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
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
Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
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
Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
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
Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
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
Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
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.
Full Text of 2015 Semiannual Report of China Merchants Property Development Co., Ltd.
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 Co
