China Merchants Property Development Co., Ltd. The 3rd Quarterly Report 2011 (Full text) Stock Code: 000024, 200024 Stock ID: CMPD, CMPD B Announcement No. 【CMPD】2011-025 China Merchants Property Development Co., Ltd. The 3rd Quarterly Report 2011 (Full text) §1 Important Declaration 1.1 The Board of Directors and the directors of the Company guarantee that there are no significant omissions, fictitious or misleading statements carried in the Report and we will accept individual and joint responsibilities for the truthfulness, accuracy and completeness of the Report. 1.2 The 3rd Quarterly Report is not audited by CPA. 1.3 Mr. Lin Shaobin - the legal representative, Mr. Huang Peikun – the chief financial officer, and Ms. Xu Yixia – the manager of accounting department declare: the financial reports carried in this report is secured for its truthfulness and completeness. 1.4 This report is prepared both in English and Chinese. When there is any conflict in understanding, the Chinese version shall prevail. §2 Company Profile 2.1 Financial highlights In RMB Yuan 2011.9.30 2010.12.31 Extent of Change (%) Gross Assets (RMB) 71,675,215,687 59,818,240,763 19.82% Owners’ equity attributable to the 20,164,782,237 18,207,431,836 10.75% shareholders of the listed company (yuan) Capital shares (shares) 1,717,300,503 1,717,300,503 0.00% Net asset per share attributable to the shareholders of the listed company 11.74 10.60 10.75% (Yuan/share) Changed over the same Changed over the same Jul-Sept 2011 Jan-Sept 2011 period of last year (%) period of last year (%) Turnover (yuan) 4,380,778,392 68.26% 12,472,263,536 30.13% Net profit attributable to shareholders of the 615,944,786 63.51% 2,084,532,197 46.09% listed company (yuan) Net Cash flow generated by business - - -2,741,396,512 -22.49% operation (RMB) Net Cash flow per share generated by - - -1.60 -22.49% business operation (yuan/share) Basic earnings per share (Yuan/share) 0.36 63.51% 1.21 46.09% Diluted earnings per share (Yuan/share) 0.36 63.51% 1.21 46.09% Weighted average net 3.11% Increased by 0.94% 10.86% Increased by 2.45% income/asset ratio (%) Weighted average net income/asset ratio less non-recurring 3.11% Increased by 0.96% 10.86% Increased by 2.47% gain/loss(%) 1 China Merchants Property Development Co., Ltd. The 3rd Quarterly Report 2011 (Full text) Non-recurring gain and loss items √ applicable □ not applicable In RMB Yuan Non-recurring gain and loss items Amount Gain/loss of non-current assets -497,045 Government subsidies accounted into current gain/loss account, other than those closely related to the Company’s common business, comply with the national policy and continues 1,619,000 to enjoy at certain fixed rate or amount. Other non-business income and expenditures other than the above -1,703,461 Influenced amount of minority shareholders’ equity -493,530 Influenced amount of income tax 117,084 Total -957,952 2.2 Total of shareholders and the top 10 holders of unconditional shares in shares Total shareholders at the end of the report period 67,964 (accounts) Top ten holders of the shares without subscription limitation Amount of unconditional shares Full name of shareholder Categories held at the end of report term CM Zhangzhou Development Zone Ltd. 34,760,600 A shares National Social Insurance Foundation 102 Portfolio 23,436,423 A shares Shangtou Morgan China Advantages Securities 20,270,000 A shares Investment Fund CNCA A/C COMPAGNIE FINANCIERE EDMOND 18,882,045 B shares DE ROTHSCHILD Fuguo Tianrui Fine Blend Open Fund 17,099,671 A shares Nuo’an Value Growth Stock & Securities Investment 17,091,616 A shares Fund Shangtou Morgan Internal Power Stock Investment 13,899,848 A shares Fund China Life Insurance Ltd. – conventional insurance 13,159,919 A shares product –005L-CT001 BOCI SECURITIES LIMITED 12,392,660 B shares Yinhua – Dow Joans 88 Fine Selected Securities 12,099,687 A shares Investment Fund 2 China Merchants Property Development Co., Ltd. The 3rd Quarterly Report 2011 (Full text) §3 Significant Events 3.1 Details and causations of major change in major accounting subjects and financial indices √ applicable □ not applicable In RMB Yuan Changed Items 2011.09.30 2010.12.31 Major causes by % Transactional Increased by handover of NDF contracts in the period and 2,492,009 846,539 194% financial assets fluctuation of NDF market prices Long-term share 847,232,601 597,610,091 42% Increase of investment in affiliates equity investment Construction in 57,093,544 23,327,061 145% Increase of expenditures for power supply facilities process Differed income tax 285,273,849 460,455,365 -38% Disburse of partial taxes asset Short-term loans 2,436,858,409 1,172,132,283 108% Expanding of business scale Trade off financial Decreased by handover of NDF contracts in the period and 13,506,986 20,824,615 -35% liabilities fluctuation of NDF market prices Notes payable - 275,616,189 -100% Repaying of due notes Employees’ wage 128,052,049 207,232,511 -38% Disburse of employees’ wages payable payable Interest payable 151,131,670 109,123,639 38% Increase of total borrowing Dividend payable 360,988,522 124,209,948 191% Increase of dividend payable Non-current liability 4,507,386,972 2,357,741,683 91% Transferring in of long term borrowings due in 1 year Long-term payable 78,365,312 58,587,176 34% Increase of mainbody maintainance fund Jan-Sept. Changed Items Jan-Sept 2011 Major causes 2010 by % Turnover 12,472,263,536 9,584,685,607 30% Increase of property clearance Business tax and 2,234,957,796 1,126,992,261 98% Increased along with increase of property clearance income surcharge Sales expense 285,999,689 163,617,872 75% Expanding of business scale Administrative 226,762,007 155,641,596 46% Expanding of business scale expense Financial expenses -26,790,947 -2,793,807 859% Increase of exchange gains Income from change 8,963,099 -860,876 1141% Increased by fluctuation of NDF fair markets of fair value Investment income 58,294,066 38,558,420 51% Increase of investment returns from affiliates Income tax expenses 946,818,003 585,673,458 62% Increase of total profit Minor shareholders’ 653,710,054 361,821,446 81% Net profit from joint projects increaased equity 3.2 Progress of significant events, their influence, countermeasures, and analysis 3.2.1 None-standard opinions □applicable √ not applicable 3.2.2 Illegal providing of capital or guarantees to the holding shareholder or its related parties or external parties □applicable √ not applicable 3.2.3 Signing and execution of major business contracts □applicable √ not applicable 3 China Merchants Property Development Co., Ltd. The 3rd Quarterly Report 2011 (Full text) 3.2.4 Misc. □applicable √ not applicable 3.3 Fulfilling of commitment issues made by the Company, shareholder, or substantial controller √ applicable □ not applicable The Commitments Content of Commitments Status of fulfilling undertaker In the report term, Commitment in share Will input properties including high quality lands to support the CMSIZ CMSIZ was fully equity relocation Company’s development after the share equity relocation. acting as committed. CMSIZ, the controlling shareholder of the Company, promised not to conduct or participate with 3rd parties in any business or activities Other commitments possibly competing with the Company in terms of business, new In the report term, (including CMSIZ commodities and new technology in any forms (including but not CMSIZ was fully supplementary limited to direct operation, indirect operation, joint investment). Never acting as committed. commitments) use the information obtained from the Company to conduct or participate in and competitive activities against the Company. 3.4 Estimated accumulative profit from the year beginning to the end of the next report period may be of deficits; or in comparison with the same period of the previous year, give the warning of great change and the notice to the reasons. □applicable √ not applicable 3.5 Major events needs to be explained 3.5.1 Investment in securities □applicable √ not applicable 4 China Merchants Property Development Co., Ltd. The 3rd Quarterly Report 2011 (Full text) 3.5.2 Reception of investigations, communications, or interviews √ applicable □ not applicable Main content involved and material Time/date Place Way Visitors provided Shekou Telephone 2011.07.03 Orient Securities Shenzhen communication Shekou Telephone 2011.07.05 Individual investors Shenzhen communication Shekou 2011.07.07 Field research Lianhe Huatai, Jiashi Fund Shenzhen Shekou 2011.07.07 Field research Guotai Junan and its clients Shenzhen Shekou 2011.08.09 Field research CITIC Securities and its clients Shenzhen Shekou Construction Bank International and its 2011.08.10 Field research Shenzhen clients Shekou Telephone 2011.08.09 JEFFERIES Shenzhen communication Shekou Dongguan Securities, No.1 Securites, 2011.08.19 Field research Shenzhen Anbang Asset Management Shekou 2011.08.25 Field research Zhongtou Securities (1) Company business operation Shenzhen Shekou situation 2011.08.26 Field research Xiangcai Securities Shenzhen (2) Industrial development Shekou discussion 2011.09.07 Field research British Investment Co. Shenzhen (3) To provide announcements and Shekou Telephone promotion brochures 2011.09.08 Individual investors Shenzhen communication (4) Visiting the sites of properties on Shekou Telephone sale, providing the prospectus 2011.09.08 Guotai Junan Shenzhen communication Shekou Telephone 2011.09.09 Ping’an Securities Shenzhen communication Shekou 2011.09.09 Field research Guoxin Securities and its clients Shenzhen Shekou Telephone 2011.09.15 Ruixin Fangzheng Shenzhen communication Shekou Telephone 2011.09.15 Orient Securities Shenzhen communication Shekou Telephone 2011.09.16 Individual investors Shenzhen communication 2011.09.16 Beijing Field research Investor Shekou Telephone 2011.09.16 Jinli Investment Shenzhen communication Shekou 2011.09.16 Field research CITIC Securities and its clients Shenzhen 2011.09.24 Shanghai Field research Minsheng Securities Shekou Telephone 2011.09.28 Ping’an Securities Shenzhen communication 5 China Merchants Property Development Co., Ltd. The 3rd Quarterly Report 2011 (Full text) 3.6 Investment in derivate financial instruments √ applicable □ not applicable In the report term, the major market risks of derivate investment products were the impacts of fluctuation of NDF contracts on the fair values. However the Company’s purpose to involve in NDF trade was to lockup the exchange rate and avoid the risks brought by borrowing of foreign currencies, thus it Statement on analyzing and controlling of risks with was on the basis of real borrowings in foreign currency, its trading amount derivate investment in the report term (including but not and timing are matching with the borrowings of foreign currency and covers limited to market risks, liquidity risks, credit risks, the risks. The exchange rate of the future contract has been fixed as soon as operation risks, and legal risks. been traded, therefore the risks are under control. The Company has established the “Regulations of Trade of Derivate Financial Instruments” which limited the categories, scale, authorization, operation procedures, risk control, and information disclosure over the derivate instruments. It provides a systematic ground for controlling of risks. At end of December 2011, the 1-year RMB/USD NDF has quoted equal to 0.71% of devalue, while at end of December 2010, it was 2.26% of increase, Change of derivate instrument market price or fair fluctuation of fair value of NDF in September 2011 caused RMB8.96 million value, information disclosing on the fair value, relative of gains, whereas the NDF contract handover has caused losses of RMB23.13 estimation and setting of indexes million. Market price basis is adopted by the Company in analyzing of derivate instrument fair value, and the fair values are adjusted at end of each month. Statement on major alternation in accounting polices and accounting basis on derivate instruments comparing None with last year Particular comments of the independent directors on Not applicable investment of derivate instruments and risk controlling 3.6.1 Derivate financial instrument stock at end of report term √ applicable □ not applicable In RMB Yuan Amount of the contract Amount of the contract Amount of the contract Gain/loss in the Category of contracts at end of term on the net at beginning of term at end of term report term asset (%) NDFContracts 2,337,860,822 1,143,882,000 -14,161,928 5.67% Total 2,337,860,822 1,143,882,000 -14,161,928 5.67% 6 China Merchants Property Development Co., Ltd. The 3rd Quarterly Report 2011 (Full text) §4 Attachments 4.1 Balance Sheet Prepared by China Merchants Property Development Co., Ltd. Ended September 30, 2011 RMB Yuan Ending balance Balance at the beginning of year Items Consolidated Parent company Consolidated Parent company Current asset: Monetary capital 12,347,304,089.00 3,316,810,192.00 9,676,385,052.00 3,701,866,661.00 Settlement provision Outgoing call loan Transactional financial assets 2,492,009.00 846,539.00 Notes receivable Account receivable 96,574,361.00 102,603,093.00 Prepayment 4,993,692.00 5,598,968.00 Insurance receivable Reinsurance receivable Provisions of Reinsurance contracts receivable Interest receivable Dividend receivable 1,986,481,528.00 2,169,117,072.00 Other account receivable 4,748,868,069.00 24,476,556,122.00 4,144,714,137.00 19,692,350,788.00 Repurchasing of financial assets Inventories 46,978,016,344.00 38,699,347,411.00 Non-current asset due in 1 year 441,926.00 936,793.00 Other current asset 1,239,742,590.00 980,538,674.00 Total of current asset 65,418,433,080.00 29,779,847,842.00 53,610,970,667.00 25,563,334,521.00 Non-current assets Disburse of consigned loans Available-for-sale financial asset Expired investment in possess Long-term receivable 1,318,904,337.00 1,020,600,666.00 1,260,737,445.00 981,013,052.00 Long-term share equity investment 847,232,601.00 3,718,601,532.00 597,610,091.00 3,538,956,943.00 Investment real estates 3,323,417,914.00 3,438,215,323.00 Fixed assets 255,877,248.00 401,071.00 260,939,762.00 367,487.00 Construction in process 57,093,544.00 23,327,061.00 Engineering goods Fixed asset disposal Production physical assets Gas & petrol Intangible assets R&D expense Goodwill Long-term amortizable expenses 168,983,114.00 165,985,049.00 Differed income tax asset 285,273,849.00 460,455,365.00 Other non-current asset Total of non-current assets 6,256,782,607.00 4,739,603,269.00 6,207,270,096.00 4,520,337,482.00 Total of assets 71,675,215,687.00 34,519,451,111.00 59,818,240,763.00 30,083,672,003.00 7 China Merchants Property Development Co., Ltd. The 3rd Quarterly Report 2011 (Full text) Current liabilities Short-term loans 2,436,858,409.00 2,180,647,000.00 1,172,132,283.00 998,021,500.00 Loan from Central Bank Deposit received and hold for others Call loan received Trade off financial liabilities 13,506,986.00 20,824,615.00 Notes payable 275,616,189.00 Account payable 4,239,840,266.00 4,757,667,163.00 Prepayment received 14,073,845,326.00 11,268,654,826.00 Selling of repurchased financial assets Fees and commissions receivable Employees’ wage payable 128,052,049.00 960,782.00 207,232,511.00 5,371,108.00 Tax payable 569,314,865.00 6,977,236.00 614,789,018.00 5,240,509.00 Interest payable 151,131,670.00 66,435,289.00 109,123,639.00 83,065,942.00 Dividend payable 360,988,522.00 83,210,318.00 124,209,948.00 Other account payable 6,472,153,478.00 6,787,196,695.00 5,743,381,514.00 5,825,384,664.00 Reinsurance fee payable Insurance contract provision Entrusted trading of securities Entrusted selling of securities Non-current liability due in 1 year 4,507,386,972.00 1,761,245,000.00 1,856,422,159.00 500,000,000.00 Other current liability 2,543,209,194.00 2,357,741,683.00 Total of current liability 35,496,287,737.00 10,886,672,320.00 28,507,795,548.00 7,417,083,723.00 Non-current liabilities Long-term borrowings 12,303,793,987.00 8,036,970,500.00 9,995,835,344.00 6,783,316,000.00 Bond payable Long-term payable 78,365,312.00 58,587,176.00 Special payable Anticipated liabilities 102,090,679.00 106,289,589.00 Differed income tax liability Other non-recurring liabilities 3,816,700.00 3,816,700.00 Total of non-current liabilities 12,488,066,678.00 8,036,970,500.00 10,164,528,809.00 6,783,316,000.00 Total of liability 47,984,354,415.00 18,923,642,820.00 38,672,324,357.00 14,200,399,723.00 Owners’ equity (or shareholders’ equity) Capital paid in (or share capital) 1,717,300,503.00 1,717,300,503.00 1,717,300,503.00 1,717,300,503.00 Capital reserves 8,478,831,944.00 8,927,054,193.00 8,484,453,421.00 8,927,054,193.00 Less: Shares in stock Special reserves Surplus reserves 899,462,584.00 848,511,191.00 899,462,584.00 848,511,191.00 Common risk provision Retained profit 8,819,363,362.00 4,102,942,404.00 6,940,907,225.00 4,390,406,393.00 Different of foreign currency translation 249,823,844.00 165,308,103.00 Total of owner’s equity belong to the parent company 20,164,782,237.00 15,595,808,291.00 18,207,431,836.00 15,883,272,280.00 Minor shareholders’ equity 3,526,079,035.00 2,938,484,570.00 Total of owners’ equity 23,690,861,272.00 15,595,808,291.00 21,145,916,406.00 15,883,272,280.00 Total of liabilities and owners’ equity 71,675,215,687.00 34,519,451,111.00 59,818,240,763.00 30,083,672,003.00 8 China Merchants Property Development Co., Ltd. The 3rd Quarterly Report 2011 (Full text) 4.2 Income Statement of the report term Prepared by China Merchants Property Development Co., Ltd. July - September 2011 In RMB Yuan Amount of the Current Term Amount of the Previous Term Items Parent Parent Consolidated Consolidated company company I. Total revenue 4,380,778,392.00 2,603,531,682.00 Incl. Business income 4,380,778,392.00 2,603,531,682.00 Interest income Insurance fee earned Fee and commission received II. Total business cost 3,100,999,822.00 43,779,380.00 2,045,986,856.00 1,083,075.00 Incl. Business cost 1,891,526,536.00 1,681,823,998.00 Interest expense Fee and commission paid Insurance discharge payment Net claim amount paid Net insurance policy reserves provided Insurance policy dividend paid Reinsurance expenses Business tax and surcharge 954,253,734.00 264,067,014.00 Sales expense 126,049,860.00 51,472,808.00 Administrative expense 83,669,278.00 7,530,312.00 54,462,202.00 5,492,202.00 Financial expenses 45,493,648.00 36,249,068.00 -5,847,041.00 -4,409,127.00 Asset impairment loss 6,766.00 7,875.00 Plus: Gains from change of fair value (“-“ for loss) -6,921,167.00 -30,778,750.00 Investment gain (“-“ for loss) 7,031,956.00 9,694,566.00 13,104,466.00 49,171,156.00 Incl. Investment gains from affiliates -6,702,643.00 -1,666,403.00 -4,381,817.00 639,400.00 Gains from currency exchange (“-“ for loss) III. Operational profit (“-“ for loss) 1,279,889,359.00 -34,084,814.00 539,870,542.00 48,088,081.00 Plus: Non business income 563,474.00 3,909,274.00 317,133.00 Less: Non-business expenses 1,857,551.00 3,082,595.00 Incl. Loss from disposal of non-current assets 86,051.00 120,666.00 IV. Gross profit (“-“ for loss) 1,278,595,282.00 -34,084,814.00 540,697,221.00 48,405,214.00 Less: Income tax expenses 360,084,823.00 150,931,253.00 947,514.00 V. Net profit (“-“ for net loss) 918,510,459.00 -34,084,814.00 389,765,968.00 47,457,700.00 Net profit attributable to the owners of parent company 615,944,786.00 -34,084,814.00 376,691,534.00 47,457,700.00 Minor shareholders’ equity 302,565,673.00 13,074,434.00 VI. Earnings per share: (I) Basic earnings per share 0.3587 0.2194 (II) Diluted earnings per share 0.3587 0.2194 VII. Other misc. incomes 80,047,319.00 37,203,132.00 1,101,908.00 VIII. Total of misc. incomes 998,557,778.00 -34,084,814.00 426,969,100.00 48,559,608.00 Total of misc. incomes attributable to the owners of the 695,992,105.00 -34,084,814.00 406,338,049.00 48,559,608.00 parent company Total misc gains attributable to the minor shareholders 302,565,673.00 20,631,051.00 Merger of entities under common control, the net profit realized by the merged party was RMB0.00. 9 China Merchants Property Development Co., Ltd. The 3rd Quarterly Report 2011 (Full text) 4.3 Income Statement from the beginning of year to the end of report term Prepared by China Merchants Property Development Co., Ltd. Jan - September 2011 In RMB Yuan Amount of the Current Term Amount of the Previous Term Items Parent Parent Consolidated Consolidated company company I. Total revenue 12,472,263,536.00 9,584,685,607.00 Incl. Business income 12,472,263,536.00 9,584,685,607.00 Interest income Insurance fee earned Fee and commission received II. Total business cost 8,853,878,941.00 110,915,536.00 7,252,650,667.00 -3,787,095.00 Incl. Business cost 6,132,948,247.00 5,809,187,731.00 Interest expense Fee and commission paid Insurance discharge payment Net claim amount paid Net insurance policy reserves provided Insurance policy dividend paid Reinsurance expenses Business tax and surcharge 2,234,957,796.00 1,126,992,261.00 Sales expense 285,999,689.00 163,617,872.00 Administrative expense 226,762,007.00 20,456,709.00 155,641,596.00 14,708,166.00 Financial expenses -26,790,947.00 90,458,827.00 -2,793,807.00 -18,495,261.00 Asset impairment loss 2,149.00 5,014.00 Plus: Gains from change of fair value (“-“ for loss) 8,963,099.00 -860,876.00 Investment gain (“-“ for loss) 58,294,066.00 29,542,500.00 38,558,420.00 69,177,015.00 Incl. Investment gains from affiliates 38,906,676.00 -4,400,411.00 -4,974,053.00 -1,763,851.00 Gains from currency exchange (“-“ for loss) III. Operational profit (“-“ for loss) 3,685,641,760.00 -81,373,036.00 2,369,732,484.00 72,964,110.00 Plus: Non business income 3,923,209.00 12,819,515.00 317,133.00 Less: Non-business expenses 4,504,715.00 8,186,280.00 Incl. Loss from disposal of non-current assets 528,644.00 397,313.00 IV. Gross profit (“-“ for loss) 3,685,060,254.00 -81,373,036.00 2,374,365,719.00 73,281,243.00 Less: Income tax expenses 946,818,003.00 14,893.00 585,673,458.00 6,948,955.00 V. Net profit (“-“ for net loss) 2,738,242,251.00 -81,387,929.00 1,788,692,261.00 66,332,288.00 Net profit attributable to the owners of parent company 2,084,532,197.00 -81,387,929.00 1,426,870,815.00 66,332,288.00 Minor shareholders’ equity 653,710,054.00 361,821,446.00 VI. Earnings per share: (I) Basic earnings per share 1.2138 0.8309 (II) Diluted earnings per share 1.2138 0.8309 VII. Other misc. incomes 78,894,264.00 75,749,313.00 450,931.00 VIII. Total of misc. incomes 2,817,136,515.00 -81,387,929.00 1,864,441,574.00 66,783,219.00 Total of misc. incomes attributable to the owners of the 2,163,426,461.00 -81,387,929.00 1,478,813,190.00 66,783,219.00 parent company Total misc gains attributable to the minor shareholders 653,710,054.00 385,628,384.00 No merger of entities under common control since the beginning of year till the end of report period, therefore the net profit 10 China Merchants Property Development Co., Ltd. The 3rd Quarterly Report 2011 (Full text) contributed by the merged entity was RMB0.00. 4.4 Cash Flow Statement from the beginning of year to the end of report term. Prepared by China Merchants Property Development Co., Ltd. Jan - September 2011 In RMB Yuan Amount of the Current Term Amount of the Previous Term Items Consolidated Parent company Consolidated Parent company I. Net cash flow from business operation Cash received from sales of products and 15,304,266,416.00 9,768,811,329.00 providing of services Net increase of customer deposits and capital kept for brother company Net increase of loans from central bank Net increase of inter-bank loans from other financial bodies Cash received against original insurance contract Net cash received from reinsurance business Net increase of client deposit and investment Net increase of trade financial asset disposal Cash received as interest, processing fee, and commission Net increase of inter-bank fund received Net increase of repurchasing business Tax returned 10,218,775.00 15,311,948.00 Other cash received from business operation 3,537,025,543.00 694,166,656.00 1,991,535,324.00 527,535,307.00 Sub-total of cash inflow from business activities 18,851,510,734.00 694,166,656.00 11,775,658,601.00 527,535,307.00 Cash paid for purchasing of merchandise and 13,986,361,635.00 9,334,463,626.00 services Net increase of client trade and advance Net increase of savings in central bank and brother company Cash paid for original contract claim Cash paid for interest, processing fee and commission Cash paid for policy dividend Cash paid to staffs or paid for staffs 717,426,729.00 13,885,841.00 512,454,736.00 8,088,763.00 Taxes paid 3,293,842,132.00 11,158,506.00 2,330,350,396.00 14,832,736.00 Other cash paid for business activities 3,595,276,750.00 4,373,059,785.00 1,836,456,513.00 2,447,713,601.00 Sub-total of cash outflow from business 21,592,907,246.00 4,398,104,132.00 14,013,725,271.00 2,470,635,100.00 activities Cash flow generated by business operation, -2,741,396,512.00 -3,703,937,476.00 -2,238,066,670.00 -1,943,099,793.00 net II. Cash flow generated by investing Cash received from investment retrieving Cash received as investment gains 1,284,166.00 182,635,544.00 360,094.00 45,334,075.00 Net cash retrieved from disposal of fixed assets, 54,538.00 90,097.00 intangible assets, and other long-term assets Net cash received from disposal of subsidiaries or 171,724,601.00 154,691,540.00 other operational units Other investment-related cash received 11 China Merchants Property Development Co., Ltd. The 3rd Quarterly Report 2011 (Full text) Sub-total of cash inflow due to investment 1,338,704.00 182,635,544.00 172,174,792.00 200,025,615.00 activities Cash paid for construction of fixed assets, 54,040,101.00 18,800.00 22,039,532.00 40,900.00 intangible assets and other long-term assets Cash paid as investment 234,022,744.00 184,045,000.00 28,125,469.00 10,000,000.00 Net increase of loan against pledge Net cash received from subsidiaries and other operational units Other cash paid for investment activities 22,189,927.00 1,971,145.00 Sub-total of cash outflow due to investment 310,252,772.00 184,063,800.00 52,136,146.00 10,040,900.00 activities Net cash flow generated by investment -308,914,068.00 -1,428,256.00 120,038,646.00 189,984,715.00 III. Cash flow generated by financing Cash received as investment 51,250,000.00 490,673,905.00 Incl. Cash received as investment from minor 51,250,000.00 490,673,905.00 shareholders Cash received as loans 7,997,007,616.00 4,816,970,500.00 6,859,617,476.00 1,694,293,000.00 Cash received from bond placing Other financing-related cash received Subtotal of cash inflow from financing activities 8,048,257,616.00 4,816,970,500.00 7,350,291,381.00 1,694,293,000.00 Cash to repay debts 1,605,240,821.00 1,085,970,500.00 1,773,897,397.00 794,022,000.00 Cash paid as dividend, profit, or interests 816,286,205.00 408,260,583.00 525,785,040.00 354,394,448.00 Incl. Dividend and profit paid by subsidiaries to 292,451,476.00 256,640,389.00 minor shareholders Other cash paid for financing activities 871,199,830.00 Subtotal of cash outflow due to financing 2,421,527,026.00 1,494,231,083.00 3,170,882,267.00 1,148,416,448.00 activities Net cash flow generated by financing 5,626,730,590.00 3,322,739,417.00 4,179,409,114.00 545,876,552.00 IV. Influence of exchange rate alternation on cash and -32,084,534.00 -2,430,154.00 -14,674,492.00 -1,752,640.00 cash equivalents V. Net increase of cash and cash equivalents 2,544,335,476.00 -385,056,469.00 2,046,706,598.00 -1,208,991,166.00 Plus: Balance of cash and cash equivalents at the 8,914,595,308.00 3,701,866,660.00 8,775,661,067.00 6,268,540,841.00 beginning of term VI. Balance of cash and cash equivalents at the end of 11,458,930,784.00 3,316,810,191.00 10,822,367,665.00 5,059,549,675.00 term 4.5 Auditors’ Report Auditor’s opinion: not audited. 12