China Vanke Co., Ltd.
2013 First Quarterly Report
§1 Important Notice
1.1 The Board, the Supervisory Committee, Directors, members of the Supervisory Committee and
senior management of the Company warrant that in respect of the information contained in this
Quarterly Report, there are no misrepresentations or misleading statements, or material omission,
and individually and collectively accept full responsibility for the authenticity, accuracy and
completeness of the information contained in this Quarterly Report.
1.2 None of the Directors, members of the Supervisory Committee and senior management fails to
assure or disputes with the authenticity, accuracy and completeness of the contents of this Quarterly
Report.
1.3 Deputy Chairman Qiao Shibo and Director Wei Bin were not able to attend the board meeting in
person due to their business engagements and had authorised Director Chen Ying to represent them
and vote on behalf of them. Director Yu Liang was not able to attend the board meeting in person due
to personal reasons and had authorised Director Xiao Li to represent him and vote on behalf of him.
1.4 This quarterly financial report of the Company has not been audited.
1.5 The Company’s Chairman Wang Shi, Director and President Yu Liang, and Executive Vice
President and Supervisor of Finance Wang Wenjin declare that the financial report contained in this
Quarterly Report is warranted to be true and complete.
§2 Basic Corporate Information
2.1 Major accounting data and financial guidance
(Unit: RMB’000)
As at 31 March 2013 As at 31 December 2012 Changes (%)
Total assets 418,181,891 379,094,858 10.31%
Equity attributable to equity
65,578,004 63,825,554 2.75%
shareholders of the Company
Share capital (share) 11,006,758 10,995,553 0.10%
Net assets per share attributable
to equity shareholders of the 5.96 5.80 2.64%
Company
1
January to March 2013 January to March 2012 Changes (%)
Revenue 13,195,692 9,752,549 35.31%
Profit attributable to equity
1,613,904 1,395,937 15.61%
shareholders of the Company
Net cash generated from (2,383,261) 1,280,121 -286.17%
operating activities
Net cash generated from (0.22) 0.12 -285.98%
operating activities per share
Basic earnings per share 0.15 0.13 15.50%
Diluted earnings per share 0.15 0.13 15.50%
Return on equity Decrease 0.11
2.49% 2.60%
(weighted average) percentage points
Note: 1. The net assets used to calculate the above net assets per share and return on equity refers to the equity
attributable to equity shareholders of the Company, while the profit used to calculate the earnings per share
refers to the profit attributable to equity shareholders of the Company.
2. The Company’s share capital during the reporting period increased by 11,204,441 shares due to the exercise of
certain stock options under the A-Share Stock Option Incentive Scheme.
2.2 Total number of shareholders and shareholdings of the top 10 shareholders of non-restricted
tradable shares as at the end of the reporting period
As at the end of 31 March 2013, the total number of shareholders of the Company was 704,231
(including 687,129 holders of A shares and 17,102 holders of B shares).
Total number of shareholders as at the end of the reporting period 704,231
Shareholdings of the top 10 shareholders of non-restricted tradable shares
Total number of non-restricted tradable
Name of shareholders (in full) shares held as at the end of the reporting Type
period
China Resources Co., Limited (“CRC”) 1,619,094,766 A Share
China Life Insurance Company Limited–Dividend
Distribution–Individual Dividend-005L – FH002 135,174,078 A Share
Shen
Liu Yuansheng 133,791,208 A Share
Bank of China – E Fund Shenzhen Stock
115,561,278 A Share
Exchange 100 Exchange-Traded Fund
Bosera Value Growth Securities Investment Fund 102,837,764 A Share
HTHK/CMG FSGUFP-CMG FIRST STATE
100,764,267 B Share
CHINA GROWTH FD
ICBC - Rongtong Shenzhen Stock Exchange 100
93,647,784 A Share
Index Securities Investment Fund
China Minsheng Bank - Yinhua Shenzhen 100
90,339,964 A Share
Index Classified Securities Investment Fund
UBS AG 78,721,210 A Share
Staff Committee of China Vanke Co., Ltd. 67,168,517 A Share
As at the end of 31 March 2013, the total number of shares of the Company was 11,006,757,559,
including 9,691,802,091 A shares and 1,314,955,468 B shares.
2
2.3 Bond holdings of the Company’s top 10 bondholders as at the end of the reporting period
(1) Name of the top 10 bondholders of 08 Vanke G1 bonds and their bondholdings
No. Bondholder No. of bonds held
New China Life Insurance Company–Dividend Distribution–Individual Dividend -
1 5,548,262
018L - FH002 Shen
2 China Petroleum Finance Co., Ltd. 4,157,662
3 China Pacific Insurance (Group) Co. Ltd. 3,433,312
4 China Life Insurance Company Ltd. 3,085,862
China Ping An Property and Casualty Insurance Company Limited – Traditional –
5 2,698,727
General Insurance Products
6 Taiping General Insurance Company Limited 1,003,216
China Life Property and Casualty Insurance Company Limited –Traditional – General
7 829,133
Insurance Products
8 China Property & Casualty Reinsurance Company Ltd. 776,162
9 Haitong-BOC-Futong Bank 722,532
China Ping An Life Insurance Company Limited – Traditional – General Insurance
10 542,000
Products
(2) Name of the top 10 bondholders of 08 Vanke G2 bonds and their bondholdings
No. Bondholder No. of bonds held
1 Pacific Asset Management Co., Ltd. - Pacific Prudent Financial Plan One 2,410,130
2 Agricultural Bank of China Limited 1,080,717
3 Hongta Securities Co., Ltd. 928,000
4 CNPC Pension Scheme – ICBC 788,960
5 Bank of China – Manulife Teda Total Return Bond Fund 760,500
6 Xinghua Securities Investment Fund 650,000
7 Industrial Bank Co., Ltd. - Tianhong Yongli Bond Fund 606,730
8 CCB - Penghua Fengrun Bond Fund 599,993
9 ICBC – Rongtong Suisui Tianli Bond Fund 592,101
10 Postal Saving Bank of China – Penghua Fengze Classification Bond Fund 570,404
§3 Management Discussion and Analysis
The sales area of commodity residential housing in 14 cities, including Beijing, Shanghai, Shenzhen,
Guangzhou, Tianjin, Shenyang, Hangzhou, Nanjing, Chengdu, Wuhan, Dongguan, Foshan, Wuxi and
Suzhou, in January and February of the previous year was at its lowest since 2007. As the comparative
figure was relatively small, the sales area in these cities in the first quarter of this year saw a
significant year-on-year growth of 64.4%.
3
During the reporting period, the approved pre-sales area of the aforesaid 14 cities increased by 29.5%
year-on-year, indicating supply growth starting to lag behind the growth in sales. In March, the sales
area of commodity housing to approved pre-sales area of new housing ratio rose to 1.44 from 1.10 at
the beginning of the year; inventory of saleable new homes (those that have obtained sales permit but
have not yet been sold) dropped from 116 million sq m at the beginning of the year to 108 million sq
m, but was merely lower than its historical high by a slight degree.
Major cities had increased land supply since the second half of 2012. Compared to previous years,
there was a relatively sufficient supply of land in the first quarter. The area of land supply and sold in
the 16 major cities where statistics are accessible by the public (including Shenzhen, Guangzhou,
Dongguan, Foshan, Shanghai, Hangzhou, Nanjing, Suzhou, Ningbo, Beijing, Tianjin, Shenyang,
Dalian, Chengdu, Wuhan and Chongqing) increased by 46.6% and 39.0%, respectively, on a
year-on-year basis. With robust sales, more land lots changed hands with a price premium, while the
percentage of aborted auctions dropped to 8%, being the lowest rate since 2011.
During the reporting period, according to the six measures promulgated by the government to
strengthen regulation, curbing speculation- and investment-driven housing purchase and supporting
home purchase by end users will continue to be the focus of regulation. The Company will continue to
persevere with the strategies of “building quality housing for ordinary people” and “building
affordable and liveable homes”, actively adapt to the business environment and change in market
conditions, increase research on customer needs and ensure a right product mix meeting market needs.
In the first quarter, the Company achieved an accumulated sales area of 3.715,000 sq m, with a sales
amount of RMB43.65 billion, representing increases of 23.5% and 40.5%. Among the residential units
sold, homes smaller than 90 sq m accounted for 45%, while homes smaller than 144 sq m took up
90%. Small to medium sized ordinary commodity housing remained the major product of the
Company.
In Guangshen region, the Company realized a sales area of 1,286,000 sq m and sales revenue of
RMB16.04 billion; in Shanghai region, sales area and sales revenue amounted to 791,000 sq m and
RMB11.22 billion respectively; in Beijing region, sales area and sales revenue amounted to 962,000
sq m and RMB10.57 billion respectively; and in Chengdu region, sales area and sales revenue
amounted to 677,000 sq m and RMB5.81 billion respectively.
During the reporting period, the Company realized a booked area and booked revenue of 1,234,000 sq
m and RMB12.55 billion respectively, representing year-on-year increases of 63.7% and 31.5%
respectively. Meanwhile, the Company realized operating revenue and net profit of RMB13.20 billion
and RMB1.61 billion respectively, representing year-on-year increases of 35.3% and 15.6%
respectively. The booked gross profit margin of the Company’s property business declined by 2.4
percentage points from 30.8% in the corresponding period of last year to 28.4%, which was higher
than 27.4% of the full year of 2012.
As at the end of the first quarter, the Company had an area of 15,767,000 sq m sold but not yet booked
in the consolidated statements as construction had yet to be completed. This area and its
corresponding contract amount of approximately RMB169.54 billion represented increases of 16.4%
and 18.0% respectively when compared with those of the beginning of the year.
As at the end of the reporting period, the Company’s net gearing ratio was 29.6%, while cash held by
the Company amounted to RMB52.26 billion, which was more than the sum of short-term borrowings
and long-term borrowings due within one year of RMB44.07 billion. The Company had a sound and
solid financial position.
4
In the first quarter, the Company achieved a floor area commenced construction of 4,020,000 sq m
and completed area of 1,031,000 sq m, accounting for 24.3% and 8.0% of the annual plan.
As at the end of the reporting period, the completed properties (properties ready for sale) amounted to
RMB14.29 billon, accounting for 4.95% of the Company’s inventory, representing a decrease of 1.36
percentage points from that at the beginning of the year.
During the reporting period, the Company acquired 21 new development projects, with a site area
attributable to Vanke's equity holding of approximately 1.80 million sq m (corresponding planned
GFA of approximately 5.13 million sq m) and an average land premium per floor area of
approximately RMB2,776/sq m. In future, the Company will continue to adhere to a prudent project
development strategy, monitor the land market for any possible opportunities, and replenish its land
bank for future development needs in a reasonable manner.
§4 Significant Events
4.1 Significant changes and reasons for such changes in major items of the accounting
statements and financial guidance of the Company
√Applicable □Not applicable
31 March 2013 31 December 2012 Change
Items Reasons for change
(RMB'000) (RMB'000) (+/-)
Current liabilities - Loans and
44,066,542 35,557,359 23.93% Change in debt structure
borrowings
Current taxation 6,450,413 8,720,876 -26.03% Paid tax at the beginning of this year
January to March January to March
Change
Items 2013 2012 Reasons for change
(+/-)
(RMB'000) (RMB'000)
Turnover
13,195,692 9,752,549 35.31% Increase in booked sales
Cost of sales Increase in land, construction and
(8,807,186) (6,046,667) 45.65%
installation cost of booked projects
Finance costs (444,480) (278,663) 59.50% Increased in the borrowings
Share of profits less losses of
(4,564) (14,728) Increased in profit of associates
associates 69.01%
Share of profits less losses of Decreased in profit of jointly controlled
39,612 90,991
jointly controlled entities -56.47% entities
4.2 Progress of significant events and analysis of their impact and solutions
√Applicable □Not applicable
1. A-Share Stock Option Incentive Scheme
On 8 April 2011, the first extraordinary general meeting of the Company considered and passed the Company’s
A-Share Stock Option Incentive Scheme (Revised Draft) and related matters. The Company’s A-Share Stock Option
Incentive Scheme (“Scheme”) was thereby implemented. On 9 May 2011, the registration of the grant of stock
options was completed. The Company granted 108,435,000 stock options to 810 beneficiaries. The abbreviation of
the stock options is Vanke JLC1 while the stock option code is 037015.
The initial exercise price of the stock options was RMB8.89. The Company implemented the proposal on
dividend distribution for the year 2010 on 27 May 2011, and distributed a cash dividend of RMB1.0 (including tax)
to all shareholders for every 10 existing shares held. In accordance with the relevant regulations and the resolutions
passed at the shareholders meeting, the Board made adjustment to the exercise price of the stock options to
RMB8.79. The Company implemented the proposal on dividend distribution for the year 2011 on 5 July 2012, and
5
distributed a cash dividend of RMB1.3 (including tax) to all shareholders for every 10 existing shares held. The
Company made a further adjustment to the exercise price according to the provisions. The adjusted exercise price
was RMB8.66.
Upon the completion of the relevant procedures for approval, the Scheme entered the first exercise period on 12
July 2012. There were 342,900 stock options in 2012. During the reporting period, there were a total of 11,204,441
stock options exercised by 150 beneficiaries. Owing to the exercise of some of the stock options and the departure of
some of the beneficiaries, the total number of vested stock options not yet exercised decreased to 81,182,159 at the
end of the reporting period.
The introduction of the Scheme complements the Company’s incentive instruments with a long-term plan, while
establishing a check-and-balance mechanism between shareholders and professional management team through
linking up their interests. The Scheme will further improve the Company’s corporate governance structure and
strengthen the Company’s competitiveness.
2. Change of Listing Location of Domestically Listed Foreign Shares (“B shares”) of the Company and Listing
& Trading on the Main Board of The Stock Exchange of Hong Kong Limited (“SEHK”) by Way of
Introduction
On 19 January 2013, the Company announced Proposal for Change of Listing Location of Domestically Listed
Foreign Shares of China Vanke Co., Ltd. and Listing & Trading on the Main Board of The Stock Exchange of Hong
Kong Limited by Way of Introduction. On 4 February, the Proposal was passed at the first extraordinary general
meeting in 2013. On 7 February, the Company received a confirmation letter regarding the processing of the
application for administrative licence issued by China Securities Regulatory Commission. The Company also
received a confirmation letter regarding the relevant matter from the SEHK on 15 February 2013. After the
Company announced its 2012 annual results on 28 February, the Company submitted additional information
including 2012 annual results for its application. The application is currently in progress.
The change of listing location of the Company’s B shares to SEHK is conducive to enhancing the Company’s
visibility, expanding its international business, enabling the Company to leverage overseas resources and markets to
reinforce the Company’s core competitiveness.
4.2.1 Qualified opinion
□Applicable √Not applicable
4.2.2 The signing and implementation of major contracts for daily operation
□Applicable √Not applicable
4.2.3 Others
□Applicable √Not applicable
4.3 Implementation of the undertakings given by the Company, shareholders and beneficial
controllers
√ Applicable □Not applicable
Undertaking Undertaker Details Implementation
CRNC – the parent company of CRC, being the
Company’s original single largest shareholder and the
present single largest shareholder, gave a significant
undertaking to the Company in 2001: CRNC would
provide as much support to the Company as it did in
China Resources National CRNC has
Other the past, as long as such support was beneficial to the
Corporation fulfilled its
undertakings Company’s development, and that it would remain
(“CRNC”) undertakings
impartial in the event of any competition between the
investment projects of the Company and that of
CRNC and its subsidiaries, and in the event of any
disagreements or disputes arising from horizontal
competition.
6
4.4 Warning of and explanation for the accumulated net profit from the beginning of the year to
the end of the next reporting period forecast to be a probable loss or to be significantly differed
from that of the corresponding period of the previous year
□Applicable √Not applicable
4.5 Other major events and their explanations
4.5.1 Securities investments
□Applicable √Not applicable
4.5.2 Equity interests held in other listed companies
√Applicable □Not applicable
(Unit: RMB)
Changes in
Gains/(losse equity
Initial Percentage Book value
Stock Stock s) during the attributable to
investment of as at the end
code abbreviation reporting equity
amount shareholdings of the period
period shareholders
during the
SST Tianjin
600751 Marine 143,600.00 0.04% 143,600.00 - -
Shipping
Total 143,600.00 - 143,600.00 - -
Note: Equity interests of SST Tianjin Marine Shipping Co., Ltd held by the Company are legal person shares held over the years. Up
till now, the SST Tianjin Marine Shipping Co., Ltd has not undergone share reform.
4.5.3 Investor relations activities such as meetings, communications and visits during the
reporting period
Issues
Type of discussed and
Time Location Approach Classification of visitors
activities information
provided
Face to face Investors including securities (I) Major
BNP meeting 2013.1 Hong Kong issues
meeting companies, funds, etc.
Nomura discussed:
Face to face Investors including securities (1) The
Securities 2013.1 Hong Kong
meeting companies, funds, etc.
meeting Company’s
Credit Suisse Face to face Investors including securities daily
2013.1 Hong Kong operations;
meeting meeting companies, funds, etc.
Barclays Face to face Investors including securities (2) The
2013.1 Hong Kong Company’s
meeting meeting companies, funds, etc.
development
Guotai Junan Face to face Investors including securities
2013.3 Shenzhen strategies;
meeting meeting companies, funds, etc. (3) The
CLSA Face to face Investors including securities Company’s
2013.1 Hong Kong
meeting meeting companies, funds, etc. opinion on the
Hong Kong, changes in the
Annual Investors including securities
Shenzhen Face to face industry.
Results 2013.2 companies, funds, individual
(Shanghai, meeting
Presentation investors, etc.
Beijing)
(II) Major
CLSA Face to face Investors including securities information
2013.2 Hong Kong
meeting meeting companies, funds, etc. provided:
Credit Suisse Face to face Investors including securities Published
2013.3 Hong Kong
meeting meeting companies, funds, etc. information
JP Morgan Face to face Investors including securities including the
2013.3 Hong Kong Company’s
meeting meeting companies, funds, etc.
CLSA Face to face Investors including securities regular reports.
2013.3 Hong Kong
meeting meeting companies, funds, etc.
Barclays Face to face Investors including securities
2013.3 Hong Kong
meeting meeting companies, funds, etc.
7
Credit Suisse
Face to face Investors including securities
Securities 2013.3 Hong Kong
meeting companies, funds, etc.
meeting
Shenyin
Face to face Investors including securities
Wanguo 2013.3 Shenzhen
meeting companies, funds, etc.
meeting
Note: The above-mentioned meetings included one-on-one meetings, small group meetings and
large group presentation. The Company received or met with investors from over 50 companies.
Shenzhen,
Dongguan, Citibank, Shenyin Wanguo, Guotai
Sanya, Fuzhou, Junan, CITIC Securities, UBS, JP
Xiamen, Morgan, Deutsche Bank, Morgan
Changsha, Stanley, Naito Securities, CITIC
Shanghai, Construction Securities, Dongxing
Jiading, Suzhou, Securities, Nomura Securities, CICC,
Durin
Nanjing, Small Barclays, Goldman Sachs Gao Hua,
g the Hangzhou, Guoxin Securities, CLSA, HSBC,
Securities group or
reporti Hefei, Ningbo, Shanghai Securities, Galaxy
companies one-on-on Securities, Credit Suisse Securities,
ng Wenzhou,
Beijing, e GF Securities, Goldman Sachs,
period Standard Chartered Bank, Macquarie,
Shenyang,
Anshan, BOCI, China Everbright Securities,
Qingdao, Changjiang Securities, BNP, Jefferies,
Taiyuan, Wuhan, DBS Vickers (HK) Ltd, etc.
Chengdu,
Chongqing,
Xian, etc.
Ping An Asset, Orient Securities Asset
Management, Bosera Fund, Southern
Fund, Rongtong Fund, CIFM Asset
Management, GF Fund, E Fund,
China Universal Asset Management
(HK) Limited, Wanjia Asset, Taikang
Shenzhen,
Assets, China AMC, Harvest Fund,
Dongguan,
Dacheng Fund, ICBC Credit Suisse
Sanya, Fuzhou,
Fund, China Life, Invesco Great Wall
Xiamen,
Fund, Yinhua Fund, HFT Investment,
Changsha,
Hua An Fund, China Universal Fund,
Fund and Shanghai,
Penghua Fund, Huatai-PineBridge
other Durin Jiading, Suzhou,
Fund, SYWG BNP Paribas, UBS
Nanjing, Small
investment g the SDIC Fund, Argyle Street
Hangzhou, group or Management, Fidelity, Dodge & Cox,
companies reporti Hefei, Ningbo,
one-on-on Matthews International Capital
and ng Wenzhou,
Management, BEA Union,
Beijing, e
individual period Templeton, RCM Asia Pacific
Shenyang,
investors Limited. Myriad Asset Management,
Anshan,
Capital Research, Franklin Templeton
Qingdao,
Investments (Asia) Limited, Goldman
Taiyuan, Wuhan,
Sachs Asset Management
Chengdu,
International. Keywise Capital
Chongqing,
Management (HK) Limited, Lazard
Xian, etc.
Asset Management LLC、Morgan
Stanley Investment Management Inc,
Pictet Asset Management SA,
PLATINUM, Columbia
Management、STICHTING, T Rowe
Price, Lion Global Investors, Baring
8
Asset Management, Mirae Asset
Global, SAC Capital, Geosphere,
Capital Land, Invesco, Aberdeen,
Alliance Bernstein, ACQ, Wellington
Asset Mgt, Libra Capital
Management (HK) Ltd, Zeal Asset,
Standard Pacific, Primero Investment
Limited, Trivest Advisors, UG Funds,
ChinaRock Capital Management,
Neuberger Berman, EFMI, Prime
Capital, Goldman Sachs Asset
Management, Value Partners,
Seatown, Henderson Global
Investors, JP Morgan Asset, Asuka
Corporate Advisory, BT Investment,
CIMB-Principal Asset Management
Berhad, Ashmore Group, etc.
4.5.4 Other major events and their explanations
√Applicable □Not applicable
(1) The Company did not provide any funds for use by its controlling shareholder and its related parties, nor did the
Company provide any guarantee to third parties in violation of regulations and procedures.
(2) Corporate bonds of the Company
During the reporting period, the Company has good credit standing. There was no change in the corporate bonds
namely “08 Vanke G1” and “08 Vanke G2” issued by the Company.
(3) On 11 May 2012, the Company’s annual general meeting of 2011 authorised the Board to determine, within
RMB10.59 billion, the continuous cooperation with China Resources (Holdings) Co., Ltd. and its connected
companies (collectively “CRH”), including entering into a loan agreement with China Resources Bank of Zhuhai
Co., Ltd., using the funds under China Resources SZITIC Trust Co., Ltd. and Harvest Capital Partners Limited,
and joint investment with China Resources SZITIC Trust Co., Ltd. and Harvest Capital Partners Limited. The
granted authority is valid for a period of one year. During the reporting period, Shanghai Vanke Investment
Management Co., Ltd., a wholly owned subsidiary of the Company, transferred its 39% equity interests of
Shanghai Hongqiao Project No. 11 to Shenzhen Huawei Xincheng No. 1 Partnership Enterprise (limited
partnership) (深圳市华威欣城一号投资合伙企业) (“Huawei Xincheng”) to jointly develop the Shanghai
Hongqiao Project No. 11. Harvest Capital Partners Limited and China Resources SZITIC Trust Co., Ltd.
respectively hold 51% and 49% equity interests in Shenzhen Huawei Yongsheng Management Co., Ltd. (深圳市
华威永盛企业管理有限公司), which is a general partner of Huawei Xincheng. Apart from this, there were no
other connected transactions that the Company conducted with its relevant connected parties.
The resolutions approved at 2012 annual general meeting on 20 March 2013 authorized the Board to decide on the
continuous cooperation with CRH. The validity of the granted authority was adjusted to two years, while the
aggregate authorized amount was adjusted to not more than RMB12.7 billion per year (i.e. not more than 20% of
the audited net assets value of the Company as at the end of 2012). During the reporting period, new cooperation
was yet to implement.
(4) Establishment of internal control
In 2013, the Company continued to adopt a pragmatic internal control approach to establish the internal control
process. It also continued to promote internal control in respect of a specialized field based on a specific theme of
9
internal control for each month, and conduct internal control inspection in order to recommend the best internal
control practices. According to the requirement for change of listing location of B share of the Company to the
SEHK, the Company will, taking to account the requirements of the rules of SEHK, further revise and fine-tune
its internal control system.
4.6 Investment in derivatives
√Applicable □Not applicable
In order to limit the risk associated with the fluctuations of interest rate, the
Company entered into an interest rate swap (“IRS”) agreement to hedge
Remarks on risk analysis and management
floating rate foreign currency loan. The Company would charge the
of derivative positions during the reporting
counterparty an interest according to a floating rate, in order to pay the
period (including but not limited to market
floating-rate interest to the original lender, while paying a fixed rate to the
risk, liquidity risk, credit risk, operational
counterparty. In terms of the time limit and amount of the foreign currency
risk and legal risk, etc.)
loan, IRS limits the risk of fluctuations of interest rate through fixed forward
rate.
Change in market price or fair value of the
derivatives invested
The effect of the change in the IRS value on the Company’s profit and loss
during the reporting period, as well as the
during the reporting period amounted to RMB1,461,267. The value of the
method, related assumptions and
IRS was determined based on the fair value assessed on 31 March 2013.
parameters used to analyze the fair value
of derivatives should be disclosed
Remarks on whether there has been a
material change in the accounting policy
and accounting measurement principles for
Nil
the Company’s derivatives during the
reporting period as compared with those of
the previous reporting period
The Company’s independent directors are of the view that financial
Special advice on derivative investment
instruments such as IRS prevent the possible loss associated with foreign
and risk control by independent directors,
currency loan in the event of significant fluctuations in interest rate. The
sponsors and financial advisors
relevant arrangement of the Company has been prudent and reasonable.
4.6.1 Derivative positions as at the end of the reporting period
√Applicable □Not applicable
(Unit: RMB ’000)
Contract amount as at
the end of the period as
Contract amount as at Contract amount as
Profit/loss during the a percentage of the
Type of contracts the beginning of the at the end of the
reporting period Company’s net assets
period period
as at the end of the
reporting period
Interest rate swap (IRS) 2,553,798.65 2,547,054.07 1,461.27
3.01%
agreement
Total 2,553,798.65 2,547,054.07 1,461.27 3.01%
10
Consolidated income statement
for the period ended 31 March 2013
(Expressed in Renminbi Yuan)
2013 2012
Jan.–Mar. Jan.–Mar.
RMB’000 RMB’000
Revenue 13,195,692 9,752,549
Cost of sales (8,807,186) (6,046,667)
Gross profit 4,388,506 3,705,882
Other revenue 157,093 159,335
Other net income 18,804 70,752
Distribution costs (623,399) (582,236)
Administrative expenses (589,614) (520,165)
Other operating expenses (29,625) (44,348)
Profit from operations 3,321,765 2,789,220
Finance costs (444,480) (278,663)
Share of profits less losses of associates (4,564) (14,728)
Share of profits less losses
of jointly controlled entities 39,612 90,991
Profit before taxation 2,912,333 2,586,820
Income tax (1,122,964) (1,056,273)
Profit for the period 1,789,369 1,530,547
Attributable to:
Equity shareholders of the Company 1,613,904 1,395,937
Non-controlling interests 175,465 134,610
Profit for the period 1,789,369 1,530,547
Basic earnings per share (RMB) 0.15 0.13
11
Consolidated statement of comprehensive income
for the period ended 31 March 2013
(Expressed in Renminbi Yuan)
2013 2012
Jan.–Mar. Jan.–Mar
RMB’000 RMB’000
Profit for the period 1,789,369 1,530,547
Other comprehensive income (after tax and
reclassification adjustments)
Exchange differences on translation of financial
statements of overseas subsidiaries (4,709) (39,652)
Available-for-sale securities: net movement in
the fair value reserve - -
(4,709) (39,652)
Total comprehensive income for the period 1,784,660 1,490,895
Attributable to:
Equity shareholders of the Company 1,609,195 1,356,285
Non-controlling interests 175,465 134,610
Total comprehensive income for the period 1,784,660 1,490,895
12
Consolidated statement of financial position
at 31 March 2013
(Expressed in Renminbi Yuan)
31 Mar 2013 31 Dec 2012
RMB’000 RMB’000
Non-current assets
Property, plant and equipment 3,165,819 3,132,540
Goodwill 201,690 201,690
Investment properties 1,814,362 1,714,136
Interest in associates 2,896,998 2,915,844
Interest in jointly controlled entities 4,207,819 4,043,247
Other financial assets 108,479 85,979
Other non-current asset 1,077,232 879,582
Deferred tax assets 3,487,574 3,219,894
16,959,973 16,192,912
Current assets
Inventories 288,776,670 253,622,152
Trade and other receivables 60,186,560 56,988,250
Pledged deposits 1,297,816 1,171,318
Cash and cash equivalents 50,960,872 51,120,224
401,221,918 362,901,944
Current liabilities
Loans and borrowings 44,066,542 35,557,359
Financial derivative 24,300 25,761
Trade and other payables 248,695,867 215,529,570
Current taxation 6,450,413 8,720,876
299,237,122 259,833,566
Net current assets 101,984,796 103,068,378
Total assets less current liabilities 118,944,769 119,261,290
13
Consolidated statement of financial position
at 31 March 2013(continued)
(Expressed in Renminbi Yuan)
31 Mar 2013 31 Dec 2012
RMB’000 RMB’000
Non-current liabilities
Loans and borrowings 33,235,360 36,036,070
Deferred tax liabilities 1,007,481 1,027,055
Provisions 51,079 44,292
Other non-current liabilities 24,421 15,678
34,318,341 37,123,095
NET ASSETS 84,626,428 82,138,195
CAPITAL AND RESERVES
Share capital 11,006,758 10,995,553
Reserves 54,571,246 52,830,001
Total equity attributable to equity shareholders
65,578,004 63,825,554
of the Company
Non-controlling interests 19,048,424 18,312,641
TOTAL EQUITY 84,626,428 82,138,195
)
)
) Directors
)
）
14
Consolidated cash flow statement
for the three months ended 31 March 2013
(Expressed in Renminbi Yuan)
2013 2012
Jan.–Mar. Jan.–Mar
RMB’000 RMB’000
Cash received from sales of products 32,818,691 21,280,298
Other cash received from business operating
activities 7,224,739 2,683,234
Cash generated from operating activities 40,043,430 23,963,532
Cash paid for purchasing of merchandise and
services 32,088,269 13,456,878
Cash paid to employees or paid for employees 1,628,003 1,166,860
Cash paid for tax 6,140,089 5,013,645
Other cash paid for business operating activities 2,570,330 3,046,028
Cash used in operating activities 42,426,691 22,683,411
Net cash used in operating activities (2,383,261) 1,280,121
Proceeds from sales of investments 31,983 4,000
Dividends received 78,400 8,550
Proceeds from disposal of property, plant and
equipment 656 29
Proceeds from other investment activities 157,507 78,004
Cash generated from investing activities 268,546 90,583
Acquisitions of property, plant and equipment and
construction in progress 24,459 39,048
Acquisitions of interest in associates, jointly
controlled entities and other investments 121,260 71,450
Acquisitions of subsidiaries,net of cash acquired 825,065 149,580
Cash used in investing activities 970,784 260,078
Net cash used in investing activities (702,238) (169,495)
15
Consolidated cash flow statement
for the three months ended 31 March 2013
(Expressed in Renminbi Yuan)
2013 2012
Jan.–Mar. Jan.–Mar
RMB’000 RMB’000
Capital injections from non-controlling interests of
subsidiaries 347,700 -
Net proceeds from issue of shares upon placing - 66,613
Proceeds from loans and borrowings 11,116,574 12,577,474
Proceeds from issue of corporate bonds 4,944,738 -
Proceeds from issue of corporate bonds 85,052 -
Cash generated from financing activities 16,494,064 12,644,087
Repayment of loans and borrowings 11,872,320 7,957,741
Dividend paid to equity shareholders of the
Company and Interest paid 1,687,259 1,064,324
Cash used in financing activities 13,559,579 9,022,065
Net cash generated from financing activities 2,934,486 3,622,022
Effect of foreign exchange rates (8,339) (4,081)
Net increase/(decrease) in cash and cash
equivalents (159,352) 4,728,567
Cash and cash equivalents at 1 January 51,120,224 33,614,112
Cash and cash equivalents at 31 March 50,960,872 38,342,679
16
