1
Semi-Annual Report 2014
Announcement No.:【CMPD】2014-046
Important Notice
Board of Directors, Supervisory Committee of China Merchants Property Development Co., Ltd.
(hereinafter referred to as the Company) and its directors, supervisors and senior executives hereby gurantee
the authenticity, accuracy and integrality of the content of this report, confirm that there are no any important
omissions, fictitious statements or serious misleading information carried in this report, and shall take all
responsibilities, individual and/ or joint.
All directors in the Company attend the board meeting for reviewing this report.
The Semi-annual Financial Report of the Company is not audited.
Sun Chengming-Legal Representative, Wu Zhenqin-Chief Financial Officer, and Li Shifang-Manager of
Accounting Department hereby confirm that the Financial Report enclosed in the Semi-annual Report is true
and complete.
The company plans not to distribute cash bonus, not send bonus shares and not turn accumulation fund to
increase subscribed in this report period.
This report has been prepared in Chinese and English version respectively. In the occurance of
differences due to interpretations of both versions, the Chinese report shall prevail.
This report can not be regarded as commitment with respect to future plans and forwarding-looking
statements, investors please be aware of the investment risk.
Content
Chapter 1. Important Notice, Content & Definitions . 1
Chapter 2. Company Profile . 3
Chapter 3. Financial Summary . 5
Chapter 4. Report of the Board of Directors . 7
Chapter 5. Significant Events . 24
Chapter 6. Changes in Share Capital and Particulars about Shareholders . 35
Chapter 7. Particulars about Directors, Supervisors and Senior Executives. 39
Chapter 8. Financial Report . 42
Chapter 9. Directory of the Documents Available for Inspection . 211
Paraphrases
Unless specified in the report, the following abbreviations possess the meanings as follows:
Paraphrase item Refers to Paraphrase content
SASAC Refers to State-owned Assets Supervision and Administration Commission of the State Council
CSRC Refers to China Securities Regulatory Commission
SZSE Refers to Shenzhen Stock Exchange
The Company Refers to China Merchants Property Development Co., Ltd.
China Merchants Group Refers to China Merchants Group Ltd.
Shekou Industrial Zone Refers to China Merchants Shekou Industrial Zone Co., Ltd.
Top Chief Refers to Top Chief Co., Ltd.
Full Space Investment Refers to Full Space Investment Ltd.
Zhangzhou Development Zone Refers to China Merchants Zhangzhou Development Zone Co., Ltd.
CMPS Refers to Shenzhen China Merchants Power Supply Co., Ltd.
Zhuhai CMRE Refers to China Merchants (zhuhai) Real Estate Co., Ltd
Wuhan CMRE Refers to China Merchants (Wuhan) Real Estate Co., Ltd
Shenzhen CMRE Refers to Shenzhen China Merchants Real Estate Co., Ltd.
Beijing CMRE Refers to China Merchants (Beijing) Real Estate Co., Ltd.
Nanjing CMRE Refers to China Merchants (Nanjing) Real Estate Co., Ltd.
Zhangzhou CMRE Refers to China Merchants (Zhangzhou) Real Estate Co., Ltd.
Suzhou CMRE Refers to China Merchants (Suzhou) Real Estate Co., Ltd.
Xiamen CMRE Refers to China Merchants (Xiamen) Real Estate Co., Ltd.
Guangzhou CMRE Refers to China Merchants (Guangzhou) Real Estate Co., Ltd.
China Merchants Jia Ming Refers to China merchants Jia Ming (Beijing) Real Estate Development Co., Ltd.
Shanghai Fengyang Refers to Shanghai Fengyang Real Estate Co., Ltd.
Suzhou Shuanghu Refers to Suzhou Shuanghu Real Estate Co., Ltd.
Chongqing Merchants Land Refers to Chongqing Merchants Land Ltd.
China Merchants Overseas Chinese
Town
Refers to China Merchants Overseas Chinese Town Investment Co., Ltd.
Shenzhen Vanke Binhai Refers to Shenzhen Vanke Binhai Real Estate Co., Ltd.
Zhenjiang Yingsheng Refers to Zhenjiang Yingsheng Real Estate Development Co., Ltd.
Foshan Xinjie Refers to Foshan Xinjie Real Estate Co., Ltd.
Foshan Yiyun Refers to Foshan Yiyun Real Estate Co., Ltd.
Foshan Xincheng Refers to Foshan Xincheng Real Estate Co., Ltd.
China Merchants Properties and
Investment
Refers to Shenzhen China Merchants Properties and Investment Co., Ltd.
China Merchants Land Refers to China Merchants Land Ltd.
Hong Kong Ruijia Refers to Ruijia Investment Industrial Co., Ltd.Chapter 2. Company Profile
(I) Profile
Legal Name of the Company:
In Chinese:招商局地产控股股份有限公司(Abbr:招商地产)
In English: CHINA MERCHANTS PROPERTY DEVELOPMENT CO., LTD.(Abbr: CMPD)\
Legal Representative: Sun Chengming
Stock listed in: Shenzhen Stock Exchange Also listed with: Singapore Stock Exchange
Short Form of the Stock: CMPD, CMPD-B
Stock Code: 024, 200024
II. Contact and Contact way
Secretary of the Board: Liu Ning
Address: No.3 Building, Nanhai E Cool Park, No.6 Xinghua Road, Shekou Industrial Zone, Nanshan District,
Shenzhen
Post Code: 518067
Tel: 0755-26819600
Fax: 0755-26818666
E-mail: cmpdir@cmhk.com
III. Other Conditions
1. Company contact way
Registered Address: No.3 Building, Nanhai E Cool Park, No.6 Xinghua Road, Shekou Industrial Zone, Nanshan
District, Shenzhen
Office Address: No.3 Building, Nanhai E Cool Park, No.6 Xinghua Road, Shekou Industrial Zone, Nanshan
District, Shenzhen
Post Code: 518067
Company Web site: http://www.cmpd.cn
E-mail: cmpdir@cmhk.com
Official Micro-blog: Official Wechat:
2. Information disclosure and storage locations
Newspapers selected for Disclosing the Information of the Company: China Securities Journal, Securities Times,
Shanghai Securities News and Hong Kong Commercial Daily
Official Website for Publishing Annual Report authorized by CSRC: http://www.cninfo.com.cn
Place Where the Semi-Annual Report is Prepared and Placed: Secretariat of the Board of Directors
3. Registry change
Initial registration date: September 19th, 1990
Initial registration place: Shenzhen
Registration code for corporate business code: 440301503287841
Tax Registration No.: National Tax-Shen Zi 440300618845136
Code of Organization: 61884513-6
Main business change and all previous controlling shareholder change of the Company since the listing:
The Company is a listed company taking real estate development and management as main business from 2004.
Since listing, controlling shareholders have no change.
4. Other relates information
The certified public accountants hired by the Company
Name: Shinewing Certified Public Accountants Ltd.;
Office Address: 8F, Block A, Fuhua Mansion, 8 North Street of Chaoyangmen, Dongcheng District, Beijing
Signature certified public accountants: Guo Jinlong, Wang YamingChapter 3. Financial Summary
I Main accounting data and financial index
The Company does not make retroactive adjustment or restatement for the previous year accounting data due to
accounting policy alternative, correction of accounting error, etc.
Unit: RMB
Main accounting data This report period
The same period of
last year
Increase/decrease
Operating income 16,047,155,730.99 16,133,568,321.26 -0.54%
Net profit attributable to shareholders of the listed
company 1,785,434,748.85 2,550,631,034.51 -30.00%
Net profit attributable to shareholders of the listed
company after deducting non-recurring gains and
losses
1,842,876,971.45 2,217,672,984.41 -16.90%
Net cash flow from operating activities -7,332,324,397.12 -1,275,505,230.57 -474.86%
Basic earnings per share (RMB/share) 0.69 0.99 -30.30%
Diluted earnings per share (RMB/share) 0.69 0.99 -30.30%
Weighted return on equity (%) 6.53% 10.38% Decreased by 3.85%
End of the report
period
End of last year Increase/decrease
Total assets 140,954,002,966.06 134,040,446,989.65 5.16%
Net asset value attributable to shareholders of the
listed company
27,712,076,248.81 26,725,501,967.24 3.69%
Note：In the report period, The company implemented the project to transfer capital reserve to capital stock. According
to The 21th Memo of Information Disclosure –Related terms of Regular Report Disclosure from Shenzhen Stock
Exchange, The company have adjusted the EPS last year in the same period, based on the adjusted capital stock.
II. Influence of IAS Adjustment on Net Profit and Net Asset
Unit: RMB
Net profit attributable to the shareholders of
the listed company
Net assets attributable to the shareholders of
the listed company
This report period
The same period of
last year
The end of the report
period
The end of last year
By IAS 1,785,434,748.85 2,550,631,034.51 29,051,905,477.81 28,065,331,196.24
By Chinese Accounting
Standard
1,785,434,748.85 2,550,631,034.51 27,712,076,248.81 26,725,501,967.24
Difference between
home& abroad --
1,339,829,229.00 1,339,829,229.00
Of which: Adjustment of
goodwill --
1,339,829,229.00 1,339,829,229.00
Notes
For the current year, the net profit attributable to the shareholders of listed company is the same
under both Chinese Accounting Standard and International Accounting Standard. The main reason of
the adjustment on the net asset attributable to shareholders of listed company according to
International Accounting Standard was that according to the Chinese Accounting Standard and
relative regulations, the differences generated by consolidation of entities under same control shall
be adjusted into capital reserves, whereas the goodwill generated by consolidation shall be recorded
individually as assets according to the IAS.
III. Non-recurring gain and loss items and amount
Unit: RMB
Non-recurring gain and loss items
Amount from beginning of the year
to the end of the report
Gains/losses from the disposal of non-current assets -160,878.35
Government subsidies 25,262,476.52
Other non-operating income and expenses after deducting the above items -11,330,134.03
Other gain and loss items in accordance with the definition of non-recurring
gain and loss -63,138,644.29
Amount of influence of minority stockholder's interest -2,141,420.73
Impact on income tax -5,933,621.72
Total -57,442,222.60
Note: The Company adopts fair value measurement for long-term equity investment after right of control of China Merchants
Overseas Chinese Town Investment Co., Ltd. is changed. The stock right fair value is mainly inventory assessment appreciation, and
the long-term equity investment added value RMB 63,138,644.29 yuan determined by assessment appreciation is correspondingly
resold according to the ratio of inventory area actually carried forward by the Company to the inventory available area to be carried
forward when the right of control is changed from January to June in 2014.
Chapter 4 Report of the Board of Directors
I. Overview
Analysis on the market situation
China’s economic growth in the first half of the year dropped compared to the same period of last year.
However, it remained stable generally. The overall performance of the property industry was flat which was
affected by demand overdrawing of the last year and tight credit within the year. Both the amount and price of
commercial housing over the country decreased. The property market still focused on inventory in the first half of
the year and the property enterprises had weak willingness to increase the investment. The development
investment of property around the country from January to June was RMB 4.2019 trillion, increasing 14.1% over
the same period of the previous year. Growth continued to decline and the new construction area of the housing
was 801.26 million square meters, decreasing 16.4%.
The tightening of credit policy and the rising of financing costs is one of the crucial factors which caused the
sluggish property market in the first half of the year. The risk preference of the bank has been transferred since the
fourth quarter of last year, plus returned payments of sales being hindered, causing industrial funds tight as a
whole. The growth of capital which was in place for the property enterprises had been declining in the first half of
the year.
The differentiation trend in the industry and region is obvious when the market adjusts the price. Property
enterprises cope with the industrial changes from transformation of modes, diversification, being related to
finance by marriage, advancing oversea and Internet thinking. In the face of environmental change, the Company
observes calmly and resolves problems positively. While maintaining financial stability and abundance of capital
and meeting market challenges, it also explores actively new development opportunities.
Operation and management condition of the Company
In the face of the environmental changes, the Company focuses on marketing breakthrough by means of
measures such as strengthening analysis and judgment, guidance mechanism, process optimization and standard
construction. Taking the thirty anniversary of the establishment as an opportunity, the Company launched the
marketing policy of “double-digit blowouts”, namely “Storm in May” and “Plant feet firmly upon the ground at
thirty and thank you” to reinforce brand publicity and speed up sales accounting for the overall amount of the
project. In the report period, the Company accumulatively achieved the contracted sales area of 1.2182 million
square meets, down 10.47% compared with the same period of the previous year; the contracted sales amount was
RMB 17.9 billion, down 10.35% compared with the same period of the previous year; completing 90% of the
corporate sale objective of RMB 20 billion in the first half of the year.
In the report period, the Company adhered to prudent attitude and decided investment by sales. In the first
half of the year, newly added projects were 15 and additional project resources were 3.7021 million square meters,
of which the interest area was 3.4168 million square meters. With the landing of Xi’an project, the Company
achieved the strategic entry into the northwest region and the urban layout became more perfect. In the first half of
the year, the new construction area was 4.19 million square meters with 0.98 million square meters of the
completed area. The overall building area under construction was 10.77 million square meters as of the end of
June.Under the severe market environment, the Company made full use of the advantage of overseas financing
platform, vigorously developed new financing platform, strengthened cooperation with insurance and funds
institutions, raised funds through multiple channels and met the demand of business development. In the report
period, the Company fully tapped the financing potential of commercial property sector and revitalized existing
mature property to prepare for further capital operation in the future. The Company strictly controlled financial
costs and continued to optimize the debt structure. The lending rate maintained the lower level in the industry
under the condition of satisfying the demand. The synthetic fund cost of the Company in the first half of the year
was 5.00%. Newly added borrowing costs in the first half of the year slightly rose.
In the first half of the year, the Company accelerated the standardization of landing work, fully carried out
application and promotion of standardized results of the house type, refined decoration and the displaying area
and intensified the implementation of strategic purchasing through establishment of the supplier management
system and the ERP business system. Application and promotion of standardization and strategic purchasing not
only quickened the project turnover, but also effectively controlled the costs. In the first half of the year, the cost
of construction and installation per square meter decreased by RMB 65/square meter.
In the report period, the Company launched the draft of stock option incentives, steadily promoted long-term
incentives, tightly linked the benefit of staff, shareholders and the Company together, further improved the return
of shareholders and supported the steady development of the Company.
In the report period, the Company vigorously promoted the collaborative development in the merchant
industry and boosted the integration of industry and finance. Currently, the Company has conducted strategic
corporation with China Merchants Bank in the areas of marketing channel and community finance and achieved
share of partial channels, resources and clients with China Merchants Bank.
Based on the principle of growth with quality, the Company gave priority to major research, built a new
strategy of transformation and upgrading and formed the resultant force of the staff by system security to achieve
strategic landing. In the report period, the Company organized strategic development department, enhanced
medium- and long-term industrial trend study, systematically cleaned investment strategy and gain and loss of
obtaining the land, and rationally allocated corporate resources by matrix analysis of urban sustainable
development to improve the benefit of investment decision of the Company. The Company further proposed an
overall framework of business transformation and upgrade of “One foundation, two new roads and three fertile
lands”. One foundation means that the Company sticks to selection of cities and product upgrade of residential
property. The selection of cities is based on the developing potential of the city and the comprehensive ability of
urban companies; two new roads mean overseas expansion and cross-border innovation of the new economy;
three fertile lands refer to business of the property for healthy aged living, the characteristic industrial zone and
the cruise mother port city. The company specially set up corresponding topic research teams who have completed
a series of research results and persisted in the integration of theoretical research and pilot project which already
has preliminary effects.
In the report period, the Company was on the list of “2014 Comprehensive Strength TOP 10 of Shanghai and
Shenzhen Listed Property Companies”,“Financial Stability TOP 10”,“Wealth Creation Capacity TOP 10” and
“Investment Value TOP 10” jointly evaluated by State Council Development Research Center Enterprise Institute,
Institute of Property of Tsinghua University and China Index Research Institute; obtained titles of “2013
Comprehensive Annual Award of China Best Corporate Citizen” jointly selected by 21st Century Business Review
and 21st Century Business Herald,“2013 Best Main Board of Blue-chip Company” selected by Sina Finance and
“Chinese Blue Chip Property Enterprise” selected by Economic Observer. The performance of operation and
management of the Company gained full affirmation from the outside world.Forecast of the Company on the operation environment in the second half of the year and operation
thinking of the Company
The property market continued cooling down in the first half of the year. However, the market turnover in the
second half of the year is expected to rebound with the introduction and implementation of a series of relaxing
policy. Overall, adjustment of this time, slightly different from the previous two times, is mainly caused by
internal market factors such as the imbalance between supply and demand. Recovery of the market needs the
effective release of the demand. Therefore, the recovery which determines the market is slow. However, the
possibility of overall decline is also not high. Industry different
