China Merchants Property Development Co., Ltd. The 1st Quarterly Report 2013 (Main Text) Stock Code: 000024, 200024 Stock ID: CMPD, CMPD B Announcement No. 【CMPD】2013-018 China Merchants Property Development Co., Ltd. The 1st Quarterly Report 2013 (Main Text) §1 Important Declaration 1.1 The Board of Directors, the Supervisory Committee, the directors, supervisors and executives 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 All of the directors presented the board meeting at which this Quarterly Report was examined. 1.3 The 1st Quarterly Financial Statements 2013 were not audited by a CPA. 1.4 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 are secured for its truthfulness and completeness. 1.5 This report is prepared both in English and Chinese. When there is any conflict in understanding, the Chinese version shall prevail. §2 Financial Highlights and Change of Shareholders 2.1 Key financial information Ended this report term Ended previous year Changed by (%) Total asset (Yuan) 115,341,843,833.76 109,197,242,683.06 5.63% Owners’ equity attributable to the shareholders of the listed 24,204,216,618.69 23,393,515,534.13 3.47% company (Yuan) Total capital share (shares) 1,717,300,503 1,717,300,503.00 0.00% Net asset per share attributable to the shareholders of the listed 14.09 13.62 3.47% company (Yuan/share) Same period last This report term Changed by (%) year Turnover (Yuan) 6,144,504,542.89 70.38% 3,606,361,060.00 Net profit attributable to shareholders of the listed company 810,701,084.56 88.79% (Yuan) 429,425,315.00 Net Cash flow generated by business operation (Yuan) 790,021,934.12 439.86% 1 China Merchants Property Development Co., Ltd. The 1st Quarterly Report 2013 (Main Text) -232,454,924.00 Net Cash flow per share generated by business operation 0.46 -0.14 439.86% (Yuan/share) Basic earnings per share (Yuan/share) 0.47 0.25 88.79% Diluted earnings per share (Yuan/share) 0.47 0.25 88.79% Weighted average net Increased by 1.33 3.41% 2.08% income/asset ratio (%) percentage point Weighted average net Increased by 1.28 3.37% 2.09% income/asset ratio less non-recurring gain/loss(%) percentage point Was there any retrospective adjustment or restatement during the reporting period? Yes [√] No Non-recurring gain/loss items and amounts [√] Applicable Not applicable Amount from beginning of year to the end of report Non-recurring gain and loss items period Gain/loss of non-current assets 328,041.44 Other non-business income and expenditures other than the above 23,546,170.63 Influenced amount of minority shareholders’ equity -8,847,785.19 Influenced amount of income tax -5,882,027.22 Total 9,144,399.66 2.2 Total of shareholders and top-10 holders of current shares In shares Top 10 Shareholders Frozen or Amount of Properties of Share pledged Name of the shareholder Amount of shares unconditional shares shareholder proportion (%) Status of held Amount shares China Merchants Shekou State-owned legal 40.38% 693,419,317 693,419,317 None None Industrial Zone Co., Ltd. person Quantianyu Investment Co., Overseas legal person 5.48% 94,144,050 94,144,050 None None Ltd. China Merchants Securities Overseas legal person 2.90% 49,841,778 49,242,245 None None Hong Kong Ltd. FOXTROT INTERNATIONAL Overseas legal person 1.61% 27,720,000 27,720,000 None None LIMITED ORIENTURE INVESTMENT Overseas legal person 1.55% 26,603,145 26,603,145 None None LTD Domestic Guangfa Jufu Open Securities non-state-owned legal 0.70% 12,000,071 None N/A N/A Investment Foundation person GOLDEN CHINA MASTER Overseas legal person 0.68% 11,736,760 None N/A N/A FUND Guangdong Development Bank Domestic 0.64% 11,000,000 None N/A N/A Growth Stock Fund non-state-owned legal 2 China Merchants Property Development Co., Ltd. The 1st Quarterly Report 2013 (Main Text) person Domestic Bank of Communications non-state-owned legal 0.63% 10,800,000 None N/A N/A Schroders Fund Growth Stock person Jiashi Scheme Best Choice Domestic Combined Stock Investment non-state-owned legal 0.61% 10,523,120 None N/A N/A Fund person Top 10 holders of unconditional shares Amount of shares without Category of shares Name of the shareholder trade limited conditions Category of shares Amount Guangfa Jufu Open Securities Investment Foundation 12,000,071 A shares 12,000,071 GOLDEN CHINA MASTER FUND 11,736,760 B shares 11,736,760 Guangdong Development Bank Growth Stock Fund 11,000,000 A shares 11,000,000 Bank of Communications Schroders Fund Growth Stock 10,800,000 A shares 10,800,000 Jiashi Scheme Best Choice Combined Stock Investment Fund 10,523,120 A shares 10,523,120 Fuguo Tianbo Innovation Scheme Stock Investment Fund 10,011,118 A shares 10,011,118 BOCI SECURITIES LIMITED 9,965,700 B shares 9,965,700 Yifangda Shenzhen Index 100 Open Stock Fund 9,821,470 A shares 9,821,470 Xihua Life Insurance Co., Ltd. – dividend – individual dividend 9,594,539 A shares 9,594,539 – 018L – FH002 Shen Bank of Communications Schroders Fund Blue Chip 9,356,000 A shares 9,356,000 Investment 1. Among the shares held by China Merchants Securities Hong Kong Ltd., there were 49,242,245 shares purchased by Dafeng International in previous years; 2. China Merchants Shekou Industrial Zone and its subsidiaries Quantianyu Investment, Dafeng International, FOXTROT INTERNATIONAL LIMITED, and ORIENTURE INVESTMENT LTD are action-in-concert parties. 3. Guangfa Jufu Open Securities Investment Foundation and Guangdong Development Bank Growth Stock Fund were under the same foundation management company; 4. Bank of Communications Schroders Fund Growth Stock and Bank of Communications Schroders Fund Blue Chip Investment were under the same foundation management company. §3 Significant Events 3.1 Situation and causations of major change in accounting items and indices Items 2013.03.31 2012.12.31 Changed by % Major causes Monetary 24,047,665,901.57 18,239,272,247.93 32% Increase of company size capital Fixed assets 1,580,055,426.66 435,194,977.76 263% Transferring to fixed asset under Beijing Kanglade Hotel Short-term 3,255,000,000.00 2,105,000,000.00 55% Change of loan composition loans Employees’ 143,093,518.68 334,040,494.12 -57% Payment of wages wage payable Dividend 90,165,059.98 290,165,059.98 -69% Payment of dividends payable payable Non-current liability due in 10,830,337,281.97 7,380,992,296.97 46% Increase of long-term borrowings due in 1 year 1 year Items Jan-Mar 2013 Jan-Mar 2012 Changed by % Major causes Turnover 6,144,504,542.89 3,606,361,060.00 70% Increase of property sales area transferred operation cost 3,038,699,049.28 1,898,368,645.00 60% Increase of property sales area transferred Business tax 1,072,572,145.86 624,221,441.00 72% Increase of property sales income transferred and surcharge Administrative 105,779,045.75 80,362,181.00 32% Increase of company size 3 China Merchants Property Development Co., Ltd. The 1st Quarterly Report 2013 (Main Text) expense Gain/loss from change of fair - -5,562,749.00 -100% No transactional financial assets at current period value Investment 2,305,013.32 5,028,136.00 -54% Decrease of investment gains from affiliates and joint ventures income Non-operational 26,428,550.53 870,668.00 2935% Gain from fiscal subsidies income Minor shareholders’ 478,791,025.98 140,152,696.00 242% Profits increase due to cooperation projects equity 3.2 Progress of major issues and their influences and solutions □applicable √ not applicable 3.3 Commitment issues made by the Company or shareholders with over 5% of shares in the report term or carried down from the previous terms. Date of Party of Term of Status of Commitments Content of Commitments commitme commitment commitment fulfilling nt Due at the day In the report after two years term, Commitment in Will input properties including high quality lands to support Dec 9 upon stop CMSIZ was share equity CMSIZ the Company’s development after the share equity 2005 holding of the fully acting relocation relocation. Company’s as shares committed. CMSIZ, the controlling shareholder of the Company, promised not to conduct or participate with 3rd parties in Due at the day In the report any business or activities possibly competing with the Other after two years term, Company in terms of business, new commodities and new commitments to Mar 19 upon stop CMSIZ was CMSIZ technology in any forms (including but not limited to direct mid-small 2008 holding of the fully acting operation, indirect operation, joint investment). Never use shareholders Company’s as the information obtained from the Company to conduct or shares committed. participate in and competitive activities against the Company. 3.4 Business forecast for Jan-Jun 2013 Alert of loss or significant change in net profit from the beginning of year to the end of next report period or comparing with the same period of last year, and statement of causations. □applicable √ not applicable 3.5 Securities investment □applicable √ not applicable 3.6 Investment of derivate instruments Derivate instruments in stock at the end of period 4 China Merchants Property Development Co., Ltd. The 1st Quarterly Report 2013 (Main Text) □applicable √ not applicable 3.7 Progress of internal control system In the report period, the Company performed self-evaluation on the internal control of 2012 according to the requirements of the Guide to Internal Control issued by the Department of Bureau and other authorities. It came out with the Internal Control Self-evaluation Report of 2012, and audited by the auditor and produced the Auditors’ Report. At the beginning of March, the Company launched internal control construction of year 2013, which was setting up of process team to refine the business processes according to the Standard of Internal Control. The work was on going up to the end of the report period. 3.8 Reception of investigations, communications, or interviews Main content Time/date Type of involved Place Way Visitors YYYY/MM/DD visitors and material provided Shenz Telephone Organization 2013/1/7 Dongxing Securities hen communication investors Shenz Telephone Organization 2013/1/8 Ruixin Fangzheng hen communication investors Shenz Telephone Individual 2013/1/8 Individual investors hen communication investors Shenz Organization 2013/1/9 Field research Zhongtou Securities, Zhonghuan Assets hen investors Organization 2013/1/11 HK Conference JP Morgan Asset Mgt,RCM Cap Mgt investors Shenz Organization 2013/1/11 Field research CITIC Securities hen investors Shenz Telephone Organization 2013/1/12 Heqi Investment hen communication investors Shenz Telephone Organization 2013/1/15 Full Vision Capital hen communication investors Shenz Organization 2013/1/15 Field research Changsheng Foundation, Zhongjin Securities hen investors (1) Shenz Organization Compan 2013/1/17 Field research Zhongxin Construction hen investors y Shenz Organization business 2013/1/17 Field research Huatai Securities, Changxin Foundation hen investors operation Shenz Telephone Organization situation 2013/1/17 Templeton hen communication investors Shenz Organization (2) 2013/1/18 Field research Xinhua Fund hen investors Industria Shenz Organization l 2013/1/21 Field research Xincheng Fund, Guotai Junan hen investors develop Shenz Organization Jefferies, Baida Asset Management, Xingjian Asset ment 2013/1/22 Field research hen investors Management, Dongfang Huili, Full vision Capital discussio Shenz Strategy Organization n 2013/1/22 Guotai Junan Strategy Association hen conference investors Shenz Telephone Organization (3) To 2013/1/23 Orient Securities hen communication investors provide Shenz Telephone Organization announc 2013/1/23 Ruixin Fangzheng ements hen communication investors 5 China Merchants Property Development Co., Ltd. The 1st Quarterly Report 2013 (Main Text) Shenz Organization and 2013/1/23 Field research Bocom Schroeder hen investors promotio Shenz Organization n 2013/1/23 Field research IVY Asset Management, 1st Shanghai Securities hen investors brochure Guoxin Securities, Guangfa Securities, 1st Venture s Shenz Organization 2013/1/24 Conference Security, Rongtong Foundation, and Bank of China Life hen investors (4) Insurance Shenz Telephone Organization Visiting 2013/1/25 Shenyin Wanguo the sites hen communication investors CITIC Securities, Cape Asset Management, Libang of Shenz Organization propertie 2012/1/25 Conference Investment Consultant, Unify Securities Investment & hen investors s on sale, Trust Shenz Organization providin 2013/1/29 Field research Huaxia Foundation g the hen investors Shenz Strategy Organization prospect 2013/1/31 Guoxin Securities Strategy Conference us hen conference investors Organization 2013/2/1 HK Conference Barclays investors Organization 2013/2/5 HK Field research Pinpoint Asset Mgt investors Shenz Organization 2013/2/7 Field research Nomura International, UBS, AMP Capital hen investors Shenz Organization 2013/2/22 Field research Barclays hen investors Suzh Organization 2012/2/26 Field research Huatai united ou investors Zhenj Organization 2013/2/27 Field research Zhongjin Co. iang investors Shenz Field research Organization Oriental Securities, Xincheng Foundation, Huaxia 2013/2/27 hen investors Foundation Shenz Field research Organization 2013/2/27 Guohai Securities hen investors Shenz Telephone Individual 2013/3/21 Bank of China International hen communication investors Shenz Telephone Organization 2013/3/22 Orient Securities hen communication investors Shenz Telephone Organization 2013/3/27 Goldman Sachs Gao Hua hen communication investors 6