,242.39
Fees for intermediary agency 10,942,296.70 10,039,265.18
Assets amortization 10,645,289.62 11,953,023.23
Taxes and levies 14,852,328.72 15,615,878.06
Others 3,990,198.47 8,253,296.26
Total 272,488,851.73 231,659,798.70
45. Financial expenses
Item Amount incurred in the Amount incurred in the
current period previous period
Interest payments 631,709,516.22 461,627,423.25
Less: Interest incomes 153,765,387.70 221,966,151.28
Add: exchange loss -46,110,621.56 51,270,119.88
Add: other expenditures 23,902,555.14 35,170,994.70
Total 455,736,062.10 326,102,386.55
46. Assets impairment losses
Item Amount incurred in the Amount incurred in the
current period previous period
Bad debt losses -1,219,731.00 888,293.99
Inventory devaluation losses
Total -1,219,731.00 888,293.99
47. Investment income
Item Amount incurred in the Amount incurred in the
current period previous period
Long-term equity investment income 42,235,644.34 143,318,415.51
146
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Item Amount incurred in the Amount incurred in the
current period previous period
measured by equity method
Investment profit by the disposal of
long-term equity investment
Others 450,879,010.10
Total 493,114,654.44 143,318,415.51
The company obtained control over Beijing Guangying Residential Property Development Limited,
which used to be an associated enterprise, on May 1, 2015, and previously held shares were reestimated
and confirmed at RMB 432.5388 million of investment incomes, and all other changes in equities of
the investee confirmed with the equity method of the held shares were turned into current profit and loss
and confirmed at RMB 11.78 million of investment incomes.
48. Non-operating income
(1) Statement of non-operating incomes
Amount recognized
Amount incurred
Amount incurred in into current
Item in the previous
the current period non-recurring
period
profits and losses
Gains on disposal of non-current 150,369.00
150,369.00 14,184.22
assets
Including: gains on disposal of 150,369.00
150,369.00 14,184.22
fixed assets
Government subsidies 6,716,649.90 25,262,476.52 6,716,629.90
Penalty income 14,809,092.90 4,879,293.44 14,809,092.90
Others 5,679,404.35 5,340,925.45 5,679,424.35
Total 27,355,516.15 35,496,879.63 27,355,516.15
(2) Statement of government subsidies
Amount Amount Related to
incurred in incurred in the assets
Item Source and basis
the current previous Related to
period period income
Notice On Distribution of
Subsidy for heating The First Heating Fuel Related to
3,062,136.85 2,064,476.52
fuel Subsidiary For Heating income
Season In 2014
Circular of Suzhou
Bonus for large Wuzhong Development Related to
1,800,000.00 2,500,000.00
taxpayer Zone on Award for income
Taxpayer
Subsidies for green
Finance Bureau of Related to
building 1,105,779.72
Shenzhen Nanshan District income
demonstration projects
China Merchants Related to
Financial incentive 250,000.00
Zhangzhou Development income
147
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Amount Amount Related to
incurred in incurred in the assets
Item Source and basis
the current previous Related to
period period income
Zone Management
Committee
Circular of
Shuangshuinian
Car awarded by
Sub-district Office of Related to
Chenghua District 168,933.33
Chengdu Chenghua assets
Government
District People's
Government
Shanghai Municipal Related to
Financial rebate 120,000.00
Finance Bureau income
The payment made by
Nanshan District
Economic Promotion
Bureau for 2014 Nanshan District
Related to
Year-end 100,000.00 Economic Promotion
income
Joyful-Season Bureau
Activities, Sea World
International Light
Festival
Xiangcheng District,
Work Style and
Efficiency Suzhou Xiangcheng Related to
50,000.00
Development Meeting, District Finance Bureau income
Awards for Excellent
Enterprises
Funds for environment
Funds for environment
improvement of Related to
49,800.00 improvement of Shenzhen
Nanhai E-Cool Unique income
Nanshan Unique Block
Block
Zhaoshang Subdistrict
Office, award for
Zhaoshang Subdistrict Related to
outstanding 10,000.00
Office income
contribution to
grass-roots governance
Government
Finance Bureau of Related to
delegation fees for Sea 20,000,000.00
Shenzhen Nanshan District income
World Bar Block
Special fund for Special fund for economic
Related to
economic development 168,000.00 development of Shenzhen
income
(center of Garden City) Nanshan District
Government tax Circular on Suzhou Tax Related to
350,000.00
incentives Incentives income
Subsidy for green
Treasury Payment Branch
building design label Related to
180,000.00 of Guangzhou Finance
standardized assets
Bureau
technology research
Total 6,716,649.90 25,262,476.52
49. Non-operating expense
148
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Amount included in
Amount incurred in Amount incurred in
Item extraordinary items
the current period the previous period
of this year
Losses on disposal of
8,451.04 175,062.57 8,451.04
non-current assets
Including: losses from disposal
8,451.04 175,062.57 8,451.04
of fixed assets
Donation 2,000.00
Fine and fine for delaying
9,794,617.08 9,794,617.08
payment
Renewable energy tariff
3,900,800.61 3,826,281.53 3,900,800.61
surcharge
Major water conservancy
2,197,216.09 2,145,062.64 2,197,216.09
construction fund
Others 1,448,583.16 15,577,008.75 1,448,583.16
Total 17,349,667.98 21,725,415.49 17,349,667.98
50. Income taxes
(1) Income taxes
Item Amount incurred in the Amount incurred in the
current period previous period
Income tax expenses in the current year 789,738,176.94 1,252,265,973.88
Deferred income tax 301,164,102.92 -287,769,205.47
Total 1,090,902,279.86 964,496,768.41
(2) Accounting profit and income tax expenses adjustment process
Item Amount incurred in the
current period
Consolidated profit this period 3,479,049,407.45
Income tax expenses calculated at legal/applicable tax rate 869,762,351.86
Impact of various tax rates applicable to subsidiaries 7,484,458.34
Adjustment of impact on the income tax in the previous period -1,613,546.44
Impact of non-taxable income -121,637,924.12
Impact of the non-deductible costs, expenses and losses 958,965.59
Impact of deductible losses of deferred income tax assets unconfirmed in
-84,089,899.73
the previous use period
Impact of the deductible temporary difference or deductible loss of the
290,083,126.22
unconfirmed deferred income tax assets of this period
Impact of deferred tax of the profits to be distributed of the subsidiary with
12,122,183.38
a tax rate lower than 25%.
Tax impact of unconfirmed taxable temporary differences -3,293.78
Others 117,835,858.54
Income taxes 1,090,902,279.86
51. Items of cash flow statements
(1) Cash received/paid related to other operating/investment/financing activities
149
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
1） Cash received from other operating activities
Item Amount incurred in the Amount incurred in the
current period previous period
Operational incomings and outgoings received 3,403,840,502.84 3,107,323,026.01
Project deposit received 1,132,890,000.00 351,203,069.17
Interest received 191,564,887.90 128,814,435.02
Operational advance received 183,686,385.08 283,677,449.41
Others 38,880,068.39
Total 4,950,861,844.21 3,871,017,979.61
2） Other cash paid relating to operating activities
Item Amount incurred in the Amount incurred in
current period the previous period
Operational incomings and outgoings paid 5,558,283,259.97 1,429,429,541.00
Project deposit refunded 1,895,040,000.00 362,500,632.11
Cash paid for selling expenses 243,329,649.14 265,717,364.18
Cash paid for administrative expenses 80,584,079.23 162,536,815.33
Others 21,118,406.40 403,680,191.23
Total 7,798,355,394.74 2,623,864,543.85
3） Other cash received relating to investment activities
Item Amount incurred in the Amount incurred in the
current period previous period
Negative net cash for subsidiary acquisition 630,235,033.61
moved under this item
Total 630,235,033.61
(2) Supplementary data of consolidated cash flow statement
Item Amount of current Amount of the same
period period of last year
1. Net profits transferred to cash flow of operation
activities:
Net profit 2,388,147,127.59 2,394,072,140.78
Add: provision for assets impairment -1,219,731.00 888,293.99
Depreciations of fixed assets, oil & gas assets, and
180,052,039.35
productive biological assets 82,124,734.55
Amortization of intangible assets 8,939,269.18 127,749,940.09
Amortization of long-term deferred expenses 29,285,463.63 28,475,654.32
Losses at disposal of fixed assets, intangible assets
and other long-term assets (―-‖ indicates the 8,451.04
profit) 160,278.35
Losses at discard of fixed assets (―-‖ indicates the
884,954.97
profit)
Profits and losses on the change of fair value (―-‖
indicates the profit)
Financial expense (―-‖ indicates the profit) 631,709,516.22 461,627,423.25
150
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Item Amount of current Amount of the same
period period of last year
Losses on investments (―-‖ indicates the profit) -493,114,654.44 -143,318,415.51
Decreases of deferred income tax assets (―-‖
-96,883,432.67
indicates increase) -354,049,275.48
Increases of deferred income tax liabilities (―-‖
398,047,535.59
indicates decrease) -14,732,536.77
Decrease of inventories (―-‖ indicates increase) -11,689,902,990.66 -12,762,507,273.06
Decrease of operational receivable items (―-‖
-2,801,100,084.65
indicates increase) -1,738,838,849.53
Increase of operational payable items (―-‖
4,084,051,448.63
indicates decrease) 4,586,023,487.90
Others
Net cash flows from operating activities -7,361,095,087.22 -7,332,324,397.12
2. Major investments and financing activities not
related to cash expenditure and income:
Conversion of debt into capital
Convertible bonds expiring within one year
Fixed assets acquired under finance leases
3. Net changes of cash and cash equivalent:
Balance of cash at the end of the year 23,726,436,908.97 18,585,950,027.06
Less: beginning balance of cash 22,947,760,259.27 24,235,680,921.50
Add: Balance of cash equivalent as at the end of
the year
Less: beginning balance of cash equivalent
Net increase of cash and cash equivalents 778,676,649.70 -5,649,730,894.44
(3) Net cash paid for acquisition of subsidiaries in the current year
Item Amount of current
period
Cash or cash equivalents paid in the current year for the business merger
happened in the current year
Less: Cash and cash equivalent held by subsidiary on purchase date 778,971,624.38
including: those held by Xiamen Jinghucheng Real Estate Development Co., 11,461,315.42
Ltd.
Beijing Guangying Residential Property Development Limited 767,510,308.96
Add: Cash or cash equivalents paid in current year for the business 148,736,590.77
consolidation incurred in the previous period
Net cash paid for subsidiary acquisition -630,235,033.61
(4) Cash and cash equivalents
Item Balance at the end Balance at the
of the period beginning of the
year
Cash 23,726,436,908.97 22,947,760,259.27
Including: the cash on hand 289,924.34 372,572.19
Bank deposit available for payment at any time 19,039,335,443.97 19,547,572,224.50
Other monetary fund available for payment at 4,686,811,540.66 3,399,815,462.58
151
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Item Balance at the end Balance at the
of the period beginning of the
year
any time
Cash equivalents
Including: debenture investment mature within three
months
Balance of cash and cash equivalents at the end of year 23,726,436,908.97 22,947,760,259.27
Including: Restricted cash and cash equivalents used by
parent company and subordinated company of group
52. Item of statement of changes in owners' equity
The items listed under ―Others‖ in the Statement of Changes in Owners' Equity of this
period are mainly changes in capital reserve, see (37) in Note 6 to Capital Reserve in Note 6.
53. Assets with limited ownership or right of use
Item Ending book value Reason for restriction
Monetary fund 26,076,479.54 Margin deposits
Inventories 5,074,957,142.72 Mortgage loans
54. Foreign currency monetary items
(1) Foreign currency monetary items
Item Balance of foreign Balance in RMB at the
Exchange
currency at the end of end of period
rate
period
Monetary fund 2,006,676,706.88
Including: USD 317,238,794.08 6.1136 1,939,471,091.49
HKD 85,221,424.53 0.7886 67,205,615.39
Accounts receivable 115,340.64
Including: Hong Kong dollar 146,260.00 0.7886 115,340.64
Prepayment 52,020.72
Including: Hong Kong dollar 65,965.92 0.7886 52,020.72
Other receivables 726,089.74
Including: USD 50.00 6.1136 305.68
HKD 920,344.99 0.7886 725,784.06
Loan 9,876,215,120.00
Including: USD 1,615,450,000.00 6.1136 9,876,215,120.00
Accounts payable 260,433.45
Including: Hong Kong dollar 330,247.84 0.7886 260,433.45
Advances received
Including: Hong Kong dollar 0.7886
Interests payable 7,072,391.01
Including: USD 1,156,829.20 6.1136 7,072,391.01
Other payables 774,847,060.04
Including: USD 126,714,010.42 6.1136 774,678,774.09
152
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Item Balance of foreign Balance in RMB at the
Exchange
currency at the end of end of period
rate
period
HKD 213,398.36 0.7886 168,285.95
Bonds payable 4,428,680,133.80
Including: USD 724,398,085.22 6.1136 4,428,680,133.80
(2) Overseas operational entity
Key offshore operational entities of the Group include Eureka Investment Company Co., Ltd. and China
Merchants Land Limited, for such companies are investment companies whose investment targets are entities with
main business activities in China Mainland with RMB as functional currency, therefore, RMB is used as functional
currency; China Merchants Land Limited has set up a wholly-owned subsidiary, Cosmos Boom Investment Limited,
and selected USD as functional currency based on business requirements.
II. Consolidation scope change
1. Corporate merger not under common control
(1) Corporate merger not under the same control in current period
Time point of Equity control Equity ratio
Name of acquiree
equity control cost controlled (%)
Xiamen Jinghucheng Real Estate June 31, 2015 539,683,600.00 95.00
Development Co., Ltd.
Beijing Guangying Residential May 01, 2015 34.00
Property Development Limited
Continued:
The revenue of
Net profits of the
Equity the acquiree from
Confirmation basis acquiree from
controlling Purchasing date purchase day to
on purchase day purchase day to
mode the end of the
the end of the year
year
Acquisitions June 31, 2015 Acquisition of control -16,451,981.26
right of the acquiree
Obtain the
majority of
Acquisition of control
seats of May 01, 2015 724,732,639.00 174,636,530.39
right of the acquiree
Board of
Directors
(2) Merger cost and goodwill
Xiamen Jinghucheng Beijing Guangying
Item Real Estate Development Residential Property
Co., Ltd. Development Limited
Cash 539,683,600.00
Fair value on the acquisition date of the 448,813,124.31
153
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Xiamen Jinghucheng Beijing Guangying
Item Real Estate Development Residential Property
Co., Ltd. Development Limited
equities held before the acquisition date
Total merger cost 539,683,600.00 448,813,124.31
Less: proportion of fair value of identifiable
539,683,600.00 448,813,124.31
net assets acquired
Amount of goodwill/ merger cost which is
less than the definable net assets fair
proportion
After the appraisal on shareholders' equities of Xiamen Jinghucheng Real Estate
Development Co., Ltd. as of December 31, 2014 by Xiamen Yongda Quanneng Assets
Appraisal Firm (XYDPBZ [2015] No.002 Appraisal Report), shareholders' equities of Xiamen
Jinghucheng is valued as RMB 28.4044 million with the asset-based valuation approach, on
such basis, the transaction parties agree to introduce a new lump-sum investment of RMB
539.6836 million from China Merchants (Zhangzhou) Property Development Co., Ltd., wherein
RMB 95 million is added to the registered capital of Xiamen Jinghucheng Real Estate
Development Co., Ltd., and the remaining is used as the capital reserve. After capital increase,
Xiamen Zhaogang Real Estate Development Co., Ltd., a subsidiary of China Merchants
(Zhangzhou) Property Development Co., Ltd., will hold 95% equities of Xiamen Jinghucheng
Real Estate Development Co., Ltd., while the remaining equity will be held by Xiamen Jimei
Construction and Development Co., Ltd.
After the appraisal on the market value represented by the overall assets of Beijing Guangying Residential
Property Development Limited as of April 30, 2015 by ZhongHe Appraisal Company Ltd. (ZHPBZ [2015] No.
BJV1029 Appraisal Report), the appraisal value is RMB 1.7441894 billion with the asset-based valuation approach
(without considering the influence of taxable temporary difference).
(3) Identifiable assets and liabilities on the purchase date of the purchased party
Xiamen Jinghucheng Real Estate Beijing Guangying Residential Property
Development Co., Ltd. Development Limited
Item
Fair value on Book value on Fair value on Book value on
purchase day purchase day purchase day purchase day
Assets:
Monetary fund 11,461,315.42 11,461,315.42 767,510,308.96 767,510,308.96
Prepayment 163,411.20 163,411.20
Other receivables 45,700,000.00 45,700,000.00 3,829,274.72 3,829,274.72
Inventories 510,926,684.58 487,522,284.58 4,642,416,835.90 2,946,186,235.90
Other current assets 310,437,840.81 310,437,840.81
Fixed assets 705,405.48 705,405.48
Liabilities:
Accounts payable 219,072,527.24 219,072,527.24
154
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Xiamen Jinghucheng Real Estate Beijing Guangying Residential Property
Development Co., Ltd. Development Limited
Item
Fair value on Book value on Fair value on Book value on
purchase day purchase day purchase day purchase day
Advances received 3,683,265,560.00 3,683,265,560.00
Payroll payable 274,665.67 274,665.67
Tax payable 110,686.22 110,686.22
Other payables 30,411,000.73 30,411,000.73
Other current
47,832,386.31 47,832,386.31
liabilities
Deferred income tax
liabilities
Net assets 568,088,000.00 544,683,600.00 1,744,096,250.90 47,865,650.90
Less: Minority
28,404,400.00 27,234,180.00 1,151,103,525.59 31,591,329.59
interest
Net asset acquired 539,683,600.00 517,449,420.00 592,992,725.31 16,274,321.31
The increment and change of definable asset and debts as of December 31,2014 is adjusted based on the
appraisal value, and the fair value of 95 % definable net asset of Xiamen Jinghucheng Real Estate Development Co.,
Ltd. on the acquisition day is 539.6836 million.
The increment and change of definable asset and debts as of April 30, 2015 is adjusted based on the appraisal
value, and the fair value of 34 % definable net asset of Beijing Guangying Residential Property Development Limited
on the acquisition day is 448.8131 million.
(4) Shares previously held before the acquisition day will be recalculated in terms of
the fair value for profits or losses produced
Determination
method of fair Amount of
Book value of Profits or losses values on the changes of other
the equities on Fair value of the generated due to acquisition ownership
interests related
the acquisition equities on the re-calculation of date of the
Name of with the equities
date held acquisition date fair values of equities held held before the
acquiree
before the held before the the equities held before the acquisition and
acquisition acquisition date before the acquisition carried forward to
date acquisition date date, and investment
major incomes
assumptions
Beijing
Guangying
Asset-based
Residential
16,274,321.31 448,813,124.31 432,538,803.00 valuation 11,777,249.14
Property approach
Development
Limited
2. Merger scope change for other reasons
155
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Reasons for Not being included in Shareholding ratio
being included in consolidation (%)
Company name
consolidation scope
scope
China Merchants
(Shanghai) Baoxin Newly-established 51.00
Property Co., Ltd.
China Merchants
(Suzhou) Ruiying
Newly-established 51.00
Property Development
Co., Ltd.
China Merchants
(Suzhou) Mancheng
Newly-established 100.00
Property Development
Co., Ltd.
China Merchants
(Chongqing) Yicheng
Newly-established 100.00
Property Development
Co., Ltd.
China Merchants
(Chengdu) Boshi
Newly-established 51.00
Property Development
Co., Ltd.
Shenzhen
Zhaopingruisheng
Newly-established 51.00
Investment Holdings Co.,
Ltd.
Xiamen Zhaogang Real
Estate Development Co., Newly-established 60.00
Ltd.
Foshan Evian Guanyuan
Property Development Newly-established 100.00
Co., Ltd.
Nanjing Zhaopinglisheng
Newly-established 51.00
Investment Co., Ltd.
China Merchants
(Nanjing) Zhaosheng
Newly-established 100.00
Property Development
Co., Ltd.
Tiansheng investment co.,
LTD
Newly-established 100.00
Chuangjinli Co., Ltd. Write-off
Note 1
Note1: Chuangjinli Co., Ltd., a non-entity company registered in Hong Kong, was written
off upon approval on April 1, 2015.VIII. Rights and interests in other parties
1. Rights and interests in subsidiary
(1) Organization of enterprise group
Main Registered Business Shareholding ratio
Name of subsidiary
businesses address nature (%)
156
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Directly Indirectly
Subsidiaries obtained by combination under common control
Hong
Eureka Investment Company Ltd. Hong Kong Investment 100
Kong
China Merchants (Zhangzhou) Property
Zhangzhou Zhangzhou Real estate 51
Development Co., Ltd.
China Merchants (Zhangzhou) Property Property
Zhangzhou Zhangzhou 100
Management Co., Ltd. management
China Merchants (Shenzhen) Property
Shenzhen Shenzhen Real estate 100
Development Co., Ltd.
Shekou Xinghua Industrial Co., Ltd. Shenzhen Shenzhen Real estate 65.07
China Merchants (Shenzhen) Power Power
Shenzhen Shenzhen 95 5
Supply Co., Ltd. supply
Measurement
China Merchants(Shenzhen) Energy
Shenzhen Shenzhen & 100
Measurement & Verification Co., Ltd
Verification
China Merchants Property Management Property
Shenzhen Shenzhen 90 10
Co., Ltd. management
China Merchants (Shenzhen) Property Property
Shenzhen Shenzhen 100
Management Co., Ltd. management
Property
Shekou Zhaofa Property Co., Ltd. Shenzhen Shenzhen 100
management
China Merchants (Shenzhen) Qile Property
Shenzhen Shenzhen 60
Property Management Co., Ltd. management
Subsidiaries obtained by consolidation not under common control
Cayman Cayman
China Merchants Land Limited Investment 74.35
islands islands
Hong
Huaxian Co., Ltd. Hong Kong Investment 100
Kong
Tianjin Guojun Investment Co., Ltd. Tianjin Tianjin Real estate 100
Tianjin CM Taida Investment Co., Ltd. Tianjin Tianjin Real estate 60
Tianjin Zhaojiang Investment Co., Ltd. Tianjin Tianjin Real estate 77
China Merchants (Harbin) Jiatian Property
Harbin Harbin Real estate 50
Development Co., Ltd Note 1
Harbin Yinkai Real Estate Development
Harbin Harbin Real estate 85
Co., Ltd.
Qingdao Zhongrunde Auto Trade Co., Ltd. Qingdao Qingdao Real estate 51
China Merchants (Shanghai) Fengrui
Shanghai Shanghai Real estate 100
Property Co., Ltd.
Shanghai Fengyang Real Estate
Shanghai Shanghai Real estate 60
Development Co., Ltd.
Yunnan Merchants City Real Estate Co.,
Kunming Kunming Real estate 60
Ltd.
Foshan Kaida Town Investment
Foshan Foshan Real estate 51
Development Co., Ltd.
Shenzhen Haitao Hotel Co., Ltd. Shenzhen Shenzhen Hotel service 100
Shenzhen Vanke Binhai Property Co., Ltd.
Shenzhen Shenzhen Real estate 50
Note 1
Shenzhen Meiyue Real Estate Consulting
Shenzhen Shenzhen Real estate 100
Co., Ltd.
157
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Shareholding ratio
Main Registered Business (%)
Name of subsidiary
businesses address nature
Directly Indirectly
China Merchants (Shenzhen) Runde
Shenzhen Shenzhen Real estate 51
Property Development Co., Ltd.
Shenyang Jindaohuitong Real Estate
Shenyang Shenyang Real estate 51
Development Co., Ltd.
Guanhua Port Trade (Shenzhen) Co., Ltd. Shenzhen Shenzhen Trade 100
Beijing Guangying Residential Property
Beijing Beijing Real estate 34
Development Limited
Xiamen Jinghucheng Real Estate
Xiamen Xiamen Real estate 95
Development Co., Ltd.
Subsidiaries acquired through other ways
British British
Trinity Limited Virgin Virgin Investment 100
Islands Islands
British British
Juyang Co., Ltd. Virgin Virgin Investment 100
Islands Islands
British British
Huihao Co., Ltd. Virgin Virgin Investment 100
Islands Islands
British British
Huiyu Co., Ltd. Virgin Virgin Investment 100
Islands Islands
British British
Zengtian Holding Co., Ltd. Virgin Virgin Investment 100
Islands Islands
British British
Yinrong Co., Ltd. Note 1 Virgin Virgin Investment 50
Islands Islands
British British
Huiju Holding Co., Ltd. Virgin Virgin Investment 100
Islands Islands
British British
Jingji Co., Ltd. Virgin Virgin Investment 100
Islands Islands
British British
Chaocheng International Co., Ltd. Virgin Virgin Investment 100
Islands Islands
British British
Guangyu Holding Co., Ltd. Virgin Virgin Investment 100
Islands Islands
British British
Weirong Holding Limited Virgin Virgin Investment 100
Islands Islands
British British
Best Season Holdings Limited Virgin Virgin Investment 100
Islands Islands
British British
Biyuan Co., Ltd Virgin Virgin Investment 100
Islands Islands
158
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Shareholding ratio
Main Registered Business (%)
Name of subsidiary
businesses address nature
Directly Indirectly
Hong
Yingze Development Co., Ltd. Hong Kong Investment 100
Kong
Hong
Leyi Holding Co., Ltd. Hong Kong Investment 100
Kong
Hong
Yungao Co., Ltd. Hong Kong Investment 100
Kong
Hong
Jumbo Pacific Holding Limited Hong Kong Investment 100
Kong
Hong
Union Bloom Limited Hong Kong Investment 51
Kong
Hong
Vast Joint Limited Hong Kong Investment 51
Kong
China Merchants Property Management Hong Property
Hong Kong 100
(Hong Kong) Co., Ltd. Kong management
Hong Property
Koll Merchants Limited Hong Kong 100
Kong management
CMK Property Management Company Hong Property
Hong Kong 100
Limited Kong management
Hong
Oasis King Development Limited Hong Kong Investment 100
Kong
Hong
Union Winner Development Limited Hong Kong Investment 100
Kong
Hong
Suntec Development Limited Hong Kong Investment 100
Kong
Hong
Century World Investment Limited Hong Kong Investment 100
Kong
Hong
Jihong International Co., Ltd. Hong Kong Investment 100
Kong
Hong
Keen Right International Limited Hong Kong Investment 100
Kong
Hong
Maosheng Co., Ltd. Hong Kong Investment 100
Kong
Hong
Yuyue Co., Ltd. Hong Kong Investment 100
Kong
Huipeng Real Estate Development Co., Hong
Hong Kong Real estate 50
Ltd. Note 1 Kong
Hong
Sino Action Investments Limited Hong Kong Investment 100
Kong
Hong
Happy City Investments Limited Hong Kong Investment 100
Kong
Hong
Huitai Investment Co., Ltd. Hong Kong Investment 100
Kong
Hong
Billion Turbo Investments Limited Hong Kong Investment 100
Kong
Hong
Sino Ease Development Limited Hong Kong Investment 100
Kong
Hong
Cosmos Harvest Development Limited Hong Kong Investment 100
Kong
159
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Shareholding ratio
Main Registered Business (%)
Name of subsidiary
businesses address nature
Directly Indirectly
Hong
Torch Investment Co., Ltd. Hong Kong Investment 70
Kong
Hong
Mainwise Investments Limited Hong Kong Investment 100
Kong
Hong
Guanghong Investment Co., Ltd Hong Kong Investment 100
Kong
Hong
Long Wealth Development Limited Hong Kong Investment 100
Kong
Hong
Multion Investments Limited Hong Kong Investment 100
Kong
Hong
Chengfu Holding Co., Ltd. Hong Kong Investment 100
Kong
British British
Jialian Enterprise Co., Ltd. Virgin Virgin Investment 100
Islands Islands
British British
Gaowan Investments Limited Virgin Virgin Investment 100
Islands Islands
British British
Tiansheng investment co., LTD Virgin Virgin Investment 100
Islands Islands
China Merchants (Beijing ) Property
Beijing Beijing Real estate 90 10
Development Co., Ltd.
China Merchants (Beijing ) Property Property
Beijing Beijing 80
Management Co., Ltd. management
China Merchants Jiaming (Beijing)
Beijing Beijing Real estate 50
Property Development Co., Ltd. Note 1
Beijing Kanglade Property Development
Beijing Beijing Real estate 60
Co., Ltd.
Beijing Merchants Jiaming Property
Beijing Beijing Real estate 70
Development Co., Ltd.
Tianjin Zhaosheng Real Estate Co., Ltd. Tianjin Tianjin Real estate 60 40
China Merchants (Tianjin) Property
Tianjin Tianjin Real estate 75
Development Co., Ltd.
Tianjin Gangwei Real Estate Development
Tianjin Tianjin Real estate 100
Co., Ltd.
Tianjin Kingbay Real Estate Development
Tianjin Tianjin Real estate 100
Co., Ltd.
Dalian Zhaoyu Property Co., Ltd., Dalian Dalian Real estate 51
Qingdao Zhongrunde Property Co., Ltd. Qingdao Qingdao Real estate 100
Qingdao Merchants Hyde Property
Qingdao Qingdao Real estate 100
Development Co., Ltd.
China Merchants (Rizhao) Property
Rizhao Rizhao Real estate 100
Development Co., Ltd.
China Merchants (Yantai) Property
Yantai Yantai Real estate 100
Development Co., Ltd.
China Merchants (Yantai) Property Co.,
Yantai Yantai Real estate 100
Ltd.
160
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Shareholding ratio
Main Registered Business (%)
Name of subsidiary
businesses address nature
Directly Indirectly
Hangzhou Zhujia Real Estate
Hangzhou Hangzhou Real estate 50
Development Co., Ltd. Note 1
China Merchants (Hangzhou) Property
Hangzhou Hangzhou Real estate 100
Development Co., Ltd.
China Merchants (Nanjing ) Property Property
Nanjing Nanjing 100
Management Co., Ltd. management
China Merchants (Nanjing ) Property
Nanjing Nanjing Real estate 49 51
Development Co., Ltd.
Nanjing China Merchants Ruisheng
Nanjing Nanjing Real estate 100
Property Co., Ltd.
China Merchants (Nanjing) Ningsheng
Nanjing Nanjing Real estate 51
Property Co., Ltd.
China Merchants (Nanjing) Xingsheng
Nanjing Nanjing Real estate 51
Property Co., Ltd.
Nanjing China Merchants Qisheng
Nanjing Nanjing Real estate 51
Property Co., Ltd.
Nanjing Zhaopinglisheng Investment Co.,
Nanjing Nanjing Investment 51
Ltd.
China Merchants (Nanjing) Zhaosheng
Nanjing Nanjing Real estate 100
Property Development Co., Ltd.
China Merchants (Shanghai) Property Co.,
Shanghai Shanghai Real estate 10 90
Ltd.
China Merchants (Shanghai) Property
Shanghai Shanghai Property 100
Management Co., Ltd.
China Merchants (Shanghai) Minsheng
Shanghai Shanghai Real estate 100
Property Co., Ltd.
China Merchants (Shanghai) Fengsheng
Shanghai Shanghai Real estate 100
Property Co., Ltd.
China Merchants (Shanghai) Property
Shanghai Shanghai Real estate 10 90
Development Co., Ltd.
Shanghai Jingyuan Property Development
Shanghai Shanghai Real estate 55
Co., Ltd.
Shanghai CM Hongfa Property Co., Ltd. Shanghai Shanghai Real estate 100
China Merchants (Shanghai) Baoxin
Shanghai Shanghai Real estate 51
Property Co., Ltd.
China Merchants (Suzhou) Property
Suzhou Suzhou Real estate 90 10
Development Co., Ltd.
Suzhou CM Nanshan Property Co., Ltd. Suzhou Suzhou Real estate 60
China Merchants (Suzhou) Magnificent
Suzhou Suzhou Real estate 100
House Development Co., Ltd.
Suzhou Shuanghu Real Estate Co., Ltd.
Suzhou Suzhou Real estate 50
Note 1
China Merchants (Suzhou) Yishanjun
Suzhou Suzhou Real estate 100
Property Development Co., Ltd.
China Merchants (Suzhou) Mancheng
Suzhou Suzhou Real estate 100
Property Development Co., Ltd.
China Merchants (Suzhou) Ruiying
Suzhou Suzhou Real estate 51
Property Development Co., Ltd.
161
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Shareholding ratio
Main Registered Business (%)
Name of subsidiary
businesses address nature
Directly Indirectly
Zhenjiang Nanshan Creative Industrial
Zhenjiang Zhenjiang Real estate 60
Park Development Co., Ltd.
Zhenjiang Yingsheng Real Estate
Zhenjiang Zhenjiang Real estate 1 99
Development Co., Ltd.
Zhenjiang Huoju Property Co., Ltd. Zhenjiang Zhenjiang Real estate 100
China Merchants (Changzhou) Property
Changzhou Changzhou Real estate 100
Development Co., Ltd.
China Merchants (Changshu) Xicheng
Changshu Changshu Real estate 60
Real Estate Co., Ltd.
China Merchants (Wuhan) Property
Wuhan Wuhan Real estate 100
Development Co., Ltd.
China Merchants (Wuhan) Property Property
Wuhan Wuhan 100
Management Co., Ltd. management
Wuhan Xinde Real Estate Development
Wuhan Wuhan Real estate 100
Co., Ltd.
Wuhan Aoming Property Development
Wuhan Wuhan Real estate 100
Co., Ltd.
Wuhan Mingjie Real Estate Development
Wuhan Wuhan Real estate 100
Co., Ltd.
Wuhan Merchants Property Gutian
Wuhan Wuhan Real estate 100
Property Co., Ltd
Xi’an Maoan Property Development Co.,
Xi’an Xi’an Real estate 100
Ltd.
China Merchants (Chengdu) Beihu Land
Chengdu Chengdu Real estate 100
Limited.
China Merchants (Chengdu) Property
Chengdu Chengdu Real estate 100
Development Co., Ltd.
China Merchants (Chengdu) Beicheng
Chengdu Chengdu Real estate 100
Property Development Co., Ltd.
China Merchants (Chengdu) Longcheng
Chengdu Chengdu Real estate 100
Property Development Co., Ltd.
China Merchants (Chengdu) Boshi
Chengdu Chengdu Real estate 51
Property Development Co., Ltd.
China Merchants (Bijie, Guizhou)
Bijie Bijie Real estate 100
Property Development Co., Ltd.
China Merchants (Bijie, Guizhou)
Bijie Bijie Real estate 100
Investment Co., Ltd.
China Merchants (Bijie) Property Property
Bijie Bijie 100
Management Co., Ltd. management
China Merchants (Chongqing) Property
Chongqing Chongqing Real estate 90 10
Development Co., Ltd.
China Merchants (Chongqing)
Huayuancheng Property Development Co., Chongqing Chongqing Real estate 100
Ltd.
China Merchants (Chongqing) Land
Chongqing Chongqing Real estate 100
Development Limited
China Merchants (Chongqing) Pvian
Chongqing Chongqing Real estate 100
Property Development Co., Ltd.
162
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Shareholding ratio
Main Registered Business (%)
Name of subsidiary
businesses address nature
Directly Indirectly
China Merchants (Chongqing) Yizhi Real
Chongqing Chongqing Real estate 100
Estate Co., Ltd.
China Merchants (Chongqing) Yicheng
Chongqing Chongqing Chongqing 100
Property Development Co., Ltd.
Fujian Zhongliansheng Real Estate Co.,
Xiamen Xiamen Real estate 50
Ltd Note 1
China Merchants Property (Xiamen) Co.,
Xiamen Xiamen Real estate 100
Ltd.
China Merchants (Xiamen) Magnificent
Xiamen Xiamen Real estate 100
House Property Co., Ltd.
Xiamen Zhaogang Property Development
Xiamen Xiamen Real estate 60
Co., Ltd.
China Merchants (Foshan) Xincheng
Foshan Foshan Real estate 60
High-tech Co., Ltd.
Foshan Xincheng Real Estate Co., Ltd.
Foshan Foshan Real estate 50
Note 1
Foshan Xinjie Property Development Co.,
Foshan Foshan Real estate 100
Ltd.
Foshan Evian Property Co., Ltd. Note 1 Foshan Foshan Real estate 50
China Merchants (Foshan) Jiulongcang
Foshan Foshan Real estate 50
Property Development Co., Ltd. Note 1
Foshan Merchants Real Estate Co., Ltd.
Note 2 Foshan Foshan Real estate 100
Foshan Shunde Evian Zhenyuan Property
Foshan Foshan Real estate 55
Co., Ltd.
Foshan Evian Shangyuan Property
Foshan Foshan Real estate 100
Development Co., Ltd.
Foshan Evian Xiaode Property
Foshan Foshan Real estate 100
Development Co., Ltd.
Foshan Evian Guanyuan Property
Foshan Foshan Real estate 100
Development Co., Ltd.
Guangzhou Wanshang Real Estate Co.,
Guangzhou Guangzhou Real estate 34
Ltd.
China Merchants (Guangzhou) Property
Guangzhou Guangzhou Real estate 100
Development Co., Ltd.
Guangzhou Evian Property Development
Guangzhou Guangzhou Real estate 51
Co., Ltd.
China Merchants (Zhuhai) Property
Zhuhai Zhuhai Real estate 100
Development Co., Ltd.
Zhuhai Yuanfeng Real Estate Co., Ltd. Zhuhai Zhuhai Real estate 51
Zhuhai Evian Real Estate Co., Ltd. Zhuhai Zhuhai Real estate 100
China Merchants (Nanning) Haotian
Nanning Nanning Real estate 70
Property Development Co., Ltd.
China Merchants (Hainan) Yuanyang
Qionghai Qionghai Real estate 60
Development Co., Ltd.
China Merchants (Sanya) Property
Sanya Sanya Real estate 100
Development Co., Ltd.
163
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Shareholding ratio
Main Registered Business (%)
Name of subsidiary
businesses address nature
Directly Indirectly
China Merchants Property Investment Co.,
Shenzhen Shenzhen Real estate 100
Ltd.
China Merchants (Shenzhen) Xin’an
Shenzhen Shenzhen Real estate 60 40
Property Co., Ltd.
China Merchants (Shenzhen) Pingshan
Shenzhen Shenzhen Real estate 70
Property Development Co., Ltd.
Commercial
Shenzhen Maillen Hotel Management Co., Property
Shenzhen Shenzhen 10 90
Ltd Operation
Management
China Merchants (Shenzhen) Property Real Estate
Shenzhen Shenzhen 20 80
Consultant Co., Ltd. Agent
Shenzhen Taige Apartment Management
Shenzhen Shenzhen Hotel service 100
Co., Ltd.
China Merchants (Shenzhen) Anye
Shenzhen Shenzhen Real estate 51
Investment Development Co., Ltd.
Shenzhen Merchants Construction Co., Construction
Shenzhen Shenzhen 100
Ltd. project
Shenzhen China Merchants Business
Shenzhen Shenzhen Real estate 51
Development Co., Ltd.
Shenzhen Shekou Seaworld Hotel Hotel
Shenzhen Shenzhen 51
Management Co., Ltd. management
Shenzhen Jinyu Rongtai Investment
Shenzhen Shenzhen Real estate 50
Development Co., Ltd. Note 1
China Merchants (Shenzhen) Shekou
Shenzhen Shenzhen Real estate 51
Construction Co., Ltd.
Ningbo Jiangwan Property Development
Ningbo Ningbo Real estate 51
Co., Ltd.
Kunming Zhaojin Property Co., Ltd. Kunming Kunming Real estate 100
Kunming Merchants Metropolitan
Kunming Kunming Real estate 100
Property Co., Ltd.
Shenzhen Xingzhao Property Management Property
Shenzhen Shenzhen 100
Co., Ltd. management
Commercial
CMBC Sci-tech Building Phase II Property
Shenzhen Shenzhen 100
Property Management Co., Ltd. Operation
Management
Commercial
Shenzhen Digital Building Property Property
Shenzhen Shenzhen 100
Management Company Operation
Management
Commercial
CMBC Sci-tech Building Property Property
Shenzhen Shenzhen 100
Management Co., Ltd. Operation
Management
Commercial
Shenzhen Garden City Property Property
Shenzhen Shenzhen 100
Management Company Operation
Management
164
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Shareholding ratio
Main Registered Business (%)
Name of subsidiary
businesses address nature
Directly Indirectly
Commercial
Shenzhen Shekou New Times Property Property
Shenzhen Shenzhen 100
Management Company Operation
Management
Commercial
China Merchants (Shenzhen ) Investment Property
Shenzhen Shenzhen 100
Management Co., Ltd. Operation
Management
Commercial
Shenzhen Zhaoyage Property Management Property
Shenzhen Shenzhen 100
Company Operation
Management
Commercial
Shenzhen Zhaoshengge Property Property
Shenzhen Shenzhen 100
Management Company Operation
Management
Shenzhen Zhaopingruisheng Investment
Shenzhen Shenzhen Investment 51
Holdings Co., Ltd.
Note 1: 50% of the shares of the company are directly or indirectly held by the Company.
With the majority voting right in the board of such companies, the Company has control over
their financial and operating decisions, therefore, they are covered in consolidation scope of
consolidated financial statement.
Note 2: The company changed its name from Foshan Shunde Evian Desheng Property Co.,
Ltd. to China Merchants (Foshan) Real Estate Co., Ltd. on May 27, 2015.
(2) Important no-wholly owned subsidiaries
Dividend
declared to
Shareholdi Profit and loss be
ng ratio of belonging to distributed
Ending balance of
Name of subsidiary minority minority to minority
minority equity
shareholde shareholder of shareholder
rs % this period of the
current
period
China Merchants
(Guangzhou) Property 25.65 42,834,878.54 228,317,087.06
Development Co., Ltd.
Shenzhen Vanke Binhai
50 -173,321,302.91 388,173,071.30
Property Co., Ltd.
China Merchants
(Chongqing) Yizhi Real 62.83 -2,948,226.01 2,282,696,080.07
Estate Co., Ltd.
China Merchants 49 55,855,879.65 405,563,605.88
165
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Dividend
declared to
Shareholdi Profit and loss be
ng ratio of belonging to distributed
Ending balance of
Name of subsidiary minority minority to minority
minority equity
shareholde shareholder of shareholder
rs % this period of the
current
period
(Zhangzhou) Property
Development Co., Ltd.
Beijing Guangying
Residential Property 66 39,758,160.41 910,983,637.00
Development Limited
China Merchants
(Chongqing) Land 62.83 -10,177,977.05 2,296,836,525.68
Development Limited
Harbin Yinkai Real Estate
15 -9,615,779.07 13,696,019.90
Development Co., Ltd.
China Merchants (Shenzhen)
Pingshan Property 30 -1,829,449.18 1,147,985.42
Development Co., Ltd.
Nanjing China Merchants
13.08 -1,702,629.44 140,942,436.43
Ruisheng Property Co., Ltd.
Ningbo Jiangwan Property
49 -3,628,339.21 -53,244,118.16
Development Co., Ltd.
166
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
(3) Main financial information of key non-wholly owned subsidiaries
Balance at the end of the year
Name of subsidiary Non-current
Current assets Non-current assets Total assets Current liabilities Total liabilities
liabilities
China Merchants (Guangzhou)
8,607,654,418.59 1,701,237,875.68 10,308,892,294.27 9,076,046,105.52 287,000,000.00 9,363,046,105.52
Property Development Co., Ltd.
Shenzhen Vanke Binhai Property Co.,
4,865,477,545.84 12,572,385.22 4,878,049,931.06 3,353,734,475.21 749,700,000.00 4,103,434,475.21
Ltd.
China Merchants (Chongqing) Yizhi
4,539,239,487.74 11,017,096.65 4,550,256,584.39 916,836,639.99 916,836,639.99
Real Estate Co., Ltd.
China Merchants (Zhangzhou)
4,198,916,366.33 319,028,802.54 4,517,945,168.87 3,369,120,758.06 294,710,020.00 3,663,830,778.06
Property Development Co., Ltd.
Beijing Guangying Residential
4,361,332,222.21 711,681.12 4,362,043,903.33 4,139,541,722.04 4,139,541,722.04
Property Development Limited
China Merchants (Chongqing) Land
3,861,123,715.79 1,999,442.08 3,863,123,157.87 207,195,540.39 207,195,540.39
Development Limited
Harbin Yinkai Real Estate
3,584,700,462.88 4,396,541.36 3,589,097,004.24 1,305,918,323.22 2,441,506,503.60 3,747,424,826.82
Development Co., Ltd.
China Merchants (Shenzhen) Pingshan
3,441,778,543.33 74,542.63 3,441,853,085.96 3,438,026,467.89 3,438,026,467.89
Property Development Co., Ltd.
Nanjing China Merchants Ruisheng
3,378,861,742.21 78,989.59 3,378,940,731.80 257,522,726.00 2,044,000,000.00 2,301,522,726.00
Property Co., Ltd.
Ningbo Jiangwan Property
3,085,383,620.06 1,148,045.60 3,086,531,665.66 475,090,340.93 2,690,102,790.34 3,165,193,131.27
Development Co., Ltd.
167
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Continued 1:
Balance at the beginning of the year
Name of subsidiary Non-current Non-current
Current assets Total assets Current liabilities Total liabilities
assets liabilities
China Merchants (Guangzhou)
8,011,782,328.32 927,956,228.22 8,939,738,556.54 7,321,137,085.72 895,380,000.00 8,216,517,085.72
Property Development Co., Ltd.
Shenzhen Vanke Binhai Property Co.,
4,537,073,720.52 187,694.31 4,537,261,414.83 2,945,306,361.43 524,800,000.00 3,470,106,361.43
Ltd.
China Merchants (Chongqing) Yizhi
4,410,133,072.95 11,241,338.42 4,421,374,411.37 783,261,707.71 783,261,707.71
Real Estate Co., Ltd.
China Merchants (Zhangzhou)
3,759,214,583.30 329,725,990.00 4,088,940,573.30 3,369,398,182.21 4,710,020.00 3,374,108,202.21
Property Development Co., Ltd.
Beijing Guangying Residential
Property Development Limited
China Merchants (Chongqing) Land
3,876,455,550.43 2,206,756.71 3,878,662,307.14 206,534,169.08 206,534,169.08
Development Limited
Harbin Yinkai Real Estate
2,566,332,861.61 1,217,817.84 2,567,550,679.45 2,162,224,835.66 2,162,224,835.66
Development Co., Ltd.
China Merchants (Shenzhen) Pingshan
2,439,434,828.29 132,370.60 2,439,567,198.89 2,198,042,846.40 2,198,042,846.40
Property Development Co., Ltd.
Nanjing China Merchants Ruisheng
6,529,497,479.94 97,892.23 6,529,595,372.17 3,393,000,974.84 2,046,000,000.00 5,439,000,974.84
Property Co., Ltd.
Ningbo Jiangwan Property
2,694,228,762.77 1,303,663.89 2,695,532,426.66 2,630,247,643.10 50,000,000.00 2,680,247,643.10
Development Co., Ltd.
The company obtained the control over Beijing Guangying Residential Property Development Limited, which used to be an associated enterprise, on May 1, 2015.
168
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Continued 2:
Amount incurred in the current period Amount incurred in previous year
Name of subsidiary Total Total
Operating Cash flows from Operating Cash flows from
Net profit consolidated Net profit consolidated
incomes operating activities incomes operating activities
income income
China Merchants
(Guangzhou) Property 622,771,768.00 222,718,670.15 222,718,670.15 1,417,967,037.86 302,572,407.00 619,464,939.52 619,464,939.52 -2,719,115,235.11
Development Co., Ltd.
Shenzhen Vanke
Binhai Property Co., 421,482,640.00 -290,684,512.13 -290,684,512.13 308,450,045.44 2,112,082,217.00 580,426,030.77 580,426,030.77 -7,954,069.88
Ltd.
China Merchants
(Chongqing) Yizhi -4,692,759.26 -4,692,759.26 11,945,100.85 -1,384,387.01 -1,384,387.01 -6,810,218.15
Real Estate Co., Ltd.
China Merchants
(Zhangzhou) Property 629,670,452.94 106,924,596.03 106,924,596.03 -95,115,290.05 62,849,138.54 -9,963,099.35 -9,963,099.35 4,416,538.51
Development Co., Ltd.
Beijing Guangying
Residential Property 724,732,639.00 174,636,530.39 174,636,530.39 510,035,374.97
Development Limited
China Merchants
(Chongqing) Land 27,279,452.00 -16,200,520.58 -16,200,520.58 -85,945,776.46 360,537,586.00 33,595,119.00 33,595,119.00 -35,355,559.87
Development Limited
Harbin Yinkai Real
Estate Development -64,105,193.80 -64,105,193.80 114,709,956.16 -1,722,958.64 -1,722,958.64 -50,157,323.39
Co., Ltd.
China Merchants
(Shenzhen) Pingshan
-6,098,163.93 -6,098,163.93 610,974,421.54 -16,566,929.43 -16,566,929.43 208,528,173.44
Property Development
Co., Ltd.
Nanjing China
Merchants Ruisheng -13,015,552.01 -13,015,552.01 -88,483,343.28 -9,448,028.83 -9,448,028.83 -229,273,051.29
Property Co., Ltd.
169
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Amount incurred in the current period Amount incurred in previous year
Name of subsidiary Total Total
Operating Cash flows from Operating Cash flows from
Net profit consolidated Net profit consolidated
incomes operating activities incomes operating activities
income income
Ningbo Jiangwan
Property Development 20,968.00 -93,946,249.17 -93,946,249.17 -2,456,836,771.85
Co., Ltd.
170
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
2. Change of owner’s equity proportion in subsidiaries and subsidiaries still under
control
(1) Change of owner’s equity proportion in subsidiaries
1) The Company originally held 100% shares of Ningbo Jiangwan Real Estate
Development Co., Ltd. In May 2015, the Company signed a capital increase agreement with
Shenzhen New Alliance Investment Management Co., Ltd. After the capital increase, the actual
investment of the Company is RMB30.6 million, and the Company held 51 % equity of Ningbo
Jiangwan Real Estate Development Co., Ltd., and the control right over of the Company
remains unchanged.
(2) Impact of the change of owner’s equity proportion in subsidiaries
on equity
Ningbo Jiangwan Property Development
Item Co., Ltd.
Cash
Fair value of non-cash assets
Total of purchase cost/ disposal consideration
Less: Subsidiaries’ share of net assets calculated based on share
-49,615,778.95
of equity received / disposed.
Shortfalls 49,615,778.95
Including: Adjusted capital surplus 49,615,778.95
3. Equity in joint ventures or associated enterprises
(1) Important joint ventures or associated enterprises
Shareholding ratio Accounting
(%) treatment
methods of
Names of joint ventures Main Registered Business
joint
or associated enterprises businesses address Nature
Directly Indirectly ventures or
associated
enterprises
China Merchants Overseas Real Equity
Shenzhen Shenzhen 50
Chinese Town estate method
Shanghai New South
Real Equity
Mountain Real Estate Shanghai Shanghai 20
estate method
Development Co., Ltd.
(2) Main financial information on key associates or joint ventures
Item Ending balance/ Amount incurred in the current period
171
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Shanghai New South
China Merchants Overseas
Mountain Real Estate
Chinese Town
Development Co., Ltd.
Current assets: 601,686,721.00 1,471,596,981.32
Including: cash and cash equivalents 97,303,708.42 48,367,089.18
Non-current assets 330,119,718.38 813,288.86
Total assets 931,806,439.38 1,472,410,270.18
Current liabilities: 676,526,710.84 686,981,880.48
Non-current liabilities 190,000,000.00
Total liabilities 676,526,710.84 876,981,880.48
Net assets 255,279,728.54 595,428,389.70
Including: net assets owned by parent
255,279,728.54 595,428,389.70
company owners
Share of net assets as calculated as per
127,639,864.27 119,085,677.94
shareholding proportion
Adjusting events 84,455,589.65
Book value of equity investment on
214,609,624.82 119,085,677.94
associated enterprises
Fair value of equity investment in
associated enterprises under public
offering
Operating incomes 363,982,035.49 252,426,879.00
Financial expenses -1,764,071.58 -424,726.99
Income taxes 35,093,242.86 9,607,926.77
Net profit 105,279,728.54 28,823,780.33
Including: net profit owned by parent
105,279,728.54 28,823,780.33
company owners
Other comprehensive income
Total consolidated income 105,279,728.54 28,823,780.33
Share of net profit as calculated as per
52,639,864.27 5,764,756.07
shareholding proportion
Other adjustment to profit or loss -16,539,852.23 -250,107.87
Dividend from associates received in
397,719,804.44
the current year
Continued:
Beginning balance / Amount incurred in previous year
Item Shanghai New South
China Merchants Overseas
Mountain Real Estate
Chinese Town
Development Co., Ltd.
Current assets: 1,958,555,507.72 1,387,923,209.05
Including: cash and cash equivalents 355,994,281.28 189,563,283.43
Non-current assets 336,830,699.55 430,046.42
Total assets 2,295,386,207.27 1,388,353,255.47
Current liabilities: 1,344,918,256.65 629,498,106.79
Non-current liabilities 191,000,000.00
Total liabilities 1,344,918,256.65 820,498,106.79
172
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Beginning balance / Amount incurred in previous year
Item Shanghai New South
China Merchants Overseas
Mountain Real Estate
Chinese Town
Development Co., Ltd.
Net assets 950,467,950.62 567,855,148.68
Including: net assets owned by parent
950,467,950.62 567,855,148.68
company owners
Share of net assets as calculated as per
475,233,975.31 113,571,029.74
shareholding proportion
Adjusting events 100,995,441.89
Book value of equity investment on
576,229,417.22 113,571,029.74
associated enterprises
Fair value of equity investment in
associated enterprises under public
offering
Operating incomes 1,263,070,845.58 0.00
Financial expenses -3,929,519.91 97,139.43
Income taxes 122,388,042.71 0.00
Net profit 367,164,128.12 -15,011,315.32
Including: net profit owned by parent
367,164,128.12 -15,011,315.32
company owners
Other comprehensive income 0
Total consolidated income 367,164,128.12 -15,011,315.32
Share of net profit as calculated as per
-183,582,064.06 -3,002,263.06
shareholding proportion
Other adjustment to profit or loss -63,138,644.29
Dividend from associates received in
320,548,073.60
the current year
Adjustment is made because there is a difference between fair value definable net assets
and their book value when the joint venture is acquired and such difference is continued to be
measured as per their fair value.
(3) Financial information summary on less important joint ventures and associated
enterprises
Ending balance/ Amount Beginning balance / Amount
Item incurred in the current incurred in previous year
period
Joint ventures:
Total investment book value 112,206,797.33 45,684,398.39
Totals of the following items
calculated as per respective
shareholding proportion
- Net profit -5,511,103.63 -471,819.14
- Other consolidated income
- Total consolidated income -5,511,103.63 -471,819.14
Affiliated enterprises:
173
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Ending balance/ Amount Beginning balance / Amount
Item incurred in the current incurred in previous year
period
Total investment book value 1,571,002,261.96 1,222,373,623.06
Totals of the following items
calculated as per respective
shareholding proportion
- Net profit -10,141,027.80 24,785,403.14
- Other consolidated income
- Total consolidated income -10,141,027.80 24,785,403.14
(4) No significant restriction of the joint venture or associated enterprise's transferring
funds to the Company
(5) Excess deficit in joint ventures or associated enterprises
Accumulated Unconfirmed loss of the Accumulated
Names of joint ventures or unconfirmed loss current year (or shared unconfirmed
associated enterprises of the previous net profits of the loss at the end
year current year) of this year
Shenzhen Yihaicheng Property
4,705,243.55 -790,544.00 3,914,699.55
Management Co., Ltd
Foshan Merchants Longyuan
10,424,603.22 78,240.80 10,502,844.02
Real Estate Co., Ltd.
Huizhou Taitong Real Estate
9,476,869.53 23,059.16 9,499,928.69
Investment Co., Ltd
（6） There is no relevant unconfirmed commitment for joint venture or associated
enterprise
（7） Contingent liabilities related to joint venture or associated enterprise
The Company undertakes joint and several guarantees for the amount borrowed by China Merchants Guangming
Science Park based on the proportion of shares it holds in China Merchants Guangming Science Park, i.e. providing
guarantee for RMB 138,485,515.00 for two years from the expiration of life of loan under the loan contract. The
company undertakes joint and several liabilities as per the shareholding ratio on the borrowed capital by China
Merchants Industrial Park (Qingdao) Entrepreneurship Co., Ltd., with an actual guaranteed amount of RMB
4,900,000.00 for a period of two years after the expiration of life of loan under the loan contract. This imposed no
significant effect on the Group’s financial position for this period and period after the balance
sheet date.
IX. Risks related to financial instruments
The Company shall disclose various risks arising from financial instruments like credit risk,
liquidity risk and market risk including risk exposure and its reason, risk management objective,
174
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
policy procedure and risk measurement methods and the changes of such information in the
current period, as well as quantitative information of risk exposure at the end of the period and
other data facilitating investors’ risk exposure assessments.
The main financial instruments of the Group include borrowing, receivables, payables,
trading financial asset and trading financial liability, for the details of such instruments see Note
6 Item Notes to Consolidated Financial Statement. Risks related to these financial instruments,
and risk management policies adopted by the Group to lower these risks are described as
follows. The Group's management manages and monitors these risk exposures so as to ensure
that above risk is controlled in limited scope.
1. Targets and policies of risk management
The objective of risk management of the Group is to properly balance the risk and gains to
minimize the adverse impact of risks to the business performance of the Group and maximize
the interests of shareholders and other equity investors. Base on this risk management target, the
fundamental strategy of the Group's risk management is to identify and analyze various risks in
the industry, establish appropriate risk tolerance baseline, manage risks, and to supervise all
risks promptly and reliably so as to control risk in limited scope.
(1) Market risk
1) Foreign exchange risk
The foreign exchange risk of the Group is mainly related to US Dollar, and Hong Kong
Dollar, and the main businesses of the Group are denominated in RMB, excluding the purchase
and sales by the following subsidiaries of the Group which are measured in US Dollar. As of
June 30, 2015, the balance of assets and liabilities of the Group, except for those listed in the
following table which are denominated in US Dollar and Hong Kong Dollar, are denominated in
RMB. The foreign exchange risk arising from such balance of assets and liabilities denominated
in US Dollar may have an impact on the business performance of the Group.
Item June 30, 2015 December 31, 2014
Monetary fund - USD 317,238,794.08 241,370,084.59
Monetary fund - HKD 85,221,424.53 56,560,533.59
Accounts receivable - HKD 146,260.00 136,680.00
Prepayment - HKD 99,771.61
Other receivables - USD 50.00 9,331,245.80
Other receivables - HKD 920,344.99 12,486,960.08
Other non-current assets - USD 23,690,488.00
Loans - USD 1,615,450,000.00 1,429,700,000.00
175
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Item June 30, 2015 December 31, 2014
Accounts payable - HKD 330,247.84 250,354.24
Advances received - HKD 40,630.00
Interests payable - USD 1,156,829.20 1,127,750.30
Other payables - USD 126,714,010.42 87,508,735.31
Other payables - HKD 213,398.36 11,483,419.47
Bonds payable - USD 724,398,085.22 493,230,417.48
Other non-current liabilities - USD 10,033,560.00
The Group pays close attention to the impact of exchange rate variation on the Group.
2) Interest rate risk
The Group’s interest rate risk comes from bank loans, bonds payable and other
interest-bearing debts. Financial liabilities at floating interest rate make the Group faced with
cash flow interest rate risk; and financial liabilities at fixed interest rate make the Group
confronted with fair value interest rate risk. The Group determined the relative proportion of
fixed and floating interest rate contracts on the basis of prevailing market conditions. As of June
30, 2015, the Group’s interest-bearing debts mainly were floating interest rate loan contract
priced in RMB and USD amounting to RMB 23,784,177,000 (as of December 31, 2014: RMB
20,526,894,200), fixed interest rate loan contract priced in RMB and USD amounting to RMB
13,776,299,200 (as of December 31, 2014: RMB 13,996,622,000) and bonds payable priced in
USD amounting to RMB 5,428,232,400 (as of December 31, 2014: RMB 3,018,076,900).
The Group’s risk of changes in fair value of financial instruments resulted from changes in
interest rate is mainly related to bank loans at fixed interest rate. The Group aims to keep the
floating interest rate of fixed interest rate loans.
The Group’s risk of changes in cash flow of financial instruments resulted from changes in
interest rate is mainly related to bank loans at floating interest rate. Policy of the Group is to
keep the floating interest rate of the loan to eliminate the fair value risk of interest rate change.
3) Price risk
Since the Group markets real estate goods at market prices, it may be affected by such
price fluctuations.
(2) Risks of credit
176
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
On June 30, 2015, credit risk exposure which might cause financial loss to the Group is
mainly generated by the Group's financial asset loss caused by the other contract party's failure
to perform its obligation and financial guarantee provided by the Group, including specifically:
Book value of financial asset confirmed in the consolidated balance sheet; for financial
instruments measured with fair value, its book value reflects its risk exposure, but not the
maximum risk exposure, which would change in line with the future fair value.
In order to lower credit risk, the Group establishes a department to be in charge of
determining credit level, authorizing credit, and taking other necessary monitoring procedures to
ensure recovery of stale creditor's right. In addition, the Group reviews the recovery of each
account receivable on each balance sheet date so as to ensure sufficient provision for bad debt is
accrued to account that cannot be recollected. Therefore, the Group management holds the
opinion that credit risk tolerated by the Group has been decreased substantially.
Working fund of the Group is deposits in the bank with high credit level, which means low
credit risk for working fund.
Necessary policies are adopted by the Group to ensure the sound credit record of all sales
customers. The Group has no major credit concentration risk except for receivables from top
five accounts.
Receivables from top five accounts amount to RMB 33,238,970.02.
(3) Liquidity risk
The liquidity risk is that the Group may be unable to fulfill its financial obligations at
maturity. The Group manages the liquidity risk by ensuring sufficient liquidity to fulfill its
obligations at maturity to avoid unacceptable losses or damages to corporate reputation. The
Group periodically analyzes debt structure and maturity to ensure sufficient funds. The Group
management monitors the use of bank loan and ensure of compliance of loan agreement.
Meanwhile, the Group maintains certain credit line and lowers liquidity risk through financing
consultations with financial institutions.
The Group’s main source of funds is bank loans. As of June 30, 2015, the Group’s unused
bank loans were RMB 30,786,239,600 (as of December 31, 2014: RMB 26,208,956,400),
including used short-term bank loans of RMB 255 million (as of December 31, 2014:
965,000,000).
177
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
The analysis of the Group’s financial assets and liabilities as per the maturity of remaining
undiscounted contractual obligations is as follows:
Amount as of June 30, 2015:
Item Within 1 year 1 to 2 years 2 to 5 years More than 5 years Total
Financial assets
Monetary fund 23,752,513,388.51 23,752,513,388.51
Notes receivable 13,120,000.00 13,120,000.00
Accounts
75,738,101.42 75,738,101.42
receivable
Other Receivables 13,094,208,594.56 13,094,208,594.56
Financial
liabilities
Short-term loans 661,360,000.00 661,360,000.00
Notes payable 135,838,559.70 135,838,559.70
Accounts payable 11,398,328,029.62 11,398,328,029.62
Other payables 12,994,818,432.01 12,994,818,432.01
Dividends payable 118,244,875.70 118,244,875.70
Interests payable 305,950,402.18 305,950,402.18
Payroll payable 228,547,487.17 228,547,487.17
Non-current
liabilities due 8,790,998,800.00 8,790,998,800.00
within one year
Long-term loans 5,031,246,320.00 19,064,371,104.75 4,012,500,000.00 28,108,117,424.75
Bonds payable 5,428,232,355.96 5,428,232,355.96
Long-term
3,469,117,074.04 105,941,277.07 3,575,058,351.11
payables
2. Sensitivity analysis
The Group analyzed, with sensitivity analysis techniques, the potential impact of possible
reasonable changes in risk variables on current profits and losses or owner's equity. Since risk
variables rarely change independently and the correlation between variables may significantly
affect the amount ultimately impacted by changes in certain risk variable, the following details
are based on the assumption that each variable changes independently.
(1) Sensitivity analysis of foreign exchange risk
Assumption: All hedges of net investment in an overseas operation and cash flow hedges
are highly effective.
Based on the above assumption and in case that other variables remain unchanged, the
after-tax impact of possible reasonable changes in exchange rate on current losses & profits and
equity is as follows:
Exchange January - June 2015 January - June 2014
Item
rate Influence on net Influence on Influence on net Influence on
178
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
variation profit owners' equity profit owners' equity
All RMB
foreign depreciation -670,313,027.73 -649,800,599.27 -440,861,709.12 -440,861,709.12
currencies by 5%
All RMB
foreign appreciation 670,313,027.73 649,800,599.27 440,861,709.12 440,861,709.12
currencies by 5%
(2) Sensitivity analysis of interest rate risk
The analysis is based on following assumptions:
Market interest rate change will influence the interest income or expense of interest rate
variable financial instruments;
For fixed-rate financial instruments measured with fair value, changes in market interest
rate only affect the interest income or expense of such instruments;
Fair value variation of derivative financial instruments and other financial assets and
liabilities is calculated with the market interest rate on the balance sheet date applying the
discounted cash flow method.
Based on the above assumption and in case that other variables remain unchanged, the
after-tax impact of possible reasonable changes in interest rate on current losses & profits and
equity is as follows:
Interest January - June 2015 January - June 2014
Item rate Influence on net Influence on Influence on net Influence on
variation profit owners' equity profit owners' equity
Loans at Increased
floating by 1%
-15,720,777.52 -15,720,777.52 -16,102,272.86 -16,102,272.86
interest
rate
Loans at Decreased
floating by 1%
15,720,777.52 15,720,777.52 16,102,272.86 16,102,272.86
interest
rate
Note: The influence of changes in the floating interest rate of loans on the net profit in the
current period increases 93.06% year on year, mainly as a result of the newly loaned USD 210
million in 2015 by China Merchants Land Limited.
179
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
X. Related parties and related transaction
(I) Relation of affiliated parties
1. Controlling shareholder and ultimate controller
(1) Controlling shareholder and ultimate controller
China Merchants Group Co., LTD directly or indirectly holds 100% of the China
Merchants Shekou, which holds 1,040,128,975 shares directly and 296,564,159 shares indirectly
of the Company, amounting to 1,336,693,134 shares of the Company and accounting for 51.89%
of the Company’s total shares.
The
Percent of percent of
stocks of voting
Registered
Name Business nature Registered capital the share of
address
Company the
(%) Company
(%)
Establishment
China
and management
Merchants Shenzhen 2,236,000,000.00 40.38 40.38
of various
Shekou
enterprises, etc.
Establishment
China
and management
Merchants Beijing 12,150,000,000.00 40.38 40.38
of various
Group Co., Ltd.
enterprises, etc.
(2) Registered capital and its changes of controlling shareholder
Increase in Decrease in
Controlling Balance at the Balance at the end of
current current
shareholder beginning of the year the period
period period
China
Merchants 2,236,000,000.00 2,236,000,000.00
Shekou
(3) Shares or equity held by controlling shareholder and relevant changes
Holding shares Shareholding ratio (%)
Controlling Ratio at the
shareholder Balance at the end of Balance at the Ratio at the
beginning of
the year beginning of the year end of the year
the year
China
Merchants 1,040,128,975.00 1,040,128,975.00 40.38 40.38
Shekou
180
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
2. Subsidiary
See 1 - Organization of the Group (1) in Note 8 for subsidiaries.
3. Joint ventures and associated enterprises
See 3 - Important associated enterprises or joint ventures (1) in Note 8 for the Company’s
major joint ventures or associated enterprises. Details on other joint ventures or associated
enterprises with balance from related party transactions with the Company this period or earlier
are as follows:
Names of joint ventures or associated enterprises Relationship with the Company
Tianjin Xinghai Real Estate Development Co., Ltd. Associates
Huizhou Taitong Real Estate Investment Co., Ltd Associates
Shanghai New South Mountain Real Estate Development Co., Associates
Ltd.
Shanghai Ledu Property Co., Ltd. Associates
China Merchants Overseas Chinese Town Associates
Tianjin Munanqiushi Industrial Co., Ltd. Associates
Nanjing Aojian Property Co., Ltd. Associates
Nanjing Shizhaoquansheng Property Co., Ltd. Associates
Guangzhou Liansen Real Estate Co.,Ltd Associates
Guangzhou Lianzhou Real Estate Co.,Ltd Associates
Chengdu China MCC5 Wentou Land Ltd Note 1 Associates
Shenzhen Dehan Investment Development Co., Ltd. Joint ventures
Shanghai FTZ Pushen Property Co., Ltd. Joint ventures
Foshan Merchants Longyuan Real Estate Co., Ltd. Joint ventures
Ningbo Dingfeng Real Estate Development Co., Ltd. Joint ventures
Beijing Yalindong Real Estate Development Co., Ltd. Joint ventures
Beijing Yalinxi Real Estate Development Co., Ltd. Joint ventures
Note 1: In July 2015, the company changed its name to Chengdu Merchants Yuankang
Real Estate Development Co., Ltd.
4. Other affiliated parties
Names of other related parties Relationship with the Company
International Merchants Holdings (China) Other enterprises under the control of common
Investment Co., Ltd. controlling shareholder and ultimate controller
China Merchants (Shenzhen) Tai Shan Bay Other enterprises under the control of common
Property Co., Ltd. controlling shareholder and ultimate controller
Other enterprises under the control of common
China Ocean Shipping Agency Shenzhen
controlling shareholder and ultimate controller
Shenzhen China Merchants Financial Service Other enterprises under the control of common
Co., Ltd. controlling shareholder and ultimate controller
China Merchants Zhangzhou Development Zone Other enterprises under the control of common
181
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Names of other related parties Relationship with the Company
Co., Ltd. controlling shareholder and ultimate controller
ORIENTURE HOLDINGS COMPANY Other enterprises under the control of common
LIMITED controlling shareholder and ultimate controller
Other enterprises under the control of common
China Merchants Group (Hongkong) Co., Ltd.
controlling shareholder and ultimate controller
Other enterprises under the control of common
China Merchants (Shanghai) Investment Co., Ltd.
controlling shareholder and ultimate controller
Other enterprises under the control of common
China Merchants Bank Co., Ltd.
controlling shareholder and ultimate controller
China Merchants Entrepreneurship (Shenzhen) Other enterprises under the control of common
Co., Ltd. controlling shareholder and ultimate controller
China Merchants Holdings (International) Other enterprises under the control of common
Information Technology Co., Ltd. (CMHIT) controlling shareholder and ultimate controller
China Merchants Plaza (Shanghai) Property Co., Other enterprises under the control of common
Ltd. controlling shareholder and ultimate controller
Shenzhen Shekou Industrial Zone Staff Other enterprises under the control of common
Residential Co., Ltd. controlling shareholder and ultimate controller
China Merchants Ocean Shipping Agency Other enterprises under the control of common
Shenzhen controlling shareholder and ultimate controller
China Merchants Group (Shenzhen) Coordination Other enterprises under the control of common
Office for Major Projects controlling shareholder and ultimate controller
China Merchants Group Industrial Park Other enterprises under the control of common
(Qingdao) Development Co., Ltd. controlling shareholder and ultimate controller
Other enterprises under the control of common
China Merchants Securities Co., Ltd.
controlling shareholder and ultimate controller
International Merchants Holdings (China) Other enterprises under the control of common
Investment Co., Ltd. controlling shareholder and ultimate controller
Other enterprises under the control of common
Shekou Container Terminals Limited
controlling shareholder and ultimate controller
Shenzhen Saikaidō Municipal Engineering Co., Other enterprises under the control of common
Ltd. controlling shareholder and ultimate controller
Other enterprises under the control of common
Dafeng International Limited Liability Company
controlling shareholder and ultimate controller
Ganzhou Yuankang Investment Partnership Other enterprises under the control of common
controlling shareholder and ultimate controller
China Merchants Kunlun Equity Investment Other enterprises under the control of common
Management Co., Ltd. controlling shareholder and ultimate controller
The Director, General Manager and Deputy Other affiliated and interested parties
General Manager and other key management of
the Company
(II) Related transactions
1. Related transaction regarding trade of goods and labor services
(1) Purchasing products/obtaining labor services
Contents of Amount incurred Amount incurred in
Related party related in the current the previous period
transactions period
182
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Contents of Amount incurred Amount incurred in
Related party related in the current the previous period
transactions period
Land acquisition
China Merchants Shekou costs 52,501,653.58 4,852,900,000.00
Interest on
China Merchants Bank Co., Ltd. borrowings 116,470,669.98 48,589,662.03
Banking service
China Merchants Bank Co., Ltd. charges 2,556,057.02 817,328.44
China Merchants Zhangzhou
Development Zone Co., Ltd. Interest payments 13,242,991.62
Shenzhen China Merchants
Financial Service Co., Ltd. Funds occupation 7,222,145.00 15,101,556.66
China Merchants Securities Co.,
Ltd. Brokerage fee 300,000.00
Total 192,293,517.20 4,917,408,547.13
(2) Sales of goods / provision of services
Contents of Amount Amount
related incurred in the incurred in the
Related party transactions current period previous period
China Merchants Bank Co., Ltd. Interest incomes 34,041,776.95 34,075,975.05
Engineering
1,679,482.23
China Merchants Overseas Chinese Town contract
China Merchants (Shenzhen) Tai Shan Bay Engineering
458,110.30 193,107.30
Property Co., Ltd. contract
Engineering
16,210,200.80 4,298,571.31
China Ocean Shipping Agency Shenzhen contract
Other enterprises under the control of
Power supply
common controlling shareholder and ultimate 4,502,117.70 4,034,473.70
service
controller
Other enterprises under the control of
Property
common controlling shareholder and ultimate 6,914,909.97 4,026,757.25
management fee
controller
Total 51,340,601.25 104,656,064.98
2. Associated rental condition
(1) Rental condition
Rental Confirmed
Name of Type of
Name of Lessee recognized in rental income
Lessor leasing assets
this period for last year
China Merchants Group Co., Ltd.
Plant
China Note 1 517,690.00
Merchants Office
China Merchants Shekou 7,599,455.19 6,962,228.74
Property building/villa
Investment International Merchants Holdings Office
Co., Ltd. 2,384,997.00 2,882,360.5
(China) Investment Co., Ltd. building
China Merchants Group Office 1,553,070.00
183
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Rental Confirmed
Name of Type of
Name of Lessee recognized in rental income
Lessor leasing assets
this period for last year
(Hongkong) Co., Ltd. building
China Merchants Holdings
Plant/office
(International) Information 1,062,420.00
building
Technology Co., Ltd. (CMHIT)
China Merchants Entrepreneurship Office
806,562.00 304,718.65
(Shenzhen) Co., Ltd. building
Shenzhen Shekou Industrial Zone Office
525,087.07 708,061.5
Staff Residential Co., Ltd. building
China Merchants Ocean Shipping Office
269,388.00 269,769.00
Agency Shenzhen building
Shenzhen Saikaidō Municipal Office
225,384.00
Engineering Co., Ltd. building
Office
Total of other small amounts 1,069,274.00 306,189.00
building
Note: Rentals of China Merchants Group Co., LTD. will be burdened by China Merchants
Group (Hongkong) Co., Ltd.
(2) Lease condition
Rental fees Confirmed
Type of
recognized in rental
Name of Lessor Name of Lessee leasing
this reporting income for
assets
period last year
China Merchants Property Office
10,654,416.00 10,654,423.00
Investment Co., Ltd. building
China Merchants
(Shenzhen) Property Plant 2,663,604.00 2,663,605.85
China Merchants Development Co., Ltd.
Shekou China Merchants Property Land use
2,598,423.60 3,191,430.10
Investment Co., Ltd. rights
China Merchants
Land use
(Shenzhen) Power Supply 1,183,626.19 1,181,571.66
rights
Co., Ltd.
Shanghai Fengyang Real
Office
Estate Development Co., 460,622.40 424,622.40
building
Ltd.
China Merchants Plaza
Shanghai CM Hongfa Office
(Shanghai) Property 412,186.20 396,436.20
Property Co., Ltd. building
Co., Ltd.
Shanghai Jingyuan
Office
Property Development Co., 299,832.00 285,432.00
building
Ltd.
China Merchants
(Shenzhen) Property Dormitory 2,956,293.50 2,339,280.00
Shenzhen Shekou Management Co., Ltd.
Industrial Zone Staff
Residential Co., Ltd. China Merchants
Land use
(Shenzhen) Property 197,890.70
rights
Management Co., Ltd.
184
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
3. Status Of Associated Guarantee
Has the
Amount of Beginning guarante
Name of warrantee Name of guarantee Due date
guarantee date e been
fulfilled?
China Merchants
The Company Guangming Science 10,024,665.00 2012-03-30 2019-03-30 No
Park
China Merchants
The Company Guangming Science 94,650,850.00 2012-05-18 2025-05-18 No
Park
China Merchants
The Company Guangming Science 33,810,000.00 2014-06-12 2022-06-12 No
Park
China Merchants
Group Industrial
The Company Park (Qingdao) 4,900,000.00 2015-03-31 2024-06-30 No
Development Co.,
Ltd.
China Merchants
Eureka Investment
Group (Hongkong) 122,272,000.00 2013-10-31 2016-10-31 No
Company Ltd.
Co., Ltd.
China Merchants
Eureka Investment
Group (Hongkong) 305,680,000.00 2013-09-30 2016-09-30 No
Company Ltd.
Co., Ltd.
China Merchants
Eureka Investment
Group (Hongkong) 611,360,000.00 2013-12-18 2016-12-18 No
Company Ltd.
Co., Ltd.
China Merchants
Eureka Investment
Group (Hongkong) 611,360,000.00 2014-09-26 2017-06-30 No
Company Ltd.
Co., Ltd.
China Merchants
Eureka Investment
Group (Hongkong) 611,360,000.00 2014-07-18 2017-07-18 No
Company Ltd.
Co., Ltd.
China Merchants
Eureka Investment
Group (Hongkong) 305,680,000.00 2013-03-05 2016-03-01 No
Company Ltd.
Co., Ltd.
China Merchants
Eureka Investment
Group (Hongkong) 611,360,000.00 2013-04-29 2016-04-25 No
Company Ltd.
Co., Ltd.
China Merchants
Eureka Investment
Group (Hongkong) 305,680,000.00 2014-09-25 2017-10-14 No
Company Ltd.
Co., Ltd.
China Merchants
Eureka Investment
Group (Hongkong) 1,186,038,400.00 2013-12-23 2016-12-23 No
Company Ltd.
Co., Ltd.
China Merchants
Eureka Investment
Group (Hongkong) 122,272,000.00 2013-03-26 2015-06-15 No
Company Ltd.
Co., Ltd.
China Merchants
Eureka Investment
Group (Hongkong) 1,100,448,000.00 2013-04-11 2015-06-15 No
Company Ltd.
Co., Ltd.
185
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Has the
Amount of Beginning guarante
Name of warrantee Name of guarantee Due date
guarantee date e been
fulfilled?
China Merchants
Eureka Investment
Group (Hongkong) 183,408,000.00 2015-01-12 2017-12-30 No
Company Ltd.
Co., Ltd.
China Merchants
Eureka Investment
Group (Hongkong) 275,112,000.00 2015-06-25 2017-12-29 No
Company Ltd.
Co., Ltd.
China Merchants
The Company 2,000,000,000.00 2010-04-20 2019-04-19 No
Group Co., Ltd.
China Merchants
The Company 3,500,000,000.00 2014-09-26 2023-09-26 No
Group Co., Ltd.
China Merchants
The Company 195,000,000.00 2012-12-19 2017-12-19 No
Shekou
China Merchants
The Company 105,000,000.00 2012-12-24 2017-12-24 No
Shekou
China Merchants
The Company 76,500,000.00 2013-01-29 2018-01-29 No
Shekou
China Merchants
The Company 47,000,000.00 2013-07-31 2018-07-31 No
Shekou
China Merchants
The Company 98,000,000.00 2014-06-25 2019-06-25 No
Shekou
China Merchants
The Company 198,000,000.00 2014-06-25 2019-06-25 No
Shekou
China Merchants
The Company 298,000,000.00 2014-03-28 2019-03-28 No
Shekou
China Merchants
The Company 198,000,000.00 2014-12-25 2019-12-25 No
Shekou
China Merchants
The Company 128,700,000.00 2014-12-29 2019-12-29 No
Shekou
China Merchants
The Company 50,000,000.00 2015-01-29 2018-01-29 No
Shekou
Wuhan Aoming
China Merchants Property
10,000,000.00 2013-11-19 2018-11-19 No
Shekou Development Co.,
Ltd.
Wuhan Aoming
China Merchants Property
12,000,000.00 2013-12-06 2018-11-19 No
Shekou Development Co.,
Ltd.
Wuhan Aoming
China Merchants Property
20,000,000.00 2014-01-13 2018-11-19 No
Shekou Development Co.,
Ltd.
Wuhan Aoming
China Merchants Property
26,000,000.00 2014-03-11 2018-11-19 No
Shekou Development Co.,
Ltd.
Wuhan Aoming
China Merchants
Property 19,000,000.00 2014-04-16 2018-11-19 No
Shekou
Development Co.,
186
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Has the
Amount of Beginning guarante
Name of warrantee Name of guarantee Due date
guarantee date e been
fulfilled?
Ltd.
Wuhan Aoming
China Merchants Property
200,000,000.00 2014-08-29 2017-08-28 No
Shekou Development Co.,
Ltd.
Shenzhen Merchants
China Merchants
Construction Co., 50,000,000.00 2014-08-29 2017-08-28 No
Shekou
Ltd.
China Merchants Foshan Merchants
249,000,000.00 2014-07-16 2018-07-08 No
Shekou Real Estate Co., Ltd.
Beijing Conrad
China Merchants Property
105,560,000.00 2012-05-15 2019-05-15 No
Shekou Development Co.,
Ltd.
Shenzhen Shekou
China Merchants Seaworld Hotel
230,300,000.00 2013-10-22 2020-10-20 No
Shekou Management Co.,
Ltd.
Shenzhen
Jinyurongtai
China Merchants
Investment 220,500,000.00 2014-06-27 2021-06-27 No
Shekou
Development Co.,
Ltd.
Shenzhen
Jinyurongtai
China Merchants
Investment 250,000,000.00 2015-03-18 2018-03-17 No
Shekou
Development Co.,
Ltd.
China Merchants
China Merchants (Shenzhen) Property
500,000,000.00 2015-03-24 2020-03-24 No
Shekou Development Co.,
Ltd.
4. Inter-bank lending of affiliated parties
Borrowing/lending Lending Beginning Due
Names of related parties Remarks
amount date date
Beijing Yalindong Real
Current
Estate Development Co., Lending 1,203,130,596.01 2015.01 2018.04
account
Ltd.
Beijing Yalinxi Real
Current
Estate Development Co., Lending 1,038,744,000.00 2015.01 2018.04
account
Ltd.
Foshan Merchants
Current
Longyuan Real Estate Co., Lending 673,692,974.37 2014.12 2016.12
account
Ltd.
Ningbo Dingfeng Real
Current
Estate Development Co., Lending 570,330,754.00 2013.09 2017.02
account
Ltd.
187
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Shenzhen Dehan
Current
Investment Development Lending 539,435,885.57 2014.12 2016.12
account
Co., Ltd.
Chengdu China MCC5 Entrust
Lending 451,823,070.64 2015.06 2019.06
Wentou Land Ltd loans
Guangzhou Liansen Real Entrust
Lending 403,515,141.24 2015.05 2016.11
Estate Co.,Ltd loans
Nanjing
Current
Shizhaoquansheng Lending 371,728,000.00 2014.12 2015.08
account
Property Co., Ltd.
Guangzhou Lianzhou Real Entrust
Lending 342,275,537.06 2015.05 2016.11
Estate Co.,Ltd loans
Shanghai FTZ Pushen Current
Lending 187,672,166.06 2014.03 2015.12
Property Co., Ltd. account
Nanjing Aojian Property Current
Lending 186,930,200.00 2014.11 2015.09
Co., Ltd. account
China Merchants Overseas Current
Lending 40,008,857.00 2015.06 2015.12
Chinese Town account
5. Important related transactions with joint investments
Reviewed and approved on the 18th Interim meeting of the 7th BOD in 2014, China
Merchants (Chengdu) Beihu Land Ltd. (―China Merchants Beihu‖), China Merchants
(Shenzhen) Property Investment Co., Ltd. and China Merchants Kunlun Capital Co., Ltd. (―China
Merchants Kunlun‖), which are subsidiaries of the Company, jointly acquire 100 % shares
rights and creditors’ rights of all shareholders of Chengdu China MCC5 Wentou Land Ltd. As
of the end of the reporting period, China Merchants Beihu, China Merchants Investment,
Ganzhou Yuankang Investment Partnership Co. (hereinafter referred to as "Ganzhou Yuankang",
a executive partner of China Merchants Kunlun, in place of China Merchants Kunlun in project
acquisitions upon establishment of the Auction Consortium) have paid all considerations for
assignment of equities. Among them, Among them, China Merchants Beihu and China
Merchants Investment respectively acquired 31% and 20% of the equities and debts of Chengdu
China MCC5 Wentou Land Ltd, paying a total of RMB 906 million respectively as per the
equity ratio and debt ratio. The Company and China Merchants Kunlun Capital Co., Ltd. are
controlled by China Merchants Group and transactions stated above constitute related party
transactions. In July 2015, the company changed its name into Chengdu Merchants Yuankang
Real Estate Development Co., Ltd. and formulated the new Articles of Association.
（二） Current balance of related parties
1. Receivables
Project Related party Balance at the end of the period Initial amount
188
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
name Provision for Provision for
Book balance Book balance
bad debts bad debts
China Ocean
Accounts
Shipping Agency 8,210,200.80
receivable
Shenzhen
China Merchants
Accounts (Shanghai)
receivable Investment Co., 2,544,000.00
Ltd.
Beijing Yalindong
Other Real Estate
receivables Development Co., 1,203,130,596.00
Ltd.
Beijing Yalinxi
Other Real Estate
receivables Development Co., 1,038,744,000.00
Ltd.
Foshan Merchants
Other
Longyuan Real 673,692,974.37 673,692,974.37
receivables
Estate Co., Ltd.
Ningbo Dingfeng
Other Real Estate
receivables Development Co., 570,330,754.00
Ltd.
Shenzhen Dehan
Other Investment
receivables Development Co., 539,435,885.57 105,481,042.96
Ltd.
Nanjing
Other
Shizhaoquansheng 371,728,000.00
receivables
Property Co., Ltd.
Shanghai FTZ
Other
Pushen Property 187,672,166.06 26,139,294.31
receivables
Co., Ltd.
Other Nanjing Aojian
receivables Property Co., Ltd. 186,930,200.00
China Merchants
Other
Overseas Chinese 40,008,857.00
receivables
Town
Huizhou Taitong
Other Real Estate
receivables Investment Co., 11,270,000.00 11,270,000.00 11,270,000.00 11,270,000.00
Ltd
China Merchants
Other Entrepreneurship
receivables (Shenzhen) Co., 1,000,000.00 1,000,000.00
Ltd.
Long-term Guangzhou
accounts Liansen Real 403,515,141.24
receivable Estate Co.,Ltd
Long-term Chengdu China
accounts MCC5 Wentou 451,823,070.64
receivable Land Ltd
189
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Balance at the end of the period Initial amount
Project
Related party Provision for Provision for
name Book balance Book balance
bad debts bad debts
Long-term Guangzhou
accounts Lianzhou Real 342,275,537.06
receivable Estate Co.,Ltd
Total of other small
Receivables 671,032.95 519,508.09
amounts
2. Payables
Project Balance at the end Beginning balance
Related party
name of the period
Accounts 2,553,939,868.49
payable China Merchants Shekou 13,845,846.12
Other China Merchants Zhangzhou
payables Development Zone Co., Ltd. 505,000,000.00 380,000,000.00
Other Shenzhen China Merchants Financial
payables Service Co., Ltd. 331,900,076.09 811,061,941.40
Other Ganzhou Yuankang Investment
payables Partnership 213,119,976.72
Other
payables Shanghai Ledu Property Co., Ltd. 205,816,823.57 246,012,803.57
Other Dafeng International Limited Liability
payables Company 131,874,587.84 209,947,096.50
Other Tianjin Xinghai Real Estate
payables Development Co., Ltd. 106,081,398.67 106,081,398.67
Other Shanghai New South Mountain Real
payables Estate Development Co., Ltd. 86,128,416.38 44,878,417.38
Other ORIENTURE HOLDINGS COMPANY
payables LIMITED 77,887,264.00
Other
payables Tianjin Munanqiushi Industrial Co., Ltd. 17,000,000.00 17,000,000.00
Other
payables China Merchants Shekou 2,826,864.40 163,260.40
Other International Merchants Holdings
payables (China) Investment Co., Ltd. 1,187,360.00 1,431,110.40
Long-term China Merchants Entrepreneurship 1,200,000.00
payables (Shenzhen) Co., Ltd. 1,200,000.00
Other China Merchants Overseas Chinese
payables Town 479,722,021.97
Accounts
payable Total of other small amounts 2,177,792.80 2,057,796.79
3. Deposits and borrowings of related party
Affiliated parties (items) Ending amount Initial amount
Other enterprises under the control of common
controlling shareholder and ultimate controller
Including: China Merchants Bank Co., Ltd. (deposits) 6,693,993,375.82 6,116,282,679.72
190
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Affiliated parties (items) Ending amount Initial amount
China Merchants Bank Co., Ltd. (borrowings) 4,094,153,850.00 3,017,628,563.46
Total 10,788,147,225.82 9,133,911,243.18
XI. Share payment
1． Overview of share payment
Item Condition
Total amounts of all equity instruments granted by the
Company in this period
Accumulated amounts of all equity instruments granted by
23.2283 million shares
the Company
Total amounts of all equity instruments executed by the
Company in this period
Total amounts of all invalid equity instruments of the
Company in this period
Range of execution price and remained contract term of the Exercise price: RMB 11.24, remaining
outstanding stock option issued by the Company at the end contract term: 74 months
of the period
Range of execution price and remained contract term of
other equity instruments of the Company at the end of the
period
2． Share-based payment settled by equity
Item Condition
Methods for determining fair value of an equity instrument Black-Scholes model was applied to
at the grant date estimate the cost of the stock options
granted.
The Proposal on the Adjustment of
Incentive Objects and Number to be
Granted as per the First Granting Plan for
Stock Options was reviewed and adopted
at the 11th Extraordinary Meeting of the
Basis for determining the number of vested equity Seventh Board of Directors for 2014 and
instruments the 22th Meeting of the Seventh Board of
Supervisors, and the Proposal on Review
of the Company’s First Granting Plan for
Stock Options (Revised Draft) and Its
Abstract on the 1st extraordinary
shareholders’ meeting for 2014.
Reasons for significant variance between the estimations for
None
this period and last year
Payment of the cumulative amount included into capital
25,159,003.22
reserves with equity-settled shares
Total expenses of recognized share-based payment settled
16,045,399.89
by equity in this period
191
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
XII. Contingencies
1. Provision of guarantee or existence of liabilities
(1) The Group provides the bank with an amount of RMB 6,611,881,362.00 as commercial housing mortgage
loan guarantee (as of December 31, 2014: RMB 5,724,511,479.44). This imposed no significant effect on the Group’s
financial position for this period and period after the balance sheet date.
(2) The Company undertakes joint and several guarantees for the amount borrowed by
China Merchants Guangming Science Park based on the proportion of shares it holds in China
Merchants Guangming Science Park, i.e. providing guarantee for RMB 138,485,515.00 for two
years from the expiration of life of loan under the loan contract. The company undertakes joint
and several liabilities as per the shareholding ratio on the borrowed capital by China Merchants
Industrial Park (Qingdao) Entrepreneurship Co., Ltd., with an actual guaranteed amount of
RMB 4,900,000.00 for a period of two years after the expiration of life of loan under the loan
contract. This imposed no significant effect on the Group’s financial position for this period and
the period after the balance sheet date.
2. Except for the above contingencies, the Group had no other major contingencies as of
June 30, 2015.
XIII. Commitments
1. Significant commitment
1） Lease contracts signed and being performed or to be performed and their financial
impact
The amounts to be borne during the following periods for the irrevocable operating lease
and finance lease signed by the Group as of June 30, 2015 (T) are as follows:
Period Operating leases
Year T+1 41,992,714.28
Year T+2 38,223,978.85
Year T+3 35,989,699.40
Period after Year T+3 193,858,133.30
Total 310,064,525.83
2） Other major financial commitments
Amount at the end of the Amount at the beginning of
Capital commitment
period the period
Commitments singed but not
192
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Amount at the end of the Amount at the beginning of
Capital commitment
period the period
confirmed in the financial statement
- Commitments for acquisition or
construction of long-term assets
- Commitments for real estate
18,189,714,794.68 19,015,645,000.79
development projects
Total 18,189,714,794.68 19,015,645,000.79
2. Except for the above commitments, the Group had no other major commitments as of
June 30, 2015.
XIV. Events after the balance sheet date
Issuance of debt financing instruments no more than RMB 5 billion was reviewed and approved at the 2nd
extraordinary shareholders’ meeting for 2014 held on October 24, 2014. On December 15, 2014, the
Company received the Notice of Registration Acceptance (Z.S.X.Z. [2014] No. MTN458)
issued by National Association of Financial Market Institutional Investors (NAFMII), agreeing
to accept the registration of medium-term notes with a registered amount of RMB 5 billion. The
registration limit shall be effective within 2 years from the date of issuance of the Notice of
Registration Acceptance by NAFMII. On February 4, 2015, the Company successfully issued
the Phase I Medium-Term Notes in 2015 and the total RMB issued was RMB 1 billion.
On July 9, 2015, the Company successfully issued the Phase II Medium-Term Notes in
2015 and the results of issuance were as follows:
Elements of issuance
Phase II Medium-Term Notes in 2015 by China Merchants Property
Name
Development Co., Ltd.
Abbreviation 15 CMPD MTN002
Code 101573011
Term 3-year
Value date July 10, 2015
July 10, 2018, and if that day is a statutory holiday or rest day, interest
Repayment date shall be paid on the following working day, but no interest shall be
accrued during that period.
Planned total issuance
RMB 2 billion
amount
Actual total issuance amount RMB 2 billion
Issue price RMB 100/ RMB one hundred in nominal value
Coupon Rate 4.12 % (1-year term SHIBOR + 0.7333%)
Limited Number of
4
Investment Objects
Effective Investment Amount RMB 2.01 billion
Bookrunner CITIC Securities Co., Ltd.
193
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Elements of issuance
Lead underwriter CITIC Securities Co., Ltd.
Joint lead underwriter China Merchants Bank Co., Ltd.
XV. Other Important Events
1. Major asset restructuring and progress
On April 3, 2015, the company announced that the shares of the company(ZSDC,
ZSJB) would be suspended starting the day due to the planning for major issues. Then,
the company, in accordance with the relevant work progress, announced that China
Merchants Group Co., LTD, actual controller of the company, confirmed that it was
planning for an integration of the real estate sector of China Merchants Group. At
present the proposed plan is that China Merchants Shekou will merge the Company and
apply to Shenzhen Stock Exchange for listing.
The relevant parties are actively discussing and demonstrating specific matters in
connection with such major assets restructuring and asking for advice from the related
departments. The Company will pay full attention to the progress of the matters and
perform the information disclosure obligation.
2. The company, upon approval by the third extraordinary general shareholders' meeting
2014, proposed to apply to China Securities Regulatory Commission for the issuance of RMB 8
billion's convertible bonds and other application documents in on December 25, 2014 and
obtained the CSRC No.141796 Notice on Acceptance of the Administrative License Application
by China Securities Regulatory Commission. Whereas China Merchants Group is discussing
and working on the major assets restructuring plan to advance the integration of the Company
and China Merchants Shekou. Therefore, the issuance of convertible bonds is non-operable. On
June 30，2015，the proposal on application for withdrawal of the documents on applying for
the public issuance of convertible bonds in 2014 to China Securities Regulatory Commission
was approved. The Company has received the Notice on Review Termination of the
Administrative Licensing Application by China Securities Regulatory Commission ([2015]
No.131) before the report disclosure date.
3. Segment Information
(1) Basis for determining reportable divisions and accounting policies
194
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
A. Real estate, including companies engaged in real estate development and construction,
real estate investment, commercial property operation management, real estate intermediary
business and hotel business. See 1 – equity in subsidiaries (1) in Note 8.
B. Utilities, i.e. China Merchants (Shenzhen) Power Supply Co., Ltd.
C. Property management, including China Merchants Property Management Co., Ltd.
engaged in property management business. See 1 – equity in subsidiaries (1) in Note 8.
D. Unassigned division, including companies engaged in other business.
195
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
(2) Financial information of reportable divisions in the first half year of 2015
Property
Item Unassigned division Utilities Real estate Set-off Total
management
Operating incomes 564,118,228.95 309,885,381.33 17,239,500,161.22 -139,555,334.04 17,973,948,437.46
Including: external transaction
428,382,533.81 306,065,742.43 733,891,835.82
revenue
Transaction income of branch
135,735,695.14 3,819,638.90 -139,555,334.04
company
Operating expenses 4,894,957.19 559,016,303.57 244,228,763.34 14,329,434,842.56 -139,555,334.04 14,998,019,532.62
Operating profit (loss) 213,466,255.75 5,341,911.13 65,656,617.99 3,484,846,464.74 -300,267,690.33 3,469,043,559.28
Total assets 45,636,199,379.28 726,600,717.87 3,711,169,576.55 196,264,225,271.48 -77,528,931,218.64 168,809,263,726.54
Total liabilities 28,767,319,034.72 584,392,097.95 2,219,305,186.42 145,829,367,728.48 -55,989,950,307.09 121,410,433,740.48
Supplementary information
Depreciation and amortization 148,112.50 1,937,854.93 5,149,318.36 211,041,486.37 218,276,772.16
Capital expenditure 9,448.00 135,777.00 80,207.85 40,361,969.81 40,587,402.66
Non-cash expenses other than
depreciation and amortization
(3) Financial information of reportable divisions in the first half year of 2014
Property
Item Unassigned division Utilities Real estate Set-off Total
management
Operating incomes 463,654,268.64 296,760,432.45 15,317,234,955.90 -30,493,926.00 16,047,155,730.99
Including: external transaction
463,654,268.64 296,760,432.45 15,286,741,029.90 16,047,155,730.99
revenue
Transaction income of branch
30,493,926.00 -30,493,926.00 0.00
company
Operating expenses 106,570,688.45 458,311,189.19 229,097,640.57 12,081,834,751.24 -30,137,568.00 12,845,676,701.45
Operating profit (loss) -52,231,250.61 5,839,985.54 67,662,791.88 4,160,636,192.77 -837,110,274.53 3,344,797,445.05
Total assets 43,905,929,341.66 580,571,202.06 3,607,468,029.56 167,155,178,749.37 -74,295,144,356.59 140,954,002,966.06
Total liabilities 27,623,392,777.22 462,313,040.21 2,215,336,851.57 123,689,764,944.78 -52,584,922,629.29 101,405,884,984.49
196
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Property
Item Unassigned division Utilities Real estate Set-off Total
management
Supplementary information
Depreciation and amortization 343,673.29 2,985,568.72 10,687,114.12 213,448,246.39 227,464,602.52
Capital expenditure 50,282.50 627,231.15 1,693,006.61 29,598,456.23 31,968,976.49
Non-cash expenses other than
depreciation and amortization
197
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
XVI. Notes to Main Items of Financial Statements of Parent Company
1. Other receivables
(1) Classification of other receivables
Balance at the end of the period
Provision for bad
Book balance
Type debts
Book value
Proportion Proportion
Amount Amount
(%) (%)
Other receivables of
individual account
with significant
amount and accrued
for provision of bad
account
Other receivables of
individual account
with insignificant
amount and accrued
for provision of bad
account
Other accounts
receivable withdrawn
provision for bad
debts based on credit
risk feature
combination
Portfolio 1 24,687,852,992.53 100 24,687,852,992.53
Portfolio 2
Subtotal of portfolio 24,687,852,992.53 100 24,687,852,992.53
Total 24,687,852,992.53 100 24,687,852,992.53
Continued:
Amount at the beginning of the year
Provision for bad
Book balance
Type debts
Book value
Proportion Proportion
Amount Amount
(%) (%)
Other receivables of
individual account
with significant
amount and accrued
for provision for bad
debts
Other receivables of
individual account
with insignificant
amount and accrued
for provision for bad
198
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Amount at the beginning of the year
Provision for bad
Book balance
Type debts
Book value
Proportion Proportion
Amount Amount
(%) (%)
debts
Other accounts
receivable withdrawn
provision for bad
debts based on credit
risk feature
combination
Portfolio 1 29,205,557,475.48 100 29,205,557,475.48
Portfolio 2
Subtotal of portfolio 29,205,557,475.48 100 29,205,557,475.48
Total 29,205,557,475.48 100 29,205,557,475.48
(2) Classification of other receivables by nature
Book balance at the beginning
Fund nature Ending book value
of the year
Current accounts of subsidiaries 23,422,102,258.13 28,684,829,085.12
Current account of associated
enterprise 570,350,754.00 135,416,900.00
Earnest money for cooperation 610,000,000.00 378,610,249.09
Cash deposit and pledge 78,610,249.09 514,500.00
Imprest 1,608,659.53 1,299,469.09
Others 5,181,071.78 4,887,272.18
Total 24,687,852,992.53 29,205,557,475.48
(3) Other accounts receivable in top five based on year-end balance collected from
arrear party:
Proportion
in total Ending
ending balance of
Balance at the end
Company name Fund nature Aging balance of provision
of the period
other for bad
receivables debts
(%)
Harbin Yinkai Real Current
Within one
Estate Development accounts of 2,241,506,503.60 9.08
year
Co., Ltd. subsidiaries
Wuhan Merchants Current
Within one
Property Gutian accounts of 1,722,916,300.00 6.98
year
Property Co., Ltd subsidiaries
China Merchants Current
Within one
(Rizhao) Property accounts of 1,547,589,244.00 6.27
year
Development Co., Ltd. subsidiaries
Zhenjiang Yingsheng Current
Within one
Real Estate accounts of 1,485,425,293.00 6.02
year
Development Co., Ltd. subsidiaries
199
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Proportion
in total Ending
ending balance of
Balance at the end
Company name Fund nature Aging balance of provision
of the period
other for bad
receivables debts
(%)
China Merchants Current
Within one
(Shanghai) Baoxin accounts of 1,371,698,550.00 5.56
year
Property Co., Ltd. subsidiaries
Total 8,369,135,890.60 33.91
2. Long-term equity investments
200
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
(1) Classification of long-term equity investment
Balance at the end of the period Balance at the beginning of the year
Item Book balance Impairment Book value Book balance Impairment Book value
provision provision
Investment in subsidiaries 8,846,180,160.84 8,846,180,160.84 8,764,183,019.62 8,764,183,019.62
Investment into associated
201,045,697.55 201,045,697.55 162,076,268.45 162,076,268.45
enterprises and joint ventures
Total 9,047,225,858.39 9,047,225,858.39 8,926,259,288.07 8,926,259,288.07
(2) Investment to subsidiaries
Estimated accrued
Balance at the Decrease Depreciation
Increase in Balance at the end impairment
Invested company beginning of the in current reserves at the end
current period of the period provision of current
year period of this period
period
China Merchants (Shenzhen) Property
3,557,229,094.89 3,557,229,094.89
Development Co., Ltd.
China Merchants (Shenzhen) Power
119,791,232.79 119,791,232.79
Supply Co., Ltd.
China Merchants (Shenzhen) Property
36,460,596.83 36,460,596.83
Co., Ltd.
China Merchants (Shenzhen) Xin’an
20,822,211.48 20,822,211.48
Property Co., Ltd.
Eureka Investment Company Ltd. 1,301,760,042.44 1,301,760,042.44
China Merchants (Beijing) Property
27,388,566.33 27,388,566.33
Development Co., Ltd.
China Merchants Real Estate (Suzhou)
27,180,750.69 27,180,750.69
Co., Ltd.
China Merchants (Chongqing) Property
27,000,000.00 27,000,000.00
Development Co., Ltd.
201
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Estimated accrued
Balance at the Decrease Depreciation
Increase in Balance at the end impairment
Invested company beginning of the in current reserves at the end
current period of the period provision of current
year period of this period
period
China Merchants (Nanjing ) Property
14,860,839.52 14,860,839.52
Development Co., Ltd.
Tianjin Zhaosheng Real Estate Co., Ltd. 18,093,952.22 18,093,952.22
Suzhou CM Nanshan Property Co., Ltd. 120,000,000.00 120,000,000.00
China Merchants (Zhangzhou) Property
229,546,976.11 229,546,976.11
Development Co., Ltd.
China Merchants (Chongqing)
Huayuancheng Property Development 30,000,000.00 30,000,000.00
Co., Ltd.
China Merchants (Chengdu) Beihu Land
50,000,000.00 50,000,000.00
Limited.
China Merchants (Chengdu) Property
10,113,863.41 10,113,863.41
Development Co., Ltd.
China Merchants Property Development
50,113,863.41 50,113,863.41
(Xiamen) Co., Ltd.
Fujian Zhongliansheng Real Estate Co.,
25,000,000.00 25,000,000.00
Ltd.
China Merchants (Wuhan) Property
30,113,863.41 30,113,863.41
Development Co., Ltd.
Zhenjiang Yingsheng Real Estate
7,586,275.00 7,586,275.00
Development Co., Ltd.
Qingdao Zhongrunde Auto Trade Co., Ltd. 183,731,836.00 183,731,836.00
China Merchants (Bijie, Guizhou)
30,066,887.30 30,066,887.30
Property Development Co., Ltd.
China Merchants Property Investment Co.,
1,883,810,191.68 1,883,810,191.68
Ltd.
China Merchants (Harbin) Jiatian Property 80,250,000.00 80,250,000.00
202
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Estimated accrued
Balance at the Decrease Depreciation
Increase in Balance at the end impairment
Invested company beginning of the in current reserves at the end
current period of the period provision of current
year period of this period
period
Development Co., Ltd.
China Merchants (Changzhou) Property
30,000,000.00 30,000,000.00
Development Co., Ltd.
China Merchants (Hainan) Yuanyang
240,000,000.00 240,000,000.00
Development Co., Ltd.
Zhenjiang Nanshan Creative Industrial
30,000,000.00 30,000,000.00
Park Development Co., Ltd.
China Merchants (Shenzhen) Pingshan
14,000,000.00 14,000,000.00
Property Development Co., Ltd.
Tianjin Guojun Investment Co., Ltd. 300,550,000.00 300,550,000.00
China Merchants (Nanning) Haotian
14,000,000.00 14,000,000.00
Property Development Co., Ltd.
China Merchants (Hangzhou) Property
30,046,976.11 30,046,976.11
Development Co., Ltd.
China Merchants (Rizhao) Property
30,000,000.00 30,000,000.00
Development Co., Ltd.
China Merchants (Shenzhen) Property
400,000.00 400,000.00
Consultant Co., Ltd.
China Merchants (Shanghai) Property
3,000,000.00 3,000,000.00
Development Co., Ltd.
China Merchants (Shanghai) Property Co.,
3,000,000.00 3,000,000.00
Ltd.
China Merchants (Yantai) Property Co.,
30,000,000.00 30,000,000.00
Ltd.
Shenyang Jindao Huitong Real Estate Co.,
128,265,000.00 81,997,141.22 210,262,141.22
Ltd.
Ningbo Jiangwan Property Development 30,000,000.00 30,000,000.00
203
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Estimated accrued
Balance at the Decrease Depreciation
Increase in Balance at the end impairment
Invested company beginning of the in current reserves at the end
current period of the period provision of current
year period of this period
period
Co., Ltd.,
Total 8,764,183,019.62 81,997,141.22 8,846,180,160.84
(3) Investment into associated enterprises and joint ventures
Increase or decrease in this period
Profit and
Profit or Depreciatio
loss on
Balance at cash Balance at n reserves
Invested investment Other Other Withdrawin
the beginning Negative dividend the end of the at the end
company Additional s comprehensiv equity g Other
of the year investmen declared period of this
investments confirmed e income chang depreciation s
t to be period
with adjustment e reserves
distribute
equity
d
method
I. Joint
ventures
II. Affiliated
-
enterprises
China
Merchants
162,076,268.4 162,613,651.4
Guangming 537,383.00
5 5
Science
Park
Ningbo
Dingfeng
38,899,500.0 -467,453.9
Real Estate 38,432,046.10
0 0
Developme
nt Co., Ltd.
Total 162,076,268.4 38,899,500.0 69,929.10 201,045,697.5
204
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Increase or decrease in this period
Profit and
Profit or Depreciatio
loss on
Balance at cash Balance at n reserves
Invested investment Other Other Withdrawin
the beginning Negative dividend the end of the at the end
company Additional s comprehensiv equity g Other
of the year investmen declared period of this
investments confirmed e income chang depreciation s
t to be period
with adjustment e reserves
distribute
equity
d
method
5 0 5
205
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
3. Operating incomes and operating costs
Amount incurred in the current Amount incurred in the previous
Item period period
Income Cost Income Cost
Primary 6,240,000.00 1,228,912.37 500,000.00 1,057,252.16
businesses
Total 6,240,000.00 1,228,912.37 500,000.00 1,057,252.16
4. Investment income
Item Amount incurred in Amount incurred in
the current period the previous period
Long-term equity investment income measured by
200,000,000.00 51,508,689.22
cost method
Long-term equity investment income measured by
69,929.10 -359,190.18
equity method
Gains on consignment loan 18,291,283.84 2,689,938.80
Total 218,361,212.94 53,839,437.84
XVII. Approval of financial statement
The financial statement will be reported by the Board of Directors on August 21, 2015
206
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Additional information on financial statements
1. Incidental profit or loss statement in this period
In accordance with the Explanatory Announcement for Information Disclosure by Issuers of Public
Securities No. 1 — Extraordinary Items (2008) of CSRC, the Group’s extraordinary items for the first half
year of 2015 are as follows:
Item Amount of current period Amount of the same
period of last year
Losses and profits on disposal of non-current assets 141,917.96 -160,878.35
Return reduction and exemption of taxes which surpass
approval, or without official approval, or occasional
taxes
Government subsidy recognized in current losses and
6,716,629.90 25,262,476.52
gains
Funds occupation fees collected from non-financial
enterprises and included in current profit or loss
Profit generated when the investment cost for acquisition
subsidiary, joint ventures and affiliates is smaller than
the deserved fair value of identifiable net asset of the
invested company.
Losses and gains on exchange of non-monetary assets
profit or loss of asset whose investment or management
is entrusted to others
Accrued provision of impairment of each asset due to
force majeure such as natural disasters
Losses and gains on debt restructuring transactions
Corporate restructuring costs
Profit or loss of surplus between fair value and unfair
transaction
Current net profit or loss from the beginning of the year
to consolidation date of subsidiary generated by
enterprise consolidation under common control
Profits and losses arising from contingencies which are
not related to company's normal business
Except effective hedging business relating to normal
operating business of the company, profit or loss caused
by change in the fair value of held-for-trading financial
asset and financial liabilities, and investment profit for
disposal of trading financial asset, trading financial
liabilities and available-for-sales financial assets.
Impairment recovery of account receivable receiving
individual impairment test
Profit or loss acquired by outward entrusted loan 6,562,957.96
profit or loss caused by change in fair value of
investment property subsequently measured with fair
207
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Item Amount of current period Amount of the same
period of last year
value mode.
Influence on the current profit or loss by one-off
adjustment on the current profit or loss required by tax
and accounting laws and regulations.
Trustee fee of trusted operation
Other non-operating income and expenditure except the
3,147,300.31 -11,330,134.03
foregoing items
Other profit or loss items recognized by CSRC Note 1 275,247,008.70 -63,138,644.29
Subtotal 291,815,814.83 -49,367,180.15
Affected amount of income taxes -43,272,269.14 -5,933,621.72
Affected amount of minority interest income (after-tax) -80,626,860.54 -2,141,420.73
Total 167,916,685.15 -57,442,222.60
Note 1: ―Others are modifications of current investment income as per the actual carry-over area for this
period of China Merchants OCT Investment Co., Ltd. Since China Merchants OCT Investment Co., Ltd. was
changed from a subsidiary to an associated company on April 1, 2013 due to loss of control power, residual
equity was re-measured as per fair value. The balance between the fair value and original book value of
residual equity was mainly resulted from the appreciation of its inventory. Therefore, the Company modifies
the investment income as per the actual carry-over area of China Merchants OCT Investment Co., Ltd. for
current period. The second is about the difference from recalculating at fair value of the shares of Beijing
Guangying and the modification of the actual carry-over area in the current period for main business costs in
the current period of the Beijing Guangying Residential Property Development Limited, a subsidiary of the
company. See Seven 1, Corporate merger not under the common control for details.
2. Return on equity and earnings per share
According to the Compilation Rules for Information Disclosure by Companies Offering Securities to
the Public No.9 – Calculation and Disclosure of Return on Net Assets (Amended in 2010) issued by CSRC,
the weighted profit margin on net assets and basic earnings per share as well as diluted earnings per share of
the Group for the first half year of 2015 are as follows:
Earnings per share (EPS)
Weighted mean
Profits during reporting Diluted
Rate of return of net assets Basic earnings
period earnings per
(%) per share
share
Net profits attributable to the
6.76 0.8329 0.8329
parent company shareholders
Net profits attributable to the
parent company shareholders
6.23 0.7677 0.7677
after deducting extraordinary
profits and losses
208
Notes to Financial Statements of China Merchants Property Development Co., Ltd.
From January 1, 2015 to June 30, 2015
(Unless otherwise indicated, the unit of amount in the Financial Statements is RMB)
Section Nine Contents of Reference Files
(I) Financial statement with signatures and seals of the legal representative, the accounting supervisor and the principal of the
accounting firm.
(II) All original of company's files and original announcements which have been disclosed in 2015 in the newspapers designated by
Securities Regulatory Commission.
(III) English version of 2015 Annual Report
(IV) Semiannual Reports Released in Other Securities Markets
China Merchants Property Development Co., Ltd.
August 25, 2015
209
