Semi-Annual Report 2013
Announcement No.:【CMPD】2013-041
Chapter 1. Important Notice, Content & Definitions
Important Notice
Board of Directors, Supervisory Committee of China Merchants Property Development Co., Ltd.
(hereinafter referred as to 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.
Lin Shaobin-Legal Representative, Wu Zhenqin-Chief Financial Officer, and Xu Yixia-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 to send bonus shares and not to turn
accumulation fund to increase subscribed.
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.
Content
Chapter 2. Company Profile ................................................................................................................. 3
Chapter 3. Financial Summary ............................................................................................................. 5
Chapter 4. Report of the Board of Directors ......................................................................................... 7
Chapter 5. Significant Events ............................................................................................................. 21
Chapter 6. Changes in Share Capital and Particulars about Shareholders .......................................... 26
Chapter 7. Particulars about Directors, Supervisors and Senior Executives ....................................... 29
Chapter 8. Financial Report ................................................................................................................ 30
Chapter 9. Documents Available for Reference ................................................................................. 172
Paraphrases
Unless specified in the report, the following abbreviations possess the meanings as follows:
Paraphrase item Refers to Paraphrase content
CSRC Refers to China Securities Regulatory Commission
Shenzhen Securities Regulatory
China Securities Regulatory Commission Shenzhen Regulatory Bureau
Bureau Refers to
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.
Top Chief Refers to Top Chief Co., Ltd.
Shekou Industrial Zone Refers to China Merchants Shekou Industrial Zone Co., Ltd.
Shenzhen CMRE Refers to Shenzhen China Merchants Real Estate Co., Ltd.
China Merchants Properties and
Shenzhen China Merchants Properties and Investment Co., Ltd.
Investment Refers to
CMPS Refers to Shenzhen China Merchants Power Supply Co., Ltd.
China Merchants Property
China Merchants Property Management Co., Ltd.
Management Refers to
Tonic Industries Refers to Tonic Industries Holdings Ltd.
Hong Kong Ruijia Refers to Ruijia Investment Industrial Co., Ltd.
Full Space Investment Refers to Full Space Investment Ltd.
Chapter 2. Company Profile
I. 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
II. Legal Representative: Lin Shaobin
III. Secretary of the Board: Liu Ning
Securities Affair Representative: Zeng Fanyue
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
Email: cmpdir@cmhk.com
IV. 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
Postal Code: 518067
Company Website: http://www.cmpd.cn
E-mail: investor@cmpd.cn
V. Newspapers selected for disclosing the information of the Company: China Securities Journal, Securities Times,
Shanghai Securities News, Securities Daily and Hong Kong Commercial Daily
Official Website for releasingAnnual Report authorized by CSRC: http://www.cninfo.com.cn
Annual Report is prepared and placed: Secretariat of the Board of Directors
VI. Stock Exchange where the company‘s shares are listed in: Shenzhen Stock Exchange
Secondary Stock Exchange listed in: Singapore Stock Exchange
Short Form of the Stock: CMPD, CMPD-B
Stock Code: 000024, 200024
VII. Registry Changes of the Company within the Report Period
1. Initial registration date: September 19th, 1990
2. Initial registration place: Shenzhen
3. Business License No. of the Enterprise Legal Person: 440301503287841
4. Tax Registration No.: Shen di shui zi 440300618845136
5. Organization Certificate Code: 61884513-6
6. Main business operation changes and all previous controlling shareholders changes of the Company since the
listing
The company‘s predecessor is Merchants Shekou Port Service Co., Ltd.‘ and has operated port business as its core
business. On June 7th, 1993, the Company started trading both A and B shares on Shenzhen Stock Exchange Market.
During1998 and 1999, the Company had transferred the port related property to Shenzhen Industrial Zone in
exchange of the stock of Shenzhen CMRE and CMPS. As a result, the Company was holding accumulative 70% of
both companies‘ stock rights.
On July 21st, 2000, the Company renamed as \"China Merchants Shekou holding Co., Ltd.‖.
On July 13th, 2001, the remaining assets of Shekou Port held by the Company were exchanged with 25% of stock
rights of Shenzhen CMRE, CMPS and other companies held by Shekou Industrial Zone.
On June 24th, 2004, the Company renamed as ‖China Merchants Property Development Co., Ltd.‖ and became a
public-traded company operating real estate development and management as core business.
There is no change to controlling shareholders since the Company went public. VIII. The independent Certified
Public Accountants (CPA) hired by the Company: 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 Yaming
Chapter 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 alternatives, corrections of accounting error, etc.
(Unit: RMB)
The same period of
Main accounting data This report period Increase/decrease
last year
Operating income 60.05%
16,133,568,321.26 10,080,507,691.00
Net profit attributable to shareholders of the 2,550,631,034.51 1,220,525,897.00 108.98%
listed company 16,133,568,321.26
Net profit attributable to shareholders of the
listed company after deducting non-recurring 2,217,672,984.41 1,222,467,475.00 81.40%
gains and losses
Net cash flow from operating activities -1,275,505,230.57 2,420,308,063.00 -152.70%
Basic earnings per share (RMB/share) 1.49 0.71 109.86%
Diluted earnings per share (RMB/share) 1.49 0.71 109.86%
UP by 4.56
Weighted return on equity (%) 10.38% 5.82%
percentage points
End of the report period End of last year Increase/decrease
Total assets 117,495,958,302.94 109,197,242,683.06 7.62%
Net asset value attributable to shareholders of 25,664,393,512.84 23,393,515,534.13 9.71%
the listed company
II. Influence of IAS Adjustment on Net Profit and Net Asset (unaudited) (Unit: RMB)
Net profit attributable to the shareholders of the Net assets attributable to the shareholders of the
listed company listed company
The same period of End of the report
This report period End of last year
last year period
By IAS 2,550,631,034.51 1,220,525,897.00 27,004,222,741.84 24,733,344,763.13
By Chinese Accounting 2,550,631,034.51 1,220,525,897.00 25,664,393,512.84 23,393,515,534.13
Standard
Difference between
- - 1,339,829,229.00 1,339,829,229.00
home& abroad
Of which: Adjustment
- - 1,339,829,229.00 1,339,829,229.00
of goodwill
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
Notes 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
Gains/losses from the disposal of non-current assets -440,707.52
Government subsidies 2,198,400.00
Other non-operating income/expenditure net amount -5,370,543.81
Influences on minority shareholders‘ gains/losses -2,336,444.77
Impact on income tax -971,153.80
Disposal of subsidiary investment returns 339,878,500.00
Total 332,958,050.10
Chapter 4 Report of the Board of Directors
I. Overview
1. Analysis on the market situation
In the first half of the year, even under of the slow down of the economic growth and sluggish
industry, the property industry still welcomed the warm spring. Because of loosen of real estate
policies, sales price of real estate increase dramatically which allows compressed demand to be
released. Under these circumstances, the national sales area and sales volume both increased.
The market continued to warm up, and compared to the same period of the previous year, the
sales t of property enterprises in the first half-year rose greatly. Benefited from the acceleration of
sales, the capital reserves of the property enterprises turned good. Most of them had an optimistic
attitude towards the trend of the market, and thus start more intensified investment respectively.
From January to June, the property development investment in China was RMB 3680 billion,
increasing 20.3% compared to the same period of the previous year. The new construction area was
0.959 billion square meters, increasing 3.8% over the same period of the previous year, maintaining
the trend of small positive increase. Transactions in the land market were active, the average price
increased 20% over the same period of the previous year, and competition of the high-quality land of
first-line and second-line cities was fierce.
At the same time, the determination of the government on property regulation and control was
never changed. The releasing of the ―national five articles‖ reemphasized that restraining the
investment speculative demand is a long-term policy. The policy of ―purchase limit‖, ―loan limit‖
and ―price limit‖ was still strict. However, the focus of regulation of the central government has
already changed silently. Regulation and control of the real estate market showed de-administration
sign. It is changed to control the pricing through perfecting the long-term mechanism of regulation
and control; promoting guarantee housing policy and enlargement of the trial scope of property tax
etc.. It is promoting the long-term healthy development of the property market.
2. Operation and management condition of the Company
In 2013, based on the new starting point, the Company repositioned its own strategic
positioning and operation system., Created a plan and realize the plan of overall working tasks from
the objective and dialectic angle. Carefully studied the marco-environment. Emphasized on ―wolf‘s
nature‖ as company culture. The operation and management mode was increasingly mature.
In the recent years, the Company vigorously developed organization structure enhancement and
process reconstruction, and made phase achievement. In the first half-year, the headquarter
comprehensively strengthened project management, monitoring and supervision; promoted
management standardization and ERP standard application. These summed up a series of internal
management system templates, and assisted the city companies to establish and optimize the internal
management platform. The headquarter also advocated supporting well the first line and servicing
well the first line practically, bindingpart of the annual assessment indexes with the related
functional departments, and enhancing the team efficiency. At the same time, it developed
nationwide preaching of company culture and strategy breakdown, and strengthened communication
and coordination between the functional departments and the city companies.
In order to match with the scale development of the Company, the application and promotion of
product standardization was developed in an accelerated way. During the report period, the product
management center continued to deepen the research and development of all kinds of standardization
product lines, and added new technologies and contents on the established achievement frame. On
the other hand, the research and development of standardization center was landed, and the
construction of specific projects of individual cities took the lead to start. Broad application of
product standardization will help shortening the project overall development period, lowering the
cost and further enhancing the turnover rate.
During the report period, the Company fully utilized the window period of abundant market
capital, and made the prospective financing arrangement in advance. It insisted on simultaneous
promotion of capital operation and capital accumulation, strengthened cooperation between the
banks and the company, enhanced the bank line of credit, strictly controlled the comprehensive cost
of liabilities, well realized the capital dynamic management and optimization of liability structure,
and provided solid capital guarantee for the operation and development of the Company.
Continuing with the active and progressive development strategy of the previous year, at the
beginning of the period, the Company adopted the guideline of ―three fast‖—‖fast construction, fast
sales and fast market entry‖, firmly grasped the market warming up period, and flexibly adjusted the
sales promotion rhythm. During the report period, the Company had 71 buildings in 19 cities in
China on sale, realizing sales area of 1.3605 million square meters, and the contract-signed sales
amount was RMB 19.966 billion. Looking in the whole, the achievement was great in terms of
inventories sales, and the sales also kept stable increase. Because the proportion of high and
medium-end projects was big, the unit price of sales increased slightly compared to the same period
of the previous year.
Facing the current situation of continuous temperature risng of the land market, the expansion
steps of the Company were comparatively stable and careful. In the first half-year, the Company got
six land at reasonable price, the newly added land was 1.3324 million square meters, and equity area
was 1.0859 million square meters. Besides continuing to deepen plough the core cities, the Company
accelerated regional expansion, purchased land in Kunming, Dalian and Ningbo in the year, and
nationwide layout was further rationalized. During the report period, the Company started 26
projects, the new construction area was 2.32 million square meters, projects under construction at the
end of the report period were 76, and area under construction was 6.25 million square meters.
3. Forecast of the Company on the operation environment in the second half-year and
operation path of the Company
Under the comprehensive impact of the macro-economic situation and release of demand in
advance, it is estimated that the temperature of the property market in the sec
