POLY REAL ESTATE GROUP CO., LTD. AUDITOR S REPORT …

POLY REAL ESTATE GROUP CO., LTD.

AUDITOR’S REPORT

PCPAR [2014] NO. 710386


Auditor’s Report and Financial Statements

(For the year ended December 31, 2013)

Contents Page

1. AUDITOR’S REPORT 1-2

2. FINANCIAL STATEMENTS

BALANCE SHEET 1-4

INCOME STATEMENT 5-6

STATEMENT OF CASH FLOWS 7-8

STATEMENT OF CHANGES IN OWNERS’ EQUITY 9-12

3. NOTES TO THE FINANCIAL STATEMENTS 1-148

Auditor’s Report Page 1

AUDITOR’S REPORT

PCPAR [2014] No. 710386

To all shareholders of Poly Real Estate Group Co., Ltd.:

We have audited the accompanying financial statements of Poly Real Estate Group Co., Ltd.

(hereinafter referred to as “the Company”), which comprise the balance sheet and consolidated

balance sheet as at December 31, 2013, the income statement and consolidated income

statement, the statement of cash flows and consolidated statement of cash flows and the

statement of changes in owners’ equity and consolidated statement of changes in owners’ equity

for the year then ended and notes to the financial statements.

Management’s responsibility for the financial statements

Management of the Company is responsible for the preparation and fair presentation of these

financial statements. This responsibility includes: (1) preparing the financial statements in

accordance with Accounting Standards for Business Enterprises to achieve fair presentation of

the financial statements; (2) designing, implementing and maintaining internal control relevant to the financial statements that are free from material misstatement, whether due to

fraud or error.

Auditor’s responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We

conducted our audit in accordance with Auditing Standards for Certified Public Accountants of

China. Those standards require that we comply with ethical requirements and plan and perform

the audit to obtain reasonable assurance whether the financial statements are free from material

misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and

disclosures in the financial statements. The procedures selected depend on the auditor’s

judgment, including the assessment of the risks of material misstatement of the financial

statements, whether due to fraud or error. In making those risk assessments, we consider the

internal control relevant to the preparation and fair presentation of the financial statements in

order to design audit procedures that are appropriate in the circumstances, but not for the

purpose of expressing an opinion on the effectiveness of the internal control. An audit also

includes evaluating the appropriateness of accounting policies used and the reasonableness of

accounting estimates made by the management, as well as evaluating the overall presentation of

the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a

basis for our audit opinion.

Auditor’s Report Page 2

Opinion

In our opinion, the financial statements of the Company have been prepared, in all material

aspects, in accordance with Accounting Standards for Business Enterprises and present fairly

the financial position of the Company as of December 31, 2013, and the results of its operations

and cash flows of the Company for the year then ended.

BDO China Shu Lun Pan Certified Public Accountant of China:

Certified Public Accountants LLP

Certified Public Accountant of China:

Shanghai, China March 29, 2014

This auditor’s report and the accompanying notes to the financial statements are an English translation of the

Chinese auditor’s report. In case the English version does not conform to the Chinese version, the Chinese version

shall prevail.

Financial Statements Page 1


BALANCE SHEET

December 31, 2013

(Expressed in Renminbi unless otherwise stated)

Asset Note 13 Balance as at

December 31, 2013

Balance as at

January 1, 2013

Current assets:

Monetary funds 4,102,069,720.57 7,097,116,519.52

Financial assets held for trading

Notes receivable

Accounts receivable 13.1 8,363,184.16 90,222,729.82

Prepayments 1,828,927,853.35 2,355,455,436.57

Interests receivable

Dividends receivable 526,906,936.33 16,416,469.00

Other receivables 13.2 49,448,567,701.54 29,200,630,539.96

Inventories 8,627,585,118.82 12,507,731,746.06

Non-current assets maturing within one year

Other current assets

Total current assets 64,542,420,514.77 51,267,573,440.93

Non-current assets:

Available-for-sale financial assets

Held-to-maturity investments

Long-term receivables

Long-term equity investments 13.3 9,600,443,368.66 6,609,465,500.86

Investment property 658,810,146.58 686,491,730.31

Fixed assets 98,357,675.06 102,386,474.00

Construction in progress

Project materials

Disposal of fixed assets

Productive biological assets

Oil and gas assets

Intangible assets 6,617,058.33 5,651,716.11

Development expenses

Goodwill

Long-term deferred expenses 10,833.32

Deferred income tax assets 28,671,331.15 2,852,171.09

Other non-current assets

Total non-current assets 10,392,910,413.10 7,406,847,592.37

Total assets 74,935,330,927.87 58,674,421,033.30

The accompanying notes form an integral part of these financial statements.

Legal Representative: Guanju Song Financial Director: Mingxin Zhu

Account in Charge: Xi Zhang



BALANCE SHEET (Continued)

December 31, 2013


Liabilities and owners' equity (or shareholders'

equity) Note 13

Balance as at

December 31, 2013

Balance as at

January 1, 2013

Current liabilities:

Short-term borrowings

Financial liabilities held for trading

Notes payable

Accounts payable 624,378,877.75 546,990,984.36

Amounts received in advance 9,416,182,037.19 9,371,231,185.78

Employee compensation payable 16,799,536.54 11,495,277.35

Taxes and surcharges payable -497,399,894.63 -778,571,453.78

Interests payable 143,490,410.96

Dividends payable

Other payables 32,998,572,508.10 14,914,099,048.31

Non-current liabilities maturing within one year 3,175,594,740.00 6,417,408,479.56

Other current liabilities

Total current liabilities 45,734,127,804.95 30,626,143,932.54

Non-current liabilities:

Long-term borrowings 6,631,617,095.00 6,816,711,835.00

Bonds payable

Long-term payables

Special payables

Estimated liabilities

Deferred income tax liabilities

Other non-current liabilities

Total non-current liabilities 6,631,617,095.00 6,816,711,835.00

Total liabilities 52,365,744,899.95 37,442,855,767.54

Owners' equity (or shareholders' equity)

Paid-in capital (or share capital) 7,137,994,391.00 7,137,994,391.00

Capital reserves 10,820,303,569.43 10,718,421,936.27

Less: treasury stock

Special reserves

Surplus reserves 1,100,917,160.02 811,701,777.25

General risk reserves

Undistributed profit 3,510,370,907.47 2,563,447,161.24

Total owners' equity (or shareholders' equity) 22,569,586,027.92 21,231,565,265.76

Total liabilities and owners’ equity (or

shareholders’ equity) 74,935,330,927.87 58,674,421,033.30





POLY REAL ESTATE GROUP CO., LTD. CONSOLIDATED BALANCE SHEET

December 31, 2013


Asset Note 5 Balance as at

December 31, 2013

Balance as at

January 1, 2013

Current assets:

Monetary funds 5.1 33,752,969,830.80 32,672,702,564.71

Balances with clearing companies

Loans to banks and other financial institutions

Financial assets held for trading

Notes receivable 5.2 3,224,500.00 450,000.00

Accounts receivable 5.3 2,331,813,449.76 1,880,283,617.10

Prepayments 5.4 19,275,863,743.91 16,418,546,908.33

Premiums receivable

Reinsurance accounts receivable

Reinsurance contract reserves receivable

Interests receivable

Dividends receivable

Other receivables 5.5 7,736,887,404.08 2,512,219,395.55

Financial assets purchased under resale agreements

Inventories 5.6 239,907,295,955.86 189,643,823,082.97

Non-current assets maturing within one year

Other current assets

Total current assets 303,008,054,884.41 243,128,025,568.66

Non-current assets:

Disbursement of entrusted loans and advances

Available-for-sale financial assets

Held-to-maturity investments

Long-term receivables

Long-term equity investments 5.7 3,382,082,942.90 1,350,794,240.14

Investment property 5.8 4,714,890,472.13 4,717,957,237.12

Fixed assets 5.9 1,985,039,517.32 1,378,431,326.74

Construction in progress

Project materials

Disposal of fixed assets

Productive biological assets

Oil and gas assets

Intangible assets 5.10 14,535,584.92 10,865,134.46

Development expenses

Goodwill 5.11 10,342,507.30 10,342,507.30

Long-term deferred expenses 5.12 27,485,719.48 36,575,772.80

Deferred income tax assets 5.13 797,422,692.06 535,625,795.02

Other non-current assets

Total non-current assets 10,931,799,436.11 8,040,592,013.58

Total assets 313,939,854,320.52 251,168,617,582.24






CONSOLIDATED BALANCE SHEET (Continued)

December 31, 2013


Liabilities and owners' equity (or shareholders' equity) Note 5 Balance as at

December 31, 2013

Balance as at

January 1, 2013

Current liabilities:

Short-term borrowings 5.15 1,370,000,000.00 1,348,000,000.00

Borrowings from central bank

Absorption of deposits and interbank deposit

Loans from banks and other financial institutions

Financial liabilities held for trading

Notes payable

Accounts payable 5.16 18,670,703,415.17 12,792,887,608.57

Amounts received in advance 5.17 107,167,841,700.08 90,547,363,466.08

Financial assets sold under repurchase agreements

Handling charges and commissions payable

Employee compensation payable 5.18 124,633,442.34 94,122,306.35

Taxes and surcharges payable 5.19 -6,218,525,196.99 -4,084,597,633.60

Interests payable 5.20 55,170,317.97 151,141,842.94

Dividends payable 5.21 4,812,626.00 6,158,426.00

Other payables 5.22 25,835,195,792.55 15,292,027,631.39

Reinsurance accounts payable

Reserves for insurance contracts

Receivings from vicariously traded securities

Receivings from vicariously sold securities

Non-current liabilities maturing within one year 5.23 19,624,724,743.00 24,324,029,407.39

Other current liabilities

Total current liabilities 166,634,556,840.12 140,471,133,055.12

Non-current liabilities:

Long-term borrowings 5.24 75,101,300,578.37 55,850,413,333.13

Bonds payable 5.25 2,989,548,695.82

Long-term payables

Special payables

Estimated liabilities

Deferred income tax liabilities 5.13 61,272,278.97 67,550,710.19

Other non-current liabilities

Total non-current liabilities 78,152,121,553.16 55,917,964,043.32

Total liabilities 244,786,678,393.28 196,389,097,098.44

Owners' equity (or shareholders' equity)

Share capital 5.26 7,137,994,391.00 7,137,994,391.00

Capital reserves 5.27 10,963,716,587.11 10,776,925,472.63

Less: treasury stock

Special reserves

Surplus reserves 5.28 1,100,917,160.02 811,701,777.25

General risk reserves

Undistributed profit 5.29 32,560,241,225.29 23,758,309,752.50

Foreign currency translation differences 1,449,354.82

Total equity attributable to owners of the parent company 51,762,869,363.42 42,486,380,748.20

Minority interest 17,390,306,563.82 12,293,139,735.60

Total owners' equity (or shareholders' equity) 69,153,175,927.24 54,779,520,483.80

Total liabilities and owners’ equity (or shareholders’

equity) 313,939,854,320.52 251,168,617,582.24






INCOME STATEMENT

Year of 2013


Item Note 13 Year 2013 Year 2012

1. Operating income 9,151,433,041.21 2,361,370,940.29

Less: operating costs 13.4 5,680,516,660.96 1,591,071,765.66

Business taxes and surcharges 1,213,832,172.19 480,060,571.52

Selling expenses 180,207,718.71 130,127,693.19

Administrative expenses 225,915,583.07 179,956,195.20

Financial expenses -92,434,040.35 -147,075,209.40

Losses from asset impairment -5,084,885.18 1,606,064.01

Plus: gains from changes in fair value ("-" for losses)

Investment income ("-" for losses) 13.5 1,477,449,917.99 1,672,880,850.57

Including: income from investments in associates and joint

ventures 110,086,933.20 82,464,084.02

2.Operating profits ("-" for losses) 3,425,929,749.80 1,798,504,710.68

Plus: non-operating income 15,191,002.25 59,793,872.53

Less: non-operating expenses 22,265,987.39 4,016,800.09

Including: losses from disposal of non-current assets 19,424.52 55,359.61

3. Total profits ("-" for total losses) 3,418,854,764.66 1,854,281,783.12

Less: income tax expenses 526,700,936.95 14,767,624.23

4. Net profit ("-" for net loss) 2,892,153,827.71 1,839,514,158.89

5. Earnings per share:

(1) Basic earnings per share

(2) Diluted earnings per share

6. Other comprehensive income

7. Total comprehensive income 2,892,153,827.71 1,839,514,158.89






CONSOLIDATED INCOME STATEMENT

Year of 2013



1. Total operating income 5.30 92,355,524,195.85 68,905,756,710.27

Including: operating income 92,355,524,195.85 68,905,756,710.27

Interest income

Earned premiums

Income from handling charges and commissions

2. Total operating costs 5.30 76,983,752,453.96 55,923,551,361.24

Including: operating costs 62,655,215,219.51 43,972,081,799.46

Interest expenses

Handling charge and commission expenses

Surrender value

Net amount of compensation payout

Net amount withdrawn for insurance contract

reserves

Policy dividend payment

Reinsurance costs

Business taxes and surcharges 5.31 9,522,127,698.60 8,120,267,006.74

Selling expenses 5.32 2,185,176,436.97 1,645,610,859.05

Administrative expenses 5.33 1,575,818,588.79 1,222,704,124.65

Financial expenses 5.34 985,531,951.77 892,093,421.02

Losses from asset impairment 5.36 59,882,558.32 70,794,150.32

Plus: gains from changes in fair value ("-" for losses)

Investment income ("-" for losses) 5.35 635,052,586.69 411,368,972.97

Including: income from investments in associates

and joint ventures 631,751,353.83 400,210,811.42

Foreign exchange gains ("-" for losses)

3. Operating profits ("-" for losses) 16,006,824,328.58 13,393,574,322.00

Plus: non-operating income 5.37 182,283,960.89 189,444,545.43

Less: non-operating expenses 5.38 87,411,760.92 50,891,907.42

Including: losses from disposal of non-current assets 158,318.88 100,774.77

4. Total profits ("-" for total losses) 16,101,696,528.55 13,532,126,960.01

Less: income tax expenses 5.39 4,237,234,223.24 3,553,528,684.65

5. Net profit ("-" for net loss) 11,864,462,305.31 9,978,598,275.36

Including: net profit realized by combined party

before merger

Net profit attributable to owners of the parent

company 10,747,161,554.27 8,438,233,558.38

Minority interest income 1,117,300,751.04 1,540,364,716.98

6. Earnings per share:

(1) Basic earnings per share 5.40 1.51 1.18

(2) Diluted earnings per share 5.40 1.51 1.18

7. Other comprehensive income 5.41 -1,449,354.82 16,459.42

8. Total comprehensive income 11,863,012,950.49 9,978,614,734.78

Total comprehensive income attributable to owners

of the parent company 10,745,712,199.45 8,438,250,017.80

Total comprehensive income attributable to

minority shareholders 1,117,300,751.04 1,540,364,716.98






STATEMENT OF CASH FLOWS

Year of 2013


Item Year 2013 Year 2012

1. Cash flows from operating activities:

Cash received from sale of goods and rendering of services 9,254,132,491.42 8,627,247,899.97

Refunds of taxes and surcharges

Cash received from other operating activities 115,648,415,165.64 87,638,373,024.83

Sub-total of cash inflows from operating activities 124,902,547,657.06 96,265,620,924.80

Cash paid for goods purchased and services received 1,859,818,411.41 3,184,628,291.13

Cash paid to and on behalf of employees 77,287,875.86 67,757,067.24

Cash paid for taxes and surcharges 1,173,878,441.63 953,171,136.27

Cash paid for other operating activities 116,929,344,156.62 89,064,683,238.82

Sub-total of cash outflows from operating activities 120,040,328,885.52 93,270,239,733.46

Net cash flow from operating activities 4,862,218,771.54 2,995,381,191.34

2. Cash flows from investing activities

Cash received from disposal of investments 120,000,000.00 70,264,029.34

Cash received from returns on investments 878,716,332.86 1,505,933,910.15

Net cash received from disposal of fixed assets, intangible

assets and other long-term assets 15,682.00 3,700.00

Net cash received from disposal of subsidiaries and other

business units

Cash received from other investing activities

Sub-total of cash inflows from investing activities 998,732,014.86 1,576,201,639.49

Cash paid to acquire and construct fixed assets, intangible

assets and other long-term assets 5,078,725.57 8,864,295.46

Cash paid for investments 3,022,734,750.00 782,460,000.00

Net cash paid to acquire subsidiaries and other business units

Cash paid for other investing activities

Sub-total of cash outflows from investing activities 3,027,813,475.57 791,324,295.46

Net cash flow from investing activities -2,029,081,460.71 784,877,344.03

3. Cash flows from financing activities

Cash from absorption of investments

Cash received from borrowings 3,910,000,000.00 7,045,000,000.00

Cash received from bonds issue

Cash received from other financing activities

Sub-total of cash inflows from financing activities 3,910,000,000.00 7,045,000,000.00

Cash paid for debt repayments 7,343,094,740.00 3,340,694,740.00

Cash paid for distribution of dividends and profits or payment

of interests 2,985,693,862.03 2,207,947,002.88

Cash paid for other financing activities 21,895,507.75 36,808,657.75

Sub-total of cash outflows from financing activities 10,350,684,109.78 5,585,450,400.63

Net cash flows from financing activities -6,440,684,109.78 1,459,549,599.37

4. Effect of fluctuation in exchange rate on cash and cash

equivalents

5. Net increase in cash and cash equivalents -3,607,546,798.95 5,239,808,134.74

Plus: balance of cash and cash equivalents at the beginning of

the period 7,097,116,519.52 1,857,308,384.78

6. Balance of cash and cash equivalents at the end of the

period 3,489,569,720.57 7,097,116,519.52






CONSOLIDATED STATEMENT OF CASH FLOWS

Year of 2013



1. Cash flows from operating activities:

Cash received from sale of goods and rendering of services 108,813,710,317.04 87,557,529,285.76

Net increase in deposits from customers and due from banks and other financial institutions

Net increase in borrowings from the central bank

Net increase in loans from other financial institutions

Cash received from receiving insurance premium of original insurance contracts

Net cash received from reinsurance business

Net increase in deposits and investments from policyholders

Net increase from disposal of financial assets held for trading

Cash received from interests, handling charges and commissions

Net increase in loans from banks and other financial institutions

Net capital increase in repurchase business

Refunds of taxes and surcharges

Cash received from other operating activities 5.42 15,461,547,458.14 9,908,086,904.28

Sub-total of cash inflows from operating activities 124,275,257,775.18 97,465,616,190.04

Cash paid for goods purchased and services received 98,055,416,580.85 74,198,622,524.73

Net increase in customers' loans and advances

Net increase in deposits with central bank and with banks and other financial institutions

Cash paid for original insurance contract claims

Cash paid for interests, handling charges and commissions

Cash paid for policy dividends

Cash paid to and on behalf of employees 1,995,195,904.90 1,455,948,827.21

Cash paid for taxes and surcharges 17,598,785,316.49 13,592,645,832.38

Cash paid for other operating activities 5.42 16,379,966,750.93 5,125,817,730.73

Sub-total of cash outflows from operating activities 134,029,364,553.17 94,373,034,915.05

Net cash flow from operating activities -9,754,106,777.99 3,092,581,274.99

2. Cash flows from investing activities

Cash received from disposal of investments 120,000,000.00 177,932,000.00

Cash received from returns on investments 87,301,232.86 2,503,893.11

Net cash received from disposal of fixed assets, intangible assets and other long-term assets 522,010.08 344,618.93

Net cash received from disposal of subsidiaries and other business units 27,396,996.48

Cash received from other investing activities

Sub-total of cash inflows from investing activities 207,823,242.94 208,177,508.52

Cash paid to acquire and construct fixed assets, intangible assets and other long-term assets 101,873,897.47 71,230,460.64

Cash paid for investments 1,629,000,000.00 300,000.00

Net increase in pledge loans

Net cash paid to acquire subsidiaries and other business units 702,799,424.43 130,457,552.38

Cash paid for other investing activities

Sub-total of cash outflows from investing activities 2,433,673,321.90 201,988,013.02

Net cash flow from investing activities -2,225,850,078.96 6,189,495.50

3. Cash flows from financing activities

Cash from absorption of investments 4,512,020,052.00 4,082,638,747.06

Including: cash received by subsidiaries from investments by minority shareholders 4,512,020,052.00 4,082,638,747.06

Cash received from borrowings 60,680,580,000.00 46,263,880,000.00

Cash received from bonds issue 3,013,185,429.55

Cash received from other financing activities

Sub-total of cash inflows from financing activities 68,205,785,481.55 50,346,518,747.06

Cash paid for debt repayments 46,713,665,086.15 31,941,893,910.10

Cash paid for distribution of dividends and profits or payment of interests 8,841,862,603.64 6,852,543,669.14

Including: dividends and profits paid to minority shareholders by subsidiaries 402,598,716.48 231,699,622.79

Cash paid for other financing activities 5.42 144,311,752.51 226,394,541.16

Sub-total of cash outflows from financing activities 55,699,839,442.30 39,020,832,120.40

Net cash flows from financing activities 12,505,946,039.25 11,325,686,626.66

4. Effect of fluctuation in exchange rate on cash and cash equivalents 6,149,987.12 2,961,731.53

5. Net increase in cash and cash equivalents 532,139,169.42 14,427,419,128.68

Plus: balance of cash and cash equivalents at the beginning of the period 32,580,034,779.81 18,152,615,651.13

6. Balance of cash and cash equivalents at the end of the period 33,112,173,949.23 32,580,034,779.81






STATEMENT OF CHANGES IN OWNERS' EQUITY

Year of 2013


Item

Year 2013

Paid-in capital (or share

capital) Capital reserves

Less: treasury

stock Special reserves Surplus reserves

General risk

reserves Undistributed profit Total owners' equity

1. Balance at the end of last year 7,137,994,391.00 10,718,421,936.27 811,701,777.25 2,563,447,161.24 21,231,565,265.76

Plus: adjustments for changes in accounting policies

Correction of accounting errors in prior periods

Others

2. Balance at the beginning of the year 7,137,994,391.00 10,718,421,936.27 811,701,777.25 2,563,447,161.24 21,231,565,265.76

3. Increases/decreases in the current year (“-” for

decreases) 101,881,633.16 289,215,382.77 946,923,746.23 1,338,020,762.16

(1) Net profit 2,892,153,827.71 2,892,153,827.71

(2) Other comprehensive income

Sub-total of (1) and (2) 2,892,153,827.71 2,892,153,827.71

(3) Capital contributed or reduced by owners 101,881,633.16 101,881,633.16

a. Capital contributed by owners

b. Amounts of share-based payments recognized in

owners’ equity 101,881,633.16 101,881,633.16

c. Others

(4) Profit distribution 289,215,382.77 -1,945,230,081.48 -1,656,014,698.71

a. Provision of surplus reserves 289,215,382.77 -289,215,382.77

b. Provision of general risk reserves

c. Profit distributed to owners (or shareholders) -1,656,014,698.71 -1,656,014,698.71

d. Others

(5) Internal carry-forward of owners' equity

a. Conversion of capital reserves into paid-in capital (or

share capital)

b. Conversion of surplus reserves into paid-in capital (or

share capital)

c. Making up losses with surplus reserves

d. Others

(6) Special reserves

a. Provision in 2013

b. Use in 2013

(7) Others

4. Balance at the end of the period 7,137,994,391.00 10,820,303,569.43 1,100,917,160.02 3,510,370,907.47 22,569,586,027.92


Legal Representative: Guanju Song Financial Director: Mingxin Zhu Account in Charge: Xi Zhang



STATEMENT OF CHANGES IN OWNERS' EQUITY (Continued)

Year of 2013


Item

Year 2012

Paid-in capital (or share

capital) Capital reserves

Less: treasury

stock Special reserves Surplus reserves

General risk

reserves Undistributed profit Total owners' equity

1. Balance at the end of last year 5,948,328,659.00 11,838,724,864.09 627,750,361.36 2,186,775,079.93 20,601,578,964.38



Others

2. Balance at the beginning of the year 5,948,328,659.00 11,838,724,864.09 627,750,361.36 2,186,775,079.93 20,601,578,964.38


decreases) 1,189,665,732.00 -1,120,302,927.82 183,951,415.89 376,672,081.31 629,986,301.38

(1) Net profit 1,839,514,158.89 1,839,514,158.89

(2) Other comprehensive income 2,028.00 2,028.00

Sub-total of (1) and (2) 2,028.00 1,839,514,158.89 1,839,516,186.89

(3) Capital contributed or reduced by owners 69,360,776.18 69,360,776.18

a. Capital contributed by owners


owners’ equity 69,360,776.18 69,360,776.18

c. Others

(4) Profit distribution 183,951,415.89 -1,462,842,077.58 -1,278,890,661.69



c. Profit distributed to owners (or shareholders) -1,278,890,661.69 -1,278,890,661.69

d. Others

(5) Internal carry-forward of owners' equity 1,189,665,732.00 -1,189,665,732.00

a. Conversion of capital reserves into paid-in capital (or

share capital) 1,189,665,732.00 -1,189,665,732.00

b. Conversion of surplus reserves into paid-in capital (or

share capital)


d. Others



b. Use in 2012

(7) Others

4. Balance at the end of the period 7,137,994,391.00 10,718,421,936.27 811,701,777.25 2,563,447,161.24 21,231,565,265.76





CONSOLIDATED STATEMENT OF CHANGES IN OWNERS' EQUITY

Year of 2013


Item

Year 2013

Equity attributable to owners of the parent company

Minority interest Total owners' equity Paid-in capital (or

share capital) Capital reserves

Less: treasury

stock

Special

reserves Surplus reserves

General risk

reserves Undistributed profit Others

1. Balance at the end of last year 7,137,994,391.00 10,776,925,472.63 811,701,777.25 23,758,309,752.50 1,449,354.82 12,293,139,735.60 54,779,520,483.80



Others

2. Balance at the beginning of the year 7,137,994,391.00 10,776,925,472.63 811,701,777.25 23,758,309,752.50 1,449,354.82 12,293,139,735.60 54,779,520,483.80


decreases) 186,791,114.48 289,215,382.77 8,801,931,472.79 -1,449,354.82 5,097,166,828.22 14,373,655,443.44

(1) Net profit 10,747,161,554.27 1,117,300,751.04 11,864,462,305.31

(2) Other comprehensive income -1,449,354.82 -1,449,354.82

Sub-total of (1) and (2) 10,747,161,554.27 -1,449,354.82 1,117,300,751.04 11,863,012,950.49

(3) Capital contributed or reduced by owners 186,791,114.48 4,381,118,993.66 4,567,910,108.14

a. Capital contributed by owners 4,381,118,993.66 4,381,118,993.66


owners’ equity 101,881,633.16 101,881,633.16

c. Others 84,909,481.32 84,909,481.32

(4) Profit distribution 289,215,382.77 -1,945,230,081.48 -401,252,916.48 -2,057,267,615.19



c. Profit distributed to owners (or shareholders) -1,656,014,698.71 -401,252,916.48 -2,057,267,615.19

d. Others

(5) Internal carry-forward of owners' equity

a. Conversion of capital reserves into paid-in capital

(or share capital)

b. Conversion of surplus reserves into paid-in capital

(or share capital)


d. Others



b. Use in 2013

(7) Others

4. Balance at the end of the period 7,137,994,391.00 10,963,716,587.11 1,100,917,160.02 32,560,241,225.29 17,390,306,563.82 69,153,175,927.24





CONSOLIDATED STATEMENT OF CHANGES IN OWNERS' EQUITY (Continued)

Year of 2013


Item

Year 2012

Equity attributable to owners of the parent company

Minority interest Total owners' equity Paid-in capital (or

share capital) Capital reserves

Less: treasury

stock

Special

reserves Surplus reserves

General risk

reserves Undistributed profit Others

1. Balance at the end of last year 5,948,328,659.00 11,897,228,400.45 627,750,361.36 16,782,918,271.70 1,434,923.40 6,806,749,169.35 42,064,409,785.26



Others

2. Balance at the beginning of the year 5,948,328,659.00 11,897,228,400.45 627,750,361.36 16,782,918,271.70 1,434,923.40 6,806,749,169.35 42,064,409,785.26


decreases) 1,189,665,732.00 -1,120,302,927.82 183,951,415.89 6,975,391,480.80 14,431.42 5,486,390,566.25 12,715,110,698.54

(1) Net profit 8,438,233,558.38 1,540,364,716.98 9,978,598,275.36

(2) Other comprehensive income 2,028.00 14,431.42 16,459.42

Sub-total of (1) and (2) 2,028.00 8,438,233,558.38 14,431.42 1,540,364,716.98 9,978,614,734.78

(3) Capital contributed or reduced by owners 69,360,776.18 4,161,071,272.06 4,230,432,048.24

a. Capital contributed by owners 4,161,071,272.06 4,161,071,272.06


owners’ equity 69,360,776.18 69,360,776.18

c. Others

(4) Profit distribution 183,951,415.89 -1,462,842,077.58 -215,045,422.79 -1,493,936,084.48



c. Profit distributed to owners (or shareholders) -1,278,890,661.69 -215,045,422.79 -1,493,936,084.48

d. Others

(5) Internal carry-forward of owners' equity 1,189,665,732.00 -1,189,665,732.00

a. Conversion of capital reserves into paid-in capital

(or share capital) 1,189,665,732.00 -1,189,665,732.00

b. Conversion of surplus reserves into paid-in capital

(or share capital)


d. Others



b. Use in 2012

(7) Others

4. Balance at the end of the period 7,137,994,391.00 10,776,925,472.63 811,701,777.25 23,758,309,752.50 1,449,354.82 12,293,139,735.60 54,779,520,483.80




NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED DECEMBER 31, 2013

Notes to Financial Statements Page 1




1. Company profile

Poly Real Estate Group Co., Ltd. (hereinafter referred to as “the Company”), formerly known as

Guangzhou Poly Real Estate Development Co., Ltd, was an enterprise owned by the whole people

registered for establishment in Guangzhou on September 14, 1992 by Poly Southern Group Co., Ltd

(formerly known as “Poly Technology Southern Co., Ltd”, and hereinafter referred to as “Poly

Southern”), a wholly-owned subsidiary of China Poly Group Corporation (hereinafter referred to as

“Poly Group”). The registered capital on initial establishment was RMB 10 million. On September 1997,

Poly South increased its investment in the Company to RMB 60 million, including a capital

contribution of RMB 49,597,200 made by cash and RMB 402,800 made by the conversion of surplus

reserves into paid-in capital.

On August 22, 2002, approved by the State Economic and Trade Commission document GJMQG [2002]

No. 616, launched by Poly South and jointly supported by Guangdong Huamei International Investment

Group Co., Ltd (formerly known as “Guangdong Huamei Education Industry Group Co., Ltd”, and

hereinafter referred to as “Huamei Group”), Zhang Keqiang and other 15 natural persons, the Company

was reformed to a company limited by shares and altered its name to “Poly Real Estate Co., Ltd”. On

July 2, 2002, approved by the Ministry of Finance document CQ [2002] No. 256, Poly South converted

the audited net assets of RMB 225,172,141.84 of Guangzhou Poly Real Estate Development Co., Ltd as

at March 31, 2002 and the monetary funds of RMB 74,827,858.16 of other shareholders into a total

share capital of RMB 200 million, at a proportion of 66.67%. Among the total share capital converted,

Poly South accounted for 75.06%; Huamei Group accounted for 15.19%, and natural persons’

contribution accounted for 9.75%.

In December 2005, based on the total share capital of 200 million shares as at June 30, 2005, the

Company distributed 5 shares of share dividend for every 10 shares, and issued 5 new shares for every

10 shares by way of capitalization of capital reserves. After the dividend distribution and conversion of

capital reserve into share capital, the share capital of the Company increased from RMB 200 million to

RMB 400 million, equivalent to 400 million shares.

In March 2006, the Company changed its name to “Poly Real Estate Group Co., Ltd.”.

On July 19, 2006, under the approval of ZJFXZ [2006] No. 30 issued by China Securities Regulatory

Commission, the Company conducted initial public offering of 150 million ordinary shares (A share) at

RMB 1 per share. On July 31, 2006, the Company’s shares were listed for trading on the Shanghai

Stock Exchange. The stock name is “Poly Real Estate” and the stock code is 600048. After the listing,

the Company’s share capital increased to RMB 550 million, equivalent to 550 million shares.

On April 2, 2007, based on the total share capital of 550 million shares as at December 31, 2006, the

Company issued 10 new shares for every 10 shares then issued by way of capitalization of capital

reserves. After that, the Company’s total shares increased to 1,100 million shares.

Under the approval of ZJFXZ [2007] No. 202 issued by China Securities Regulatory Commission, the

Company publicly issued 126,171,593 new shares on August 1, 2007. After the issuance, the total

number of shares of the Company increased to 1,226,171,593 shares.

On March 11, 2008, based on the share capital as at December 31, 2007, the Company issued 10 new

shares for every 10 shares then issued by way of capitalization of capital reserves. After that, the total

number of shares increased to 2,452,343,186 shares.

On April 30, 2009, based on the share capital as at December 31, 2008, the Company distributed a stock

dividend of 3 shares for every 10 shares. As a result of this stock dividend, the Company’s total number

of shares increased to 3,188,046,142 shares.





On July 6, 2009, under the approval of ZJXK [2009] No. 573 issued by China Securities Regulatory

Commission, the Company issued 331,674,958 shares. After the issuance, the total number of shares of

the Company increased to 3,519,721,100 shares.

On April 27, 2010, based on the share capital as at December 31, 2009, the Company, by way of

capitalization of the capital reserves, issued 1,055,916,330 new shares to all shareholders, on the basis

of 3 new shares for every 10 shares then issued. After that, the total number of share capital became

4,575,637,430 shares.

On May 17, 2011, based on the share capital as at December 31, 2010, the Company, by way of



5,948,328,659 shares.

On June 18, 2012, based on the share capital as at December 31, 2011, the Company, by way of



7,137,994,391 shares.

The Company’s registered address is Floors 29-33, Poly International Plaza, No. 688 Middle Yuejiang

Road, Haizhu District, Guangzhou City. The Company and its subsidiaries are mainly engaged in real

estate development and operation, property management and others.

The Company’s authorized business scope includes primary real estate development, rental of

commercial housing developed by the Company, housing project design, old building demolition, road

and earthwork engineering construction, interior decoration, air-conditioning engineering and

installation, property management, hotel management, wholesale and retail trade (except for goods

specially operated and controlled by the state).

2. Principal accounting policies, estimates and errors of prior periods

2.1 Basis of preparation for financial statements

On the basis of going concern and transactions and events actually occurred, the Company

prepares its financial statements in accordance with the Accounting Standards for Business

Enterprises–Basic Standards and 38 concrete accounting standards issued on February 15, 2006 by

the Ministry of Finance, the subsequently issued Accounting Standards for Business

Enterprises–Application Guidelines, and the Accounting Standards for Business

Enterprises–Interpretations and other relevant provisions (collectively known as “Accounting

Standards for Business Enterprises”), as well as significant accounting policies and estimates

detailed in the sections that follow.

2.2 Statement on compliance with Accounting Standards for Business Enterprises

The financial statements prepared by the Company meet the requirements of the Accounting

Standards for Business Enterprises and truly and completely reflect the Company’s financial

position as at December 31, 2013, and its operating results, cash flows and other related

information for the year then ended.

2.3 Accounting period

The accounting year of the Company is the calendar year from January 1 to December 31.

2.4 Functional currency The Company and its domestic subsidiaries adopt RMB as their functional currency. Overseas subsidiaries determine their functional currency according to the currency mainly used to conduct primary business. If foreign currencies are adopted as the functional currency, the currency shall be translated into RMB in preparation of financial statements.

As Hengli (Hong Kong) Real Estate Limited’s currency used for conducting main businesses changed due to changes in economic environment, it has changed its functional currency from HKD to RMB this year.





2.5 Accounting for business combination under and not under common control

2.5.1 Business combination under common control

For business combination under common control, the assets and liabilities obtained by the

acquirer shall be measured at the book value as stated in the acquiree’s accounting record

on the combination date. The capital reserve is adjusted according to the difference between

the book value of net assets acquired through combination and the book value of

consideration paid for the combination (or total par value of shares issued). If the capital

reserve is insufficient to cover the differences, the remaining amount shall be charged

against retained earnings.

The intermediary service charges, including audit, legal service, evaluation and consultancy

fees and other relevant administrative expenses arising from the business combination

under common control shall be included in the current profit and loss when incurred.

2.5.2 Business combination not under common control

For business combination not under common control, the combination costs shall be the

fair values, on the acquisition date, of the assets paid, the liabilities incurred or assumed

and the equity securities issued by the acquirer in exchange for the control over the

acquiree. For a business combination realized by several transactions of exchange, the

combination costs shall be the summation of the costs of all separate transactions. Where

any future event that is likely to affect the combination costs is stipulated in the

combination contract, if it is likely to occur and the amount for its effects on the

combination costs can be measured reliably, the acquirer shall record the said amount into

the combination costs.

For identifiable assets and liabilities and contingent liabilities acquired from the acquiree

through business combination not under common control, if qualified for recognition, shall

be measured at fair value on the acquisition date. The acquirer shall recognize the excess of

the combination costs over the fair value of the net identifiable assets it obtains from the

acquiree as goodwill. Where the combination costs are in short of the fair value of the net

identifiable assets it obtains from the acquiree, if, after reexamination, the combination

costs are still less than the fair value of the net identifiable assets it obtains from the

acquiree, the acquirer shall record the difference into the profit and loss of current period.

For business combination not under common control, the intermediary service charges,

including audit, legal service, evaluation and consultancy fees and other relevant

administrative expenses incurred by the acquirer for business combination, shall be charged

to current profit and loss when incurred. Transaction expenses incurred by the acquirer for

issuance of equity securities or debt securities as consideration for business combination

shall be included in the initial recognition amount of those equity securities or debt

securities.

2.6 Preparation of consolidated financial statements

The Company includes subsidiaries and special purpose entities over which it has actual control

into the scope of consolidated financial statements.

The Company’s consolidated financial statements are prepared in accordance with the Accounting

Standards for Business Enterprises No. 33 - Consolidated Financial Statements and relevant

provisions. All the significant internal transactions and balances within the scopes of consolidation

are eliminated when consolidated. The share of the shareholders’ equity of subsidiaries not

attributable to the parent company shall be separately listed as minority interest in the consolidated

financial statements.





If the accounting policies or accounting periods of a subsidiary are different from those of the

Company, the financial statements of the subsidiary shall be adjusted according to the accounting

policies and accounting periods of the Company when consolidated financial statements are

prepared.

When preparing consolidated financial statements, for subsidiaries acquired through business

combination not under common control, certain specific financial statements shall be adjusted

based on the fair value of net identifiable assets on the acquisition date; for subsidiaries acquired

through business combination under common control, the business combination are deemed to

occur at the beginning of the consolidated period, and their assets, liabilities, operating results and

cash flows shall be included in the consolidated financial statements from the beginning of the year

of the consolidation period.

2.7 Recognition criteria of cash and cash equivalents

For the purpose of preparing the statement of cash flows, the term “cash” refers to the cash on hand

and the unrestricted deposit.

For the purpose of preparing the statement of cash flows, the term “cash equivalents” refers to

short-term and highly liquid investments that are readily convertible to known amounts of cash and

are subject to an insignificant risk of change in value.

2.8 Foreign currency transactions and conversion of foreign currency statements

2.8.1 Foreign currency transactions

Foreign currency transactions are converted into functional currency for recording purpose

at the spot exchange rate on the date when the transaction occurs.

The Company shall, on the balance sheet date, convert the foreign currency monetary items

at the spot exchange rate on the balance sheet date. The balance of exchange arising from

the difference between the spot exchange rate on the balance sheet date and the spot

exchange rate at the time of initial recognition or the previous balance sheet date shall be

recorded into the current profit and loss, except that those exchange differences of special

borrowings in foreign currency qualified for capitalization shall be capitalized in the

capitalization period and included in costs of relevant assets.

Foreign currency denominated non-monetary items measured at historical costs shall still

be converted at the spot exchange rates on the date the transactions occur, and the amount

in the functional currency shall remain unchanged. Foreign currency denominated

non-monetary items measured at fair value shall be translated at the spot exchange rates on

the date when the fair value is determined, and the difference between the amount in

functional currency after conversion and the amount of functional currency originally

recorded shall be treated as changes in fair value (including the changes in exchange rate)

and included in the current profit and loss, or recognized as other comprehensive income

and included in capital reserves.

2.8.2 Conversion of foreign currency financial statements

If the Company’s controlled subsidies, joint ventures, associates and other entities adopt a

different functional currency, the Company shall make necessary accounting adjustments

and prepare its consolidated financial statements after the conversion of foreign currency

financial statements.

Assets and liabilities in the balance sheet are translated at the spot exchange rates on

balance sheet date. Owners’ equity items, except for the item of “undistributed profits”, are

translated at the spot exchange rates on the dates when the transactions occur. Revenue and

expense items in the income statement are translated at the spot exchange rates on the dates

when the transactions occur. Foreign currency translation differences arising therefrom

shall be separately presented under the owners’ equity in the balance sheet.





Foreign currency cash flows determined in a systematical and reasonable method are

converted at the spot exchange rate on the date when the transaction occurs. The influence

of exchange rate on cash is separately listed in the statement of cash flows.

Upon the disposal of an overseas business, the exchange difference of foreign currency

statements relating to the overseas business shall be transferred in all or in proportion of

disposal to profit or loss for the period during which the disposal occurs.

2.9 Financial instruments

Financial instruments include financial assets, financial liabilities and equity instruments.

2.9.1 Classification, recognition and measurement of financial instruments

Financial instruments are classified into financial assets and financial liabilities.

Upon initial recognition, financial assets are classified into financial assets measured at fair

value through current profit and loss (including financial assets held for trading and

financial assets designated to be measured at fair value through current profit and loss),

held-to-maturity investments, loans and accounts receivable and available-for-sale financial

assets. Financial assets, except for accounts receivable, are classified based on the intent

and ability to hold the financial assets by the Company and its subsidiaries.

Upon initial recognition, financial liabilities are classified into financial liabilities measured

at fair value through current profit and loss (including financial liabilities held for trading

and financial liabilities designated to be measured at fair value through current profit and

loss), and other financial liabilities.

When the Company becomes a party to the contract of a financial instrument, a financial

asset or financial liability is recognized.

The financial assets or financial liabilities of the Company are measured at their fair values

on initial recognition. Subsequent measurement are treated as follows: for financial assets

measured at fair value through current profit and loss, available-for-sale financial assets and

financial liabilities measured at fair value through current profit and loss, they are measured

at fair value; for financial guarantee contract and loan commitment bearing an interest rate

lower than that of the market, they are subsequently measured, after initial recognition, at

the higher of the balance of the amount as determined according to the Accounting

Standards for Business Enterprises No. 13 - Contingencies or the initially recognized

amount less the amount accumulatively amortized as determined according to the principles

of the Accounting Standards for Business Enterprises No. 14 - Revenues; for

held-to-maturity investments, loans and accounts receivable and other financial liabilities,

they are measured at their amortized costs.

The gains or losses arising from the change in the fair value of a financial asset or financial liability of the Company in subsequent measurement shall be dealt with according to the following methods, unless they are related to hedging: (1) the gains or losses, arising from the change in the fair value of the financial asset or financial liability which is measured at fair value through current profit and loss, shall be recorded into profit or loss on changes in fair value; interest or cash dividends obtained during the asset holding period shall be recognized as investment income; upon disposal, the difference between the amount actually received and the initially recorded amount shall be recognized as investment income and the profit or loss from changes in fair value shall be accordingly adjusted. (2) the changes in fair value of an available-for-sale financial asset shall be included in capital reserves; interest calculated at the actual rate during the holding period shall be included in investment income; cash dividends of available-for-sale equity instruments shall be included in investment income when the investee declares to distribute dividends; upon disposal, the difference between the amount actually received and the book value after deducting the accumulated amount of the changes in fair value originally and directly included in capital reserves shall be recognized as investment income.





2.9.2 Recognition and measurement of transfer of financial assets

Recognition of transfer of financial assets of the Company: when nearly all the risks and

rewards of the ownership of a financial asset have been transferred, or when nearly all the

risks and rewards of the ownership of the financial asset have neither been transferred nor

been retained but the control over the financial asset has been given up, the financial asset

shall derecognized.

Measurement of transfer of financial assets of the Company: when a financial asset satisfies

the criteria for derecognition, its transfer shall be measured at the difference between 1) the

book value of the transferred financial asset and 2) the sum of the consideration received

from the transfer and the accumulated amount of the changes in fair value originally and

directly included in capital reserves. The difference shall be included in the current profit

and loss.

If partial transfer of the financial asset satisfies the criteria for derecognition, the entire

book value of the transferred financial asset shall be split into the derecognized and

recognized part according to their respective fair value. The difference between 1) the book

value of derecognized part and 2) the sum of the consideration received for the

derecognized part and the accumulated amount of the changes in fair value originally and

directly included in capital reserves shall be included in the current profit and loss.

2.9.3 Derecognition criteria of financial liabilities

Derecognition criteria of financial liabilities: a financial liability shall be derecognized in

whole or in part if its present obligations are wholly or partly discharged.

2.9.4 Method for determination of fair value of financial assets and financial liabilities

Method for determination of fair value of financial assets and financial liabilities of the

Company: As for the financial instruments for which there is an active market, the quoted

prices in the active market shall be used to determine the fair values thereof; where there is

no active market for a financial instrument, the Company shall adopt value appraisal

techniques to determine its fair value.

The value appraisal techniques mainly include using the prices adopted by the parties who

are familiar with the condition in the latest market transaction upon their own free will, the

current fair value obtained with reference to other financial assets of the same essential

nature, the discounted cash flow method and so on. When adopting the value appraisal

techniques, the Company shall try its best to use more market parameters and avoid

adopting those parameters that are specifically related to the Company and its subsidiaries.

2.9.5 Provision for impairment of financial assets (excluding accounts receivable)

Except for the financial assets measured at fair value through current profit and loss, the

book value of other financial assets shall be examined on the balance sheet date. If there is

objective evidence that a financial asset is impaired, an impairment test shall be made on

the financial asset. And the provision for impairment shall be made according to the test

result.

The Company performs separate tests for financial assets with significant single amounts.

With regard to the financial assets with insignificant single amounts, a separate impairment

test may be carried out, or they may be included in a portfolio of financial assets with

similar credit risk features so as to carry out an impairment test. Where, upon separate test,

the financial asset (including those financial assets with significant single amounts and

those with insignificant amounts) has not been impaired, it shall be included in a portfolio

of financial assets with similar credit risk features so as to conduct another impairment test.

The financial assets which have suffered from an impairment loss in any single amount

shall not be included in any portfolio of financial assets with similar credit risk features for

any impairment test.





If the held-to-maturity investments, loans and accounts receivable are impaired, their book

values shall be written down to the present values of estimated future cash flows, and the

amounts written down shall be recognized as impairment losses and included in current

profit and loss. Where an available-for-sale financial asset is impaired, the accumulative

losses arising from the decrease of the fair value which was originally and directly included

in capital reserves shall be transferred out and recorded into the current profit and loss. The

accumulative losses transferred out shall be the balance of initial costs for acquiring the

asset after deducting the principals recovered and amortized amount, the current fair value

and the impairment losses originally recorded in profit or loss.

2.9.6 Reclassification of financial assets

Main criteria for determining the reclassification of outstanding held-to-maturity

investments as available-for-sale financial assets are as follows:

(1) There is no available financial resource to continuously provide funds to the financial

asset investment so as to hold the financial asset investment to maturity;

(2) The management has no intent to hold the investment to maturity;

(3) It is hard to hold the financial asset investment to maturity due to restriction of laws,

administrative regulations or other reasons; and

(4) Other evidence showing the Company has no ability to hold the investment to

maturity.

Significant outstanding held-to-maturity investments shall be reclassified as

available-for-sale financial assets after being approved by the board of directors.

2.10 Accounts receivable

The Company’s accounts receivable mainly include debt receivables, long-term receivables and

other receivables. On the balance sheet date, if there is evidence showing that they are impaired,

the Company shall recognize the impairment losses based on the difference between their book

values and the present values of estimated future cash flows.

2.10.1 Provision for bad debts of accounts receivable that are individually significant

Basis of determining portfolio

Criteria or threshold of determining an

item that is individually significant

The book value of an individual account receivable is

over RMB 100 million.

Method of provision for bad debts of

accounts receivable that are individually

significant

Separate impairment tests shall be made on accounts

receivable that are individually significant. If there is

evidence that they are impaired, provision for bad debts

shall be made at the difference between present value of

estimated future cash flows and the book value.

2.10.2 Accounts receivable with provision for bad debts made on the basis of portfolio

Basis of determining portfolio Credit period and aging Portfolios with similar credit risk features are formed with

credit period and aging being the risk features

Method of provision for bad debts made

on the basis of portfolio

The percentage-of-balance method

Portfolios with provision for bad debts calculated using the percentage-of-balance method:

Aging Proportion of provision for

account receivable (%)

Proportion of provision for

other receivables (%)

Portfolios with similar credit risk

features are formed with credit

period and aging being the risk

features

5 5





2.10.3 Accounts receivable that are individually insignificant but with allowance or bad debt

provided on an individual basis

Reason for bad debt provision

provided on an individual basis

There is evidence indicating that the account is impaired, for

example, the debtor is repealed, bankrupted or died, and the

debtor’s property or legacy after bankruptcy or liquidation

cannot be collected, and the cash flows are in severe shortage.

Method of provision for bad debts For accounts receivable with objective evidence showing they

may be impaired, they shall be separated from relevant

portfolios, and their impairment losses shall be recognized

after the separate impairment tests.

2.11 Inventories

2.11.1 Classification of inventories

The term “inventories” refers to finished goods or merchandise possessed by the Company

for sale in the routine business, work in progress during the process of production, or

materials and supplies to be consumed in the process of production or offering labor service.

Inventories mainly include development costs, developed products, stock commodities and

low-cost consumables.

Accounting methods for land for development, maintenance fund, quality deposit and

expenses for public facilities are as follows.

Land for development: The Company’s land for development shall be included in the item

of “development costs” for accounting.

Maintenance fund: Maintenance fund borne by the Company shall be included in

“development costs” in accordance with the provisions of all local authorities.

Quality bond: Provision shall be made for quality bond at a certain proportion of the project

amount to be paid to a construction unit and included in “other payables”. Such quality

bond will be paid to the construction unit when the project passes the acceptance inspection

without quality problems during the agreed warranty period.

Expenses for public facilities: If the public facilities are public projects such as schools, the

expenditures and those expenses charged by governmental departments, shall be included

in the “development costs” and be apportioned and accounted for by cost accounting

objects and cost items.

2.11.2 Method for pricing of dispatched inventories

Actual cost of inventory when dispatched is determined using the individual identification

method.

2.11.3 Determination basis of net realizable values of inventories and provision method of

inventory depreciation reserve

On the balance sheet date, inventories are measured at the lower of their costs or net

realizable values. Provisions for inventory depreciation reserve are made on an individual

basis. But for those inventories with large quantity and low unit price, the provisions for

depreciation reserve are made based on categories of inventories. Determination basis of

net realizable values of inventories: (1) the net realizable values of finished goods are the

amount of estimated selling prices minus the estimated selling expenses and relevant taxes

and surcharges; (2) the materials held for production shall be measured at cost if the net

realizable value of the finished goods is higher than the cost; and if there is a decline in the

price of the material showing that the net realizable value of the finished good is lower than

the cost, the net realizable value is the amount of estimated selling price less the estimated

costs at completion, estimated selling expenses and relevant taxes and surcharges; (3) for

the materials held for sale, their net realizable values are the market selling prices.





2.11.4 Inventory system

The Company adopts the perpetual inventory system.

2.11.5 Amortization method of low-cost consumables and packaging materials

Low-cost consumables are amortized using a lump-sum method when fetched for use.

2.12 Long-term equity investments

2.12.1 Determination of investment cost

(1) For long-term equity investments acquired from business combination, if such

business combination is under common control, the initial cost shall be recognized

according to the share of book value of owners’ equity of the combined party; if the

business combination is not under common control, the initial cost shall be recognized

according to the combination cost determined on the combination date;

(2) For long-term equity investments acquired from making payments in cash, the initial

investment cost is the actually paid purchase cost;

(3) For long-term equity investments acquired from issuance of equity securities, the

initial investment cost is the fair value of the issued equity securities;

(4) For long-term equity investments of investors, the initial investment cost is the value

stipulated in the investment contract or agreement;

(5) For long-term equity investments acquired from exchange of non-monetary assets and

debt restructuring, the initial investment cost is determined according to relevant

provisions of accounting standards.

2.12.2 Subsequent measurement and recognition of profit or loss

Long-term equity investments are subsequently measured using the equity or cost method.

For long-term equity investments measured at equity method, the investment income shall

be recognized and the long-term equity investment shall be adjusted according the net

profit shared or loss undertaken by the investee. When distribution of profits or cash

dividends is declared, the book value of the long-term equity investment shall be decreased

accordingly.

For long-term equity investment measured at cost method, their book values are usually the

same, except for the additional investment or disinvestments. Investment income shall be

recognized when distribution of profits or cash dividends are declared.

Long-term equity investments under joint control and with signification influence are

accounted for using the equity method. Other long-term equity investments are accounted

for using the cost method.

2.12.3 Determination basis of joint control or significant influence over the investee

Determination basis of joint control over the investee: through contracts or agreements, two

or more joint ventures stipulate that the finance and operating decisions of the investee

shall be jointly decided by the two or more investors.

Determination basis of significant influence over the investee: the significant influence is

recognized when the Company holds over 20% up to 50% voting capital of the investee. If

the voting capital is less than 20%, significant influence is still recognized when any of the

following conditions is met:

(1) The investor has a delegate on the board of directors or a similar organ of power;

(2) The investor has participated in the process of formulating policies of the investee;

(3) The investor has dispatched administrative staff to the investee;

(4) The investee depends on the technology or technology information of the investor;

(5) Other circumstances sufficient to prove there is significant influence over the investee.

2.12.4 Testing and provision for impairment

On the balance sheet date, the Company shall examine the long-term equity investments to

assess whether they may be impaired. When there is any indication of impairment, the





impairment test shall be made to determine the recoverable amount. The provision for

impairment shall be made at the lower of the book value and the recoverable amount. Once

provided, the impairment loss shall not be reversed in subsequent accounting periods.

The recoverable amount is determined at the higher of net amount of fair value and the

present value of estimated future cash flow of long-term equity investments sold. If there is

a contract price for a fair transaction, the net amount of fair value of long-term equity

investments sold is measured at the contract price minus relevant taxes and surcharges; if

there is no fair sales contract but there is active market for assets or transaction price for

similar assets within the industry, the net amount of fair value is measured at the market

price minus relevant taxes and surcharges.

2.13 Investment property

2.13.1 Types and measurement of investment property

The types of investment property of the Company include leased land use right, leased

construction, and land use right held for transfer upon appreciation.

The Company’s investment properties are initially measured at cost. The cost model is

adopted for subsequent measurement.

2.13.2 Policies of adopting the cost model in accounting

The Company’s leased construction is depreciated using the straight-line method. Specific

accounting policies are the same as those available for the fixed assets.

The leased land use right and the land use right held for transfer upon appreciation are

amortized using the straight-line method. Specific accounting policies are the same as those

available for the intangible assets.

On the balance sheet date, the Company examines its investment property to assess for

indication of impairment. If there is any indication of impairment, the Company shall make

impairment test to recognize the recoverable amount. The provision for impairment shall be

made at the lower of the book value and the recoverable amount. Once provided, the

impairment loss shall not be reversed in subsequent accounting periods.

2.14 Fixed assets

2.14.1 Recognition of fixed assets

Fixed assets refer to tangible assets held for the purpose of producing commodities,

providing services, renting or business management with useful lives exceeding one

accounting year. Fixed assets will only be recognized when all the following criteria are

met:

(1) It is probable that economic benefits relating to the fixed assets will flow into the

Company;

(2) The costs of fixed assets can be measured reliably.

2.14.2 Classification and depreciation of fixed assets

The Company’s fixed assets are mainly classified into buildings and constructions,

transportation facilities, electronic and office equipment and other equipment. The

Company adopts the straight-line method for depreciation. The useful lives and estimated

net residual values of fixed assets are determined according to the natures and usage

condition of fixed assets by category. The Company shall review the useful lives, estimated

net residual values and depreciation method of fixed assets at the end of the year. If they are

different from the previous estimates, adjustment shall be made accordingly. Except for the

fixed assets fully depreciated but still in use and the land separately measured and recorded,

all other fixed assets of the Company are provided for depreciation.

The depreciation lives and annual depreciation rates of fixed assets by category are as

follows:





Category Depreciation life

(year)

Residual value rate

(%)

Annual depreciation

rate (%)

Buildings and constructions 20-40 4 2.40-4.80

Transportation facilities 5-10 4 9.60-19.20

Electronic and office

equipment 3-5 4 19.20-32.00

Other equipment 3-8 4 12.00-32.00

2.14.3 Testing and provision for impairment of fixed assets

On the balance sheet date, the Company shall examine its fixed assets to assess whether

there is any indication that they may be impaired. If there is any indication of impairment,

the Company shall make impairment test to recognize the recoverable amount. The

provision for impairment shall be made at the lower of the book value and the recoverable

amount. Once provided, the impairment loss shall not be reversed in subsequent accounting

periods.

The recoverable amounts of fixed assets are the higher of their fair values less the disposal

expenses and the present values of the estimated future cash flows of the assets. The net

amount of the fair value of an asset minus the disposal expenses shall be determined at the

balance of the price as stipulated in the sales agreement in the fair transaction, if any, and

the disposal expenses directly attributable to the asset. If there is no fair sales agreement for

transaction but there is active market for the asset and trading price for similar asset within

the industry, such net amount shall be determined at the amount of market price minus the

disposal expenses.

2.14.4 Determination basis and measurement of fixed assets acquired under financing leases

Determination basis of fixed assets acquired under financing leases: fixed assets acquired

under financing leases refer to the leases whose entire risks and rewards relating to the

ownership of the assets are substantially transferred. Where a lease satisfies one or more of

the following criteria, it shall be recognized as a fixed asset acquired under financing lease:

(1) The ownership of the leased asset is transferred to the lessee when the term of lease

expires; (2) The lessee has the option to buy the leased asset at a price which is expected to

be far lower than the fair value of the leased asset at the date when the option becomes

exercisable. Thus, on the lease beginning date, it can be reasonably determined that the

option will be exercised; (3) Even if the ownership of the asset is not transferred, the lease

term covers the major part of the use life of the leased asset; (4) The present value of the

minimum lease payments on the lease beginning date amounts to substantially all of the fair

value of the leased asset on the lease beginning date; (5) The leased assets are of a

specialized nature that only the lessee can use them without making major modifications.

Measurement method of fixed assets acquired under financing leases: on the lease

beginning date, the book entry value of a fixed asset acquired under financing lease is

measured at the asset’s fair value or the present value of the minimum lease payment,

whichever is lower.

The subsequent measurement of a fixed asset acquired under financing lease shall adopt the

same policies for depreciation and for impairment as those policies applicable to

self-owned fixed assets.

2.15 Construction in progress

2.15.1 Category of construction in progress

The Company’s construction in progress is divided into two categories: construction

through self-operation and construction through outsourcing.

2.15.2 Criteria and timing for transfer of construction in progress into fixed assets

When construction in progress reaches the working condition for its intended use, the

Company shall transfer it to fixed assets. Construction in progress is determined to have

reached the working condition for its intended use when one of the following conditions is





met:

(1) The substantial construction (including installation) of the fixed assets has been

finished completely or substantially;

(2) The construction is under trial production or trial operation, and the result indicates

that the asset is able to normally run or stably produce qualified products, or the trial

operation result indicates that the asset is able to run or operate normally;

(3) The amount of disbursement for the fixed asset being constructed is very small, or

nearly no such disbursement incurs;

(4) The fixed asset under acquisition and construction has met or basically meets the

design requirements or contractual provisions.

2.15.3 Testing and provision for impairment of construction in progress

On the balance sheet date, the Company examines its constructions in progress for evidence

indicating impairment. If there is indication of impairment, the Company shall make

impairment test to determine their recoverable amounts. The provision for impairment shall

be made at the lower of their book values and recoverable amounts. Once provided, the

impairment losses shall not be reversed in subsequent accounting periods.

The recoverable amount of a construction in progress is determined at the higher of the net

amount of their fair values minus disposal expenses and the present values of the estimated

future cash flows of the asset.

2.16 Borrowing costs

2.16.1 Recognition of capitalization of borrowing costs

Borrowing costs incurred and directly attributable to the acquisition and construction or

production of assets eligible for capitalization shall be capitalized and recorded into asset

costs; other borrowing costs shall be recognized as costs according to the amount incurred

and be included into current profit and loss. Assets eligible for capitalization refer to fixed

assets, investment property, inventories and other assets which may reach their intended use

or sale status only after long term acquisition and construction or production activities.

2.16.2 Calculation of capitalization amount of borrowing costs

Capitalization period refers to the period from the time when the capitalization of

borrowing costs starts until the capitalization is ceased. The period when the capitalization

of borrowing costs is suspended is not included.

Capitalization suspension: when the assets acquired and constructed or produced are ceased

abnormally and the cessation lasts for three consecutive months or more, the capitalization

period of borrowing costs should be suspended.

Calculation of capitalization amount: (1) for special borrowings, the capitalization amount

of borrowing costs is determined by the interest of such special borrowings actually

incurred in the current period less the interest income of the loans unused and deposited in

bank or return on temporary investment; (2) for general borrowings, the capitalization

amount of borrowing costs is determined by multiplying the weighted average of asset

disbursements of the portion of accumulated asset disbursements exceeding special

borrowings by the capitalization rate of used general borrowings. The capitalization rate is

the weighted average interest rate of general loans; and (3) for borrowings with discount or

premium, the amortization of discount or premium should be recognized using the effective

interest rate method in each accounting period, and the interest for each period shall be

adjusted accordingly.

The effective interest rate method is a method used to calculate the amortized discount or

premium, or interest expenses using the effective borrowing interest rates. Effective interest

rate is the interest rate used to discount the future cash flow of borrowings in expected

existing period into present book values.





2.17 Intangible assets 2.17.1 Measurement of intangible assets

The Company initially measures intangible assets at cost. For intangible assets acquired, the actual costs consist of the actually paid price and other related expenses. For intangible assets contributed by investors, the actual costs are determined based on the value agreed by investment contracts or agreements; however, where such value stipulated in investment contracts or agreements is not fair, the actual costs are determined based on fair value. For intangible assets that are self-developed, the costs are the total expenses incurred before such assets reach the working condition for their intended use.

For the subsequent measurement of intangible assets of the Company: (1) intangible assets with limited useful lives are amortized using the straight-line method, and the useful lives of intangible assets and amortization method are reviewed at the end of each year. Where there is any difference with the original estimates, relevant adjustments shall be made. (2) Intangible assets with indefinite useful lives are not amortized; however, the useful lives are reviewed at the end of the year. Where any unambiguous evidence indicates that the useful lives are finite, then such useful lives are estimated and the intangible assets are amortized using the straight-line method.

2.17.2 Estimation of useful lives of intangible assets with limited useful life:

For intangible assets with definite useful lives, the Company generally considers the following factors when estimating their useful lives: (1) the life cycle of products produced by such assets and available information of useful lives of similar products; (2) current situation and estimation of future development trend on technologies and processes; (3) market demands of products or services that are produced or rendered by such assets; (4) actions expected to be taken by existing or potential competitors; (5) expected maintenance expenses to maintain the economic profitability brought by such assets and the estimated payment ability of the Company; (6) relevant laws, regulations or similar limitations in relation to the control period of such assets, such as license term and lease term; (7) relevance with the useful lives of the other assets held by the Company.

2.17.3 Determination basis of intangible assets with infinite useful life:

If the period for intangible assets to generate economic benefits cannot be ascertained, or

intangible assets have indefinite useful lives, the Company recognizes such assets as

intangible assets with indefinite useful lives.

Determination basis of intangible assets with indefinite useful lives: (1) useful lives derived

from contractual rights or other legal rights, but such contracts or laws do not stipulate

definite useful lives; (2) the period for such intangible assets to generate economic benefits

to the Company still cannot be determined after a comprehensive consideration of the same

industry or relevant expert opinions.

At the end of each year, the useful lives of intangible assets with indefinite useful lives are

reviewed mainly using a bottom-up approach, and relevant departments that use such

intangible assets conduct fundamental reviews and assess if there is any change in the

determination basis of the indefinite useful lives.

2.17.4 Testing and provision for impairment of intangible assets

On balance sheet date, the Company assesses if there is any indication that the intangible

asset may be impaired. When such indication exists, the Company shall conduct

impairment tests to such asset to determine its recoverable amount and make provision for

impairment at the lower of its book value and recoverable amount. Once provided, the

impairment loss will not be reversed in subsequent accounting periods.

The recoverable amount of an intangible asset is the higher of the net amount of its fair

value less cost of disposal and the present value of the estimated future cash flow of such

intangible asset.

2.18 Determination of provisions for impairment of goodwill and other assets

On each balance sheet date, the Company assesses if there is any sign that assets other than

long-term equity investment, investment properties, fixed assets, construction in progress,





intangible assets and financial instruments, have been or may be impaired. If any sign indicates

that such assets may be impaired, the recoverable amounts of individual assets or asset groups are

estimated. If the estimated recoverable amounts are lower than their book values, the impairment

are provided as the difference between the book values and the recoverable amounts and included

in current profit and loss.

Impairment test will be conducted for goodwill on every accounting year whether there is any sign

of impairment or not. When impairment test is conducted for goodwill, its book value will be

allocated using a reasonable method over the asset groups or combinations of asset groups that can

benefit from the synergy effect of business combination, and every year the test is conducted for

asset groups or combinations of asset groups, over which goodwill is allocated. If the recoverable

amounts of asset groups or combinations of asset groups are lower than their book values, the

impairment losses are first reduced on the book values of the goodwill of such asset groups or

combination of asset groups and then allocated according to the proportion of the book value of

each asset in such asset groups or combinations of asset groups. Once recognized, the impairment

losses of assets will not be reversed in subsequent periods.

2.19 Long-term deferred expenses

The long-term deferred expenses of the Company refer to expenses that are incurred but have a

beneficial period of over one (exclusive) year, mainly including parking fees and house renovation

expenses. Long-term deferred expenses are amortized by stages on expense item basis over the

beneficial period. Where the long-term deferred expenses cannot generate economic benefits to the

Company during the subsequent accounting periods, the unamortized value is completely

transferred to current profit and loss.

2.20 Estimated liabilities

2.20.1 Recognition criteria of estimated liabilities

When the obligation related to contingencies is the present obligation assumed by the

Company and the fulfillment of such obligation probably leads to outflows of economic

benefits, and meanwhile, the amount of such obligation can be reliably measured, such

obligation is recognized as estimated liability.

2.20.2 Measurement of estimated liabilities

The estimated liability is initially measured at the best estimate of expense necessary for

fulfillment of relevant present obligation. If there is a continuous range for the necessary

expense and probabilities of occurrence of all the outcomes within such range are equal, the

best estimate shall be determined at the intermediate value of the range; if several items are

involved, then the best estimate is calculated and determined based on all possible results

and relevant probabilities.

On balance sheet date, the book value of estimated liability shall be reviewed. If any

unambiguous evidence shows that such book value cannot truly reflect the best estimate,

such book value shall be adjusted to current best estimate.

2.21 Share-based payments and equity instruments

Share-based payment refers to the equity instrument granted by the Company to obtain the service

rendered by the employees or other parties or transactions to assume liabilities that are determined

based on equity instruments, which could be settled through equity or cash settlements.

Equity-settled payments in exchange for the service rendered by the employees are measured at the

fair values of the equity instruments granted to the employees; equity-settled payments in exchange

for the service rendered by other parties are measured at the fair values on the date when such

service is procured; where the fair values of services rendered by other parties cannot be measured

reliably, the payments are measured at the fair values of equity instruments on the date of service

procurement. The fair values of equity instruments are determined in the following methods:

(1) where there is an active market, the fair values are determined by the offer in such market;

(2) where there is no active market, the fair value is determined by assessment techniques

including the prices offered in recent market transactions by voluntary traders, with reference





to current fair values of the other substantially same financial instruments, cash flow discount

method and option pricing models.

The Company estimates the latest available subsequent information such as changes in number of

employees that can exercise options and determines the best estimate of exercisable equity

instrument.

2.22 Revenue

The revenue of the Company is mainly from the sales of real estate, property leasing, property

management and the other goods and services. The recognition principles are:

(1) Revenue from sales of real estate: the sales revenue is recognized when the real estate passes

acceptance inspection, sales contract is signed, and the certificate of payment of the buyer is

obtained and such real estate is delivered for use. When the buyer receives the written house

delivery notice and has no justifiable reasons for objection, the revenue is immediately

recognized when the delivery term determined in the written notice expires. For projects

entrusted for development and development projects in compliance with the conditions under

Accounting Standards for Business Enterprises - Construction Contract, the sales revenue is

recognized using the percentage-of-completion method. The percentage of completion is

determined according to the proportion of the work amount to the completed project.

(2) Revenue from property leasing: the revenue from lease of property is recognized based on the

date stipulated in the contract or agreement with the lessee when the lessee pays the rent and

the amount of rent.

(3) Revenue from property management: when the property management service is rendered, the

economic benefit in relation to the property management service can flow into the Company

and costs associated with property management service can be reliably measured, revenue

from property management is recognized.

(4) Other revenue:

A. For revenue from sales of goods, when the Company has transferred significant risks and

rewards of ownership of the goods to the purchaser; the Company retains neither

continuous management rights associated with ownership of the goods sold nor effective

control over the goods sold; the relevant amount of revenue can be measured reliably; it

is highly likely that the economic benefits associated with the transaction will flow into

the Company; and the relevant amount of cost incurred or to be incurred can be

measured reliably, revenue from sales of goods is recognized.

B. For revenue from rendering of service, when the outcome of a service transaction can be

estimated reliably, revenue from rendering of service is recognized using the

percentage-of-completion method.

C. For revenue from transferring the use right of assets, when relevant economic benefits is

likely to flow into the Company and the amount of revenue can be reliably measured, the

revenue is recognized.

2.23 Government subsidies

2.23.1 Types

Government subsidies are mainly divided into those associated with assets and those

associated with income.

2.23.2 Accounting treatment

Government subsidies associated with assets are recognized as deferred income and evenly

amortized over the useful lives of relevant assets and included in current profit and loss;

government subsidies measured at nominal amount are directly included in current profit

and loss. Government subsidies associated with income are accounted for using the

following methods: (1) subsidies granted for compensating relevant expenses or losses of

the Company in subsequent periods are recognized as deferred income and included in

current profit and loss in the period when relevant expenses are recognized; (2) subsidies

granted to compensate expenses or losses that have already incurred by the Company are

directly included in current profit and loss.





2.24 Deferred income tax assets and deferred income tax liabilities

Determination of deferred income tax assets and deferred income tax liabilities of the Company:

(1) Deferred income tax assets or deferred income tax liabilities are calculated and recognized

based on the differences between book value and tax base of the assets and liabilities (where

the projects that are not recognized as assets or liabilities but the tax base of which can be

determined, such tax base is recognized as the difference) according to the applicable tax rate

in the expected period when such assets are taken back or liabilities are repaid.

(2) The deferred income tax assets are recognized to the extent of taxable income that is likely to

offset the deductible temporary differences. On the balance sheet date, where unambiguous

evidence shows that it is likely to derive sufficient taxable income in subsequent period to

offset the deductible temporary differences, the deferred income tax assets that have not been

recognized in prior accounting periods are recognized. If it is not likely to derive sufficient

taxable income to offset the deductible temporary differences in subsequent periods, then the

book value of the deferred income tax assets should be written down.

(3) The taxable temporary difference associated with investment of subsidiaries and associates is

recognized as deferred income tax liabilities, unless the Company can control the time when

such temporary difference is reversed or it is likely that such temporary difference will not be

reversed in foreseeable future. The deductible temporary difference associated with investment

of subsidiaries and associates is recognized as deferred income tax assets when such temporary

difference will be reversed in foreseeable future and it is likely that such temporary difference is

derived to offset the taxable income of the deductible temporary difference.

2.25 Held-for-sale assets

2.25.1 Determination criteria of held-for-sale assets

Recognition of held-for-sale assets shall satisfy the following conditions: the Company has

made resolutions with respect to the disposal of such assets; the Company has signed

irrevocable transfer agreement with the transferee; and such assets are transferred within

one year.

2.25.2 Accounting for held-for-sale assets

For a fixed asset that is held for sale, the estimated net residual value of such asset shall be

adjusted to reflect the amount of fair value less the disposal expenses, which, however,

shall not exceed the original book value of such asset when the held-for-sale conditions are

met, and the difference the original book value exceeding the adjusted estimated net

residual value shall be recognized as asset impairment loss and included in current profit

and loss.

Other non-current assets held for sale shall be treated following the principles above.

Held-for-sale non-current assets include individual assets and disposal groups. Disposal

group refers to a group of assets that is sold as a whole or together in other ways.

2.26 Changes in principal accounting policies and accounting estimates

2.26.1 Changes in accounting policies

None.

2.26.2 Changes in accounting estimates

None.

2.27 Correction of accounting errors in previous period

None.

3. Taxation

3.1 Major tax types and tax rates applicable to the Company

Tax type Basis of tax assessment Tax rate

Enterprise income tax Taxable income 25%

Business tax Real estate sales income, construction

services income, etc. 3%, 5% or 20%





Tax type Basis of tax assessment Tax rate

Urban maintenance and construction

tax Business tax (or VAT paid)

Paid in accordance with

local tax rules

Educational surtax Business tax (or VAT paid) Paid in accordance with

local tax rules

Value added tax (VAT) on land Real estate sales income deducted by

project amount

Paid at the excess

progressive tax rate of

30%-60%

Contract tax Amount for sale and transfer of land use

right 3%-5%

3.2 Preferential taxation policies and approvals

None.

4. Business combination and consolidated financial statements

(All amounts in the following statements in this section are expressed in RMB’0,000 unless otherwise

stated.)

Subsidiaries and special purpose entities over which the Company has actual control have been included

in the scope of consolidated financial statements.

The Company’s consolidated financial statements are prepared in accordance with the Accounting

Standards for Business Enterprises No. 33 - Consolidated Financial Statements and relevant rules, and

all significant inter-company transactions and balances within the consolidation scope have been

eliminated during the consolidation. The portion in shareholders’ equity of subsidiaries not attributable

to the parent company is listed separately as minority interest under the shareholders’ equity in

consolidated statements.

During the preparation of consolidated financial statements, for the accounting policies or accounting

periods of a subsidiary that are different from those of the Company, the financial statements of the

subsidiary have been adjusted according to the accounting policies and accounting periods of the

Company.

For subsidiaries acquired through business combination not under common control, their individual

financial statements have been adjusted based on fair value of net identifiable assets on purchasing date.

For subsidiaries acquired through business combination under common control, their consolidation is

considered as having occurred as at the beginning of the consolidation year, and their assets and

liabilities, operating results and cash flows have been included in the consolidated financial statements

from the beginning of the year of the consolidation period.





4.1 Subsidiaries

4.1.1 Subsidiaries acquired through establishment, investment or other methods

Full name of subsidiary Type of

subsidiary

Registration

place Business nature Registered capital Business scope

Actual amount

of

contribution

as at

December 31,

2013

Balance of

other items

constituting

net investment

in subsidiary

in essence

Share

ownership

(%)

Voting

ratio

(%)

Consolidated

statement or

not

Minority

interest

Amount of

minority interest

used to offset

profit or loss

attributable to

minority

shareholders

Owners’ equity of the

parent company after

offsetting the excess

of current loss shared

by minority

shareholders of

subsidiary over the

minority equity in

such subsidiary as at

January 1, 2013

1-1.Poly Guangzhou Real

Estate Co., Ltd. (“Poly

Guangzhou”)

Controlling

subsidiary Guangzhou

Real estate

development 2,000

Real estate

development

and operation,

etc. 1,020 51 51 Yes 114,566.02

1-2. Guangzhou Poly Licheng

Real Estate Development Co.,

Ltd. (“Poly Licheng”)

Controlling


Real estate

development 1,000

Real estate

development

and operation,

etc. 1,000 100 100 Yes -

1-3 Zhongshan Xiangyu

Industrial Co., Ltd.

(“Zhongshan Xiangyu”)

Controlling

subsidiary Zhongshan

Real estate

development 10,000

Real estate

development

and operation,

etc. 10,000 100 100 Yes -

2. Poly Zengcheng Real Estate

Development Co., Ltd. (“Poly

Zengcheng”)

Wholly-owned


Real estate

development 5,000

Real estate

development

and operation,

etc. 5,000 100 100 Yes -

3-1. Poly Guangdong Real

Estate Co., Ltd. (“Guangdong

Poly”)

Wholly-owned


Real estate

development 20,000

Real estate

development

and operation,

etc. 20,000 100 100 Yes -

3-2. Guangzhou Yuehe Property

Development Co., Ltd.

(“Guangdong Yuehe”)

Controlling


Real estate

development 70,000

Real estate

development

and operation,

etc. 35,000 50 50 Yes 34,680.27






subsidiary

Registration


Actual amount

of

contribution

as at

December 31,

2013

Balance of

other items

constituting

net investment

in subsidiary

in essence

Share

ownership

(%)

Voting

ratio

(%)

Consolidated

statement or

not

Minority

interest

Amount of

minority interest

used to offset

profit or loss

attributable to

minority

shareholders





by minority

shareholders of

subsidiary over the

minority equity in


January 1, 2013

3-3. Zhuhai Poly Tianyue

Investment Holdings Co., Ltd.

(“Zhuhai Tianyue”)

Controlling

subsidiary Zhuhai

Real estate

development 160,000

Real estate

development

and operation,

etc. 96,000 60 60 Yes 63,808.38

3-4. Guangzhou Conghua Poly


Ltd. (“Conghua Poly”)

Wholly-owned


Real estate

development 10,000

Real estate

development

and operation,

etc. 10,000 100 100 Yes -

3-5. Guangzhou Bangjie

Property Co., Ltd. (“Guangzhou

Bangjie”)

Controlling


Real estate

development 10,000

Real estate

development

and property

management,

etc. 10,000 100 100 Yes -

3-6. Guangzhou Honghe Real

Estate Development Co., Ltd.

(“Guangzhou Honghe”)

Wholly-owned


Real estate

development 5,000

Real estate

development

and operation,

etc. 5,000 100 100 Yes -

3-7. Guangzhou Yuehong Real


(“Guangzhou Yuehong”)

Wholly-owned


Real estate

development 10,000

Real estate

development

and operation,

etc. 10,000 100 100 Yes -

3-8. Guangzhou Sitai Real


(“Guangzhou Sitai”)

Wholly-owned


Real estate

development 10,000

Real estate

development

and operation,

etc. 10,000 100 100 Yes -

4. Guangzhou Science City

Poly Real Estate Co. Ltd.

(“Science City”)

Wholly-owned


Real estate

development 5,000

Real estate

development

and operation,

etc. 6,015.6 100 100 Yes -






subsidiary

Registration


Actual amount

of

contribution

as at

December 31,

2013

Balance of

other items

constituting

net investment

in subsidiary

in essence

Share

ownership

(%)

Voting

ratio

(%)

Consolidated

statement or

not

Minority

interest

Amount of

minority interest

used to offset

profit or loss

attributable to

minority

shareholders





by minority

shareholders of

subsidiary over the

minority equity in


January 1, 2013

5-1. Poly (Dongguan) Real


(“Poly Dongguan”)

Wholly-owned

subsidiary Dongguan

Real estate

development 5,000

Real estate

development

and operation,

etc. 5,000 100 100 Yes -

5-2 Dongguan Hehong

Investment Co., Ltd.

(“Dongguan Hehong”)

Wholly-owned

subsidiary Dongguan

Real estate

development 1,000

Real estate

development

and operation,

etc. 1,000 100 100 Yes -

6. Poly (Dongguan) Investment

Co., Ltd. (“Dongguan

Investment”)

Controlling

subsidiary Dongguan

Real estate

development 10,000

Real estate

development

and operation,

etc. 8,000 80 80 Yes 1,656.35

7. Poly (Zhuhai) Property


(“Zhuhai Poly”)

Wholly-owned

subsidiary Zhuhai

Real estate

development 5,000

Real estate

development

and operation,

etc. 5,000 100 100 Yes -

8. Poly (Zhongshan) Property


(“Zhongshan Poly”)

Wholly-owned

subsidiary Zhongshan

Real estate

development 5,000

Real estate

development

and operation,

etc. 5,000 100 100 Yes -

9-1. Hengli (Hong Kong) Real

Estate Limited (“Hengli Real

Estate”)

Wholly-owned

subsidiary Hong Kong

Real estate sales

and lease

agency HKD100

Real estate sales

and lease

agency, etc. HKD100 100 100 Yes -

9-2.Poly Real Estate Finance

Ltd

Wholly-owned

subsidiary

British

Virgin

Islands

Investment

holding USD0.0001

Investment

holding,

enterprise

management USD0.0001 100 100 Yes -






subsidiary

Registration


Actual amount

of

contribution

as at

December 31,

2013

Balance of

other items

constituting

net investment

in subsidiary

in essence

Share

ownership

(%)

Voting

ratio

(%)

Consolidated

statement or

not

Minority

interest

Amount of

minority interest

used to offset

profit or loss

attributable to

minority

shareholders





by minority

shareholders of

subsidiary over the

minority equity in


January 1, 2013

9-3.Abundant Choice

Investment Limited

Wholly-owned


Investment

holding HKD0.0001

Investment

holding,

enterprise

management HKD0.0001 100 100 Yes -

9-4.Action Dragon Investments

Limited

Wholly-owned


Investment

holding HKD0.0001

Investment

holding,

enterprise

management HKD0.0001 100 100 Yes -

9-5.Pride South Holdings

Limited

Controlling

subsidiary

British

Virgin

Islands

Investment

holding USD0.0001

Investment

holding,

enterprise

management USD0.0001 65 65 Yes -100.67

9-6. Shengxin Company

Limited (“Shengxin Company”)

Wholly-owned

subsidiary

British

Virgin

Islands

Investment

holding USD0.0001

Investment

holding,

enterprise

management USD0.0001 100 100 Yes -

9-7. Hefei Herong Real Estate

Co., Ltd. (“Hefei Herong”)

Wholly-owned

subsidiary Hefei

Real estate

development 4,000

Real estate

development

and sale, etc. 4,000 100 100 Yes -

9-8. Shouhong Property

(Guangzhou) Co., Ltd.

(“Shouhong Property”)

Controlling


Real estate

development 150,000

Real estate

development

and sale, etc. 149,188 100 100 Yes -

10-1. Poly International Trade

and Investment Co., Ltd. (“Poly

International Trade”)

Controlling


Real estate

development 10,000

Real estate

development

and operation,

etc. 5,100 51 51 Yes 45,970.21

10-2. Guangzhou PWTC

Property Management Co., Ltd.

(“PWTC”)

Controlling


Property

management 300

Property

management,

etc. 300 100 100 Yes -






subsidiary

Registration


Actual amount

of

contribution

as at

December 31,

2013

Balance of

other items

constituting

net investment

in subsidiary

in essence

Share

ownership

(%)

Voting

ratio

(%)

Consolidated

statement or

not

Minority

interest

Amount of

minority interest

used to offset

profit or loss

attributable to

minority

shareholders





by minority

shareholders of

subsidiary over the

minority equity in


January 1, 2013

11. Guangzhou Pazhou

Investment Co., Ltd. (“Pazhou

Investment”)

Controlling


Real estate

development 13,513.51

Real estate

development

and operation,

etc. 8,000 59.2 59.2 Yes 255,089.07

12-1. Poly (Shenyang) Real


(“Poly Shenyang”)

Controlling

subsidiary Shenyang

Real estate

development 10,000

Real estate

development,

etc. 6,000 60 60 Yes 16,004.03

12-2. Poly Riverbank,

Shenyang Real Estate


(“Shenyang Riverbank”)

Controlling

subsidiary Shenyang

Real estate

development 5,000

Real estate

development

and sale, etc. 2,550 51 51 Yes 3,397.63

13-1. Liaoning Poly Industrial

Co., Ltd. (“Liaoning

Industrial”)

Wholly-owned

subsidiary Shenyang

Real estate

development 20,000

Real estate

development

and operation,

etc. 2,0000 100 100 Yes -

13-2 Shenyang Poly

Champagne Real Estate


(“Shenyang Champagne”)

Controlling

subsidiary Shenyang

Real estate

development 67,000

Real estate

development

and operation,

etc. 36,850 55 55 Yes 29,261.00

13-3. Poly (Tonghua) Real


(“Tonghua Poly”)

Wholly-owned

subsidiary Tonghua

Real estate

development 5,000

Real estate

development

and operation,

etc. 5,000 100 100 Yes -

13-4. Shenyang Linhai Real

Estate Development Co., Led

("Shenyang Linhai")

Wholly-owned

subsidiary Shenyang

Real estate

development 10,000

Real estate

development

and operation,

etc. 10,000 100 100 Yes -






subsidiary

Registration


Actual amount

of

contribution

as at

December 31,

2013

Balance of

other items

constituting

net investment

in subsidiary

in essence

Share

ownership

(%)

Voting

ratio

(%)

Consolidated

statement or

not

Minority

interest

Amount of

minority interest

used to offset

profit or loss

attributable to

minority

shareholders





by minority

shareholders of

subsidiary over the

minority equity in


January 1, 2013

14-1. Liaoning Poly Real Estate


(“Liaoning Poly”)

Controlling

subsidiary Shenyang

Real estate

development 10,000

Real estate

development,

sales of

commercial

housing, etc. 10,000 100 100 Yes -

14-2. Shenyang Poly Xihu Real


(“Shenyang Xihu”)

Controlling

subsidiary Shenyang

Real estate

development 5,000

Real estate

development,

sales of

commercial

housing, etc. 5,000 100 100 Yes -

15-1. Poly (Yingkou) Real


(“Poly Yingkou”)

Controlling

subsidiary Yingkou

Real estate

development 5,000

Real estate

development

and operation,

etc. 4,750 95 95 Yes 326.58

15-2. Dalian Poly Hongqi Real


(“Dalian Hongqi”)

Controlling

subsidiary Dalian

Real estate

development 5,000

Real estate

development

and operation,

etc. 2,500 50 50 Yes -1,293.92

15-3. Shenyang Hengfu Real

Estate Co., Ltd. (“Shenyang

Hengfu”)

Wholly-owned

subsidiary Shenyang

Real estate

development 27,687

Real estate

development

and operation,

etc. 27,687 100 100 Yes -

15-4. Dalian Bingang Real


(“Dalian Bingang”)

Wholly-owned

subsidiary Dalian

Real estate

development 10,000

Real estate

development

and operation,

etc. 10,000 100 100 Yes -






subsidiary

Registration


Actual amount

of

contribution

as at

December 31,

2013

Balance of

other items

constituting

net investment

in subsidiary

in essence

Share

ownership

(%)

Voting

ratio

(%)

Consolidated

statement or

not

Minority

interest

Amount of

minority interest

used to offset

profit or loss

attributable to

minority

shareholders





by minority

shareholders of

subsidiary over the

minority equity in


January 1, 2013

16-1. Poly (Dalian) Real Estate


Dalian”)

Wholly-owned

subsidiary Dalian

Real estate

development 10,000

Real estate

development

and operation,

etc. 10,000 100 100 Yes -

16-2. Dalian Poly Convention

& Exhibition Management Co.,

Ltd. (“Dalian Convention &

Exhibition”)

Wholly-owned

subsidiary Dalian

Exhibition

services 50

Exhibition

services 50 100 100 Yes -

16-3. Dalian Henghui Real


("Dalian Henghui")

Wholly-owned

subsidiary Dalian

Real estate

development 1,000

Real estate

development

and operation,

etc. 1,000 100 100 Yes -

16-4. Dalian Poly Donggang


Ltd. ("Dalian Donggang")

Controlling

subsidiary Dalian

Real estate

development 30,000

Real estate

development

and operation,

etc. 7,500 50 50 Yes 7,152.84

16-5. Dalian Yingsheng Real


("Dalian Yingsheng")

Controlling

subsidiary Dalian

Real estate

development 20,000

Real estate

development

and operation,

etc. 5,000 50 50 Yes 4,927.27

17-1. Poly (Changchun)

HengFu Real Estate


(“Changchun Hengfu”)

Wholly-owned

subsidiary Changchun

Real estate

development 5,000

Real estate

development

and operation,

etc. 5,000 100 100 Yes -

17-2. Changchun Hirota Real


(“Changchun Hirota”)

Wholly-owned


Real estate

development 5,000

Real estate

development

and operation,

etc. 5,000 100 100 Yes -






subsidiary

Registration


Actual amount

of

contribution

as at

December 31,

2013

Balance of

other items

constituting

net investment

in subsidiary

in essence

Share

ownership

(%)

Voting

ratio

(%)

Consolidated

statement or

not

Minority

interest

Amount of

minority interest

used to offset

profit or loss

attributable to

minority

shareholders





by minority

shareholders of

subsidiary over the

minority equity in


January 1, 2013

17-2-1. Changchun Poly Real


(“Changchun Poly”)

Wholly-owned


Real estate

development 5,000

Real estate

development

and operation,

etc. 5,000 100 100 Yes -

17-3. Changchun City East

Long Real Estate Development

Co., Ltd. (“Changchun East

Long”)

Wholly-owned


Real estate

development 1,000

Real estate

development

and operation,

etc. 1,000 100 100 Yes -

17-4. Changchun Poly Hengxin


Ltd. ("Changchun Hengxin")

Wholly-owned


Real estate

development 2,000

Real estate

development

and operation,

etc. 2,000 100 100 Yes -

18-1. POLY BEIJING Real


(“Poly Beijing”)

Wholly-owned

subsidiary Beijing

Real estate

development 30,000

Real estate

development,

sales of

commercial

housing, etc. 30,493.24 100 100 Yes -

18-2. BEIJING POLY XING


Ltd. (“Beijing Poly Xing”)

Wholly-owned

subsidiary Beijing

Real estate

development 1,000

Real estate

development

and operation,

etc. 1,000 100 100 Yes -

18-3. BEIJING POLY YING


Ltd. (“Beijing Poly Ying”)

Wholly-owned

subsidiary Beijing

Real estate

development 1,000

Real estate

development

and operation,

etc. 1,000 100 100 Yes -

18-4. BEIJING POLY CHENG


Ltd. (“Beijing Poly Cheng”)

Controlling

subsidiary Beijing

Real estate

development 1,000

Real estate

development

and operation,

etc. 900 90 90 Yes 1,992.52






subsidiary

Registration


Actual amount

of

contribution

as at

December 31,

2013

Balance of

other items

constituting

net investment

in subsidiary

in essence

Share

ownership

(%)

Voting

ratio

(%)

Consolidated

statement or

not

Minority

interest

Amount of

minority interest

used to offset

profit or loss

attributable to

minority

shareholders





by minority

shareholders of

subsidiary over the

minority equity in


January 1, 2013

18-5. Hebei Poly Real Estate

Development Co., Ltd. (“Hebei

Poly”)

Controlling

subsidiary

Shijiazhuan

g

Real estate

development 10,000

Real estate

development

and operation,

etc. 9,000 90 90 Yes 727.67

18-6-1. Beijing Poly An Ping

Pension Investment

Management Co., Ltd.

(“Beijing An Ping”)

Holding

subsidiary Beijing

Investment

management 2,000

Investment

management,

investment

advisory 1,020 51 51 Yes 487.81

18-6-2. Beijing An Ping

Policlinic Co., Ltd. (“Beijing

Anping Poclinic”)

Wholly-owned

subsidiary Beijing

Medical

treatment 500

Prevention and

healthcare,

medicine,

surgery, etc. 500 100 100 Yes -

18-7. BEIJING POLY Sunac


Ltd. (“Beijing Poly Sunac”)

Controlling

subsidiary Beijing

Real estate

development 200,000

Real estate

development,

sales of

commercial

housing, etc. 101,000 50.5 50.5 Yes 97,550.34

18-8. Beijing Poly Shoukai

Xingtai Property Co., Ltd.

(“Beijing Poly Shoukai”)

Controlling

subsidiary Beijing

Real estate

development 50,000

Real estate

development

and property

management,

etc. 25,500 51 51 Yes 23,585.71

18-9. Beijing Poly Real Estate


("Beijing Poly Tong")

Controlling

subsidiary Beijing

Real estate

development 1,000

Real estate

development

and property

management,

etc. 650 65 65 Yes 324.75






subsidiary

Registration


Actual amount

of

contribution

as at

December 31,

2013

Balance of

other items

constituting

net investment

in subsidiary

in essence

Share

ownership

(%)

Voting

ratio

(%)

Consolidated

statement or

not

Minority

interest

Amount of

minority interest

used to offset

profit or loss

attributable to

minority

shareholders





by minority

shareholders of

subsidiary over the

minority equity in


January 1, 2013

18-10. Beijing Langtai Real


("Beijing Langtai")

Controlling

subsidiary Beijing

Real estate

development 130,000.

Real estate

development

and property

management,

etc. 65,000 50 50 Yes 64,975.83

18-11. Beijing Litong Real


("Beijing Litong")

Controlling

subsidiary Beijing

Real estate

development 10,000

Real estate

development

and property

management,

etc. 6,000 60 60 Yes 3,998.51

19-1. Poly Shanghai Real Estate


(“Shanghai Poly”)

Controlling

subsidiary Shanghai

Real estate

development 10,000

Real estate

development

and operation,

etc. 6,087 61 61 Yes 4,392.98

19-2. Shanghai Junlan Property

Co., Ltd. (“Junlan Property”)

Controlling

subsidiary Shanghai

Real estate

development 1,000

Real estate

development

and operation,

etc. 1,000 100 100 Yes -

20-1. Shanghai Jianjin Real

Estate Co., Ltd. (“Shanghai

Jianjin”)

Wholly-owned

subsidiary Shanghai

Real estate

development 5,000

Real estate

development

and operation,

etc. 5,000 100 100 Yes -

20-2. Shanghai Poly Jianyong

Real Estate Co., Ltd.

(“Shanghai Jianyong”)

Wholly-owned

subsidiary Shanghai

Real estate

development 5,000

Real estate

development

and operation,

etc. 5,000 100 100 Yes -






subsidiary

Registration


Actual amount

of

contribution

as at

December 31,

2013

Balance of

other items

constituting

net investment

in subsidiary

in essence

Share

ownership

(%)

Voting

ratio

(%)

Consolidated

statement or

not

Minority

interest

Amount of

minority interest

used to offset

profit or loss

attributable to

minority

shareholders





by minority

shareholders of

subsidiary over the

minority equity in


January 1, 2013

20-3. Shanghai Poly Jianye


(“Shanghai Jianye”)

Wholly-owned

subsidiary Shanghai

Real estate

development 5,000

Real estate

development

and operation,

etc. 5,000 100 100 Yes -

20-4. Shanghai Poly Jianheng


(“Shanghai Jianheng”)

Wholly-owned

subsidiary Shanghai

Real estate

development 10,000

Real estate

development

and operation,

etc. 10,000 100 100 Yes -

20-5. Shanghai Poly Jianzhen


(“Shanghai Jianzhen”)

Wholly-owned

subsidiary Shanghai

Real estate

development 5,000

Real estate

development

and operation,

etc. 5,000 100 100 Yes -

20-6. Shanghai Poly Jianzhen

Investment Consultation Co.,

Ltd. (“Shanghai Jianzhen”)

Wholly-owned

subsidiary Shanghai

Business

development 100

Real estate

development

and operation,

etc. 100 100 100 Yes -

20-7. Shanghai Poly Jianhao

Business Investment Co., Ltd.

(“Shanghai Jianhao”)

Controlling

subsidiary Shanghai

Real estate


Real estate

development

and operation,

etc. 315,781 80.01 80.01 Yes 79,538.43

20-8. Jiashan An Ping Regimen

Property Co., Ltd. (“Jiashan

Property”)

Controlling

subsidiary Jiaxing

Real estate

development 1,000

Real estate

development

and operation,

etc. 700 70 70 Yes -201.52

20-9. Poly Property Nantong

Real Estate Co., Ltd. (“Poly

Nantong”)

Wholly-owned

subsidiary Nantong

Real estate

development 10,000

Real estate

development

and operation,

etc. 10,000 100 100 Yes -






subsidiary

Registration


Actual amount

of

contribution

as at

December 31,

2013

Balance of

other items

constituting

net investment

in subsidiary

in essence

Share

ownership

(%)

Voting

ratio

(%)

Consolidated

statement or

not

Minority

interest

Amount of

minority interest

used to offset

profit or loss

attributable to

minority

shareholders





by minority

shareholders of

subsidiary over the

minority equity in


January 1, 2013

20-10. Shanghai Poly Jianrong


(“Shanghai Jianrong”)

Wholly-owned

subsidiary Shanghai

Real estate

development 1,000

Real estate

development

and operation,

etc. 1,000 100 100 Yes -

20-11. Shanghai Poly Jianxi


(“Shanghai Jianxi”)

Controlling

subsidiary Shanghai

Real estate

development 100,000

Real estate

development

and operation,

etc. 51,000 51 51 Yes 48,595.03

20-12. Shanghai Poly

Hongrong Real Estate Co., Ltd.

(“Shanghai Hongrong”)

Controlling

subsidiary Shanghai

Real estate

development 200,000

Real estate

development

and operation,

etc. 102,000 51 51 Yes 96,343.40

20-13. Shanghai Poly Jianying


(“Shanghai Jianying”)

Controlling

subsidiary Shanghai

Real estate

development 10,000

Real estate

development

and operation,

etc. 5,100 51 51 Yes 4,817.44

20-14. Shanghai Poly Jianjing


("Shanghai Jianjing")

Wholly-owned

subsidiary Shanghai

Real estate

development 10,000

Real estate

development

and operation,

etc. 10,000 100 100 Yes -

21-1. Shanghai Poly Jianlin


(“Shanghai Jianlin”)

Wholly-owned

subsidiary Shanghai

Real estate

development 10,000

Housing

development

and operation,

etc. 10,000 100 100 Yes -

21-2. Shanghai Poly Jiankun


(“Shanghai Jiankun”)

Wholly-owned

subsidiary Shanghai

Real estate

development 10,000

Real estate

development

and operation,

etc. 10,000 100 100 Yes -






subsidiary

Registration


Actual amount

of

contribution

as at

December 31,

2013

Balance of

other items

constituting

net investment

in subsidiary

in essence

Share

ownership

(%)

Voting

ratio

(%)

Consolidated

statement or

not

Minority

interest

Amount of

minority interest

used to offset

profit or loss

attributable to

minority

shareholders





by minority

shareholders of

subsidiary over the

minority equity in


January 1, 2013

21-3. Shanghai Poly Jiancui


(“Shanghai Jiancui”)

Wholly-owned

subsidiary Shanghai

Real estate

development 10,000

Real estate

development

and operation,

etc. 10,000 100 100 Yes -

22-1. Poly South China

Holdings Co., Ltd. (“South

China Holdings”)

Wholly-owned

subsidiary Foshan

Real estate

development 10,000

Real estate

development

and property

management,

etc. 10,000 100 100 Yes -

22-2. Foshan Shunde District

Poly Real Estate Co., Ltd.

(“Shunde Poly”)

Wholly-owned

subsidiary Foshan

Real estate

development 5,000

Real estate

development

and operation,

etc. 5,000 100 100 Yes -

22-2-1. Foshan Shunde Poly

Hengkun Real Estate


(“Foshan Hengkun”)

Wholly-owned

subsidiary Foshan

Real estate

development 5,000

Real estate

development

and operation,

etc. 5,000 100 100 Yes -

22-3. Poly (Foshan) Hotel Co.,

Ltd. (“Foshan Hotel”)

Wholly-owned

subsidiary Foshan

Hotel

management 100

Tourism,

catering, hotel

management

services 100 100 100 Yes -

22-4. Foshan Poly Real Estate


(“Foshan Poly”)

Wholly-owned

subsidiary Foshan

Real estate

development 2,000

Real estate

development

and operation,

etc. 2,000 100 100 Yes -

22-5. Foshan Poly Zhenggao


Ltd. (“Foshan Zhenggao”)

Controlling

subsidiary Foshan

Real estate

development 1,000

Real estate

development

and operation,

etc. 600 60 60 Yes -373.01






subsidiary

Registration


Actual amount

of

contribution

as at

December 31,

2013

Balance of

other items

constituting

net investment

in subsidiary

in essence

Share

ownership

(%)

Voting

ratio

(%)

Consolidated

statement or

not

Minority

interest

Amount of

minority interest

used to offset

profit or loss

attributable to

minority

shareholders





by minority

shareholders of

subsidiary over the

minority equity in


January 1, 2013

22-6. Foshan Poly Hengshun

Property Co., Ltd. (“Foshan

Hengshun”)

Controlling

subsidiary Foshan

Real estate

development 30,000

Real estate

development

and operation,

etc. 15,300 51 51 Yes 14,383.13

22-7. Foshan Poly Hengxin

Real Estate Co., Ltd. (“Foshan

Hengxin”)

Controlling

subsidiary Foshan

Real estate

development 30,000

Real estate

development

and operation,

etc. 15,300 51 51 Yes 18,676.82

22-8. Foshan South Sea Poly

Hairong Investment Co., Ltd.

(“South Sea Hairong”)

Controlling

subsidiary Foshan

Real estate

development 80,000

Real estate

development

and operation,

etc. 48,000 60 60 Yes 30,790.44

22-9. Foshan Poly Xincheng


Ltd. (“Foshan Xincheng”)

Controlling

subsidiary Foshan

Real estate

development 20,000

Real estate

development

and property

management,

etc. 10,000 50 50 Yes 9,040.29

22-10. Foshan Poly Hongsheng

Property Development Co., Ltd.

(“Foshan Hongsheng”)

Controlling

subsidiary Foshan

Real estate

development 10,000

Real estate

development

and operation,

etc. 5,100 51 51 Yes 4,411.40

22-11. Jiangmen Poly Hongxin


(“Jiangmen Hongxin”)

Controlling

subsidiary Jiangmen

Real estate

development 10,000

Real estate

development

and operation,

etc. 5,000 50 50 Yes 4,366.23

22-12. Jiangmen Poly Binjiang

New Town Development Co.,

Ltd. (“Jiangmen Binjiang”)

Controlling

subsidiary Jiangmen

Real estate

development 5,000

Real estate

development

and operation,

etc. 5,000 100 100 Yes -






subsidiary

Registration


Actual amount

of

contribution

as at

December 31,

2013

Balance of

other items

constituting

net investment

in subsidiary

in essence

Share

ownership

(%)

Voting

ratio

(%)

Consolidated

statement or

not

Minority

interest

Amount of

minority interest

used to offset

profit or loss

attributable to

minority

shareholders





by minority

shareholders of

subsidiary over the

minority equity in


January 1, 2013

23-13.Foshan Poly Hengsheng

Property Co., Ltd. ("Foshan

Hengsheng")

Controlling

subsidiary Foshan

Real estate

development 10,000

Real estate

development

and property

management,

etc. 5,100 51 51 Yes 4,896.96

22-14. Foshan Sanshui Poly

Xinhe Real Estate Development

Co., Ltd. ("Foshan Sanshui")

Controlling

subsidiary Foshan

Real estate

development 10,000

Real estate

development

and property

management,

etc. 1,020 51 51 Yes 964.75

22-15.Poly (Zhanjiang) Real


("Poly Zhanjiang")

Controlling

subsidiary Zhanjiang

Real estate

development 50,000

Real estate

development

and operation,

etc. 6,500 65 65 Yes 3,384.44

22-16.Poly Shaoguan Real

Estate Co., Ltd. ("Poly

Shaoguan")

Controlling

subsidiary Shaoguan

Real estate

development 50,000

Real estate

development

and operation,

etc. 5,100 51 51 Yes 4,890.23

23-1. Poly (Chongqing)

Investment Industry Co., Ltd.

(“Chongqing Investment”)

Wholly-owned

subsidiary Chongqing

Real estate

development 50,000

Project

investment, etc. 50,000 100 100 Yes -

23-2. Chongqing Poly

Zhonghui Real Estate


(“Chongqing Zhonghui”)

Wholly-owned


Real estate

development 5,000

Real estate

development

and operation,

etc. 5,000 100 100 Yes -

23-3. Chongqing Baocheng


Ltd. (“Chongqing Baocheng”)

Controlling


Real estate

development 133,000

Real estate

development

and sale, etc. 67,830 51 51 Yes 63,456.66






subsidiary

Registration


Actual amount

of

contribution

as at

December 31,

2013

Balance of

other items

constituting

net investment

in subsidiary

in essence

Share

ownership

(%)

Voting

ratio

(%)

Consolidated

statement or

not

Minority

interest

Amount of

minority interest

used to offset

profit or loss

attributable to

minority

shareholders





by minority

shareholders of

subsidiary over the

minority equity in


January 1, 2013

23-4.Chongqing Baochang Real


("Chongqing Baochang")

Controlling


Real estate

development 37,500

Real estate

development

and sale, etc. 9,375 50 50 Yes 9,375.34

23-5.Chongqing Baofang Real


("Chongqing Baofang")

Controlling


Real estate

development 116,974

Real estate

development

and operation,

etc. 11,931 51 51 Yes 11,438.07

23-6.Chongqing Baoxiang Real


("Chongqing Baoxiang") (see

note)

Controlling


Real estate

development 2,000

Real estate

development

and property

management,

etc. 500 25 50 Yes 1,496.39

23-7.Chongqing Baosheng Real


("Chongqing Baosheng")

Wholly-owned


Real estate

development 10,000

Real estate

development

and operation,

etc. 10,000 100 100 Yes -

24-1. Poly (Tian Jin) Real


(“Tianjin Poly”)

Wholly-owned

subsidiary Tianjin

Real estate

development 20,000

Real estate

development,

etc. 20,000 100 100 Yes -

24-2. Tianjin Champagne Poly


Ltd. (“Tianjin Champagne”)

Wholly-owned

subsidiary Tianjin

Real estate

development 10,000

Real estate

development

and operation,

etc. 10,000 100 100 Yes -

24-3. Tianjin Poly Kunlun Real


(“Tianjin Kunlun”)

Wholly-owned

subsidiary Tianjin

Real estate

development 10,000

Real estate

development

and operation,

etc. 10,000 100 100 Yes -






subsidiary

Registration


Actual amount

of

contribution

as at

December 31,

2013

Balance of

other items

constituting

net investment

in subsidiary

in essence

Share

ownership

(%)

Voting

ratio

(%)

Consolidated

statement or

not

Minority

interest

Amount of

minority interest

used to offset

profit or loss

attributable to

minority

shareholders





by minority

shareholders of

subsidiary over the

minority equity in


January 1, 2013

24-4. Poly & Sunac Tianjin

Investment Co., Ltd. (“Tianjin

Sunac”)

Controlling

subsidiary Tianjin

Real estate

development 200,000

Real estate

investment,

development 102,000 51 51 Yes 94,950.47

24-5. Tianjin Poly Rongchang


Ltd. ("Poly Rongchang")

Wholly-owned

subsidiary Tianjin

Real estate

development 3,000

Real estate

development

and operation,

etc. 3,000 100 100 Yes -

24-6. Tianjin Poly Shengtai

Industrial Co., Ltd. ("Poly

Shengtai")

Wholly-owned

subsidiary Tianjin

Manufacturing

of building

materials 14,000

Building

materials

manufacturing,

sales, etc. 14,000 100 100 Yes -

24-7. Tianjin Ronghong

Shenglong Industrial Co., Ltd.

("Ronghong Shenglong")

Wholly-owned

subsidiary Tianjin

Sale of building

materials 5,000

Development

and transfer of

Building

material

technologies,

and sale of

building

materials 1,000 100 100 Yes -

25-1. Poly (Wuhan) Real Estate


Wuhan”)

Wholly-owned

subsidiary Wuhan

Real estate

development 10,000

Real estate

development,

sale of

commercial

housing, etc. 10,132 100 100 Yes -

25-2. Wuhan Poly Lily Real


(“Wuhan Lily”)

Wholly-owned

subsidiary Wuhan

Real estate

development 5,000

Real estate

development

and operation,

etc. 5,000 100 100 Yes -






subsidiary

Registration


Actual amount

of

contribution

as at

December 31,

2013

Balance of

other items

constituting

net investment

in subsidiary

in essence

Share

ownership

(%)

Voting

ratio

(%)

Consolidated

statement or

not

Minority

interest

Amount of

minority interest

used to offset

profit or loss

attributable to

minority

shareholders





by minority

shareholders of

subsidiary over the

minority equity in


January 1, 2013

25-3. Huanggang Poly Real


(“Huanggang Poly”)

Wholly-owned

subsidiary Huanggang

Real estate

development 2,000

Real estate

development,

etc. 2,000 100 100 Yes -

25-4. Wuhan Poly Mayflower


Ltd. (“Poly Mayflower”)

Wholly-owned

subsidiary Wuhan

Real estate

development 2,000

Real estate

development,

etc. 2,000 100 100 Yes -

25-5. Wuhan Poly Jinqiao Real


(“Wuhan Jinqiao”)

Controlling

subsidiary Wuhan

Real estate

development 2,000

Real estate

development,

etc. 2,000 100 100 Yes -

25-6. Wuhan Lin Yu Real Estate


(“Wuhan Lin Yu”)

Controlling

subsidiary Wuhan

Real estate


Real estate

development,

etc. 5,000 51 51 Yes 22,576.22

25-7. Wuhan Lin Hai Real


(“Wuhan Lin Hai”)

Wholly-owned

subsidiary Wuhan

Real estate

development 5,000

Real estate

development,

etc. 5,000 100 100 Yes -

25-8. Wuhan Poly Kangqiao


Ltd. (“Wuhan Kangqiao”)

Controlling

subsidiary Wuhan

Real estate

development 10,000

Real estate

development,

sale of

commercial

housing, etc. 5,000 50 50 Yes 12,848.49

25-9. Wuhan Poly Jingu Real


(“Wuhan Jingu”)

Controlling

subsidiary Wuhan

Real estate

development 5,000

Real estate

development

and sale 4,000 80 80 Yes 512.67

26. Poly Bogaohua (Wuhan)

Real Estate Co., Ltd. (“Poly

Bogaohua”)

Controlling

subsidiary Wuhan

Real estate

development 15,000

Housing

development,

etc. 10,500 70 70 Yes 7,180.11

27-1. Zhejiang Poly Real Estate


(“Zhejiang Poly”)

Wholly-owned

subsidiary Hangzhou

Real estate

development 10,000

Real estate

development

and operation 10,000 100 100 Yes -






subsidiary

Registration


Actual amount

of

contribution

as at

December 31,

2013

Balance of

other items

constituting

net investment

in subsidiary

in essence

Share

ownership

(%)

Voting

ratio

(%)

Consolidated

statement or

not

Minority

interest

Amount of

minority interest

used to offset

profit or loss

attributable to

minority

shareholders





by minority

shareholders of

subsidiary over the

minority equity in


January 1, 2013

27-2. Zhejiang Poly Jianyi Real


(“Hangzhou Jianyi”)

Wholly-owned

subsidiary Hangzhou

Real estate

development 10,000

Real estate

development


27-3. Hangzhou Poly Jianjia


Ltd. (“Hangzhou Jianjia”)

Wholly-owned

subsidiary Hangzhou

Real estate

development 10,000

Real estate

development


27-4. Hangzhou Poly Jianjin


Ltd.("Hangzhou Jianjin")

Wholly-owned

subsidiary Hangzhou

Real estate

development 10,000

Real estate

development,

etc. 10,000 100 100 Yes -

27-5. Cixi Poly Jianjin Real

Estate Development Co.,

Ltd.("Cixi Poly")

Wholly-owned

subsidiary Ningbo

Real estate

development 10,000

Real estate

development


27-6. Shaoxing Poly Real


("Shaoxing Poly")

Wholly-owned

subsidiary Shaoxing

Real estate

development 5,000

Real estate

development

and operation,

etc. 5,000 100 100 Yes -

27-7. Hangzhou Poly Jianlin


Ltd.("Hangzhou Jianlin")

Wholly-owned

subsidiary Hangzhou

Real estate

development 10,000

Real estate

development 10,000 100 100 Yes -

27-8. Hangzhou Dongliang

Investment Management Co.,

Ltd.("Hangzhou Dongliang")

Wholly-owned

subsidiary Hangzhou

Investment

management 10

Investment

management

and advisory 10 100 100 Yes -

28-1. Poly (Chengdu) Holdings

Co., Ltd. (“Poly Chengdu”)

Wholly-owned

subsidiary Chengdu

Real estate

development 20,000

Real estate

development

and operation 20,000 100 100 Yes 1,416.96

28-2. Xindu District Chengdu

Poly Investment Co., Ltd.

(Xindu Poly)

Controlling

subsidiary Chengdu

Real estate

development 10,000

Real estate

development

and operation,

etc. 9,000 90 90 Yes 4,766.61






subsidiary

Registration


Actual amount

of

contribution

as at

December 31,

2013

Balance of

other items

constituting

net investment

in subsidiary

in essence

Share

ownership

(%)

Voting

ratio

(%)

Consolidated

statement or

not

Minority

interest

Amount of

minority interest

used to offset

profit or loss

attributable to

minority

shareholders





by minority

shareholders of

subsidiary over the

minority equity in


January 1, 2013

28-3. Suining Baoxin

Investment Co., Ltd. ("Suining

Baoxin")

Controlling

subsidiary Suining

Real estate

development 10,000

Real estate

development

and operation,

etc. 5,100 51 51 Yes 4,396.32

28-4. Poly (Chengdu) Real


(“Chengdu Real Estate”)

Wholly-owned

subsidiary Chengdu

Real estate

development 20,000

Real estate

development


28-4-1. Chengdu Baolong Real


("Chengdu Baolong")

Wholly-owned

subsidiary Chengdu

Real estate

development 1,000

Real estate

development


28-5. Chengdu Baohua Real


(“Chengdu Baohua”)

Wholly-owned

subsidiary Chengdu

Real estate

development 10,000

Real estate

development


28-6. Chengdu Baofeng

Investment Co., Ltd. (“Chengdu

Baofeng”)

Controlling

subsidiary Chengdu

Real estate

development 10,000

Real estate

development


28-7. Poly (Deyang) Industrial

Co., Ltd. (“Poly Deyang”)

Controlling

subsidiary Deyang

Real estate

development 10,000

Real estate

development


28-8. Poly (Deyang) Holdings

Co., Ltd. (“Deyang Property”)

Controlling

subsidiary Deyang

Real estate

development 10,000

Real estate

development


28-9. Chengdu Baoxin


Baoxin”)

Wholly-owned

subsidiary Chengdu

Real estate

development 20,000

Real estate

development

and operation 20402.18 100 100 Yes

28-10. Chengdu Poly Huayang


Huayang”)

Wholly-owned

subsidiary Chengdu

Real estate

development 5,000

Real estate

development

and operation,

etc. 5,000 100 100 Yes






subsidiary

Registration


Actual amount

of

contribution

as at

December 31,

2013

Balance of

other items

constituting

net investment

in subsidiary

in essence

Share

ownership

(%)

Voting

ratio

(%)

Consolidated

statement or

not

Minority

interest

Amount of

minority interest

used to offset

profit or loss

attributable to

minority

shareholders





by minority

shareholders of

subsidiary over the

minority equity in


January 1, 2013

28-11. Linzhi Poly Tourism

Development Co., Ltd. (“Linzhi

Poly”)

Wholly-owned

subsidiary Linzhi

Hotel

management 2,000

Tourist souvenir

sales, hotel

management,

etc. 2,000 100 100 Yes

29. Chengdu Baorong Real


(“Chengdu Baorong”)

Controlling

subsidiary Chengdu

Real estate

development 5,000

Real estate

development

and operation,

etc. 2,550 51 51 Yes 50,784.89

30-1. Hunan Poly Real Estate

Development Co., Ltd. (“Hunan

Poly”)

Controlling

subsidiary Changsha

Real estate

development 5,000

Real estate

development

and operation,

etc. 4,300 86 86 Yes 19,069.97

30-2. Changsha Yongfeng

Eco-Zoo Construction and


(“Changsha Yongfeng”)

Controlling

subsidiary Changsha

Real estate

development 2,000

Real estate

development,

etc. 1,400 70 70 Yes 600.00

30-3. Changsha Jinli Hetai Real


(“Changsha Jinlin Hetai”)

Controlling

subsidiary Changsha

Real estate

development 1,000

Real estate

development

and operation,

etc. 700 70 70 Yes 2,279.92

30-4. Changsha Nanhu Square

Property Co., Ltd. (Nanhu

Property)

Controlling

subsidiary Changsha

Real estate

development 1,000

Real estate

development

and operation,

etc. 1,000 100 100 Yes

30-5. Yueyang Poly Property

Co., Ltd. (“Yueyang Poly”)

Controlling

subsidiary Yueyang

Real estate

development 2,000

Real estate

development

and operation,

etc. 2,000 100 100 Yes






subsidiary

Registration


Actual amount

of

contribution

as at

December 31,

2013

Balance of

other items

constituting

net investment

in subsidiary

in essence

Share

ownership

(%)

Voting

ratio

(%)

Consolidated

statement or

not

Minority

interest

Amount of

minority interest

used to offset

profit or loss

attributable to

minority

shareholders





by minority

shareholders of

subsidiary over the

minority equity in


January 1, 2013

30-6. Chenzhou Qianjiasheng


(“Chenzhou Qianjiasheng”)

Controlling

subsidiary Chenzhou

Real estate

development 2,000

Real estate

development

and operation 2,000 100 100 Yes

31. Poly (Hunan) Investment

Co., Ltd. ("Hunan Investment")

Wholly-owned

subsidiary Changsha

Real estate

development 50,000

Real estate

development

and operation,

etc. 50,000 100 100 Yes

31-1. Poly (Changsha) West

Coast Property Co., Ltd.

("Changsha West Coast")

Controlling

subsidiary Changsha

Real estate

development 20,000

Real estate

development 10,000 50 50 Yes 9,455.26

32-1.Poly Jiangsu Real Estate

Development Co., Ltd. ("Poly

Jiangsu")

Wholly-owned

subsidiary Nanjing

Real estate

development 10,000

Real estate

development

and operation,

etc. 10,000 100 100 Yes

32-2. Jiangsu Poly Ningxiang

Real Estate Co., Ltd. ("Jiangsu

Ningxiang")

Wholly-owned

subsidiary Nanjing

Real estate

development 5,000

Real estate

development

and operation,

etc. 5,000 100 100 Yes

32-3.Jiangsu Poly Ningsheng


Ltd. (Jiangsu Ningsheng)

Controlling

subsidiary Nanjing

Real estate

development 10,000

Real estate

development

and operation,

etc. 5,100 51 51 Yes 3,532.37

32-4. Poly Ningyuan Wuxi Real


(“Ningyuan Wuxi”)

Wholly-owned

subsidiary Wuxi

Real estate

development 2,000

Real estate

development

and operation,

etc. 2,000 100 100 Yes






subsidiary

Registration


Actual amount

of

contribution

as at

December 31,

2013

Balance of

other items

constituting

net investment

in subsidiary

in essence

Share

ownership

(%)

Voting

ratio

(%)

Consolidated

statement or

not

Minority

interest

Amount of

minority interest

used to offset

profit or loss

attributable to

minority

shareholders





by minority

shareholders of

subsidiary over the

minority equity in


January 1, 2013

32-5. Poly Lianyungang Real


("Poly Lianyungang")

Wholly-owned

subsidiary

Lianyun-

gang

Real estate

development 5,000

Real estate

development

and operation,

etc. 5,000 100 100 Yes

32-6. Poly Changzhou Real


Ltd.("Poly Changzhou")

Wholly-owned

subsidiary Changzhou

Real estate

development 2,000

Real estate

development

and operation,

etc. 2,000 100 100 Yes

32-7. Jiangsu Poly Ningheng


Ltd. ("Poly Ningheng")

Wholly-owned

subsidiary Nanjing

Real estate

development 5,000

Real estate

development

and operation,

etc. 5,000 100 100 Yes

33. Jiangsu Poly Ningyuan Real


("Jiangsu Ningyuan")

Controlling

subsidiary Nanjing

Real estate


Real estate

development

and operation,

etc. 5,000 51 51 Yes 36,394.55

34. Wuxi Poly Zhiyuan Real


Ltd.("Wuxi Zhiyuan")

Controlling

subsidiary Wuxi

Real estate

development 10,000

Real estate

development

and operation,

etc. 5,100 51 51 Yes 4,483.99

35. Poly Anxin (Qingdao) Real


("Qingdao Anxin")

Controlling

subsidiary Qingdao

Real estate

development 10,000

Housing

development,

etc. 6,400 64 64 Yes 3,519.67

36-1. Poly (Qingdao) Industrial

Co., Ltd. ("Poly Qingdao")

Wholly-owned

subsidiary Qingdao

Real estate

development 50,000

Real estate

development

and property

management,

etc. 50,000 100 100 Yes






subsidiary

Registration


Actual amount

of

contribution

as at

December 31,

2013

Balance of

other items

constituting

net investment

in subsidiary

in essence

Share

ownership

(%)

Voting

ratio

(%)

Consolidated

statement or

not

Minority

interest

Amount of

minority interest

used to offset

profit or loss

attributable to

minority

shareholders





by minority

shareholders of

subsidiary over the

minority equity in


January 1, 2013

36-2. Qingdao Poly

Guangcheng Property Co., Ltd.

("Qingdao Guangcheng")

Wholly-owned

subsidiary Qingdao

Real estate

development 5,000

Real estate

development

and property

management,

etc. 5,000 100 100 Yes

36-3. Qingdao Poly Guanghui

Property Co., Ltd. ("Qingdao

Guanghui")

Wholly-owned

subsidiary Qingdao

Real estate

development 10,000

Real estate

development

and property

management,

etc. 10,000 100 100 Yes

36-4. Qingdao Poly Guangyuan

Co., Ltd. ("Qingdao

Guangyuan")

Wholly-owned

subsidiary Qingdao

Real estate

development 5,000

Real estate

development

and property

management,

etc. 5,000 100 100 Yes

36-5. Qingdao Guangsheng


Guangsheng")

Controlling

subsidiary Qingdao

Real estate

development 1,000

Real estate

development

and property

management,

etc. 800 80 80 Yes 200.00

36-6. Qingdao Poly Guangheng


Guangheng")

Wholly-owned

subsidiary Qingdao

Real estate

development 1,000

Real estate

development

and property

management,

etc. 1,000 100 100 Yes






subsidiary

Registration


Actual amount

of

contribution

as at

December 31,

2013

Balance of

other items

constituting

net investment

in subsidiary

in essence

Share

ownership

(%)

Voting

ratio

(%)

Consolidated

statement or

not

Minority

interest

Amount of

minority interest

used to offset

profit or loss

attributable to

minority

shareholders





by minority

shareholders of

subsidiary over the

minority equity in


January 1, 2013

36-7. Qingdao Poly Shuangfeng

Property Co., Ltd.("Qingdao

Shuangfeng")

Controlling

subsidiary Qingdao

Real estate


Real estate

development

and property

management,

etc. 47,789.4 50 50 Yes 47,090.84

36-8. Qingdao Poly

Shuangyuan Property Co.,

Ltd.("Qingdao Shuangyuan")

Controlling

subsidiary Qingdao

Real estate


Real estate

development

and property

management,

etc. 1,866.24 50 50 Yes 1,850.08

36-9. Qingdao Guangrui

Property Co., Ltd.("Qingdao

Guangrui")

Controlling

subsidiary Qingdao

Real estate

development USD 8,000

Real estate

development

and property

management,

etc. USD 5,840 73 73 Yes 13,351.59

37-1. Poly (Yangjiang) Real


("Yangjiang Poly")

Wholly-owned

subsidiary Yangjiang

Real estate

development 6,000

Real estate

development

and operation,

etc. 6,000 100 100 Yes

37-2. Guangdong Poly South

Chinasea No. 1 Industry Co.,

Ltd. (“South Chinasea No. 1”)

Controlling


Culture

exhibition 6,666

Tourism

services,

museum

management,

etc. 3,776.04 75.01 75.01 Yes 1,132.34

38. Poly Hailingdao Real Estate


Hailingdao”)

Wholly-owned


Real estate

development 5,000

Real estate

development

and operation,

etc. 5,000 100 100 Yes






subsidiary

Registration


Actual amount

of

contribution

as at

December 31,

2013

Balance of

other items

constituting

net investment

in subsidiary

in essence

Share

ownership

(%)

Voting

ratio

(%)

Consolidated

statement or

not

Minority

interest

Amount of

minority interest

used to offset

profit or loss

attributable to

minority

shareholders





by minority

shareholders of

subsidiary over the

minority equity in


January 1, 2013

39. Poly (Xi’an) Real Estate


Xi’an”)

Controlling

subsidiary Xi'an

Real estate

development 100

Real estate

development

and property

management,

etc. 70 70 70 Yes -888.53

40. Shaanxi Poly Mindong Real


(“Shaanxi Mindong”)

Controlling

subsidiary Xi'an

Real estate

development 20,000

Real estate

development

and operation,

etc. 10,200 51 51 Yes 9,181.07

41-1. Shaanxi Poly Rong’an


Ltd. (“Shaanxi Rong’an”)

Controlling

subsidiary Xi'an

Real estate

development 3,000

Real estate

development

and operation,

etc. 2,700 90 90 Yes 46.97

41-2. Zhengzhou Poly Real


Wholly-owned

subsidiary Zhengzhou

Real estate

development 5,000

Real estate

development

and operation,

etc. 5,000 100 100 Yes

42. Shaanxi Poly Real Estate


(“Shaanxi Poly”)

Wholly-owned

subsidiary Xi'an

Real estate

development 50,000

Real estate

development

and operation,

etc. 50,000 100 100 Yes

43. Poly (Baotou) Real Estate


Baotou”)

Controlling

subsidiary Baotou

Real estate

development 8,000

Real estate

development,

etc. 4,400 55 55 Yes 34,610.26

44-1. Hefei Poly Real Estate

Development Co., Ltd. (“Hefei

Poly”)

Controlling

subsidiary Hefei

Real estate

development 10,000

Real estate

development

and operation,

etc. 10,000 100 100 Yes






subsidiary

Registration


Actual amount

of

contribution

as at

December 31,

2013

Balance of

other items

constituting

net investment

in subsidiary

in essence

Share

ownership

(%)

Voting

ratio

(%)

Consolidated

statement or

not

Minority

interest

Amount of

minority interest

used to offset

profit or loss

attributable to

minority

shareholders





by minority

shareholders of

subsidiary over the

minority equity in


January 1, 2013

44-2. Hefei Poly Hesheng Real

Estate Co., Ltd. (“Hefei

Hesheng”)

Controlling

subsidiary Hefei

Real estate

development 10,000

Real estate

development

and operation,

etc. 10,000 100 100 Yes

44-2-1. Hefei Poly Hezhu Real


Hezhu”)

Wholly-owned

subsidiary Hefei

Real estate

development 10,000

Real estate

development

and sale, etc. 10,000 100 100 Yes

45. Hefei Poly Hexin Real


Hexin”)

Controlling

subsidiary Hefei

Real estate

development 2,000

Real estate

development

and sale, etc. 1,700 85 85 Yes 250.58

46. Hefei Poly Heheng Real


Heheng”)

Wholly-owned

subsidiary Hefei

Real estate

development 65,000

Real estate

development

and sale, etc. 65,000 100 100 Yes

47. Poly (Fujian) Real Estate

Investment Co., Ltd. ("Poly

Fujian")

Wholly-owned

subsidiary Fuzhou

Real estate

development 10,000

Real estate

development

and sale, etc. 10,000 100 100 Yes

48. Poly (Jiangxi) Real Estate

Investment Co., Ltd. ("Poly

Jiangxi")

Wholly-owned

subsidiary Nanchang

Real estate

development 50,000

Real estate

development

and sale, etc. 50,000 100 100 Yes

49-1. Poly (Sanya) Real Estate


Sanya”)

Wholly-owned

subsidiary Sanya

Real estate

development 20,000

Real estate

development

and operation,

etc. 20,000 100 100 Yes






subsidiary

Registration


Actual amount

of

contribution

as at

December 31,

2013

Balance of

other items

constituting

net investment

in subsidiary

in essence

Share

ownership

(%)

Voting

ratio

(%)

Consolidated

statement or

not

Minority

interest

Amount of

minority interest

used to offset

profit or loss

attributable to

minority

shareholders





by minority

shareholders of

subsidiary over the

minority equity in


January 1, 2013

49-2. Sanya Forum Center

Construction Co., Ltd. (“Sanya

Forum”)

Controlling

subsidiary Sanya

Real estate

development 5,000

Real estate

development

and operation,

etc. 2,500 50 50 Yes 2,003.89

49-3. Poly Haikou Real Estate

Development Co., Ltd. ("Poly

Haikou")

Wholly-owned

subsidiary Haikou

Real estate

development 5,000

Real estate

development

and operation,

etc. 5,000 100 100 Yes

50. Sanya Baoxin Xiande Real


(“Sanya Baoxin”)

Controlling

subsidiary Sanya

Real estate

development 30,000

Real estate

development

and operation,

etc. 15,000 50 50 Yes 14,836.91

51-1. Liaoning Fuli

Construction & Installation

Engineering Co., Ltd.

(“Liaoning Fuli”)

Wholly-owned

subsidiary Shenyang

Civil

engineering

construction 2,000

Civil

Engineering

Construction

and construction

design, etc. 2,000 100 100 Yes

51-2. Dalian Fuli Construction

& Installation Engineering Co.,

Ltd. (“Dalian Fuli”)

Wholly-owned

subsidiary Dalian

Civil

engineering

construction 2,000

Civil

Engineering

Construction

and construction


51-3. Jilin Fuli Construction &

Installation Engineering Co.,

Ltd. (“Jilin Fuli”)

Wholly-owned


Civil

engineering

construction 2,000

Civil

Engineering

Construction

and construction







subsidiary

Registration


Actual amount

of

contribution

as at

December 31,

2013

Balance of

other items

constituting

net investment

in subsidiary

in essence

Share

ownership

(%)

Voting

ratio

(%)

Consolidated

statement or

not

Minority

interest

Amount of

minority interest

used to offset

profit or loss

attributable to

minority

shareholders





by minority

shareholders of

subsidiary over the

minority equity in


January 1, 2013

51-4. Zhuhai Fuli Construction

& Installation Engineering Co.,

Ltd. (“Zhuhai Fuli”)

Wholly-owned

subsidiary Zhuhai

Civil

engineering

construction 1,000

Civil

Engineering

Construction

and construction


52-1. Poly Commercial Real

Estate Investment &

Management Co., Ltd. (“Poly

Commercial”)

Wholly-owned


Business

management

services and

real estate

development,

etc. 10,000

Real estate

development

and agency

services, etc 10,000 100 100 Yes

52-2. Guangzhou Poly Hotel

Management Co., Ltd. ("Hotel

Management")

Wholly-owned


Club

management 300

Hotel

management,

etc. 300 100 100 Yes

52-3. Guangzhou Poly

Commercial Management Co.,

Ltd. ("Poly Commercial")

Wholly-owned


Rental of

proprietary

properties 500

Rental of

proprietary

properties and

property

management,

etc. 500 100 100 Yes

53-1. Poly Property

Management Co., Ltd. (“Poly

Property Management”)

Wholly-owned


Property

management 5,000

Property

management

and outdoor &

indoor

decoration, etc. 5,000 100 100 Yes

53-2. Poly Xiamen Property


(“Xiamen Property

Management”)

Wholly-owned

subsidiary Xiamen

Property

management 50

Property

management,

etc. 50 100 100 Yes






subsidiary

Registration


Actual amount

of

contribution

as at

December 31,

2013

Balance of

other items

constituting

net investment

in subsidiary

in essence

Share

ownership

(%)

Voting

ratio

(%)

Consolidated

statement or

not

Minority

interest

Amount of

minority interest

used to offset

profit or loss

attributable to

minority

shareholders





by minority

shareholders of

subsidiary over the

minority equity in


January 1, 2013

53-3. Poly Property

Management (Beijing) Co., Ltd.

(“Beijing Property

Management”)

Wholly-owned

subsidiary Beijing

Property

management 500

Property

management

and home

decoration, etc. 500 100 100 Yes

53-4. Poly Chongqing Property


(“Chongqing Property

Management”)

Wholly-owned


Property

management 500

Property

management,

etc. 500 100 100 Yes

53-5.Poly Shenyang Property


(“Shengyang Property

Management”)

Controlling

subsidiary Shenyang

Property

management 500

Property

management,

etc. 500 100 100 Yes

53-6. Poly Wuhan Property

Management Co., Ltd. (“Wuhan


Wholly-owned

subsidiary Wuhan

Property

management 508

Property

management,

etc. 508 100 100 Yes

53-7. Zhejiang Poly Property


(“Zhejiang Property

Management”)

Wholly-owned

subsidiary Hangzhou

Property

management 500

Property

management,

etc. 500 100 100 Yes

53-8. Poly (Baotou) Property


(“Baotou Property

Management”)

Controlling

subsidiary Baotou

Property

management 300

Property

management,

etc. 300 100 100 Yes

53-9. Yangjiang Poly Property


(“Yangjiang Property

Management”)

Wholly-owned


Property

management 300

Property

management,

etc. 300 100 100 Yes






subsidiary

Registration


Actual amount

of

contribution

as at

December 31,

2013

Balance of

other items

constituting

net investment

in subsidiary

in essence

Share

ownership

(%)

Voting

ratio

(%)

Consolidated

statement or

not

Minority

interest

Amount of

minority interest

used to offset

profit or loss

attributable to

minority

shareholders





by minority

shareholders of

subsidiary over the

minority equity in


January 1, 2013

53-10. Jiangxi Poly Property


(“Jiangxi Property

Management”)

Wholly-owned

subsidiary Nanchang

Property

management 300

Property

management,

etc. 300 100 100 Yes

53-11. Poly (Foshan) Property

Services Co., Ltd. (“Foshan

Property Service”)

Wholly-owned

subsidiary Foshan

Property

management 500

Property

management 500 100 100 Yes

53-12. Hunan Poly Prorerty

Management Co., Ltd. (“Hunan


Controlling

subsidiary Changsha

Property

management 500

Property

management,

etc. 500 100 100 Yes

53-13. Poly Changchun

Property Service Co., Ltd.

(“Changchun Property

Management”)

Controlling


Property

management 300

Property

management,

etc. 300 100 100 Yes

53-14. Tianjin Poly

Metropolitan Property Service

Co. Ltd. (“Tianjin Property

Management”)

Wholly-owned

subsidiary Tianjin

Property

management 50

Property

management,

etc. 50 100 100 Yes

53-15. Shanghai Poly Property


(“Shanghai Property

Management”)

Wholly-owned

subsidiary Shanghai

Property

management 100

Property

management,

etc. 100 100 100 Yes

53-16.Poly (Dalian) Property

Management Co., Ltd. (Dalian

Property)

Wholly-owned

subsidiary Dalian

Property

management 200

Property

management,

etc. 200 100 100 Yes

54. Guangzhou Poly Urban

Renewal Investments Co., Ltd.

("Poly Urban Renewal")

Wholly-owned


Real estate

development 10,000

Real estate

development

and operation,

etc. 10,000 100 100 Yes






subsidiary

Registration


Actual amount

of

contribution

as at

December 31,

2013

Balance of

other items

constituting

net investment

in subsidiary

in essence

Share

ownership

(%)

Voting

ratio

(%)

Consolidated

statement or

not

Minority

interest

Amount of

minority interest

used to offset

profit or loss

attributable to

minority

shareholders





by minority

shareholders of

subsidiary over the

minority equity in


January 1, 2013

55. Zhanjiang Xingsheng


("Zhanjiang Xingsheng")

Controlling

subsidiary Zhanjiang

Real estate

development 10,000

Real estate

development

and operation,

etc. 1,400 70 70 Yes 599.87

56. Hengfu (Hong Kong）Real

Estate Limited (“Hong Kong

Hengfu”)

Wholly-owned


Real estate

development

and operation USD 100

Real estate

development,

operation and

management USD 100 100 100 Yes

Note: According to the cooperation agreement and the articles of association, Chongqing Investment Company owns 50% equity rights and

shareholders' voting power.





4.1.2 Subsidiary acquired through business combination under common control

Name of

subsidiary Type of subsidiary

Registration

place Business nature

Registered

capital Business scope

Actual amount

of contribution

as at December

31, 2013

Balance of

other items

constituting net

investment in

subsidiary in

essence

Shareholding

ratio (%)

Voting

ratio (%)

Consolidated

statement or not

Minority

equity

Amount of

minority equity

used to offset

profit or loss

attributable to

minority

shareholders

Owners’ equity

of the parent

company after

offsetting the

excess of current

loss shared by

minority

shareholders of

subsidiary over

the minority

equity in such

subsidiary as at

January 1, 2013

Chongqing Poly

Golf Club Co.,

Ltd.

(“Chongqing

Golf”)

Wholly-owned


Golf course

management 6,000

Golf course

management, etc. 5,075.10 100 100 Yes





4.1.3 Subsidiaries acquired through business combination not under common control

Name of subsidiary Type of

subsidiary

Registration

place

Business

nature

Registered


Actual amount

of contribution

as at December

31, 2013

Balance of

other items

constituting

net

investment in

subsidiary in

essence

Shareholding

ratio (%)

Voting

ratio (%)

Consolidated

statement or

not

Minority

equity

Amount of

minority

equity used to

offset profit or

loss

attributable to

minority

shareholders



offsetting the excess of

current loss shared by

minority shareholders of

subsidiary over the

minority equity in such

subsidiary as at January

1, 2013

1. Guangzhou Huachu Real


(“Huachu Corporation”)

Wholly-owned


Real estate

development 800

Real estate

development and

sale, etc. 800 100 100 Yes

2. Guanghou Tianli Real


(“Guangzhou Tianli”)

Controlling


Real estate

development 11,000

Real estate

development and

operation 11,071.08 51 51 Yes 26,497.33

3. Guangzhou Gemdale Real


(“Guangzhou Gemdale”)

Wholly-owned


Real estate

development 1,000

Real estate

development and

operation, etc. 3,993.97 100 100 Yes

4. Guangzhou Jinnuo Real


(“Guangzhou Jinnuo”)

Controlling


Real estate

development 1,500

Real estate

development 900 60 60 Yes 22,276.56

5. Guangzhou Elegance Real


(“Guangzhou Elegance”)

Wholly-owned


Real estate

development USD 5, 176

Housing

development, etc. USD 5, 176 100 100 Yes

6. Shenyang Wanyi Property

Co., Ltd. (“Shenyang

Wanyi”)

Controlling

subsidiary Shenyang

Real estate


Real estate

development 21,202.3 100 100 Yes

7. Poly Dandong Tianci Real


(“Dandong Poly”)

Controlling

subsidiary Dandong

Real estate

development 10,000

Real estate

development, sales

of commercial

housing, etc. 5,100 51 51 Yes 8,943.09

8. Shenyang Hirota Real


(“Shenyang Hirota”)

Wholly-owned

subsidiary Shenyang

Real estate

development 20,000

Real estate

development and

operation 20,000 100 100 Yes

9. Changchun Light Rail

Liuhe Real Estate


(“Changchun Liuhe”)

Controlling


Real estate

development 10,000

Real estate

development and

operation 8,000 80 80 Yes 3,196.16






subsidiary

Registration

place

Business

nature

Registered


Actual amount

of contribution

as at December

31, 2013

Balance of

other items

constituting

net

investment in

subsidiary in

essence

Shareholding

ratio (%)

Voting

ratio (%)

Consolidated

statement or

not

Minority

equity

Amount of

minority

equity used to

offset profit or

loss

attributable to

minority

shareholders






subsidiary over the



1, 2013

10. Beijing Yuanxin Real


(“Beijing Yuanxin”)

Wholly-owned

subsidiary Beijing

Real estate

development 2,000

Real estate

development and

operation, etc. 2,000 100 100 Yes

10-1. Shanxi Wanguo

Commercial Plaza


("Shanxi Wanguo")

Controlling

subsidiary Taiyuan

Real estate

development 1,000

Real estate

development and

operation 700 70 70 Yes 282.50

11. Beijing Shi Bo Hong Ye

Real Estate Development

Co., Ltd. (“Beijing Shibo”)

Wholly-owned

subsidiary Beijing

Civil

engineering

construction 5,000

Real estate

development and

operation 5,113.32 100 100 Yes

12. Beijing Jinchenghua Real


(“Jinchenghua”)

Controlling

subsidiary Beijing

Real estate

development 3,000

Real estate

development, etc. 2,550 85 85 Yes 1,659.63

13.Shanghai Chengqian Real


(“Shanghai Chengqian”)

Wholly-owned

subsidiary Shanghai

Real estate

development 22,500

Real estate

development and

operation, etc. 27,983.36 100 100 Yes

14. Shanghai Jianqiao Real

Estate Co., Ltd. (“Shanghai

Jianqiao”)

Controlling

subsidiary Shanghai

Real estate

development 2,000

Real estate

development and

operation, etc. 1,800 90 90 Yes 361.41

15. Chongqing Shengchuang

Xinhao Real Estate


(“Chongqing Shengchuang”)

Wholly-owned


Real estate

development 2,000

Housing

development, etc. 2,000 100 100 Yes

16. Poly (Chengdu) Stone

Elephant Lake Tourism


(“Chengdu Stone Elephant

Lake”)

Controlling

subsidiary Chengdu

Real estate

development 10,000

Real estate

development and

operation 9,000 90 90 Yes 1,618.14






subsidiary

Registration

place

Business

nature

Registered


Actual amount

of contribution

as at December

31, 2013

Balance of

other items

constituting

net

investment in

subsidiary in

essence

Shareholding

ratio (%)

Voting

ratio (%)

Consolidated

statement or

not

Minority

equity

Amount of

minority

equity used to

offset profit or

loss

attributable to

minority

shareholders






subsidiary over the



1, 2013

17. Chengdu Futong Property

Co., Ltd. (“Chengdu

Futong”)

Wholly-owned

subsidiary Chengdu

Real estate

development 10,000

Real estate

development and

operation 2,6691.05 100 100 Yes

18. ChengDu Baoxin Real


(“Chengdu Baoxin”)

Controlling

subsidiary Chengdu

Real estate

development 10,000

Real estate

development 5,100 51 51 Yes 4,578.23

19. Chengdu Yachi Property

Co., Ltd. (“Chengdu Yachi”)

Controlling

subsidiary Chengdu

Real estate

development 7,000

Real estate

development and

operation 17,164.05 51 51 Yes 17,827.03

20. Hunan Huayuan Real


(“Hunan Huayuan”)

Controlling

subsidiary Changsha

Real estate

development 800

Real estate

development 1,800 100 100 Yes

21. Nanchang Ruida Property

Co., Ltd. (“Nanchang

Ruida”)

Wholly-owned

subsidiary Nanchang

Real estate

development 10,000

Real estate

development, etc. 63,540 100 100 Yes

22. Jiangxi Jintongtai

Property Co., Ltd. (“Jiangxi

Jintongtai”)

Controlling

subsidiary Nanchang

Real estate

development 3,000

Real estate

development and

property

management, etc. 2,250 75 75 Yes 1,072.97

23-1. Nanchang Mingya

European Town Industrial

Co., Ltd. (“Nanchang

Mingya”)

Controlling

subsidiary Nanchang

Real estate

and sports USD 2,500

Real estate

development and

sports and

health-building

centres, tourist

attractions

development and

catering USD 1,500 60 60 Yes 24,426.39






subsidiary

Registration

place

Business

nature

Registered


Actual amount

of contribution

as at December

31, 2013

Balance of

other items

constituting

net

investment in

subsidiary in

essence

Shareholding

ratio (%)

Voting

ratio (%)

Consolidated

statement or

not

Minority

equity

Amount of

minority

equity used to

offset profit or

loss

attributable to

minority

shareholders






subsidiary over the



1, 2013

23-2. Nanchang Poly

Property Management Co.,

Ltd. (“Nanchang Property

Management”)

Controlling

subsidiary Nanchang

Property

Management 300

Property

Management 300 100 100 Yes

23-3. Nanchang Yagao

Industrial Co., Ltd.

(“Nanchang Yagao”)

Controlling

subsidiary Nanchang

Stadium and

gymnasium

management 60.68

Management of

stadiums or

gymnasiums and

fitness centers 60.68 100 100 Yes -

24. Qingdao West Sea Real


(“Qingdao West Sea”)

Wholly-owned

subsidiary Qingdao

Real estate

development 1,000

Real estate

development and

property

management, etc. 1,000 100 100 Yes -

25. Zhengzhou Hengtian

Xinghua Real Estate Co.,

Ltd. (“Zhengzhou Hengtian”)

Controlling

subsidiary Zhengzhou

Real estate

development 10,000

Real estate

development and

operation, etc. 10,000 50 50 Yes 8,425.93

26. Xi’an Xinrongjia Real


(“Xi’an Xinrongjia”)

Wholly -owned

subsidiary Xi'an

Real estate

development 2,000

Real estate

development and

operation, etc. 13,046 100 100 Yes -

27. Tianjin Shengxin

Longmao Investment and

Development Co.,

Ltd.( “Tianjin Shengxin”)

Controlling

subsidiary Tianjin

Real estate

development 3,000

Real estate and

infrastructure

investment 1,530 51 51 Yes 1,168.24

28. Shaoguan Jihua Property

Co., Ltd. (“Shaoguan Jihua”)

Wholly-owned

subsidiary Shaoguan

Real estate

development 1,000

Real estate

development and

operation, etc. 1,000 100 100 Yes -

29. Qingxin Xinghai

Investment & Property

Development Co.,

Ltd.(“Qingxin Xinghai”)

Controlling

subsidiary Qingyuan

Real estate

development 10,000

Real estate

development and

operation, etc. 4,779.57 51 51 Yes 4,250.71






subsidiary

Registration

place

Business

nature

Registered


Actual amount

of contribution

as at December

31, 2013

Balance of

other items

constituting

net

investment in

subsidiary in

essence

Shareholding

ratio (%)

Voting

ratio (%)

Consolidated

statement or

not

Minority

equity

Amount of

minority

equity used to

offset profit or

loss

attributable to

minority

shareholders






subsidiary over the



1, 2013

30. Changsha Tianjiao Real


(“Changsha Tianjiao”)

Wholly-owned

subsidiary Changsha

Real estate


Real estate

development and

consultancy, etc. 68,000 100 100 Yes -

31. Shouhong Co., Ltd.

(“Shouhong Company”)

Controlling


Investment

holding HKD 0.0001

Investment

holding, enterprise

management HKD 0.0001 60 60 Yes -16.07

32.Corss Fortune Holdings

Limited (“Corss Fortune”)

Wholly-owned

subsidiary

British Virgin

Islands

Investment

holding USD 0.0001

Investment

holding, enterprise

management USD 0.0001 100 100 Yes -

33.Mega Wise Holdings

Limited (“Mega Wise”)

Wholly-owned

subsidiary

British Virgin

Islands

Investment

holding USD 0.0001

Investment

holding, enterprise

management USD 0.0001 100 100 Yes -

34.Total Favour Limited

Controlling

subsidiary

British Virgin

Islands

Investment

holding USD 0.0001

Investment

holding, enterprise

management 20,000 100 100 Yes -

35. Noda Co., Ltd.

Controlling


Investment

holding HKD 5

Investment

holding, enterprise

management HKD 5 100 100 Yes -

36. Foshan Nanhai Jingyuan


(“Foshan Jingyuan”)

Controlling

subsidiary Foshan

Real estate

development

USD

1,209.30

Real estate

development and

sale, etc.

USD

1,209.30 60 60 Yes -3,923.96

37. GZ Fuli Construction &

Installation Engineering CO.,

LTD. (“Fuli Construction &

Installation”)

Wholly-owned


Civil

engineering

construction 40,000

Civil Engineering

Construction and

construction

design, etc. 43,313.73 100 100 Yes -

38. Guangzhou Jiali

Decoration Engineering Co.,

Ltd. (“Jiali Decoration”)

Wholly-owned


Decoration

and design 2,400

Indoor decoration

and decoration

design, etc. 3,593.57 100 100 Yes -






subsidiary

Registration

place

Business

nature

Registered


Actual amount

of contribution

as at December

31, 2013

Balance of

other items

constituting

net

investment in

subsidiary in

essence

Shareholding

ratio (%)

Voting

ratio (%)

Consolidated

statement or

not

Minority

equity

Amount of

minority

equity used to

offset profit or

loss

attributable to

minority

shareholders






subsidiary over the



1, 2013

39. Guangzhou Poly Digital

Technology Co., Ltd. (“Poly

Digital”)

Wholly-owned


Intelligence

system for

community 800

Installation of

intelligence

system for

community, etc. 850 100 100 Yes -

40. Guangzhou Poly Real

Estate Agency Co., Ltd.

(“Poly Agency”)

Wholly-owned


Property sale

agency 1,000

Real estate agency

services as real

estate agent 1,234.79 100 100 Yes -

41. Guangzhou Poly Jinhan

Exhibition Co., Ltd. (“Poly

Jinhan”)

Controlling


Exhibition

services 320

Exhibition

services and venue

rental, etc. 163.2 51 51 Yes 5,286.83

42. Guangdong Zhonggong

Architectural Design Institute

Co., Ltd. (“Zhonggong

Design Institute”)

Controlling


Construction

engineering 1,672.78

Construction

engineering

design, etc. 1,373.21 60 60 Yes 1,406.67

43. Guangdong Zhonggong

Project Management Co.,

Ltd. (“Zhonggong Project

Management”)

Controlling


Construction

supervision 600

Construction

supervision 647.88 100 100 Yes -

44. Beijing Runcheng Jiaxin

Property Co., Ltd.("Beijing

Runcheng")

Wholly-owned

subsidiary Beijing

Real estate

development 2,000

Real estate

development and

sale, etc. 2,000 100 100 Yes -

45. Hangzhou Biaofan

Investment Management Co.,

Ltd.("Hangzhou Biaofan")

Wholly-owned

subsidiary Hangzhou

Investment

management 10

Investment

management and

consultancy 10 100 100 Yes -





4.2 Subsidiaries that the Company has half or less of voting rights but included in consolidation

Name Voting ratio

Reason for being

included in scope of

consolidation

Zhengzhou Hengtian 50% Each board of directors

consists of 5 members,

and 3 of them are from

the Company with

majority voting power.

The subsidiary is

therefore included in the

scope of consolidation.

Dalian Hongqi 50%

Wuhan Kangqiao 50%

Poly Deyang 50%

Deyang Property 50%

Beijing Langtai 50%

Chongqing Baochang 50%

Chongqing Baoxiang 50%

Changsha West Coast 50%

Guangdong Yuehe 50% Each board of directors

consists of 7 members,

and 4 of them are from

the Company with

majority voting power.

The subsidiary is

therefore included in the

scope of consolidation.

Foshan Xincheng 50%

Jiangmen Hongxin 50%

Sanya Forum 50%

Sanya Baoxin 50%

Qingdao Shuangfeng 50%

Qingdao Shuangyuan 50%

Dalian Donggang 50%

Dalian Yingsheng 50%

4.3 Special-purpose entities or operational entities with control right formed by entrusted

operation, lease or other methods

Unit: RMB

Name

Main business

transaction with the

Company

Income

percentage

Ending balance of

major assets recognized

in the consolidated

statements

Ending balance of

major liabilities

recognized in the

consolidated

statements

Ziwei Garden Project

of Guangzhou Poly

(See note)

Cooperative

development project 50% 333,985,111.02 171,520,736.40

Project Department of

Guangzhou Pazhou

Cooperative

development project 80% 13,909,548,650.02 14,399,881,550.43

Tongzhou Project

Department

Cooperative

development project 65% 975,850,000.00 975,850,000.00

Note: In accordance with the cooperation agreement concluded by and between the Company and

Guangzhou Metro Corporation (hereinafter referred to as "Guangzhou Metro") in February 2005,

Guangzhou Metro contributed its land usage right valued at RMB 65 million as investment in the

cooperation project, while the Company invested RMB 65 million as the launch fund for the

project, and subsequent funds needed shall be invested by the Company through financing, with

the financing costs being included into project development costs. All income generated from this

project shall be accounted for independently by the project department and be distributed to both

parties equally at the ratio of 50%. The development and sale of the project as well as the

appointment of project managers are made by the Company with actual control over the project.

Therefore, this entity is included in the scope of consolidation.





4.4 Entities newly included in and entities excluded from the scope of consolidation in 2013

4.4.1 Subsidiaries, special-purpose entities, operational entities with control right formed

by entrusted operation, lease or other methods newly included in the scope of

consolidation in 2013

Unit: RMB

Name Net assets as at

December 31, 2013 Net profit in 2013

Conghua Poly 99,739,048.43 -260,951.57

Guangzhou Bangjie 99,218,929.99 -781,070.01

Guangzhou Honghe 48,936,115.87 -1,063,884.13

Guangzhou Hongyue 99,801,372.40 -198,627.60

Guangzhou Sitai 99,775,093.50 -224,906.50

Dongguan Hehong 10,000,000.00 -

Shengxing Company -47,900,649.01 -47,900,655.25

Shouhong Property 1,491,850,948.79 33,348.79

Poly Real Estate Finance Ltd 800.88 794.38

Abundant Choice Investments Limited 2,475,116.26 2,475,115.00

Action Dragon Investments Limited 308,723.94 308,723.16

Pride South Holdings Limited 591.60

Hefei Herong 39,525,807.11 -474,192.92

Shouhong Company -6,198,841.99 -6,157,625.32

Corss Fortune 6.10

Mega Wise 6.10

Total Favour Limited -11,243.59 673.39

Noda Co., Ltd. 49,270,829.51 4,355,398.35

Foshan Jingyuan 1,884,601.64 -7,036,209.02

Liaoning Industrial 192,170,143.15 -7,308,619.92

Shenyang Linhai 98,828,105.69 -1,171,894.31

Dalian Henghui 8,390,128.46 -1,609,871.54

Dalian Donggang 143,032,276.69 -6,967,723.31

Dalian Yingsheng 98,537,512.62 -1,462,487.38

Changchun Hengxin 16,848,737.77 -3,151,262.23

Beijing Anping Poclinic 4,642,164.82 -357,835.18

Beijing Poly Tong 9,275,814.13 -724,185.87

Beijing Langtai 1,299,516,695.21 -483,304.79

Beijing Litong 99,962,751.24 -37,248.76

Beijing Runcheng 19,708,164.39 44,660.03

Shanxi Wanguo 9,214,281.50 -665,024.43

Shanghai Jianjing 99,096,414.49 -938,816.99

Foshan Hengsheng 99,937,889.45 -62,110.55

Foshan Sanshui 19,688,126.61 -311,873.39

Poly Zhanjiang 96,698,141.31 -3,301,858.69

Poly Shaoguan 99,800,181.34 -199,818.66

Qingxin Xinghai 86,749,114.65 -6,968,026.82

Shaoguan Jihua 9,879,142.35 64,255.26

Chongqing Baochang 187,506,775.29 6,775.29

Chongqing Baofang 233,427,895.85 -520,104.15

Chongqing Baoxiang 19,927,871.65 -72,128.35

Chongqing Baosheng 98,681,190.41 -1,318,809.59

Poly Rongchang 30,140,811.89 140,811.89

Poly Shengtai 139,799,968.08 -200,031.92

Ronghong Shenglong 9,994,343.95 -5,656.05

Tianjin Shengxin 23,292,889.12 -6,158,326.81

Hangzhou Jianlin 95,583,505.57 -4,416,494.43

Hangzhou Dongliang 99,001.99 -998.01

Hangzhou Biaofan -4,215,923.09 -4,330,504.30

Chengdu Baolong -1,061,575.37 -11,061,575.37





Name Net assets as at

December 31, 2013 Net profit in 2013

Suining Baoxin 89,720,705.61 -10,279,294.39

Hunan Investment 499,421,509.23 -578,490.77

Changsha West Coast 189,105,113.58 -10,894,886.42

Changsha Tianjiao 130,342,119.94 -5,989,380.55

Jiangsu Ningheng 42,370,553.26 -7,629,446.74

Wuxi Zhiyuan 91,510,024.33 -8,489,975.67

Qingdao Guangsheng 10,000,000.00 -

Qingdao Guangheng 7,998,613.05 -2,001,386.95

Qingdao Guangrui 494,503,426.48 -3,768,590.72

Qingdao Shuangfeng 941,750,882.37 -15,144,717.63

Qingdao Shuangyuan 37,000,171.86 -328,228.14

Shaanxi Poly 499,957,410.72 -42,589.28

Hesfei Hezhu 94,689,726.76 -5,310,273.24

Hefei Hexin 16,705,239.60 -3,294,760.40

Hefei Heheng 643,335,699.22 -6,664,300.78

Poli Haikou 50,003,397.13 3,397.13

Zhengzhou Poly 43,327,814.26 -6,672,185.74

Zhuhai Fuli 11,158,675.42 1,158,675.42

Dalian Property 1,580,383.40 -419,616.60

Hong Kong Hengfu 6,096,900.00 -128,100.00

Poly Jiangxi 499,830,615.86 -169,384.14

Poly Urban Renewal 100,000,000.00

Zhanjiang Xingsheng 19,995,627.99 -4,372.01

4.4.2 Subsidiaries, special-purpose entities, operational entities with control right formed

by entrusted operation, lease or other methods no longer included in the scope of

consolidation in 2013

Unit: RMB

Name Net asset on

disposal date

Net profit from the

beginning of the period to

disposal date

Hexihui Apartments for the Elderly, Haidian

District, Beijing (Note 1) -447,849.53 -1,391,871.03

Hangzhou Xiangbo Investment Consulting Co.,

Ltd. (Note 1) 4,942,784.76 -18,780.02

Chengdu Champagne Real Estate Development

Co., Ltd. (Note 1) 49,939,954.23 6,542.43

Note 1: The three companies have been disposed of and deregistered.

Note 2: Shanghai Junyuan Property Co., Ltd., the company acquired in the current period,

was deregistered in 2013.

4.5 There was no business combination under common control in 2013.

4.6 Business combinations not under common control in 2013

Acquiree Amount of

goodwill Caculation method of goodwill

Tianjin Shengxin No goodwill The combination costs equal to the fair value of the identifiable

net assets acquired from the acquiree.

Qingxin Xinghai No goodwill The combination costs equal to the fair value of the identifiable


Changsha Tianjiao No goodwill The combination costs equal to the fair value of the identifiable






Acquiree Amount of

goodwill Caculation method of goodwill

Shouhong Company No goodwill The combination costs equal to the fair value of the identifiable


Corss Fortune

Holdings Limited No goodwill

The combination costs equal to the fair value of the identifiable


Mega Wise Holdings

Limited No goodwill

The combination costs equal to the fair value of the identifiable


Total Favour Limited No goodwill The combination costs equal to the fair value of the identifiable


Noda Co., Ltd. No goodwill The combination costs equal to the fair value of the identifiable


Foshan Jingyuan No goodwill The combination costs equal to the fair value of the identifiable


Shanxi Wanguo No goodwill The combination costs equal to the fair value of the identifiable


Shaoguan Jihua No goodwill The combination costs equal to the fair value of the identifiable


Beijing Runcheng No goodwill The combination costs equal to the fair value of the identifiable

net assets acquired from the acquiree

Hangzhou Biaofan No goodwill The combination costs equal to the fair value of the identifiable

net assets acquired from the acquiree

Note:

(1) On February 23, 2013, the Company's subsidiary, Tianjin Poly, acquired 51% equity of

Tianjin Shengxin Longmao Investment Development Co., Ltd. (“Tianjin Shengxin”) with

acquisition cost of RMB 3,060,000.00;

(2) On February 28, 2013, the Company's subsidiary, South Chian Holdings, acquired 51% equity

of Qingxin Xinghai Investment & Property Development Co., Ltd. (“Qingxin Xinghai”) with

acquisition cost of RMB 1,895,742.15;

(3) On June 5, 2013, the Company's subsidiary, Hunan Investment, acquired 100% equity of

Changsha Tianjiao Real Estate Development Co., Ltd. (“Changsha Tianjiao”) with acquisition

cost of RMB 680,000,000.00;

(4) On March 7, 2013, the Company subsidiary, Hengli Real Estate, acquired Shouhong Co., Ltd.

with acquisition cost of HKD 1.00;

(5) On June 7, 2013, the Company subsidiary, Hengli Real Estate, acquired Corss fortune

Holdings Limited and its subsidiary, Mega Wise Holdings Limited, with acquisition cost of

USD 1.00;

(6) On July 10, 2013, the Company's subsidiary, Hengli Real Estate, acquired Total Favour

Limited and its subsidiary, Noda Co., Ltd., as well as Foshan Nanhai Jingyuan Real Estate Co.,

Ltd. (“Foshan Jingyuan”) with acquisition cost of RMB 200,000,000.00;

(7) On July 29, 2013, the Company's subsidiary, Beijing Yuanxin, acquired 70% equity of Shanxi

Wanguo Commercial Plaza Development Co., Ltd. (“Shanxi Wanguo”) with acquisition cost

of RMB 7,000,000.00;

(8) On November 28, 2013, the Company's subsidiary, South Chian Holdings, acquired Shaoguan

Jihua Property Co., Ltd. “Shaoguan Jihua”) with acquisition cost of RMB 10,000,000.00;

(9) On July 26, 2013, the Company's subsidiary, Beijing Poly, acquired Beijing Runcheng Jiaxin

Property Co., Ltd. (“Beijing Runcheng”) with acquisition cost of RMB 20,000,000.00; and

(10) On November 5, 2013, the Company subsidiary, Zhejiang Poly, acquired Hangzhou Biaofan

Investment Management Co., Ltd. (“Hangzhou Biaofan”) with acquisition cost of RMB

100,000.00.

4.7 There was no loss of any subsidiary companies as a result of sale of equity losing control

right in 2013.

4.8 There was no reverse takeover in 2013.





4.9 There was no absorption or merger in 2013.

4.10 Conversion rate for the main items of the statements of overseas entities

As at December 31, 2013, with regard to overseas subsidiaries using foreign currencies as their

functional currencies, the Company shall convert the currency according to the spot exchange rates

prevailing on the balance sheet date, among which 0.78623 is for HKD and 6.0969 for USD. Items

under owners’ equity (except for “undistributed profit”) are converted at the exchange rate as at the

time of occurrence. The income and expenses items in income statements are converted at the spot

exchange rate prevailing on the date when the transaction occurs.

5 Notes to the main items of consolidated financial statements

(All the following amounts are expressed in RMB unless otherwise stated)

5.1 Monetary funds

5.1.1 Monetary funds by type:

Item

Balance as at December 31, 2013 Balance as at January 1, 2013

Amount in

foreign currency

Exchange

rate Amount in RMB

Amount in

foreign currency

Exchange

rate Amount in RMB

Cash

RMB 8,546,377.74 8,016,631.34

Sub-total 8,546,377.74 8,016,631.34

Bank

deposit

RMB 30,738,321,912.72 32,434,511,384.75

HKD 320,097,017.10 0.78623 251,669,877.75 134,779.20 0.81085 109,285.71

USD 345,521,830.34 6.0969 2,106,612,047.40 21,190,166.54 6.2855 133,190,791.79

Sub-total 33,096,603,837.87 32,567,811,462.25

Other

monetary

funds

RMB 647,819,615.19 96,874,471.12

Sub-total 647,819,615.19 96,874,471.12

Total 33,752,969,830.80 32,672,702,564.71

5.1.2 Details of other monetary funds:

Item Balance as at December 31,

2013

Balance as at January 1,

2013

Guarantee deposits 647,819,615.19 96,874,471.12

Total 647,819,615.19 96,874,471.12

Note: Among the guarantee deposits, RMB 640,795,881.57 is the deposit for letter of

guarantee whose usage is restricted during performance of agreement. There is no other

restricted monetary fund under pledge.





5.2 Notes receivable

Classification of notes receivable:

Type Balance as at December 31, 2013 Balance as at January 1, 2013

Bank acceptance bill 3,224,500.00 450,000.00

Commercial acceptance bill

Total 3,224,500.00 450,000.00


5.3.1 Aging analysis of accounts receivable:

Aging


Book balance Provision for bad debt Book balance Provision for bad debt

Amount Proportion (%) Amount Proportion (%) Amount Proportion (%) Amount Proportion (%)

Within 1 year (inclusive) 1,593,826,298.34 64.94 79,691,314.91 5.00 1,604,378,747.71 81.06 80,218,937.39 5.00

1 to 2 (inclusive) years 712,384,235.63 29.02 35,619,211.78 5.00 230,287,958.99 11.64 11,514,397.95 5.00

2 to 3 (inclusive) years 133,016,872.93 5.42 6,650,843.65 5.00 76,069,055.83 3.84 3,803,452.79 5.00

Over 3 years 15,313,066.53 0.62 765,653.33 5.00 68,510,150.21 3.46 3,425,507.51 5.00

Total 2,454,540,473.43 100.00 122,727,023.67 5.00 1,979,245,912.74 100.00 98,962,295.64 5.00

5.3.2 Accounts receivable disclosed by type

Type



Amount Proportion

(%) Amount

Proportion

(%) Amount

Proportion

(%) Amount

Proportion

(%)

1. Accounts receivable with significant single amount and accrued

for provision for bad debt on an individual basis

2. Accounts receivable accrued for provision for bad debt on a

portfolio basis:

Accounts receivable in portfolio accrued for provision for bad

debt by balance percentage method 2,454,540,473.43 100.00 122,727,023.67 5.00 1,979,245,912.74 100.00 98,962,295.64 5.00

Subtotal of portfolio 2,454,540,473.43 100.00 122,727,023.67 5.00 1,979,245,912.74 100.00 98,962,295.64 5.00

3. Accounts receivable with insignificant single amount but

accrued for provision for bad debt on an individual basis

Total 2,454,540,473.43 100.00 122,727,023.67 5.00 1,979,245,912.74 100.00 98,962,295.64 5.00

There were no accounts receivable with significant single amount and accrued for provision for bad debt on an individual basis as at December 31,

2013.





Accounts receivable accrued for provision for bad debt by balance percentage method in

portfolio:

Name of portfolio Book balance Proportion of

provision

Provision for bad

debt

Within 1 year (inclusive) 1,593,826,298.34 5.00 79,691,314.91

1 to 2 (inclusive) years 712,384,235.63 5.00 35,619,211.78


Over 3 years 15,313,066.53 5.00 765,653.33

Total 2,454,540,473.43 5.00 122,727,023.67

There were no accounts receivables with insignificant single amount but accrued for

provision for bad debt on a single basis as at December 31, 2013.

5.3.3 There were no account receivables with their allowances for bad debt provided in full

or large proportion in prior periods but were fully reversed or recovered in current

period in 2013.

5.3.4 There were no account receivables actually written off in the current reporting period.

5.3.5 Of the balance of accounts receivable as at December 31, 2013, no amounts were due

from shareholders holding more than 5% (inclusive) voting shares of the Company.

5.3.6 Top five accounts receivable

Company name

Relationship

with the

Company

Book balance Aging

Proportion in

total accounts

receivable (%)

Guangdong Branch of Bank of

Communications Co., Ltd. Customer 60,594,170.00 Note 2.46

Guangzhou Anshang Property

Management Co., Ltd. Customer 41,882,742.00 1 to 2 years 1.71

Luo Hua Customer 33,859,268.00 Within 1 year 1.38

Tianjin Bomuda Machinery

Equipment Co., Ltd. Customer 20,449,934.00 Within 1 year 0.83

Yang Fan Customer 10,716,940.00 Within 1 year 0.44

Total 167,503,054.00 6.82

Note: Of the housing sale proceeds receivable from Guangdong Branch of Bank of

Communications Co., Ltd., RMB 11,844,430.00 has the age of 1 to 2 years, and RMB

48,749,740.00 has the age of 2 (inclusive) to 3 years.

5.3.7 There were no account receivables from related parties as at December 31, 2013.

5.3.8 There were no account receivables whose recognition was terminated due to transfer

of financial assets as at December 31, 2013.

5.3.9 There were no accounts receivables transferred whose recognition was fully

terminated in 2013.

5.3.10 There were no asset backed security transactions in 2013 using account receivables as

underlying asset subject matter.





5.4 Prepayments

5.4.1 Prepayments by aging:

Aging Balance as at December 31, 2013 Balance as at January 1, 2013

Book balance Proportion (%) Book balance Proportion (%)

Within 1 year

(inclusive) 13,795,899,211.41 71.57 12,137,792,019.68 73.93

1 to 2 (inclusive)

years 3,084,841,208.99 16.00 3,106,711,609.97 18.92

2 to 3 (inclusive)

years 1,518,353,835.95 7.88 511,017,988.18 3.11

Over 3 years 876,769,487.56 4.55 663,025,290.50 4.04

Total 19,275,863,743.91 100.00 16,418,546,908.33 100.00

Note: Prepayments with aging over 1 year mainly include cooperation payments and

engineering payments for real estate projects, which were prepaid at early stage of project

or had not been settled.

5.4.2 Top five prepayments

Company name

Relationship

with the

Company

Book balance Time Reason for

unsettlement

1. Guangzhou Xiancun Industrial Co., Ltd. Not related 1,024,000,000.00 Note 1 Demolition

proceeds

2. Haikou Land Reserves and

Coordination Center Not related 1,000,000,000.00 Within 1 year

Land

guarantee

deposits

3. Land Reserves Center in Yanta

Sub-bureau of Xi’an National Land

Resources Bureau

Not related 941,930,000.00 Note 2

Land

development

fees

4. Nanjing Finance Bureau Not related 927,500,000.00 Within 1 year

Land

guarantee

deposits

5. Chengdu Xinjin Nongfa Investment Co.,

Ltd. Not related 860,607,200.00 Within 1 year

Demolition

proceeds

Total 4,754,037,200.00

Note 1: Of the relocation funds prepaid to Guangzhou Xiancun Industrial Co., Ltd., RMB

11,000,000.00 has the age of within 1 years and RMB 914,000,000.00 has the age of 1 to 2

(inclusive) years.

Note 2: Of the land development fees prepaid to Land Reserves Center in Yanta Sub-bureau

of Xi’an National Land Resources Bureau, the amount with age of within 1 year is RMB

180,930,000.00 and the amount with age of 1 to 2 (inclusive) years is RMB

761,000,000.00.

5.4.3 Of the balance of prepayments as at December 31, 2013, no amounts were due from

shareholders holding more than 5% (inclusive) voting shares of the Company.

5.5 Other receivables

5.5.1 Aging analysis of other receivables:

Aging



Amount Proportion

(%) Amount

Proportion

(%) Amount

Proportion

(%) Amount

Proportion

(%)

Within 1 year

(inclusive) 6,278,991,177.24 79.87 72,581,162.45 1.16 1,338,083,984.22 51.49 43,101,427.21 3.22





Aging



Amount Proportion

(%) Amount

Proportion

(%) Amount

Proportion

(%) Amount

Proportion

(%)

1 to 2 (inclusive)

years 651,444,600.02 8.29 28,330,807.59 4.35 950,695,258.88 36.58 28,125,224.13 2.96

2 to 3 (inclusive)

years 697,327,259.36 8.87 12,120,069.15 1.74 164,049,325.31 6.31 8,202,466.27 5.00

Over 3 years 233,848,849.11 2.97 11,692,442.46 5.00 146,126,257.63 5.62 7,306,312.88 5.00

Total 7,861,611,885.73 100.00 124,724,481.65 1.59 2,598,954,826.04 100.00 86,735,430.49 3.34





5.5.2 Other receivables disclosed by type:

Type



Amount Proportion

(%) Amount

Proportion

(%) Amount

Proportion

(%) Amount

Proportion

(%)

1. Accounts receivable

with significant single

amount and accrued for

provision for bad debt

on a single basis

5,367,122,252.67 68.27 803,532,616.33 30.92

2. Other receivables

accrued for provision

for bad debt on a

portfolio basis:

Other receivables in

portfolio accrued for


by balance percentage

method

2,494,489,633.06 31.73 124,724,481.65 5.00 1,734,708,609.71 66.74 86,735,430.49 5.00

Subtotal of portfolio 2,494,489,633.06 31.73 124,724,481.65 5.00 1,734,708,609.71 66.74 86,735,430.49 5.00

3. Other receivables

with insignificant single

amount but accrued for


on a single basis

60,713,600.00 2.34

Total 7,861,611,885.73 100.00 124,724,481.65 2,598,954,826.04 100.00 86,735,430.49





Other receivables with significant single amount and accrued for provision for bad

debt on an individual basis as at December 31, 2013:

Content of other receivables Book balance

Provision

for bad

debt

Proportion

of

provision

Reason

for

provision

1. Tianjin Sunac Aocheng Investment Co.,

Ltd. (“Rongchuang Aocheng”) 813,890,000.00 Note 1

2. Dongguan Wanhong Real Estate Co., Ltd.

(“Dongguan Wanhong”) 647,286,000.00 Note 2

3. Tianjin Sunac Lvcheng Investment

Holdings Co., Ltd. (“Rongchuang Lvcheng”) 578,517,238.25 Note 1

4. ECIC Gaoya (Tianjin) Equity Investment

Fund Partnership (Limited Partnership)

(“ECIC Gaoya Fund”)

476,681,100.00 Note 1

5.Beijing Sunac Hengji Real Estate Co., Ltd.

(“Rongchuang Hengji”) 453,420,000.00 Note 1

6.Beijing Shoukai Poly Rentai Property Co.,

Ltd. (“Poly Rentai”) 406,925,400.00 Note 2

7. ECIC (Tianjin) Equity Investment Fund

Partnership (Limited Partnership) (“ECIC

Limited Partnership”)

397,219,519.86 Note 1

8. Nanjing Xueshang Property Co., Ltd.

(“Nanjing Xueshang”) 351,892,184.20 Note 2

9. Shanghai Green Land Group Chengdu

Property Co., Ltd. 327,361,417.90 Note 1

10. Wuhan Qingneng Yisheng Property Co.,

Ltd. (“Wuhan Qingneng”) 230,700,000.00 Note 2

11. Foshan Nanhai Hengcheng Property Co.,

Ltd. 212,430,369.01 Note 1

12. ECIC (Tianjin) Equity Investment Fund

Management Co., Ltd. (“ECIC Fund

Management”)

175,385,961.45 Note 2

13. Tianjin Sunac Real Estate Co., Ltd. 166,110,000.00 Note 1

14. Hangzhou Jinmu Real Estate

Development Co., Ltd. (“Hangzhou Jinmu”) 129,303,062.00 Note 2

Total 5,367,122,252.67

Note 1: Rongchuang Aocheng, Rongchuang Lvcheng, ECIC Gaoya Fund, Rongchuang

Hengji, Shanghai Green Land Group Chengdu Property Co., Ltd., Foshan Nanhai

Hengcheng Property Co., Ltd., ECIC Limited Partnership and Tianjin Sunac Real Estate

Co., Ltd. are all shareholders of the Company’s subsidiaries. In order to improve usage

efficiency of the cash surplus of subsidiaries, both parties’ shareholders have transferred

these funds proportionately to their respective share ownership for use. No allowances for

bad debt have been provided due to the mutual constraints and equality of rights and duties

amongst these shareholders.

Note 2: Nanjing Xueshang and Wuhan Qingneng are joint ventures of the Company;

Dongguan Wanhong, Poly Rentai, ECIC Fund Management and Hangzhou Jinmu are

associates of the Company. The said joint ventures and associates have been invested by the

Company based on the shareholding ratio according to relevant project cooperation

agreements and conducted impairment tests by specific identification method at the end of

the period. Owing to the availability for effective operation and management by the

Company, as well as the good economic return of their real estate projects with no signs of

impairment through measurement, provision for bad debt has not been accrued.





Other receivables in portfolio with allowances for bad debt provided using the balance

percentage method:


Provision (%)

Provision for bad

debt

Within 1 year (inclusive) 1,451,623,249.13 5.00 72,581,162.46



Over 3 years 233,848,849.11 5.00 11,692,442.46

Total 2,494,489,633.06 5.00 124,724,481.65

There were no other receivables with insignificant single amount but with allowances for

bad debt provided on an individual basis as at December 31, 2013.

5.5.3 There were no other receivables reversed or recovered in 2013.

5.5.4 There were no other receivables actually written off during the current reporting

period.

5.5.5 Of the balance of other receivables as at December 31, 2013, no amounts were due

from shareholders holding more than 5% (inclusive) voting shares of the Company.

5.6.6 Top five other receivables

Company name

Relationship

with the

Company

Book balance Aging

Proportion in

total other

receivables (%)

Nature or content

Rongchuang Aocheng Not related 813,890,000.00 Within 1

year 10.36

Intercompany proceeds,

shareholder of cooperative

party of the Company’s

subsidiary

Dongguan Wanlong Associate of

the Company 647,286,000.00

Within 1

year 8.23

Project development fund

invested to associate

Rongchuang Lvcheng. Not related 578,517,238.25 Within 1

year 7.36




subsidiary

ECIC Gaoya Fund Not related 476,681,100.00 Within 1

year 6.06




subsidiary

Rongchuang Hengji Not related 453,420,000.00 Within 1

year 5.77




subsidiary

Total 2,969,794,338.25 37.78

5.5.7 Other receivables from related parties

Company name Relationship with the

Company Book balance

Proportion in total


Dongguan Wanlong 647,286,000.00 Associate of the

Company 8.24

Poly Rentai 406,925,400.00 Associate of the

Company 5.18

ECIC Limited Partnership 397,219,519.86 Note 5.05

Nanjing Xueshang 351,892,184.20 Joint venture of the

Company 4.48

Wuhan Qingneng 230,700,000.00 Joint venture of the

Company 2.93





Company name Relationship with the

Company Book balance

Proportion in total


ECIC Fund Management 175,385,961.45 Associate of the

Company 2.23

Hangzhou Jinmu 129,303,062.00 Associate of the

Company 1.64

Guangzhou Zhongyao Industrial


("Guangzhou Zhongyao")

90,000,410.40 Joint venture of the

Company 1.14

Tianjin Shengshi Xinhe Real

Estate Co., Ltd. (“Shengshi

Xinhe”)

8,319,611.02 Joint venture of the

Company 0.11

Guangzhou Bao'ao Real Estate

Development Co.,

Ltd.("Guangzhou Bao'ao")

151,955.40 Joint venture of the

Company

Total 2,437,184,104.33 31.00

Note: See 7.4 for details about the Company's other related parties.

5.5.8 There were no other receivables whose recognition was terminated due to transfer of

financial assets as at December 31, 2013.

5.5.9 There were no other receivables transferred whose recognition was fully terminated in

2013.

5.5.10 There were no asset backed security transactions in 2013 using other receivables as

underlying asset subject matter.

5.6 Inventories

5.6.1 Classification of inventories:

Item


Book balance Provision for

depreciation Book value Book balance

Provision for

depreciation Book value

Development

cost

214,902,424,143.16 214,902,424,143.16 177,164,086,151.53 177,164,086,151.53

Development

products

24,954,589,229.09 24,954,589,229.09 12,452,671,938.43 12,452,671,938.43

Raw

materials

42,497,672.18 42,497,672.18 20,960,876.86 20,960,876.86

Merchandise

in stock

7,119,547.30 7,119,547.30 5,329,503.72 5,329,503.72

Low-cost

consumables

665,364.13 665,364.13 774,612.43 774,612.43

Total 239,907,295,955.86 239,907,295,955.86 189,643,823,082.97 189,643,823,082.97

(1) Development cost

Project name Commencement date Estimated

completion date

Estimated total

investments

(RMB’0,000)

Balance as at

December 31, 2013

Balance as at January

1, 2013

The Guangzhou Poly West

Coast Residence (including

the Guangzhou Poly Xinghai

Garden) September 2009 December 2014 1,008,557.87 3,322,004,083.98 5,997,599,769.89

The Guangzhou Poly Park November 2011 December 2015 364,465.83 2,296,400,572.50 2,493,362,132.65

The Guangzhou Poly Seine

Villa (The former Fangcun

G Land Parcel) April 2012 October 2015 177,493.70 1,398,466,366.56 1,005,704,642.18






completion date

Estimated total

investments

(RMB’0,000)

Balance as at

December 31, 2013


1, 2013

The Guangzhou Poly

Champaign Mansion November 2011 52,219.35 426,034,078.91

The Guangzhou Poly

Zhongda Plaza September 2010 June 2014 187,088.51 359,581,283.73 1,108,782,418.52

The Guangzhou Poly

Headquarters Base Project October 2010 December 2014 47,439.00 243,214,227.09 147,011,802.12

The Guangzhou Poly World

Trade Center December 2006 December 2015 467,300.88 846,436.61 4,260,497.93

The Guangzhou Poly

Keluowei Square September 2009 December 2015 252,975.72 670,674,123.07 1,195,920,176.69

The Zhongshan Poly Spring

Plaza January 2012 December 2016 396,560.26 1,280,952,337.03 1,191,142,953.54

The Zhongshan Poly

International Plaza May 2012 December 2016 709,949.14 1,421,499,934.05 1,332,683,828.67

The Guangzhou Poly Yunxi

(The former Baiyun New

Town Project ) June 2012 June 2015 490,078.15 4,261,839,694.81 3,902,919,629.80

The Guangzhou Poly Ziwei

Garden April 2006 52,294.00 9,648,575.35

The Guangzhou Poly

Central Plaza September 2010 96,745.00 327,763,433.92

The Guangzhou Poly

Tianyue Project December 2010 December 2015 1,810,718.00 6,314,780,407.36 4,025,462,489.88

The Guangzhou Zengcheng

Poly Dongjiang Capital May 2010 December 2015 688,503.07 2,326,390,808.22 3,028,723,848.42

The Guangzhou Poly

Zhongchen Square July 2008 December 2014 58,839.93 79,722,392.78 83,157,746.31

Guangzhou Poly Yuexiu

Lingnan Forest Whisper (the

former Science City Project) September 2013 December 2017 370,797.22 1,801,727,664.29 1,066,000,000.00

The Guangzhou Poly

Songhe Street Project September 2013 December 2015 63,713.51 421,726,188.64 387,718,500.00

The Guangzhou Poly

Daduhui (the former Panyu

Hanxi Village Project) September 2013 December 2017 371,449.35 1,763,542,229.12

The Guangzhou Conghua

Poly Hot Springs Village

Project June 2014 December 2017 166,847.61 258,109,499.11

The Guangzhou Poly

Financial City A005-2

Project December 2014 December 2018 353,793.54 817,969,455.00

The Guangzhou Poly

Financial City A007-1

Project December 2014 December 2018 361,373.66 650,003,000.00

The Guangzhou Poly

Nansha Jinzhou No.

7 Land Project June 2014 December 2017 74,708.29 230,753,831.97

The Guangzhou Poly

Nansha Jinzhou No.

9 Land Project June 2014 December 2017 59,215.56 292,534,411.50

The Zhuhai Poly Mayflower

(the former Tangjiawan

Project) December 2013 December 2016 355,599.54 1,916,267,842.87 868,767,970.00

The Foshan Poly Donghu

Forest Whisper June 2010 December 2014 154,169.00 604,247,868.42 1,500,094,421.09






completion date

Estimated total

investments

(RMB’0,000)

Balance as at

December 31, 2013


1, 2013

The Foshan Poly

Champagne Garden October 2010 187,600.80 614,032,174.98

The Foshan Poly No.

1 on the Bund June 2010 December 2014 211,317.00 891,388,523.82 1,052,516,131.11

The Foshan Poly East Bay I June 2012 December 2016 494,468.00 2,797,827,756.59 2,629,027,537.62

The Foshan Poly East Bay II September 2010 December 2015 508,191.91 1,642,420,036.47 1,927,067,439.43

The Foshan Poly Purple

Mountain Garden June 2013 June 2015 180,708.27 779,799,317.41 593,105,561.95

The Foshan Poly Lafei April 2011 December 2014 137,103.61 934,911,479.27 838,728,881.71

The Foshan Poly Central

Plaza May 2011 June 2015 732,204.06 2,296,663,743.92 2,396,083,573.68

The Foshan Poly Manor September 2012 December 2015 514,200.40 2,324,499,337.21 1,944,763,606.01

The Foshan Poly Dongbin

Garden (the former New

Town Project) June 2013 December 2015 597,092.04 2,886,171,350.45 1,996,485,547.09

The Foshan Poly Zhongyue

Garden (the former Shunde

New Town A11 Parcel) June 2014 December 2018 336,222.65 957,780,777.56

The Foshan Poly Seattle (the

former Sanshan Avenue

Project) September 2013 December 2017 379,232.38 1,160,470,382.35 472,598,500.00

The Jiangmen Poly Daduhui

(the Binjiang New Area

Project) June 2013 December 2020 763,685.13 1,600,394,569.27 660,696,506.70

The Qingyuan Poly Garden

(the former Beijiang New

Town Project) July 2013 December 2020 357,223.32 373,003,384.16


Park (the former Sanshui

Project) March 2014 June 2018 481,562.98 477,770,702.39

Foshan Poly Zishan

International December 2014 December 2019 430,420.00 817,004,420.61

The Foshan Poly Foda

Shishan Project December 2014 December 2018 170,617.43 120,000,000.00

Shaoguan Poly Furong New

Town December 2014 December 2020 687,594.09 528,930,565.40

Shaoguan Poly Leiting

Pharmaceutical Project December 2014 December 2018 134,061.18 260,416,506.66

Zhanjiang Poly Yuandian

Square June 2014 December 2020 1,041,426.39 958,387,306.14

The Shenyang Poly

Mayflower March 2011 June 2014 295,230.61 709,305,853.10 987,510,011.68

The Shenyang Poly Shanglin

Bay May 2007 196,259.94 28,450,805.81

The Shenyang Poly Xihu

Forest Whisper April 2010 December 2015 390,513.65 847,670,450.26 768,687,465.21

The Shenyang Poly

Cambridge Residence May 2011 117,009.90 719,046,057.96

The Dandong Poly Jinjiang

Forest Whisper March 2009 December 2015 141,375.00 287,513,561.80 530,169,930.78

The Shenyang Poly Xinyu

Garden June 2008 December 2015 241,174.76 154,143,960.84 325,133,364.70

The Yingkou Poly

Champagne Garden April 2011 June 2016 295,705.12 514,273,099.99 440,649,889.42






completion date

Estimated total

investments

(RMB’0,000)

Balance as at

December 31, 2013


1, 2013

The Shenyang Poly Twelve

Oaks Manor March 2009 December 2014 100,133.13 98,746,199.73 178,294,573.95

Shenyang Poly Champagne

Garden May 2013 December 2017 284,564.79 1,315,684,762.75 605,098,696.47

Shengyang Poly Jasmine

Mansion (the former

Manrong Project) September 2013 December 2016 229,601.32 653,290,673.59

Shengyang Poly Baisha

Forest Whisper (the former

Dongling Bridge Project) June 2014 December 2018 208,928.47 230,811,170.79

Shenyang Poly Zijing

Mansion (the former

Huamao Center Project) June 2014 December 2018 131,710.79 189,965,899.51

Dandong Poly Champagne

Garden June 2014 December 2017 64,888.80 149,240,000.00

The Dalian Poly West

Mountains Forest Whisper September 2012 November 2015 329,419.14 2,019,524,000.53 1,679,922,248.52

Dalian Poly Nanguanling

Project March 2014 December 2015 54,548.52 173,207,710.23

Dalian Poly Baoli Tianxi

(the former Donggang

Project) June 2014 December 2020 1,696,003.21 3,652,945,199.69

The Baotou Poly Garden June 2006 December 2015 288,704.61 216,515,432.34 45,625,141.81

The Baotou Poly Nanhai

Park May 2012 June 2015 175,068.61 1,455,342,959.99 1,435,820,913.34

The Baotou Poly

Champagne Garden September 2012 December 2014 59,049.22 437,814,940.16 278,366,811.83

The Baotou Poly Lafei

Mansion April 2009 227,342.00 846,193,384.56

The Beijing Poly Luo

Lanxiang Valley October 2011 157,821.00 1,123,447,281.69

The Beijing Poly Fanghua

Jiayuan June 2012 June 2014 52,309.08 404,614,662.94 203,322,182.09

The Beijing Poly West

Mountains Residence April 2007 December 2014 357,446.41 76,783,916.21 24,009,129.18

The Beijing Poly Dongjun September 2010 December 2014 430,882.00 686,974,338.84 3,779,398,163.60

The Beijing Poly Spring

Plaza October 2011 March 2015 538,925.20 4,241,943,210.40 3,603,056,653.51

The Beijing Poly Central

Park July 2011 December 2015 879,289.71 5,211,407,147.46 6,063,911,080.60

Beijing Poly Fengdan I (the

former Yizhuang Project) June 2013 December 2015 537,812.46 3,376,134,148.05 3,082,874,563.00

Beijing Poly Hyde Park (the

former Jimenqiao Project) September 2013 December 2015 287,194.03 2,089,861,760.64 1,853,892,813.40

Beijing Poly Xiyue Spring

(the former biomedical base

project) June 2013 December 2015 267,400.82 1,612,227,263.85 1,380,005,600.00

Beijing Poly Changping

Shahe Project June 2014 December 2018 251,730.44 1,361,357,557.61

Beijing Poly East Dam

Project June 2014 December 2017 332,438.91 2,100,000,000.00

Beijing Poly Tongzhou

Project June 2014 June 2017 508,831.73 2,126,755,015.01

Taiyuan Poly Champagne

Garden June 2014 December 2018 232,248.44 766,701,906.14






completion date

Estimated total

investments

(RMB’0,000)

Balance as at

December 31, 2013


1, 2013

The Shanghai Poly

Champagne Garden December 2004 December 2015 188,483.16 938,110,732.77 751,187,762.04

The Shanghai Poly

Mayflower April 2007 215,621.55 14,441,395.70

The Shanghai Poly Phoenix

Tree September 2010 97,196.79 253,754,186.03

The Shanghai Poly

International Center August 2012 December 2015 651,254.00 3,656,032,900.75 3,272,468,357.91

The Shanghai Poly Blue

Forest Whisper August 2011 December 2015 252,409.00 1,628,251,348.23 1,491,941,478.15

The Jiaxing Poly Xitangyue September 2011 December 2015 152,978.00 123,005,321.58 237,794,333.51

The Nantong Poly

Champagne International July 2011 December 2015 325,404.88 710,334,437.73 1,908,537,748.08

The Shanghai Poly Jasmine

Mansion March 2011 December 2015 480,382.35 617,009,874.39 3,253,568,034.62

The Shanghai Poly Maoqiao

Jingcheng·Yayuan July 2012 December 2014 110,240.93 502,686,539.69 340,734,299.75

The Shanghai Poly Maoqiao

Jingcheng·Ziyuan March 2012 October 2014 73,633.97 461,019,211.30 316,779,389.35

Shanghai Poly West Coast

(the former Xihui Binjiang

Project) December 2013 June 2016 767,784.44 4,856,240,729.38 3,608,922,170.00

Shanghai Lvcheng Yuyuan

(the former Senlan

Waigaoqiao Project) June 2013 June 2016 385,025.40 2,571,353,696.51 2,127,719,150.00

Shanghai Poly International

Medical Zone Project June 2014 December 2018 335,044.27 1,740,000,000.00

The Wuhan Poly Xinyu January 2007 June 2014 308,551.89 212,700,734.13 51,328,303.40

The Wuhan Poly

Mayflower June 2009 December 2014 184,206.44 107,424,468.58 292,224,545.84

The Wuhan Poly Lafei January 2011 169,307.17 407,338,368.39

The Wuhan Poly

Champagne International July 2011 December 2014 179,819.88 438,326,737.29 1,142,028,544.58

The Wuhan Poly Mahu

Project June 2011 June 2015 343,728.98 1,066,753,387.72 1,037,225,071.66

The Wuhan Poly Central

Residence August 2011 June 2015 345,298.74 461,307,356.98 1,049,595,273.34

The Huanggang Poly No. 1

Manor June 2011 34,587.79 148,084,208.97

The Wuhan Poly Park June 2012 June 2016 548,488.99 1,880,986,652.99 2,500,707,407.43

The Wuhan Poly Guanshan

Village Project May 2013 December 2017 811,315.00 3,014,180,490.76 1,917,141,338.40

The Wuhan Poly Dreams

City April 2008 December 2015 553,825.51 299,752,081.93 510,936,173.89

The Hunan Poly Dongting

East Coast September 2007 40,013.46 46,094,921.63

The Changsha Poly Lugu

Forest Whisper March 2009 December 2015 549,692.14 415,200,074.34 528,097,599.15

The Changsha Poly

International Plaza March 2011 December 2014 554,281.29 2,442,687,701.69 2,695,609,573.50

Changsha Poly West Coast

(the former Binjiang B7

Project) December 2013 December 2017 901,395.29 3,735,589,307.87






completion date

Estimated total

investments

(RMB’0,000)

Balance as at

December 31, 2013


1, 2013

Changsha Poly Champagne

International (the former

Tianjiao Project) November 2013 December 2020 413,384.36 1,045,027,107.35

Chenzhou Poly Suxianlinyu

(the former Suxianling

Project) December 2013 June 2016 86,078.31 296,807,790.60

The Chongqing Poly Garden August 2004 December 2014 338,788.20 411,079,584.26 192,140,269.45

The Chongqing Poly

Champagne Garden April 2005 December 2014 176,519.00 117,708,165.42 75,030,592.83

The Chongqing Poly

Coconut Peninsula June 2011 46,623.91 316,719,220.93

The Chongqing Poly River

Pearl August 2010 December 2015 983,537.35 2,457,107,316.43 3,907,342,280.50

The Chongqing Poly

Hornsey Garden August 2010 367,425.00 1,689,303,566.96

The Chongqing Poly Kauai

Island March 2011 55,793.95 474,831,169.73

The Chongqing Poly Harbor

International July 2010 124,075.63 9,547,014.03

The Chongqing Poly

Flowers in City Center June 2012 December 2015 325,253.73 2,257,353,206.26 1,762,473,210.12

Chongqing Poly Aishangli June 2013 June 2017 586,915.13 2,195,905,582.69 931,809,294.55

Chongqing Poly Linyuxi

(the former Banan Lijiatuo

Project) September 2013 December 2015 112,179.09 585,904,408.26 230,372,000.00

Chongqing Poly No. 1

Manor (the former

Changshou Project) December 2013 June 2016 109,369.39 452,954,123.61

Chongqing Poly Guanlan June 2014 December 2018 560,116.81 2,544,617,568.55

Chongqing Poly Beibei


Chongqing Poly Guantang June 2014 December 2020 633,651.88 1,170,675,844.00

The Changchun Poly Luo

Lanxiang Valley August 2007 December 2014 227,911.98 46,084,336.43 50,816,252.57

The Changchun Poly Lily

Hong Bay June 2010 186,811.99 360,334,191.15

Changchun Poly Bayi

Reservoir Project December 2014 December 2017 125,190.26 221,158,728.00

The Nanchang Poly Mingya

European - December 2014 201,057.70 37,429,009.27 146,824,913.28

The Nanchang Poly

International Garden

Mid-Levels October 2010 December 2015 612,646.90 910,233,887.28 705,980,111.61

Nanchang Poly Xinyu

Garden (the former

Qingshan Lake Project) June 2014 December 2017 130,625.74 258,355,075.00

Nanchang Poly Gold

Champagne (the former

Hi-tech Zone project) June 2014 December 2017 80,816.70 201,433,752.00

The Chengdu Poly Stone

Elephant Lake Project April 2012 December 2015 335,075.78 799,275,903.06 818,457,597.44

Chengdu Poly Xinyu Garden April 2010 June 2015 204,510.44 541,906,408.58 448,163,102.95

Chengdu Poly International

Plaza December 2014 December 2019 280,419.84 343,890,882.96 305,462,352.98






completion date

Estimated total

investments

(RMB’0,000)

Balance as at

December 31, 2013


1, 2013

Chengdu Poly Xiangxue (the

former Xinyu Phase IV) March 2011 146,404.56 975,305,858.27

The Chengdu Poly

Cambridge August 2011 December 2014 274,683.00 1,077,071,791.92 2,221,586,416.60

The Chengdu Poly the

Shishan Reservoir Project December 2013 June 2016 164,292.09 716,934,461.36 411,679,705.33

The Chengdu Poly Beisen

Mansion September 2011 105,037.45 750,801,167.18

The Chengdu Poly Garden May 2010 December 2014 393,236.64 563,993,926.60 907,828,428.22

The Chengdu Poly Park 198 April 2008 December 2014 1,065,878.27 1,722,707,725.21 2,027,111,572.95

The Chengdu Poly

Champagne International May 2011 June 2014 167,838.90 208,353,779.77 1,004,568,613.31

The Chengdu Poly Lily

Mansion March 2013 December 2015 157,050.79 1,218,428,549.06 940,219,752.53

The Deyang Poly

International City (including

Phase I and II) June 2011 December 2016 780,380.14 1,188,391,086.80 1,876,481,465.97

The Chengdu Poly City September 2011 December 2015 292,506.81 1,049,511,756.47 1,181,208,765.65

The Chengdu Poly

Champaign Guanghua December 2012 December 2014 124,808.01 889,290,772.84 637,894,244.57

The Chengdu Poly Phoenix

Tree June 2013 December 2015 94,844.80 771,745,008.15 341,995,118.08

The Chengdu Poly Leaves

Whisper June 2013 June 2017 193,942.46 1,009,984,017.11 338,107,852.36

The Chengdu Spring

Flowers Whisper April 2013 December 2017 127,647.91 528,761,679.05 27,066,022.16

Chengdu Poly Rose Whisper

(the former Longquanyi

District Project) May 2013 December 2016 225,419.59 979,942,722.33

Chengdu Poly Jinhulinyu

(the former Jincheng Street

Project) December 2014 December 2017 231,258.84 680,505,043.87

Chengdu Poly Linyuxi (the

former Longtan Street

Project) September 2014 December 2018 216,873.77 246,976,340.85

Suining Poly Jiangyucheng

(the former Hedong New

District Project) June 2013 December 2016 152,207.51 399,290,483.02

Poly Linzhi Project December 2014 December 2019 63,600.00 66,627,317.00

The Shanghai Poly Leaves

of Forest December 2011 December 2015 481,727.00 3,276,750,786.37 2,952,586,843.25

The Shanghai Poly Leaf

Language August 2010 430,327.78 1,527,278,863.10

The Hangzhou Poly Jiang Yu

Hai June 2010 179,079.42 1,461,014,799.55

The Hangzhou Poly

Champagne International January 2011 95,496.95 760,710,742.51

The Hangzhou Poly Rose

Bay June 2011 December 2014 138,915.00 1,183,023,438.58 1,029,120,764.91

The Hangzhou Poly City

Green December 2011 December 2014 129,936.32 969,372,475.15 848,821,856.46

The Hangzhou Poly Joffre

County December 2011 December 2014 214,628.46 1,912,375,238.69 1,720,201,447.21

The Hangzhou Poly East

Bay March 2008 598,399.46 721,279,992.37






completion date

Estimated total

investments

(RMB’0,000)

Balance as at

December 31, 2013


1, 2013

The Ningbo Poly Lakeside

World April 2012 December 2016 498,366.00 2,162,533,082.40 1,413,240,467.68

The Shaoxing Poly Lakeside

Reverie October 2011 December 2015 172,834.94 1,393,177,907.18 1,251,181,646.46

Hangzhou Poly Phoenix

Tree (the former Pufu

Project) December 2013 December 2015 159,046.96 1,033,525,626.24 155,045,000.00

Zhejiang Poly Luo Lanxiang

Valley (the former Changmu


The Tianjin Poly Rose Bay September 2010 March 2015 540,629.59 1,504,856,195.87 1,762,812,547.14

The Tianjin Poly Begonia

Bay January 2011 June 2014 190,500.00 674,295,363.67 995,992,341.46

The Tianjin Poly Horizon

Capital September 2012 September 2015 565,445.86 3,503,238,833.82 3,181,716,480.24

Tianjin Poly Chanson Lake

(the former Xiazhuzhuang


Tianjin Poly Luolan Manor

(the former Zhangjiawo


Tianjin Poly Xihulinyu (the

former South Lake Project) December 2014 December 2018 133,180.76 334,260,327.84

The Qingdao Poly Haishang

Luolan June 2011 December 2015 321,698.31 1,760,715,234.99 1,439,007,455.84

The Qingdao Poly

Champagne International September 2012 June 2015 162,467.95 1,125,220,345.06 869,440,680.75

The Qingdao Poly Liyuanli August 2010 December 2015 161,669.02 87,409,860.95 459,792,271.76

Qingdao Poly Manyueshan

(the former East Hong Kong

Road Project) September 2013 December 2015 137,779.39 1,042,237,893.44

Qingdao Poly Leaf Mansion

(Shuangfeng Project) September 2013 December 2016 252,300.98 946,092,488.58

Qingdao Poly Jasmine

Mansion (the former Dongli

Project) March 2014 December 2016 201,999.01 735,764,451.95

Qingdao Poly Shimei'an


The Changchun Poly

Champagne Garden November 2011 December 2014 138,132.00 410,202,043.85 646,983,699.41

The Changchun Poly Forest

Whisper June 2010 December 2015 233,715.81 664,667,617.87 594,834,923.63

The Changchun Poly Lafei

Mansion September 2012 December 2015 199,984.00 969,958,229.99 694,957,053.02

The Changchun Poly

Jingyue Project June 2014 December 2015 43,473.00 295,165,035.09 124,000,747.93

Tonghua Poly Luo Lanxiang

Valley (the former Jilin

Tonghua Project) December 2013 December 2016 167,626.55 275,011,940.88 244,596,669.55

Changchun Poly Central

Park (the former Car Park

Project) June 2014 December 2016 231,419.18 923,145,188.07

Changchun Poly Spring

Plaza (the former Pingxin

Road Project) September 2013 June 2016 95,607.40 361,174,325.74






completion date

Estimated total

investments

(RMB’0,000)

Balance as at

December 31, 2013


1, 2013

The Yang Jiang Poly Luo

Lanxiang Valley September 2009 December 2014 91,580.81 2,797,547.00 2,721,367.73

The Yang Jiang Poly Silver

Beach Project September 2010 December 2015 695,505.40 905,289,774.75 1,256,775,073.73

The Nanjing Poly

Champagne International June 2010 292,631.31 813,320,625.54

The Wuxi Poly Champagne

International November 2010 June 2015 270,094.20 1,315,721,764.21 1,031,463,080.50

The Changzhou Poly Park August 2013 December 2015 143,047.07 692,307,864.18 533,700,514.40

The Nanjing Poly Luo

Lanxiang Valley August 2011 December 2014 155,255.94 966,732,190.01 1,031,681,731.97

The Lianyungang Poly Lihai

Mayflower June 2011 December 2015 132,597.31 667,344,308.24 554,513,202.28

The Nanjing Poly Phoenix

Tree December 2011 December 2014 248,244.49 1,736,674,921.71 1,351,736,724.16

The Nanjing Poly Amethyst

Mountain September 2010 December 2014 333,885.88 429,954,404.39 1,655,366,648.94

Nanjing Poly Zijing

Mansion (the former

Jiangxinzhou Project) December 2013 December 2015 111,515.21 707,770,567.02 439,138,849.80

Nanjing Poly Luolan Spring

(the former Northwest

Xianlin Lake Parcel Project) June 2013 June 2015 170,364.58 971,880,942.53 407,158,862.35

Nanjing Poly Central Park

(the former Tongren Street

Project) December 2013 June 2017 497,585.03 2,484,986,875.59

Wuxi Poly Central Park (the

former Pegasus Textile


The Zhuhai Poly

Champagne International August 2011 August 2015 232,788.83 785,114,666.60 1,208,757,647.01

The Dongguan Poly Red

Coral February 2012 December 2014 170,826.38 640,441,479.05 1,196,180,244.12

Dongguan Poly Forest

Whisper (the former

Zhangmutou Project) June 2013 December 2016 272,115.61 828,811,696.32 571,235,652.41

The Nanchang Poly

Champagne International November 2011 December 2015 255,599.16 689,470,182.08 839,231,952.18

The Nanchang Poly

International Garden in the

East Bay August 2010 165,836.62 332,080,920.39

Nanchang Poly Lily Garden December 2013 December 2015 41,039.54 252,410,636.52 102,251,635.00

The Hefei Poly Champagne

International April 2012 December 2015 395,768.76 2,260,677,093.86 1,749,010,009.12

The Hefei Poly Lafei

Mansion October 2012 July 2015 282,073.93 1,018,194,290.53 1,235,800,880.25

Hefei Poly Mayflower (the

former Binhu BH2013-1

Project) October 2013 June 2018 440,459.47 2,001,627,332.36

Hefei Poly Phoenix Tree (the

former High-tech Zone

KMB-1 Project) October 2013 December 2016 75,602.00 254,365,472.36

Hefei Poly Dongjun (the

former Yaohai E1301

Project) October 2013 June 2018 349,619.27 1,489,604,450.42






completion date

Estimated total

investments

(RMB’0,000)

Balance as at

December 31, 2013


1, 2013

The Zhengzhou Poly Lily

Garden February 2012 December 2014 103,849.46 916,454,994.93 608,406,102.16

Zhengzhou Poly Mayflower

(the former Huiji District


The Shijiazhuang Poly

Garden April 2013 December 2017 636,679.01 2,631,781,719.95 2,162,266,361.13

The Sanya Poly Forum

Project June 2014 June 2016 305,386.59 849,970,845.32 8,082,858.33

The Fuzhou Poly Xijiang

Forest Whisper August 2013 December 2015 289,777.02 1,449,600,120.76 672,894,169.86

Xi'an Poly Spring Plaza (the

former Qujiang Project) September 2013 June 2016 207,237.27 865,469,973.67 563,391,774.77

Xi'an Poly Gold Champagne

(the former Sanqiao Project) December 2013 June 2016 145,961.62 393,832,603.75 130,019,409.00

Xi'an Poly Lafei Mansion September 2013 December 2016 340,663.54 1,024,660,724.72 669,809,661.33

Total 214,902,424,143.16 177,164,086,151.53

(2) Development products

Project name Completion date Balance as at

January 1, 2013 Increase in 2013 Decrease in 2013

Balance as at

December 31, 2013

Guangzhou Poly Beijing

Plaza September 2001 3,564,058.43 3,564,058.43

The Guangzhou Poly

Cotton Tree Garden December 2001 1,512,465.36 1,512,465.36

The Poly Guangzhou

Baiyun Hills December 2002 4,100,360.37 31,191.80 4,069,168.57

The Guangzhou Poly Lily

Garden April 2005 4,045,533.80 26,853,016.00 30,898,549.80


Garden II April 2007 12,886,984.82 216,483.15 12,670,501.67

The Guangzhou Poly

Champagne Garden November 2005 2,620,669.43 938,854.46 1,165,349.80 2,394,174.09

The Guangzhou Poly

Xiangxue Mountains September 2011 123,598,212.12 91,113,154.58 8,941,992.11 205,769,374.59


Sub Bay December 2010 69,024,272.30 22,440,160.85 82,790,135.03 8,674,298.12

The Guangzhou Poly

Begonia Garden June 2006 1,473,986.25 1,473,986.25

The Guangzhou Poly

International Plaza March 2007 238,254,314.83 238,254,314.83

The Guangzhou Bao Li

Linhai Hills February 2010 112,581,995.46 5,373,040.15 117,955,035.61

The Guangzhou Poly

Center July 2010 67,904,396.87 10,479,541.09 1,861,770.88 76,522,167.08

The Guangzhou Poly

Manor 2010 September 2011 82,920,565.48 11,056,336.85 71,864,228.63

The Guangzhou Poly

Spring Plaza November 2011 11,781,249.19 11,781,249.19

The Guangzhou Poly

Champaign Mansion June 2013 562,948,494.00 513,881,743.32 49,066,750.68

The Guangzhou Paul

Forest Whisper Hills June 2011 2,545,374.09 2,545,374.09

The Guangzhou Poly

Ziwei Garden December 2013 15,111,696.90 27,178,622.85 38,163,390.64 4,126,929.11







Balance as at

December 31, 2013

The Guangzhou Poly

Xinyu Garden June 2010 39,171,334.76 60,918.75 1,202,213.28 38,030,040.23

Guangzhou Zengcheng

Poly No. 1 Manor December 2010 34,929,921.90 53,969,462.83 298,495.80 88,600,888.93

The Guangzhou Poly V

Block June 2012 100,262,019.07 116,662,128.43 216,924,147.50

The Guangzhou Poly

Zhongyu Square April 2011 45,632,056.53 4,773,685.37 10,362,089.29 40,043,652.61

The Guangzhou Poly

Central Square September 2011 101,128,404.73 45,740,816.62 146,869,221.35

The Guangzhou Poly

Central Plaza May 2013 83,418,662.40 393,280,956.94 288,065,668.55 188,633,950.79

The Guangzhou Poly

Zhongchen Square December 2014 40,010,019.54 29,339,372.08 10,670,647.46


Coast Residence

(including the Guangzhou

Poly Xinghai Garden) December 2014 142,212,634.16 3,192,071,254.67 3,327,554,836.20 6,729,052.63

The Guangzhou

Zengcheng Poly

Dongjiang Capital December 2015 1,756,144,090.59 1,744,707,332.09 11,436,758.50

The Guangzhou Poly

Luokewei Square December 2015 931,365,164.60 752,573,287.20 178,791,877.40

The Guangzhou Poly

Zhongda Plaza June 2014 982,706,560.00 982,706,560.00

The Guangzhou Poly Park December 2015 629,528,919.60 629,528,919.60

The Guangzhou Poly

World Trade Center December 2015 76,947,000.17 12,125,276.91 65,960,641.18 23,111,635.90


Coral December 2014 794,386,460.59 699,359,466.90 95,026,993.69

The Zhongshan Poly

Spring Plaza December 2016 368,733,998.60 218,333,772.40 150,400,226.20

The Zhongshan Poly

International Plaza December 2016 502,924,465.35 470,828,640.83 32,095,824.52

The Zhuhai Poly

Champagne International August 2015 976,147,698.22 976,147,698.22

The Nanhai Poly Water

City June 2011 222,817,446.27 14,309,600.26 1,484,763.58 235,642,282.95

The Nanhai Poly Garden June 2011 43,191,835.74 71,629,093.40 30,407,986.69 84,412,942.45

The Nanhai Poly

Constellation May 2010 40,887,015.79 1,629,996.79 39,257,019.00


Forest Whisper December 2014 3,385,456.81 1,001,776,316.12 634,480,951.65 370,680,821.28

The Shunde Poly Lily

Garden July 2011 4,554,062.98 308,731.93 4,245,331.05

The Foshan Poly

Champagne Garden December 2013 156,598,905.39 1,082,946,980.38 711,880,646.92 527,665,238.85


Lanxiang Valley December 2014 129,871,534.98 103,183,887.54 123,256,715.74 109,798,706.78

The Yang Jiang Poly

Silver Beach December 2015 551,098,921.59 819,189,340.00 914,232,881.40 456,055,380.19

The Foshan Poly No. 1 on

the Bund December 2014 231,757,261.79 460,733,581.86 401,466,920.02 291,023,923.63

The Foshan Poly East Bay

II December 2015 87,059,568.90 1,093,341,484.01 1,171,289,191.66 9,111,861.25







Balance as at

December 31, 2013


Plaza June 2015 1,021,530,584.00 858,389,520.30 163,141,063.70

The Foshan Poly East Bay

I December 2016 274,662,597.30 257,104,787.55 17,557,809.75

The Shenyang Poly

Garden June 2012 54,589,771.86 44,869,263.16 9,720,508.70

The Shenyang Begonia

Garden July 2007 4,210,878.12 616,111.74 4,826,989.86

The Shenyang Poly Lihai

Mayflower June 2014 137,626,195.76 464,654,809.29 514,871,741.87 87,409,263.18

The Shenyang Poly

Shanglin Bay December 2013 33,131,250.17 132,091,137.83 132,343,426.87 32,878,961.13

The Dandong Poly

Jinjiang Forest Whisper December 2015 83,871,909.78 424,680,842.50 241,414,667.28 267,138,085.00


Forest Whisper December 2015 447,065,346.37 346,596,353.92 702,741,923.26 90,919,777.03

The Shenyang Poly

Cambridge Residence December 2013 1,050,085,964.38 327,276,433.41 722,809,530.97

The Shenyang Poly Xinyu

Garden December 2015 86,047,607.28 237,696,992.53 299,390,933.69 24,353,666.12

The Shenyang Poly

Twelve Oaks Manor December 2014 76,106,157.44 120,031,696.29 196,137,853.73


Coast December 2012 577,152,938.68 58,858,720.40 518,294,218.28

The Yingkou Poly

Champagne Garden June 2016 226,510,750.13 184,127,343.30 252,391,591.78 158,246,501.65

The Beijing Poly Xinyuan July 2005 5,490,012.00 5,490,012.00

The Beijing Poly Rose

Garden March 2010 11,601,553.73 11,601,553.73


Mountains Forest Whisper December 2014 82,226,891.32 4,594,945.82 14,812,479.38 72,009,357.76

The Beijing Poly Jasmine

Manor December 2012 133,926,345.25 483,631.42 131,245,262.13 3,164,714.54

The Beijing Poly Jia

Garden December 2011 70,536,643.49 9,621,939.88 64,127,390.45 16,031,192.92

The Beijing Poly

Longshang December 2012 18,692,953.66 3,564,408.31 18,496,361.08 3,761,000.89

The Beijing Poly Dongjun December 2014 3,481,223,911.51 3,481,223,911.51


Lanxiang Valley December 2013 1,536,048,443.31 1,510,224,944.31 25,823,499.00


Park December 2015 2,157,163,457.23 2,157,163,457.23

The Wuhan Poly Garden July 2008 36,252,936.22 621,113.97 35,631,822.25

The Wuhan Poly Twelve

Oaks Manor December 2012 135,592,763.01 57,892,756.00 77,700,007.01

The Wuhan Poly Xinyu June 2014 38,280,422.01 26,717,167.79 11,563,254.22

The Wuhan Poly Haiyu December 2010 618,887.00 618,887.00

The Wuhan Poly

Mayflower December 2014 47,380,958.68 432,113,774.52 312,135,813.53 167,358,919.67


Residence June 2015 237,617,514.79 1,404,890,812.90 836,414,320.74 806,094,006.95

The Wuhan Poly Lafei December 2013 205,029,788.50 746,507,286.05 794,396,874.68 157,140,199.87


City December 2015 169,379,659.95 385,961,969.87 300,756,634.74 254,584,995.08

The Wuhan Poly

Champagne International December 2014 215,950,924.77 882,585,137.58 1,015,049,479.21 83,486,583.14







Balance as at

December 31, 2013

The Wuhan Poly Mahu

Project June 2015 130,208,253.90 455,084,273.90 457,180,442.73 128,112,085.07

The Wuhan Poly Park June 2016 1,184,821,763.28 1,002,943,174.61 181,878,588.67

The Huanggang Poly No.

1 Mansion May 2013 30,022,448.98 281,464,232.96 304,303,918.20 7,182,763.74

The Changsha Jinli

Garden December 2002 3,495,925.23 70,000.00 3,425,925.23

The Changsha Poly

Garden January 2002 196,099.71 196,099.71

The Changsha Poly

Garden I January 2010 12,881,681.24 180,131.90 3,142,661.55 9,919,151.59

The Changsha Poly

Garden II June 2012 77,874,518.00 6,570,209.89 71,304,308.11

The Hunan Poly Dongting

East Coast June 2013 65,494,653.69 14,211,702.34 51,282,951.35



The Changsha Poly

Langzhong Peak Cloud

Villa December 2012 119,657,776.81 83,889,282.24 35,768,494.57

The Changsha Poly

International Plaza December 2014 1,162,888,149.42 876,600,606.49 286,287,542.93

The Shanghai Poly

Champagne Garden December 2015 27,497,744.36 2,929,678.90 24,568,065.46

The Shanghai Poly West

Sub Bay November 2010 54,366,284.96 54,366,284.96

The Shanghai Poly

Mayflower December 2013 10,383,751.96 84,017,980.28 70,038.46 94,331,693.78

The Shanghai Poly Forest

Whisper Creek May 2011 26,320,026.98 1,192,165.81 25,127,861.17

The Shanghai Poly Leaf of

Shanghai December 2013 144,254,032.57 108,236,831.13 36,017,201.44

The Shanghai Poly

Phoenix Tree December 2013 285,553,110.10 323,413,320.78 301,698,158.00 307,268,272.88

The Shanghai Poly

Jasmine Mansion December 2015 3,221,901,018.99 1,815,497,444.93 1,406,403,574.06


Whisper December 2013 96,781,060.16 2,240,045,262.72 1,514,886,328.26 821,939,994.62

The Jiaxing Paul

Xitangyue December 2015 433,041,599.56 433,041,599.56

The Nantong Poly

Champagne International December 2015 1,583,319,688.20 696,334,670.44 886,985,017.76

The Chongqing Poly

Garden December 2014 142,319,203.88 6,462,354.32 15,121,572.66 133,659,985.54

The Chongqing Poly

Champagne Garden December 2014 122,842,809.59 24,392,825.96 8,550,163.02 138,685,472.53

The Chongqing Poly

Xinyu May 2011 42,464,913.72 21,694,979.99 12,759,632.67 51,400,261.04

The Chongqing Poly

Cambridge May 2011 43,606,466.40 15,166,238.33 11,746,961.48 47,025,743.25

The Chongqing Poly River

Pearl December 2015 301,171,697.54 3,275,906,945.73 1,579,540,653.77 1,997,537,989.50

The Chongqing Guobin

Shangyuan March 2010 16,090,194.82 1,481,268.00 17,571,462.82

The Chongqing Poly

Harbor International December 2013 341,264,938.50 70,906,845.37 225,742,681.79 186,429,102.08







Balance as at

December 31, 2013

The Chongqing Poly

Hornsey Garden December 2013 10,721,345.97 2,468,033,675.09 2,262,343,469.01 216,411,552.05

The Chongqing Poly

Coconut Peninsula June 2013 440,648,297.54 416,247,264.30 24,401,033.24

The Chongqing Poly

Kauai Island January 2013 547,872,369.49 516,173,586.72 31,698,782.77

The Baotou Poly Lily

Garden December 2013 2,160,077.37 518,063.00 1,642,014.37


Mansion December 2013 20,699,907.79 1,063,838,880.02 964,553,166.65 119,985,621.16

The Baotou Poly Garden December 2013 21,880,804.42 3,232,415.03 18,648,389.39


Park June 2015 252,569,461.43 43,982,076.20 208,587,385.23

The Nanchang Poly

Mingya European December 2014 130,623,004.50 126,994,712.18 135,883,479.28 121,734,237.40

The Nanchang Poly East

Bay International Garden December 2013 116,184,268.36 660,405,835.53 477,325,005.17 299,265,098.72

The Nanchang Poly


Mid-Levels December 2015 144,695,823.06 328,377,066.59 54,942,395.39 418,130,494.26

The Nanchang Poly

Champagne International December 2015 257,092,291.56 671,201,742.72 796,602,055.24 131,691,979.04


Lanxiang Valley December 2014 60,945,377.19 18,326,196.44 10,262,243.14 69,009,330.49


Hong Bay December 2013 75,858,143.46 679,080,626.65 743,664,689.36 11,274,080.75

The Changchun Poly


The Changchun Poly

Champagne Garden December 2014 16,860,072.28 499,941,650.66 507,884,273.72 8,917,449.22

The Chengdu Poly Park

198 December 2014 550,411,901.33 645,594,586.56 144,024,153.49 1,051,982,334.40

The Chengdu Poly Gold

Champagne December 2011 29,963,537.94 4,687,868.89 34,651,406.83

The Chengdu Poly Garden December 2014 131,877,308.04 415,636,115.15 431,071,353.34 116,442,069.85

Chengdu Poly Xinyu

Garden June 2015 93,676,589.59 193,665,970.19 188,734,163.06 98,608,396.72

Chengdu Poly Xiangxue

Garden (the former Xinyu

Phase II) June 2013 1,453,416,300.44 705,987,311.40 747,428,989.04

The Chengdu Poly

Champagne International June 2014 1,036,290,809.73 914,611,687.21 121,679,122.52

The Chengdu Poly Center June 2012 394,945,956.07 168,227,304.60 226,718,651.47


Elephant Lake Project December 2015 406,589,782.10 402,993,737.40 3,596,044.70

The Chengdu Poly Beisen

Mansion December 2013 939,501,585.03 433,662,245.79 505,839,339.24

The Chengdu Poly

Cambridge December 2014 1,452,514,340.76 753,203,573.58 699,310,767.18

The Chengdu Poly City December 2015 791,829,015.85 716,556,863.62 75,272,152.23

The Deyang Poly

International City

(including Phase I and II) December 2016 1,708,029,310.07 738,795,318.75 969,233,991.32

The Tianjin Poly River

Hymns December 2013 76,315,729.06 7,764,328.91 68,551,400.15







Balance as at

December 31, 2013


Bay June 2014 69,268,528.08 774,654,789.86 497,789,374.23 346,133,943.71

The Tianjin Poly Rose Bay March 2015 124,226,119.39 1,002,168,147.32 877,358,050.30 249,036,216.41

The Tianjin Poly

Champagne International December 2013 25,087,951.84 328,926,657.03 260,066,699.28 93,947,909.59

The Qingdao Poly Lily

Garden December 2011 89,694,082.04 17,720,294.84 71,973,787.20


Garden West End April 2013 114,945,439.61 56,992,844.22 57,952,595.39

The Qingdao Poly

Liyuanli December 2015 55,433,222.00 589,098,614.36 528,023,748.32 116,508,088.04

The Qingdao Poly

Haishang Luolan December 2015 25,804,668.77 585,888,739.82 574,892,346.71 36,801,061.88


Bay December 2013 507,360,649.15 1,662,952,521.79 1,744,986,498.93 425,326,672.01

The Hangzhou Poly Jiang

Yu Hai April 2013 1,741,852,100.03 1,147,989,014.82 593,863,085.21

The Hangzhou Poly

Champagne International December 2013 924,700,267.18 772,209,540.63 152,490,726.55

The Nanjing Poly

Champagne International December 2013 22,727,406.00 1,006,747,008.50 962,146,518.42 67,327,896.08


Lanxiang Valley December 2014 438,571,077.27 434,503,702.21 4,067,375.06

The Nanjing Poly

Amethyst Mountain December 2014 88,848,057.85 1,607,719,603.83 1,628,875,706.79 67,691,954.89

The Wuxi Poly

Champagne International June 2015 403,344,868.35 172,916,935.66 230,427,932.69


Mansion July 2015 557,769,482.20 440,486,101.20 117,283,381.00

Total 12,452,671,938.43 74,413,403,358.40 61,911,486,067.74 24,954,589,229.09

5.6.2 Capitalized interest

The balance of capitalized interest amounted to RMB 9,328,080,064.04 at the end of the

reporting period. Interest capitalized in the current period of 2013 is RMB

5,522,548,869.68 and the capitalization ratio of interest was 84.15% in 2013.

5.6.3 Inventories used as mortgage

Inventories including the Beijing Poly Dongjun and other projects with total book value of

RMB 61,423,917,600 have been mortgaged. See Note 9.6 for details.


5.7.1 Long-term equity investments are classified as follows:


2013


2013

Joint ventures 2,203,363,567.90 530,886,078.88

Associates 643,165,160.47 164,353,946.73

Other equity investments 535,554,214.53 655,554,214.53

Sub-total 3,382,082,942.90 1,350,794,240.14

Less: provision for impairment

Total 3,382,082,942.90 1,350,794,240.14





5.7.2 Information about joint ventures and associates:

Name of investee

Shareholding

ratio in investee

(%)

Voting ratio

in investee

(%)

Total assets

as at

December 31, 2013

Total liabilities

as at

December 31, 2013

Total net asset

as at

December 31, 2013

Total operating

income in

2013

Net profit in

2013

I. Joint ventures

1. Guangzhou Bao'ao 50 50 10,001,066.10 151,955.40 9,849,110.70 -150,889.30

2. Fujian Zhongliansheng Real


(“Fujian Zhongliansheng”)

50 50 1,968,605,027.98 1,773,277,828.95 195,327,199.03 1,036,783,339.00 189,865,929.49

3. Shengshi Xinhe 50 50 6,122,608,346.48 4,445,812,939.09 1,676,795,407.39 4,538,760,946.02 807,906,579.83

4. Changchun Wanke Stream &

Valley Real Estate Development

Co., Ltd. (“Changchun Stream &

Valley”)

50 50 1,492,753,872.16 1,334,885,489.30 157,868,382.86 545,232,686.00 90,454,422.20

5. Wuhan Qingneng 50 50 968,185,898.30 871,661,321.00 96,524,577.30 -3,475,422.70

6. Foshan Zhaoshang Longyuan

Real Estate Investment Co.,

Ltd.("Zhaoshang Longyuan

Longyuan")

50 50 772,958,359.27 672,932,756.59 100,025,602.68 25,602.68

7. Nanjing Xueshang 50 50 1,852,438,738.08 1,669,770,501.08 182,668,237.00 -17,331,763.00

8. Guangzhou Zhongyao 50 50 2,179,210,183.05 180,000,410.40 1,999,209,772.65 -790,227.35

II. Associates

1. Dongguan Wanlong 20 20 3,891,393,446.80 3,881,415,869.05 9,977,577.75 -22,422.25

2. Tianjin Munan Qiushi

Industrial Co., Ltd. ("Munan

Qiushi")

33.33 33.33 51,000,000.00 51,000,000.00

3. ECIC Fund Management 40 40 3,448,355,866.02 2,716,742,022.05 731,613,843.97 269,243,812.55 275,217,333.01

4. Fuzhou Zhongding Investment

Co., Ltd. (“Fuzhou Zhongding”) 40 40 4,986,922,994.41 4,950,547,332.09 36,375,662.32 -19,740,355.01

5. Hangzhou Jinmu 49 49 668,230,054.50 377,072,207.98 291,157,846.52 -8,842,153.48

6. Poly Rentai 49 49 1,329,827,153.91 830,460,000.00 499,367,153.91 -632,846.09





5.7.3 Details of long-term equity investments:

Investee Accounting method Investment cost Balance as at

January 1, 2013 Increase or decrease

Including: share of

other comprehensive

income of associates

and joint ventures

Balance as at

December 31, 2013

Shareholding ratio

in investee (%)

Voting ratio in

investee (%)

Description on

difference of

shareholding

ratio and voting

ratio in investee

Provision for

impairment

Provision for

impairment

made in 2013

Cash dividends in

2013

Dongguan Wanlong Equity method 2,000,000.00 1,995,515.55 1,995,515.55 20 20

Guangzhou Bao'ao Equity method 5,000,000.00 4,924,555.35 4,924,555.35 50 50

Munan Qiushi Equity method 17,000,000.00 17,000,000.00 17,000,000.00 33.33 33.33

Changchun Stream & Valley Equity method 25,000,000.00 93,706,980.34 -14,772,788.90 78,934,191.44 50 50 60,000,000.00

Fujian Zhongliansheng Equity method 25,000,000.00 2,730,634.76 94,932,964.76 97,663,599.52 50 50

Fuzhou Zhongding Equity method 40,000,000.00 22,446,406.92 -10,599,118.07 11,847,288.85 40 40

ECIC Fund Management Equity method 40,000,000.00 141,907,539.81 83,057,566.04 224,965,105.85 40 40 24,000,000.00

Wuhan Qingneng Equity method 50,000,000.00 39,903,413.65 39,903,413.65 50 50

Zhaoshang Longyuan Equity method 50,000,000.00 50,012,801.34 50,012,801.34 50 50

Shengshi Xinhe Equity method 200,000,000.00 434,448,463.78 403,949,239.92 838,397,703.70 50 50

Nanjing Xueshang (Note 1) Equity method 100,000,000.00 93,922,416.58 93,922,416.58 50 50

Hangzhou Jinmu Equity method 147,000,000.00 142,667,344.79 142,667,344.79 49 49

Poly Rentai Equity method 245,000,000.00 244,689,905.43 244,689,905.43 49 49

Guangzhou Zhongyao Equity method 1,000,000,000.00 999,604,886.32 999,604,886.32 50 50

Beijing New Poly Plaza Real


("New Poly Plaza") Cost method

14,822,800.00 10,751,229.53 10,751,229.53 10.53 10.53

Poly Finance Company Limited

(Poly Finance) Cost method 76,802,985.00 76,802,985.00 76,802,985.00 10 10 3,301,232.86

Shaoshan Everbright Rural Bank

Co., Ltd. Cost method 4,000,000.00 4,000,000.00 4,000,000.00 8 8

ECIC Limited Partnership (Note

2) Cost method 444,000,000.00 564,000,000.00 -120,000,000.00 444,000,000.00

Total 2,485,625,785.00 1,350,794,240.14 2,031,288,702.76 - 3,382,082,942.90 87,301,232.86

Note 1: For this joint venture, the Company and the other shareholders follow the agreed-upon terms to account for the projects, recognizing and

distributing profits according the shareholding ownership.

Note 2: In August 2010, ECIC (Tianjin) Equity Investment Fund Management Co., Ltd., an associate of the Company, formed ECIC (Tianjin)

Equity Investment Fund Partnership (Limited Partnership) as a general partner. The Company is a limited partner in this Limited Partnerhsip. The

total contributions paid amounted to RMB 600,000,000.00. The Company has recouped RMB 156,000,000.00, of which RMB 120,000,000.00 was

collected in 2013.





5.7.4 There was no restriction on the Company’s ability to transfer funds to the investee

entities in 2013.

5.7.5 There was no long-term equity investment that was sold at an obviously higher price

than book value in 2013.

5.8 Investment property

Item Balance as at

January 1, 2013

Increase in

2013

Decrease in

2013

Balance as at

December 31, 2013

1. Total original book value 5,245,230,980.07 181,956,376.06 5,427,187,356.13

(1) Buildings and

constructions 5,245,230,980.07 181,956,376.06 5,427,187,356.13

(2) Land use right

2. Total accumulated

depreciation and

accumulated amortization 527,273,742.95 186,116,125.89 1,092,984.84 712,296,884.00

(1) Buildings and

constructions 527,273,742.95 186,116,125.89 1,092,984.84 712,296,884.00

(2) Land use right

3. Total net investment

property 4,717,957,237.12 -4,159,749.83 -1,092,984.84 4,714,890,472.13

(1) Buildings and

constructions 4,717,957,237.12 -4,159,749.83 -1,092,984.84 4,714,890,472.13

(2) Land use right

4. Total amounts of

accumulated provision for

impairment of investment

property

(1) Buildings and

constructions

(2) Land use right

5. Total book value of

investment property 4,717,957,237.12 -4,159,749.83 -1,092,984.84 4,714,890,472.13

(1) Buildings and

constructions 4,717,957,237.12 -4,159,749.83 -1,092,984.84 4,714,890,472.13

(2) Land use right

Note:

(1) The depreciation and amortization amounted to RMB 186,116,125.89 in 2013. There was no

property impairment as at the end of the year.

(2) Investment property of book value of RMB 3,793,425,100 has been mortgaged. See Note 9.6

for details.

5.9 Fixed assets

5.9.1 Fixed assets:

Item Balance as at


Balance as at

December 31, 2013

1. Total original book

value: 1,624,761,468.34 819,555,256.72 104,058,544.18 2,340,258,180.88

Including: buildings and

constructions 1,262,293,838.23 745,655,927.85 90,386,506.57 1,917,563,259.51

Vehicles 154,940,138.60 28,607,670.49 7,494,605.05 176,053,204.04


equipment 110,602,960.23 33,787,969.61 3,814,625.40 140,576,304.44

Other equipment 96,924,531.28 11,503,688.77 2,362,807.16 106,065,412.89

Increase in 2013 Provision in 2013





Item Balance as at


Balance as at

December 31, 2013

2. Total accumulated

depreciation: 246,330,141.60 2,627,006.80 119,590,326.62 13,328,811.46 355,218,663.56


constructions 63,800,095.90 70,114,681.06 2,599,665.64 131,315,111.32

Vehicles 80,838,159.17 2,142,635.74 22,098,829.38 6,012,750.75 99,066,873.54


equipment 59,187,369.74 484,371.06 20,388,397.59 3,085,630.60 76,974,507.79

Other equipment 42,504,516.79 6,988,418.59 1,630,764.47 47,862,170.91

3. Total net book value

of fixed assets 1,378,431,326.74 1,985,039,517.32


constructions 1,198,493,742.33 1,786,248,148.19

Vehicles 74,101,979.43 76,986,330.50


equipment 51,415,590.49 63,601,796.65

Other equipment 54,420,014.49 58,203,241.98

4. Total provision for

impairment


constructions

Vehicles


equipment

Other equipment

5. Total book value of

fixed assets 1,378,431,326.74 1,985,039,517.32


constructions 1,198,493,742.33 1,786,248,148.19

Vehicles 74,101,979.43 76,986,330.50


equipment 51,415,590.49 63,601,796.65

Other equipment 54,420,014.49 58,203,241.98

Note:

(1) The depreciation amounted to RMB 119,590,326.62 in 2013. There were no fixed

assets transferred from construction in progress in 2013.

(2) The book value of fixed assets used as mortgage or guarantee amounted to RMB

77,995,600 as at December 31, 2013. See Note 9.6 for details.

5.9.2 There was no fixed asset leased out under operating leases in 2013.

5.9.3 There was no held-for-sale fixed asset as at December 31, 2013.

5.9.4 There was no fixed asset without certificate of title as at December 31, 2013.

5.9.5 There was no fixed asset that was sold at an obviously higher price than book value in

2013.

5.10 Intangible assets

Item Balance as at

January 1, 2013

Increase

in 2013

Decrease

in 2013

Balance as at

December 31, 2013

1. Total original book value 20,847,640.74 8,078,351.98 163,823.41 28,762,169.31

Software 20,847,640.74 8,078,351.98 163,823.41 28,762,169.31

2. Total accumulated amortization 9,982,506.28 4,244,078.11 14,226,584.39





Item Balance as at

January 1, 2013

Increase

in 2013

Decrease

in 2013

Balance as at

December 31, 2013

Software 9,982,506.28 4,244,078.11 14,226,584.39

3. Total net book value of intangible

assets 10,865,134.46 3,834,273.87 163,823.41 14,535,584.92

Software 10,865,134.46 3,834,273.87 163,823.41 14,535,584.92

4. Total provision for impairment

Software

5. Total book value of intangible

assets 10,865,134.46 3,834,273.87 163,823.41 14,535,584.92

Software 10,865,134.46 3,834,273.87 163,823.41 14,535,584.92

Note: Amortization amounted to RMB 4,244,078.11 in 2013.

5.11 Goodwill

Name of investee or events

forming goodwill

Balance as at

January 1, 2013

Increase

in 2013

Decrease

in 2013

Balance as at

December 31, 2013

Total provision for

impairment as at

December 31, 2013

Poly Shanghai 4,769.05 4,769.05

Jianqiao Shanghai 518,996.21 518,996.21

Poly Digital 1,779,460.75 1,779,460.75

Junlan Land 232,946.59 232,946.59

Poly Yueyang 95,395.44 95,395.44

Chongqing Industry

Supervision 50,939.26 50,939.26

Ruida Nanchang 7,660,000.00 7,660,000.00

Shanghai Junyuan 4,313.73 4,313.73

Total 10,342,507.30 4,313.73 4,313.73 10,342,507.30

5.12 Long-term deferred expenses

Item Balance as at

January 1, 2013

Increase

in 2013

Amortization

in 2013

Other

decrease

Balance as at

December 31, 2013

Reason for

other

decrease

Improvement

of office

building and

others 36,575,772.80 14,396,655.66 23,486,708.98 27,485,719.48

Total 36,575,772.80 14,396,655.66 23,486,708.98 27,485,719.48

5.13 Deferred income tax assets and deferred income tax liabilities

5.13.1 Deferred income tax assets and deferred income tax liabilities not presented as net

amount after offsetting

(1) Recognized deferred income tax assets and deferred income tax liabilities

Item Balance as at

December 31, 2013

Balance as at

January 1, 2013

Deferred income tax assets:

Provision for bad debt 61,862,876.33 46,424,431.53

Difference of equity investment 2,658,297.65 2,658,297.65

Internal unrealized income 600,143,057.15 417,498,581.73

Accrued expenses, etc. 132,758,460.93 69,044,484.11

Sub-total 797,422,692.06 535,625,795.02

Deferred income tax liabilities:

Deferred income tax liabilities arising from

differences between the dutiable value and fair

value of the acquire 61,272,278.97 67,550,710.19

Sub-total 61,272,278.97 67,550,710.19





5.13.2 Temporary differences corresponding to asset and liability items leading to temporary

differences

Item Amount

Taxable differences items

Deferred income tax liabilities arising from

differences between the dutiable value and fair value

of the acquiree 245,089,115.88

Sub-total 245,089,115.88

Deductible differences items

Provision for bad debt 247,451,505.32

Difference of equity investment 10,633,190.60

Internal unrealized income 2,400,572,228.60

Accrued expenses, etc. 531,033,843.72

Sub-total 3,189,690,768.24

5.14 Provision for assets impairment

Item Balance as at

January 1, 2013 Increase in 2013

Decrease in 2013 Balance as at

December 31, 2013 Reversal Write-off

Provision for impairment 185,697,726.13 61,753,779.19 247,451,505.32

Total 185,697,726.13 61,753,779.19 247,451,505.32

5.15 Short-term borrowings

5.15.1 Classification of short-term borrowings:


2013


2013

Pledged borrowing

Mortgage borrowing

Guaranteed borrowing 1,370,000,000.00 1,348,000,000.00

Credit borrowing

Total 1,370,000,000.00 1,348,000,000.00

Note: See Note 9.1 for details of guaranteed borrowing.

5.15.2 Of the above borrowings, none is beyong maturity date.

5.16 Accounts payable

5.16.1 Accounts payable were presented by aging as follows:

Item


Amount Percentage

(%) Amount

Percentage

(%)

Within 1 year 14,169,697,827.53 75.89 10,768,003,819.82 84.17

1-2 years 3,620,976,972.35 19.39 1,472,250,360.90 11.51

2-3 years 537,365,306.69 2.88 348,144,897.25 2.72

Over 3 years 342,663,308.60 1.84 204,488,530.60 1.60

Total 18,670,703,415.17 100.00 12,792,887,608.57 100.00

Note: Accounts payable included project amounts payable, accrued costs and expenses, and

others.

5.16.2 Of the balance of account payables as at December 31, 2013, no amounts were due to

shareholders holding more than 5% (inclusive) voting shares of the Company.

5.16.3 No amount was due to related parties as at December 31, 2013.





5.16.4 Accounts payables with significant amount and aging of over one year are mainly

project amounts and quality guarantee deposits payable for property projects.

5.17 Amounts received in advance

5.17.1 The amounts received in advance are presented by aging as follows:

Item Balance as at December 31, 2013 Balance as at January 1, 2013

Amount Percentage (%) Amount Percentage (%)

Within 1 year 81,500,524,812.48 76.05 71,030,393,475.02 78.44

1-2 years 24,874,903,319.94 23.21 18,965,451,574.33 20.95

2-3 years 679,475,766.04 0.63 549,875,304.73 0.61

Over 3 years 112,937,801.62 0.11 1,643,112.00

Total 107,167,841,700.08 100.00 90,547,363,466.08 100.00

5.17.2 Details of pre-collected property sales funds among the amounts received in advance

are as follows:

Item Balance as at

December 31, 2013

Balance as at

January 1, 2013

Estimated

completion date

Advance-sale

ratio (%)

The Guangzhou Poly

West Coast Residence

(including the

Guangzhou Poly Xinghai

Garden) 3,209,753,978.25 4,159,452,696.67 December 2014 92.54

The Guangzhou Poly

International Plaza 18,328,313.90 18,328,313.90 90.00

The Guangzhou Poly

Central Plaza 3,611,796.00 740,061,391.00 99.35

The Guangzhou Poly

Zhongchen Square 40,487,600.00 2,404,890.00 December 2014 99.57

The Guangzhou Poly

Xinyu Garden 2,004,247.75 542,247.75 100.00

The Guangzhou Poly

Forest Whisper Hills 52,281,004.36 46,711,004.36 100.00

The Guangzhou Poly

Ziwei Garden 4,298,349.00 5,349,149.00 99.00

The Guangzhou

Zengcheng Poly No. 1

Manor 155,000.00 255,000.00 100.00

The Guangzhou Poly V

Block 95,721,200.00 4,500,000.00 95.20

The Guangzhou Poly

Fragrant Snow-Capped

Mountains 190,238,317.86 92,623,780.86 100.00

The Guangzhou Poly

West Sub Bay 6,722,862.00 285,642.00 100.00

The Guangzhou Poly

Central Square 35,702,067.01 33,498,744.01 99.85

The Guangzhou Poly

Zhongyu Square 1,282,000.00 100.00

The Guangzhou Poly

Spring Plaza 12,886,844.00 1,744,844.00 100.00

The Guangzhou Poly

Zhongda Plaza 1,183,888,823.00 2,902,841,629.00 June 2014 97.54

The Guangzhou Poly

Center 1,618,627.18 4,582,178.18 100.00

Guangzhou Poly Garden

II 600,500.00 100.00

Guangzhou Poly Beijing

Plaza 817,369.00 16,992.00 100.00





Item Balance as at

December 31, 2013

Balance as at

January 1, 2013

Estimated

completion date

Advance-sale

ratio (%)

The Guangzhou Poly

World Trade Center 1,500,000.00 81,480,736.83 December 2015 98.23

The Guangzhou Poly

Manor 2010 139,817.00 535,239.00 100.00

The Guangzhou Poly

Champagne Garden 20,000.00 2,415,911.00 100.00

The Guangzhou Poly

Champaign Mansion 810,538.67 529,543,128.67 98.58

The Guangzhou Poly

Park 3,300,814,240.00 1,558,825,194.90 December 2015 95.06

The Guangzhou Poly

Luokewei Square 288,279,236.00 1,355,246,051.18 December 2015 74.05

The Guangzhou

Zengcheng Poly

Dongjiang Capital 860,644,956.60 1,362,816,125.00 December 2015 77.94

The Guangzhou Bao Li

Linhai Hills 36,200,290.33 15,232,305.60 100.00

Guangzhou Poly Lu

Court 300,000.00 300,000.00 100.00

The Poly Guangzhou

Baiyun Hills 419,451.00 419,451.00 100.00

The Guangzhou Poly

Cotton Tree Garden 124,015.00 68,000.00 100.00


Garden II 5,398,848.00 100.00

The Guangzhou Poly

Seine Villa (The former

Fangcun G Land Parcel) 1,447,999,702.00 83,715,379.00 October 2015 91.58

The Guangzhou Poly

Tianyue Project 9,409,408,151.24 4,125,675,949.77 December 2015 88.59

The Guangzhou Poly

Yunxi (The former

Baiyun New Town

Project ) 830,897,374.50 June 2015 55.42

The Guangzhou Poly

Daduhui (the former

Panyu Hanxi Village

Project) 54,207,884.00 December 2017

The Zhongshan Poly

International Plaza 632,540,465.00 439,624,998.00 December 2016 80.46

The Zhongshan Poly

Spring Plaza 37,192,650.00 37,068,359.00 December 2016 52.67


Coral 1,192,014,348.00 921,528,801.00 December 2014 94.93

Dongguan Poly Forest

Whisper (the former

Zhangmutou Project) 431,413,534.00 December 2016 72.31

The Zhuhai Poly

Champagne International 845,424,574.50 541,069,805.00 August 2015 89.34

The Nanhai Poly Garden 2,167,555.08 13,126,305.08 100.00

The Shunde Poly Lily

Garden 6,821,294.00 3,034,019.00 100.00

The Foshan Poly No.1 on

the Bund 172,617,903.00 149,993,339.00 December 2014 84.14

The Foshan Poly East

Bay I 1,650,097,248.00 924,529,439.00 December 2016 94.52





Item Balance as at

December 31, 2013

Balance as at

January 1, 2013

Estimated

completion date

Advance-sale

ratio (%)

The Foshan Poly East

Bay II 961,151,952.00 2,316,416,729.00 December 2015 80.49

The Foshan Poly

Champagne Garden 420,163,704.64 878,931,237.68 96.07


Forest Whisper 526,233,675.00 1,008,195,643.00 December 2014 90.27

The Nanhai Poly Water

City 147,750.00 303,752.11 100.00


Plaza 1,429,880,237.00 926,340,456.00 June 2015 88.43

The Nanhai Poly

Constellation 1,836,250.00 100.00

The Foshan Poly Manor 1,402,343,214.00 214,347,721.00 December 2015 93.36

The Foshan Poly Purple

Mountain Garden 417,210,259.00 June 2015 78.70

The Foshan Poly Lafei 221,483,147.00 December 2014 81.30

The Foshan Poly

Dongbin Garden (the

former New Town Project 978,974,337.00 December 2015 76.72

The Foshan Poly Seattle

(the former Sanshan

Avenue Project) 140,560,332.00 December 2017 70.76

The Jiangmen Poly

Daduhui (the Binjiang

New Area Project) 320,323,544.00 December 2020 84.79

The Qingyuan Poly

Garden (the former

Beijiang New Town

Project) 18,142,826.00 December 2020 45.05

The Wuhan Poly Garden 1,435,978.80 2,407,714.70 100.00

The Wuhan Poly Twelve

Oaks Manor 37,202,623.00 47,840,392.00 95.97

The Wuhan Poly Xinyu 291,123,272.00 146,475,711.00 June 2014 99.45


City 47,875,618.00 104,667,504.00 December 2015 90.99

The Wuhan Poly

Mayflower 410,366,625.00 621,795,315.00 December 2014 98.30

The Wuhan Poly Lafei 2,644,493.00 282,559,308.00 96.71

The Wuhan Poly Mahu

Project 1,532,573,279.85 839,401,633.00 June 2015 96.53

The Wuhan Poly

Champagne International 447,459,061.00 1,046,126,764.00 December 2014 81.43


Residence 706,376,080.00 555,790,446.00 June 2015 94.73

The Wuhan Poly Haiyu 228,300.00 100.00

The Wuhan Poly Park 429,782,451.00 380,729,776.00 June 2016 88.76

The Wuhan Poly

Guanshan Village Project 937,495,204.00 December 2017 75.84

The Huanggang Poly No.

1 Manor 985,014.37 304,292,328.37 97.82

The Changsha Poly

Garden I 20,697.00 4,821,081.71 99.24

The Changsha Poly

Garden II 927,303.92 2,742,963.00 99.85


Forest Whisper 190,254,249.54 740,131,842.80 December 2015 88.39





Item Balance as at

December 31, 2013

Balance as at

January 1, 2013

Estimated

completion date

Advance-sale

ratio (%)

The Changsha Poly

Langzhong Peak Cloud

Villa 7,528,528.55 38,921,539.55 98.55

The Changsha Poly

International Plaza 1,176,671,639.00 1,629,886,322.70 December 2014 85.66

Changsha Poly West

Coast (the former

Binjiang B7 Project) 204,478,509.00 December 2017 52.29

Changsha Poly

Champagne International

(the former Tianjiao


The Hunan Poly

Dongting East Coast 10,638.26 10,638.26 100.00

Chenzhou Poly

Suxianlinyu (the former

Suxianling Project) 243,457,123.00 June 2016 56.25

The Shenyang Poly

Mayflower 501,745,100.00 439,713,981.00 June 2014 89.40



The Shenyang Poly

Garden 563,941.69 623,779.69 96.72

The Shenyang Begonia

Garden 64,000.00 120,000.00 98.62

The Shenyang Poly

Shanglin Bay 6,047,997.00 136,033,110.40 98.03

The Shenyang Poly

Twelve Oaks Manor 32,975,522.00 13,029,506.00 December 2014 87.35

The Shenyang Poly

Xinyu Garden 161,892,151.00 334,837,768.00 December 2015 98.19

The Shenyang Poly

Cambridge Residence 7,463,068.00 227,154,660.40 47.08

Shenyang Poly

Champagne Garden 471,802,393.00 December 2017 72.76

The Shenyang Poly

Jasmine Mansion (the

former Manrong Project)

10,482,892.00 December 2016 31.77

The Yingkou Poly

Champagne Garden 64,411,079.00 84,883,906.00 June 2016 71.27

Tonghua Poly Luo

Lanxiang Valley (the

former Jilin Tonghua


The Dalian Paul West

Mountains Forest

Whisper 1,299,432,530.00 513,519,701.00 November 2015 67.77


Coast 5,933,774.00 24,366,664.00 76.70

The Poly Jasmine Manor 1,345,552.00 159,234,077.80 100.00

The Beijing Poly

Longshang 3,132,569.00 33,406,053.00 100.00

The Beijing Poly

Champagne Garden 50,000.00 50,000.00 100.00

The Beokomg Poly Lily

Garden 111,332.00 113,755.00 100.00





Item Balance as at

December 31, 2013

Balance as at

January 1, 2013

Estimated

completion date

Advance-sale

ratio (%)

The Beijing Poly Jia

Garden 1,769,033.79 21,400,538.23 99.27


Mountains Forest

Whisper 2,788,219.24 7,263,279.24 December 2014 99.15

The Beijing Poly Garden 9,996,113.00 28,996,113.00 100.00

The Beijing Poly

Dongjun 613,208,016.36 2,786,736,924.36 December 2014 97.14


Park 3,506,692,102.66 5,401,640,484.00 December 2015 98.66


Lanxiang Valley 70,000.00 1,403,478,645.00 100.00

The Beijing Poly Spring

Plaza 3,109,765,245.00 489,567,749.00 March 2015 100.00

The Beijing Poly

Fanghua Jiayuan 86,431,569.00 June 2014 100.00

Beijing Poly Hyde Park

(the former Jimenqiao


Beijing Poly Xiyue

Spring (the former

biomedical base project) 356,753,475.00 December 2015 99.86

Beijing Poly Fengdan I

(the former Yizhuang

Project) 1,330,638,576.00 December 2015 99.94

The Shijiazhuang Poly

Garden 1,882,889,989.00 513,247,186.00 December 2017 97.38

The Chongqing Poly

Champagne Garden 75,211,320.19 71,631,987.19 December 2014 99.73

The Chongqing Poly

Garden 2,479,417.10 20,867,295.71 December 2014 99.95

The Chongqing Poly

Cambridge 1,285,770.06 629,946.06 99.49

The Chongqing Poly

Xinyu 270,703.60 322,319.60 100.00

The Chongqing Guobin

Shangyuan 19,004.24 130,004.24 99.80

The Chongqing Poly

River Pearl 1,139,034,202.00 1,490,302,602.73 December 2015 83.57

The Chongqing Poly

Hornsey Garden 1,217,016.00 1,398,843,441.94 99.59

The Chongqing Poly

Harbor International 2,166,123.00 7,279,493.00 92.91

The Chongqing Poly

Kauai Island 47,649.00 658,998,434.00 99.79

The Chongqing Poly

Coconut Peninsula 853,136.00 522,538,395.67 99.75

The Chongqing Poly

Flowers in City Center 1,800,795,453.00 686,914,989.00 December 2015 84.82

Chongqing Poly

Aishangli 1,089,936,091.00 June 2017 89.30

Chongqing Poly Linyuxi

(the former Banan

Lijiatuo Project) 150,553,807.00 December 2015 83.34

The Nanchang Poly

Mingya European 57,783,822.38 66,336,527.38 December 2014 92.00





Item Balance as at

December 31, 2013

Balance as at

January 1, 2013

Estimated

completion date

Advance-sale

ratio (%)

The Nanchang Poly

International Garden in

the East Bay 14,026,558.00 457,616,332.00 93.71

The Nanchang Poly


Mid-levels 368,137,775.53 27,643,342.04 December 2015 70.39

The Nanchang Poly

Champagne International 1,400,649,067.00 987,561,563.00 December 2015 92.54

Nanchang Poly Lily

Garden 75,313,771.00 December 2015


Whisper 1,493,525,693.00 3,838,273,996.71 99.09

The Shanghai Poly

Twelve Oaks Manor 55,834.57 59,962.76 100.00

The Shanghai West Sub

Bay 5,029,802.00 99.25

The Shanghai Poly

Mayflower 80,287,263.11 5,151,319.11 96.06

The Shanghai Linyuxi 795,924.40 795,924.40 99.67


of Shanghai 64,560,653.56 77,674,361.39 94.31

The Shanghai Poly

Phoenix Tree 34,210,974.49 200,149,654.00 74.29

The Shanghai Poly

Jasmine Mansion 1,011,898,924.00 2,127,132,962.00 December 2015 92.45

The Shanghai Poly

Leaves of Forest 1,512,362,491.00 56,311,214.00 December 2015 84.40

The Shanghai Poly

Maqiao

Jingcheng-Ziyuan 183,931,624.00 67,640,076.00 October 2014 100.00

The Shanghai Poly

Champagne Garden 480,946,087.00 December 2015 81.38

The Shanghai Poly

International Center 31,760,204.00 December 2015 11.11

The Shanghai Poly Blue

Forest Whisper 263,709,231.00 December 2015 72.93

The Shanghai Poly

Maoqiao

Jingcheng·Yayuan 54,635,569.84 December 2014 24.38

Shanghai Lvcheng

Yuyuan (the former

Senglan Waigaoqiao

Project) 718,069,065.00 June 2016 64.56

The Nantong Poly

Champagne International 38,512,139.00 392,369,809.00 December 2015 60.01

The Jiaxing Poly

Xitangyue 296,776,817.00 41,788,935.00 December 2015 65.08

The Baotou Poly Garden 300,034,992.12 5,330,329.88 December 2015 98.57


Mansion 164,989,876.00 1,568,975,862.24 98.46


Park 329,038,121.00 126,945,341.00 June 2015 95.50

The Baotou Poly



Lanxiang Valley 31,533,638.39 29,393,779.39 December 2014 84.47





Item Balance as at

December 31, 2013

Balance as at

January 1, 2013

Estimated

completion date

Advance-sale

ratio (%)


Hong Bay 3,621,480.98 706,483,309.00 93.83

The Changchun Poly


The Changchun Poly


The Changchun Poly

Jingyue Project 8,050,000.00 8,050,000.00 December 2015

The Changchun Poly

Lafei Mansion 709,723,831.67 83,028,567.78 December 2015 78.78

Changchun Poly Spring

Plaza (the former Pingxin

Road Project) 67,426,769.25 June 2016 54.30

The Chengdu Poly Park

198 1,010,745,877.00 299,781,064.00 December 2014 88.08

The Chengdu Poly

Garden 809,593,680.00 1,131,877,430.00 December 2014 82.54

The Chengdu Poly Gold

Champagne 254,298.00 269,298.00 81.87

Chengdu Poly Xinyu

Garden 1,125,944,539.00 1,184,547,466.00 June 2015 84.54

Chengdu Poly Center 1,675,361.50 2,385,361.50 91.35

The Chengdu Poly

Champagne International 467,525,974.00 1,494,092,562.00 June 2014 83.92

The Chengdu Poly

Beisen Mansion 1,389,254.00 145,643,541.00 53.89

Chengdu Poly Xiangxue

Garden (the former

Xinyu Phase IV) 195,984,502.00 1,050,084,724.00 82.39

The Chengdu Poly

Cambridge 104,962,339.00 393,021,155.00 December 2014 66.01

The Chengdu Poly City 1,418,819,669.00 1,028,060,486.00 December 2015 83.07


Elephant Lake Project 217,352,520.00 421,570,162.00 December 2015 93.34

The Chengdu Poly Lily

Mansion 1,320,575,978.00 159,563,065.00 December 2015 67.68

The Chengdu Poly

Champaign Guanghua 1,311,788,468.00 236,531,689.00 December 2014 82.31

The Chengdu Poly

Leaves Whisper 441,477,199.00 June 2017 81.06

Chengdu Poly Phoenix

Tree 597,334,971.00 December 2015 84.72

Chengdu Poly Sprint

Flowers Whisper (the

former Longquan District


Chengdu Poly Rose

Whisper (the former

Longquanyi District


The Deyang Poly

International City

(including Phase I and II) 353,893,037.00 866,234,166.00 December 2016 66.77

Suining Poly

Jiangyucheng (the former

Dongxing District






Item Balance as at

December 31, 2013

Balance as at

January 1, 2013

Estimated

completion date

Advance-sale

ratio (%)

The Hangzhou Poly Jiang

Yu Hai 16,071,104.01 1,337,555,595.01 80.71


Bay 174,008,239.85 1,836,555,152.62 95.69

The Hangzhou Poly

Champagne International 26,931,721.00 817,973,910.00 84.60

The Hangzhou Poly Rose

Bay 291,992,595.00 20,952,097.00 December 2014 66.67

The Hangzhou Poly

Joffre County 1,766,249,519.00 860,030,212.50 December 2014 75.46

The Hangzhou Poly City

Green 557,818,755.00 2,320,000.00 December 2014 76.18

Hangzhou Poly Phoenix

Tree (the former Pufu


Zhejiang Poly Luo

Lanxiang Valley (the

former Changmu Project) 87,214,472.00 December 2016 71.73

The Shaoxing Poly

Lakeside Reverie 28,310,056.00 December 2015 37.09

The Ningbo Poly

Lakeside World 2,083,186,059.00 1,079,696,372.00 December 2016 88.13

The Tianjin Poly

Champagne International 8,212,484.37 179,796,628.37 85.46

The Tianjin Poly Rose

Bay 2,118,632,755.00 1,356,957,632.95 March 2015 92.09

The Tianjin Poly River

Hymns 11,619,441.50 8,599,623.62 84.44


Bay 649,487,720.56 369,600,754.06 June 2014 88.67

The Tianjin Poly Horizon

Capital 2,829,238,051.00 814,588,812.00 September 2015 59.40

Tianjin Poly Chanson

Lake (the former

Xiazhuzhuang Project) 82,991,359.00 June 2016 70.78

The Dandong Poly

Jinjiang Forest Whisper 75,891,711.00 173,938,395.98 December 2015 90.13


Garden 334,231.55 1,955,211.55 97.66


Garden West End 4,514,082.40 24,047,420.54 94.63

The Qingdao Paul

Liyuanli 5,278,487.47 557,525,497.48 December 2015 91.26

The Qingdao Poly

Haishang Luolan 2,402,920,839.30 1,766,311,310.00 December 2015 88.43

The Qingdao Poly

Champagne International 314,237,426.00 June 2015 92.87

Qingdao Poly Leaf

Mansion (Shuangfeng



Lanxiang Valley 677,000.00 30,934,593.34 December 2014 86.54

The Yang Jiang Poly

Silver Beach 1,160,480,730.80 1,217,396,217.00 December 2015 78.38

The Nanjing Poly

Amethyst Mountain 754,814,070.99 2,032,844,498.23 December 2014 92.05





Item Balance as at

December 31, 2013

Balance as at

January 1, 2013

Estimated

completion date

Advance-sale

ratio (%)

The Nanjing Poly

Champagne International 17,088,886.46 1,315,473,494.46 92.67


Lanxiang Valley 1,256,944,062.00 992,471,196.00 December 2014 99.50

The Nanjing Poly

Phoenix Tree 2,062,766,760.00 670,001,993.00 December 2014 98.92

Nanjing Poly Zijing

Mansion (the former

Jiangxinzhou Project) 6,500,000.00 December 2015 33.00

Nanjing Poly Luolan

Spring (the former

Xianlin Lake Northwest

Parcel Project) 616,056,756.00 June 2015 86.04

Nanjing Poly Central

Park (the former Tongren

Street Project) 193,634,786.00 June 2017 66.26

The Wuxi Poly

Champagne International 297,711,883.01 5,400,130.01 June 2015 76.39

Wuxi Poly Central Park

(the former Pegasus

Textile Project) 139,295,972.00 December 2015 57.23

The Changzhou Poly

Park 29,030,821.00 December 2015 32.64

The Lianyungang Poly

Mayflower 176,435,607.00 106,827,201.20 December 2015 58.82

The Zhengzhou Poly Lily

Garden 1,294,406,586.00 586,331,416.00 December 2014 98.93

The Hefei Poly

Champagne International 2,490,377,745.00 877,702,309.00 December 2015 94.60


Mansion 1,239,097,860.54 472,577,183.00 July 2015 89.54

Hefei Poly Mayflower

(the former Binhu

BH2013-1 Project) 223,003,422.00 June 2018 71.81

Hefei Poly Poly Dongjun

(the former Yaohai E1301

Project) 143,891,324.00 June 2018 20.47

Hefei Poly Phoenix Tree

(the former High-tech

Zone KMB-1 Project) 87,054,084.00 December 2016 81.24

Xi'an Poly Lafei Mansion 252,080,668.00 December 2016 59.95

Xi'an Poly Spring Plaza

(the former Qujiang

Project) 17,105,033.00 June 2016 43.16

Xi'an Poly Gold

Champagne (the former

Sanqiao project) 75,284,337.00 June 2016 28.17

Total 106,560,631,282.14 89,902,401,620.81

Note: Amounts received in advance were mainly pre-collected property funds which do not

meet the criteria for revenue recognition. The pre-sale ratio is calculated based on

properties satisfying the sales conditions, excluding the parts undeveloped or in the process

of development but not satisfying the sales conditions.





5.17.3 Of the balance of other amounts received in advance as at December 31, 2013, no

amounts were received from shareholders holding more than 5% (inclusive) voting

shares of the Company.

5.17.4 Accounts received in advance from related parties

Name of related companies Balance as at December 31,

2013


2013

1. Shengshi Xinhe 47,735,150.30 65,424,002.73

2. Zhongding Fuzhou 37,806,254.97 45,588,221.32

3. Zhongliansheng Fujian 380,158.00 27,402,595.24

4. Nanjing Xueshang 15,530,516.63

Total 101,452,079.90 138,414,819.29

5.17.5 Amounts received in advance with aging of over one year were mainly pre-collected

property sales funds that have not been settled.

5.18 Employee compensation payable

Item Balance as at


Balance as at

December 31, 2013

1. Salary, bonus, allowance and

subsidy 41,860,024.75 1,659,504,287.25 1,653,134,632.98 48,229,679.02

2. Employee welfare 89,198,468.42 89,198,468.42 -

3. Social insurance expense 28,761,519.77 194,690,843.17 171,333,130.64 52,119,232.30

Including: (1) medical insurance

expenses 478,470.33 48,811,595.48 48,702,977.15 587,088.66

(2) Basic endowment insurance

expenses 1,087,192.43 106,082,688.70 105,747,492.11 1,422,389.02

(3) Annuity 27,079,864.04 23,164,249.92 275,059.79 49,969,054.17

(4) Unemployment insurance

expenses 61,053.96 8,380,261.57 8,367,257.49 74,058.04

(5) Work injury insurance expenses 28,604.76 4,121,627.53 4,114,768.14 35,464.15

(6) Maternity insurance expenses 26,334.25 4,130,419.97 4,125,575.96 31,178.26

4. Housing provident funds 1,256,574.02 56,537,921.66 57,108,072.76 686,422.92

5. Labor union expenditure and

employee education funds 19,709,840.10 21,687,587.63 17,890,252.45 23,507,175.28

6. Non-monetary welfare

7. Compensation for cancellation of

labor relationship 595,428.22 595,428.22

8. Others 2,534,347.71 3,492,504.54 5,935,919.43 90,932.82

Including: cash-settled share-based

payment

Total 94,122,306.35 2,025,707,040.89 1,995,195,904.90 124,633,442.34

Of employee compensation payable as at December 31, 2013, no amount was overly due behind

payment schedules.

Except for share-based payments as detailed in Note 8, there was no non-monetary welfare

provided to employees in 2013.

The labor union expenditure and employee education funds incurred in 2013 amounted to RMB

21,652,787.63, and the compensation for cancellation of labor relationship in 2013 amounted to

RMB 595,428.22.

The salary, bonus, allowance payable among employee compensation payables as at December 31,

2013 are the accrued salary and bonus which will be paid in 2014.





5.19 Taxes and surcharges payable

Item Balance as at

December 31, 2013

Balance as at

January 1, 2013

Value added tax 213,644.45 1,300,648.67

Consumption tax

Business tax -4,270,380,924.67 -3,429,768,315.73

Enterprise income tax -444,793,367.60 326,484,258.55

Individual income tax 9,335,867.53 2,220,718.82

Urban maintenance and construction tax -287,812,704.36 -234,634,857.38

Property tax 10,322,911.99 3,703,260.00

Land value increment tax -1,052,729,904.88 -632,872,772.07

Educational surtax -127,547,427.02 -101,010,857.79

Other taxes -55,133,292.43 -20,019,716.67

Total -6,218,525,196.99 -4,084,597,633.60

5.20 Interests payable

Item Balance as at

December 31, 2013

Balance as at

January 1, 2013

Corporate bond interest 55,170,317.97 143,490,410.96

Interest on bank borrowings 7,651,431.98

Total 55,170,317.97 151,141,842.94

5.21 Dividends payable

Company name Balance as at

December 31, 2013

Balance as at

January 1, 2013

Reason for non-payment for

over one year

Guangdong Fengwei

Real Estate Development

Co., Ltd. 1,142,606.00 1,142,606.00

The dividends were retained as

working capital for project.

Shenzhen Youhe Property

Co., Ltd. 3,670,020.00 3,670,020.00

The dividends were retained as

working capital for project.

Guangzhou Guangye

Project Management Co.,

Ltd. 1,345,800.00

Total 4,812,626.00 6,158,426.00

5.22 Other payables

5.22.1 Other payables

Item


Amount Proportion

(%) Amount

Proportion

(%)

Within 1 year 20,879,653,642.87 80.82 10,277,025,747.35 67.20

1-2 years 3,732,882,981.23 14.45 3,766,784,141.86 24.63

2-3 years 325,197,004.05 1.26 611,226,123.93 4.00

Over 3 years 897,462,164.40 3.47 636,991,618.25 4.17

Total 25,835,195,792.55 100.00 15,292,027,631.39 100.00

Note: Other payables mainly include funds paid by minority shareholders, guarantee

deposit, collection of property owner’s taxes and surcharges and others.





5.22.2 Amount due to shareholders holding more than 5% (inclusive) voting shares of the

Company as at December 31, 2013


December 31, 2013

Balance as at

January 1, 2013

1. Poly Group 1,555,499,150.00 1,565,797,315.07

2. Shanghai Sanli Industrial Co., Ltd.

(“Shanghai Sanli”) 41,589,979.17 43,094,729.17

Total 1,597,089,129.17 1,608,892,044.24

5.22.3 Amount due to related parties as at December 31, 2013


December 31, 2013

Balance as at

January 1, 2013

1. China Poly Group Corporation ( “Poly Group”) 1,555,499,150.00 1,565,797,315.07

2. Foshan Yongsheng Investment Co., Ltd. (“Foshan

Yongsheng”) 1,274,843,500.00

3.Zhongliansheng Fujian 199,701,468.97

4. Foshan Shunde Shenghong Investment Co., Ltd

(“Shunde Shenghong”) 220,040,400.00

5. Foshan Shengxin Investment Co., Ltd (“Foshan

Shunxin”） 187,500,000.00

6.Shanghai Sanli 41,589,979.17 43,094,729.17

7.ECIC Fund Management 38,195,186.90

8.ECIC Limited Partnership 1,011,003,349.32

9.Shengshi Xinhe 1,415,116.63

10. Munan Qiushi 17,000,000.00

11.Zhongding Fuzhou 16,793,901.68

12. Jiangmen Xinbao Kangsheng Culture and Sport

Investment Co., Ltd. (“Xinbao Kangsheng”) 4,000,000.00

Total 3,516,968,399.82 2,659,505,697.09

5.22.4 Other payables with significant amount and aging of over one year

Other payables with significant amount and aging of over one year are mainly contribution

by partners of subsidiaries that are put into the real estate projects with a long development

cycle.

5.22.5 Other payables with significant amount


December 31, 2013 Description of content Remark

1. Foshan Xincheng

Development & Construction

Co., Ltd.

2,335,830,221.00 Payment for corporation

2. Changsha Wanke West Coast

Land Co., Ltd.

1,714,030,000.00 Equal contribution by

partner

3. Poly Group 1,555,499,150.00 Financial support, interest

and security cost 4. Foshan Yongsheng 1,274,843,500.00 Equal contribution by

partner 5. Foshan ECIC Dongxin

Equity Investment Limited

Partnership (Limited

Partnership)

1,105,180,300.00 Equal contribution by

partner

Total 7,985,383,171.00





5.23 Non-current liabilities maturing within one year

5.23.1 Details of non-current liabilities maturing within one year:

Item Balance as at

December 31, 2013

Balance as at

January 1, 2013

Long-term borrowing maturing within one year 19,624,724,743.00 20,030,215,667.83

Bonds payable maturing within one year 4,293,813,739.56

Long-term payables maturing within one year

Total 19,624,724,743.00 24,324,029,407.39

5.23.2 Long-term borrowing maturing within one year

(1) Long-term borrowing maturing within one year

Item Balance as at

December 31, 2013

Balance as at

January 1, 2013

Pledged borrowings 800,000,000.00 80,993,227.83

Mortgaged borrowings 2,808,764,740.00 1,892,594,740.00

Guaranteed borrowings 14,015,960,003.00 15,913,627,700.00

Credit borrowings 2,000,000,000.00 2,143,000,000.00

Total 19,624,724,743.00 20,030,215,667.83

Note: See Notes 9.1 to 9.3 for details of guaranteed borrowing. Mortgaged borrowings

mainly use inventories and investment properties as mortgage. See Note 9.6 for details

of mortgaged assets. Pledged borrowings were obtained by the pledge of equity of the

Company’s subsidiary, South China Holdings.

(2) Long-term borrowings maturing within one year as at December 31, 2013 contains no

overdue borrowings with extension.





(3) Top five in amount of long-term borrowings maturing within one year:

Lender Starting date

of borrowing

Ending date of

borrowing Currency

Interest

rate (%)

Balance as at

December 31, 2013

Balance as at

January 1, 2013

Amount in

foreign

currencies

Amount in RMB

Amount

in foreign

currencies

Amount in RMB

Poly Finance 2012-04-20 2012-04-20 RMB 11.54 1,985,000,000.00 1,995,000,000.00

Industrial Bank, Foshan Branch 2012-09-26 2014-03-25 RMB 7.07 800,000,000.00 800,000,000.00

Zijin Trust Co., Ltd. 2012-07-01 2014-07-12 RMB 9.10 800,000,000.00 800,000,000.00

Postal Savings Bank of China Co., Ltd 2012-06-01 2014-11-30 RMB 7.257 600,000,000.00 650,000,000.00

China Construction Bank, Beijing Poly

Sub-branch 2011-07-29 2014-07-28 RMB 6.212 572,000,000.00

Total 4,757,000,000.00 4,245,000,000.00

(4) Long-term borrowings maturing within one year contain no overdue borrowings.

5.23.3 Bonds payable maturing within one year

None.

5.24 Long-term borrowing

5.24.1 Classification of Long-term borrowing:

Category of borrowing Balance as at

December 31, 2013

Balance as at

January 1, 2013

Pledged borrowings 800,000,000.00

Mortgaged borrowings 15,105,487,631.37 13,619,963,333.13

Guaranteed borrowings 57,814,312,947.00 38,265,450,000.00

Credit borrowings 2,181,500,000.00 3,165,000,000.00

Total 75,101,300,578.37 55,850,413,333.13

Note: See Notes 9.1 to 9.3 for details of guaranteed borrowing. Mortgaged borrowings mainly use inventories and investment properties as

mortgage. See Note 9.6 for details of mortgaged assets. Pledged borrowings were obtained by the pledge of equity of the Company’s subsidiary,

South China Holdings.





5.24.2 Top five long-term borrowing by amount

Lender Starting date of

borrowing

Ending date of

borrowing Currency

Interest

rate (%)

Balance as at December 31,

2013 Balance as at January 1, 2013

Amount in

foreign

currencies

Amount in RMB

Amount

in foreign

currencies

Amount in RMB

Shanghai Pudong

Development Bank, Zhichun

Road Sub-branch

2013-08-08 2016-07-10 RMB 6.15 1,800,000,000.00

National Development Bank,

Guangdong Branch

2011-09-09 2016-09-08 RMB 6.72 1,423,000,000.00 1,623,000,000.00

China Agricultural Bank,

Beijing Economic and

Technological Development

Zone Sub-branch

2013-07-25 2016-07-16 RMB 6.15

1,200,000,000.00

China Contraction Bank,

Beijing Poly Sub-branch

2013-08-23 2016-08-22 RMB 6.15 1,200,000,000.00

China CITIC Bank,

Guangzhou Huacheng

Sub-branch

2013-03-28 2016-03-28 RMB 6.765 1,039,000,000.00 -

Total 6,662,000,000.00 1,623,000,000.00

5.25 Bonds payable

Name of

bond Par value(USD)

Date of

issuance

Bond

period

Actual amount of

issuance

Interest payable

as at

January 1, 2013

Accrued interest

in 2013

Interest paid

in 2013

Interest payable

as at

December 31, 2013

Balance as at

December 31,

2013

Corporate

bonds 500,000,000.00 2013-08-06 5 years 3,057,319,643.00 55,170,317.97 55,170,317.97 2,989,548,695.82

Total 500,000,000.00 3,057,319,643.00 55,170,317.97 55,170,317.97 2,989,548,695.82

In August 2013, Hengli (Hong Kong) Real Estate Limited, a wholly owned subsidiary of the Company, issued USD 500 million bonds due August 2018

with fixed interests through its wholly owned subsidiary, Poly Real Estate Finance Ltd. The coupon is 4.50% and paid semi-annually.





5.26 Share capital

Item Balance as at

January 1, 2013

Increase or decrease (＋, －) in change in 2013 Balance as at

December 31, 2013

New shares

issued Shares presented

Shares transferred from

accumulated funds Others Sub-total

1. Shares with restrictive conditions

(1) State shareholding

(2) State-owned legal person

shareholding

(3) Other domestic capital

shareholding

Including:

Domestic legal person shareholding

Domestic natural person shareholding

(4) Foreign capital shareholding

Including:

Overseas legal person shareholding

Overseas natural person shareholding

Total of shares with restrictive

conditions

2. Circulating shares without

restrictive conditions

(1) RMB ordinary shares 7,137,994,391.00 7,137,994,391.00

(2) Foreign shares listed in China

(3) Foreign shares listed overseas

(4) Others

Sub-total of circulating shares without

restrictive conditions 7,137,994,391.00 7,137,994,391.00

Total 7,137,994,391.00 7,137,994,391.00





5.27 Capital reserves

Item Balance as at


Balance as at

December 31, 2013

Capital premium 10,646,312,357.69 10,646,312,357.69

Fair value of equity

instrument of equity-settled

share-based payment 69,360,776.18 101,881,633.16 171,242,409.34

Other capital reserves 61,252,338.76 85,090,698.87 181,217.55 146,161,820.08

Total 10,776,925,472.63 186,972,332.03 181,217.55 10,963,716,587.11

Note 1: The Company completed the grant of share option on May 4, 2012. At each of balance

sheet date during the waiting period, the Company calculates and recognizes administrative

expenses for the current period based on estimated quantity of options to be exercised and the fair

value of each share option as at grant date, and records them in capital reserves.

Note 2: Changes in other capital reserves in 2013 were attributable to the purchase of minority

interests by subsidiaries and increase of capital of subsidiaries by minority shareholders.

5.28 Surplus reserves

Item Balance as at


Balance as at

December 31, 2013

Statutory surplus

reserve 811,701,777.25 289,215,382.77 1,100,917,160.02

Discretionary

surplus reserve

Total 811,701,777.25 289,215,382.77 1,100,917,160.02

5.29 Undistributed profits

Item Amount Proportion of withdrawal or

distribution

Undistributed profits as at January 1, 2013 23,758,309,752.50

Plus: net profit attributable to owners of

parent company in 2013 10,747,161,554.27

Less: provision of statutory surplus reserves 289,215,382.77 10% of net profit of parent company

Provision of discretionary surplus reserve

Provision of reserve funds

Provision of enterprise expansion funds

Provision of bonus and welfare funds

Provision of general risk reserve

Ordinary share dividends payable 1,656,014,698.71

Ordinary share dividends transferred to share

capital

Undistributed profits as at December 31,

2013 32,560,241,225.29

Note: According to the resolution of 2012 annual general meeting and based on the total share

capital as at December 31, 2012, the Company distributed cash dividend of RMB 2.32 (including

tax) for every 10 shares. The total distributed in total amounted to RMB 1,656,014,698.71.

5.30 Revenue and cost of goods sold

5.30.1 Operating income and operating cost


Income from main operations 92,340,696,050.00 68,874,117,682.00

Income from other operations 14,828,145.85 31,639,028.27

Total operating income 92,355,524,195.85 68,905,756,710.27

Operating costs 62,655,215,219.51 43,972,081,799.46





5.30.2 The presentation of main operations by industry is as follows:

Name of industry

Year 2013 Year 2012

Income from

main operations

Cost of

main operations

Income from

main operations

Cost of

main operations

Real estate sales 89,289,984,174.94 61,385,958,590.81 66,314,473,691.67 42,942,152,860.46

Others 3,050,711,875.06 1,268,926,832.33 2,559,643,990.33 1,014,054,169.37

Total 92,340,696,050.00 62,654,885,423.14 68,874,117,682.00 43,956,207,029.83

Note: Other income consists of income from building, decoration, rental, property

management, sales agency, exhibition, hotel, service charges and so on.

5.30.3 Main operations (by region)

Name of region Year 2013 Year 2012

Operating income Operating cost Operating income Operating cost

Guangdong, China 26,800,553,832.39 16,863,170,978.38 14,135,070,331.31 7,201,789,648.17

Beijing, China 10,378,851,673.83 7,498,871,459.12 4,677,116,144.50 2,995,412,434.03

Sichuan, China 8,677,435,508.23 5,538,541,499.39 9,542,275,136.19 6,410,040,747.26

Hubei, China 7,559,748,474.92 4,994,433,543.76 4,287,860,578.00 2,816,899,903.78

Shanghai, China 7,506,433,644.08 4,413,877,624.53 6,666,597,109.43 3,540,053,605.25

Chongqing, China 6,199,461,224.52 5,065,598,908.95 3,716,172,401.05 2,706,244,653.78

Hangzhou, China 4,789,935,016.48 3,665,185,054.38 2,095,383,351.85 1,182,524,986.87

Jiangsu, China 4,432,842,390.32 3,181,052,707.16 4,954,937,981.57 3,442,386,311.58

Liaoning, China 3,530,378,634.06 2,576,171,187.68 4,464,968,976.51 3,326,493,978.36

Hunan, China 2,817,439,525.65 1,624,315,634.50 2,176,847,904.18 1,435,929,119.97

Tianjin, China 2,035,534,401.34 1,643,444,223.88 4,785,651,029.60 3,897,069,171.27

Changchun, China 1,921,859,384.00 1,504,862,422.36 1,742,744,194.00 1,295,211,542.42

Qingdao, China 1,817,640,633.30 1,151,193,312.41 2,931,962,542.60 1,914,475,482.70

Nanchang, China 1,797,311,737.36 1,478,184,314.07 1,346,695,358.89 979,016,574.18

Baotou, China 1,559,807,420.52 1,015,496,451.37 1,349,834,642.32 812,658,870.21

Hefei, China 515,462,549.00 440,486,101.20

Total 92,340,696,050.00 62,654,885,423.14 68,874,117,682.00 43,956,207,029.83

5.30.4 Revenue from top five customers

Name of customer Total operating income Proportion in total operating

income of the Company (%)

Guangdong Material Industry (Group) Co., Ltd. 1,567,718,000.00 1.69

Guangzhou Automobile Group Co., Ltd. 1,318,672,000.00 1.43

Guangzhou Women and Children's Medical Center 144,815,696.00 0.16

Guangdong Wanlima Investment Industries Co. Ltd. 94,000,906.00 0.10

Guangzhou JSWB Furniture Purchasing Co., Ltd. 88,916,922.00 0.10

Total 3,214,123,524.00 3.48

5.31 Business tax and surcharges

Item Year 2013 Year 2012 Basis of tax assessment

Consumption tax

Business tax 4,916,544,870.48 3,767,947,299.83 3%, 5% or 20%

Urban maintenance and

construction tax 330,471,554.80 250,180,632.17 1%-7% of turnover tax

Educational surtax 150,139,572.78 120,643,612.57 3% of turnover tax

Resource tax 409,853.30 1,279,312.03

Land value increment tax 3,923,792,347.21 3,840,095,471.61 30%-60% of increment

Others 200,769,500.03 140,120,678.53

Total 9,522,127,698.60 8,120,267,006.74





5.32 Selling expenses


Employee salaries and compensation 275,670,097.55 206,600,522.42

Advertising expenses 669,558,865.57 544,647,303.79

Sales agency fees 374,272,941.10 327,493,805.77

Sales site costs 253,591,103.31 145,863,802.19

Promotion expenses 291,580,939.99 211,439,110.72

Others 320,502,489.45 209,566,314.16

Total 2,185,176,436.97 1,645,610,859.05

5.33 Administrative expenses


Employee salaries and compensation 764,952,281.16 562,856,410.92

Travel expenses 75,493,296.74 61,172,479.61

Office and rental expenses 110,024,509.81 112,081,183.51

Taxes and surcharges 325,129,081.67 202,163,110.71

Depreciation expenses 93,413,379.15 91,695,686.48

Others 206,806,040.26 192,735,253.42

Total 1,575,818,588.79 1,222,704,124.65

5.34 Financial expenses

Category Year 2013 Year 2012

Interest expenses 1,039,984,211.01 795,679,045.47

Less: interest income 293,370,406.30 141,840,512.34

Losses due to foreign exchange 19,938,528.69 7,867,930.66

Less: gains due to foreign exchange 12,081,400.50 154,703.03

Other expenses 231,061,018.87 230,541,660.26

Total 985,531,951.77 892,093,421.02

5.35 Investment income

5.35.1 Details of investment income:


Long-term equity investment income calculated by cost

method 3,301,232.86 2,503,893.11

Long-term equity investment income calculated by

equity method 631,751,353.83 400,210,811.42

Investment income from disposal of long-term equity

investment 8,654,268.44

Investment income from held-for-trading financial assets

Investment income from held-to-maturity investment

Investment income from available-for-sale financial

assets

Investment income from disposal of held-for-trading

financial assets

Investment income from disposal of held-to-maturity

investment

Investment income from disposal of available-for-sale

financial assets

Others

Total 635,052,586.69 411,368,972.97





5.35.2 Long-term equity investment income calculated by cost method

Investee Year 2013 Year 2012 Reason for increase or decrease in

comparison with year 2012

Poly Finance 3,301,232.86 2,503,893.11

Total 3,301,232.86 2,503,893.11

5.35.3 Long-term equity investment income calculated by equity method



Shengshi Xinhe 403,949,239.92 260,670,519.92 Increase of profit of investee in 2013

Zhongliansheng Fujian 94,932,964.76 -15,361,306.18 Increase of profit of investee in 2013

Zhongding Fuzhou -7,896,141.99 -12,386,170.86 Decrease of loss of investee in 2013

The Changchun River Valley 45,227,211.10 87,048,925.26 Realization of profit in 2013 by investee

ECIC Fund Management 107,057,566.04 80,238,843.28 Increase of profit of investee in 2013

Dongguan Wanhong -4,484.45 Increase of expenses of investee in 2013

Guangzhou Bao’ao -75,444.65 Increase of expenses of investee in 2013

Wuhan Qingneng -1,737,711.35 Increase of expenses of investee in 2013

Zhaoshang Longyuan 12,801.34 Increase of profit of investee in 2013

Nanjing Xueshang -4,676,783.42 Increase of expenses of investee in 2013

Hangzhou Jinmu -4,332,655.21 Increase of expenses of investee in 2013

Poly Rentai -310,094.58 Increase of expenses of investee in 2013

Guangzhou Zhongyao -395,113.68 Increase of expenses of investee in 2013

631,751,353.83 400,210,811.42

Note: There were no significant restrictions in collecting the remittance of investment

income in the current period. Increase of profit of investee in 2013

5.36 Losses on assets impairment


Losses on bad debt 59,882,558.32 70,794,150.32

Losses on inventory depreciation

Losses on impairment of available-for-sale financial

assets

Losses on impairment of held-to-maturity investment

Losses on impairment of long-term equity investment

Losses on impairment of investment properties

Losses on impairment of fixed assets

Losses on impairment of project materials

Losses on impairment of construction in progress

Losses on impairment of productive biological assets

Losses on impairment of oil and gas assets

Losses on impairment of intangible assets

Losses on impairment of goodwill

Others

Total 59,882,558.32 70,794,150.32





5.37 Non-operating income


Amount included in

non-recurring profits and

losses in 2013

Total gains on disposal of

non-current assets 605,003.65 196,664.56 605,003.65

Including: gains on disposal of

fixed assets 605,003.65 196,664.56 605,003.65

Gains on disposal of intangible

assets

Gains on exchange of

non-monetary assets

Gain on debt restructuring

Donation received

Income from fines and default

fines 91,108,038.71 122,304,890.41 91,108,038.71

Government subsidy

Others 90,570,918.53 66,942,990.46 90,570,918.53

Total 182,283,960.89 189,444,545.43 182,283,960.89

5.38 Non-operating expenses


Amount included in t

non-recurring profits and

losses in 2013

Total losses on disposal of non-current

assets 158,318.88 100,774.77 158,318.88

Including: loss on disposal of fixed

assets 158,318.88 100,774.77 158,318.88

Loss on disposal of intangible assets

Loss on debt restructuring

Loss on exchange of non-monetary

assets

Donation made 531,076.20 2,369,951.00 531,076.20

Amercement outlay 9,263,500.61 11,791,175.79 9,263,500.61

Other 77,458,865.23 36,630,005.86 77,458,865.23

Total 87,411,760.92 50,891,907.42 87,411,760.92

5.39 Income tax expenses


Current income tax calculated according to

the tax law and relevant provisions 4,484,450,864.03 3,860,002,729.36

Adjustment for deferred income tax -247,216,640.79 -306,474,044.71

Including: deferred income tax assets -240,938,209.57 -272,010,100.45

Deferred income tax liabilities -6,278,431.22 -34,463,944.26

Total 4,237,234,223.24 3,553,528,684.65

5.40 Calculation of basic earnings per share and diluted earnings per share

According to "Rule 9 on Information Disclosure by Companies Offering Securities to the Public-

calculations and disclosures of rate of return on net assets and earnings per share (revised in 2010)"

(Notice [2010] No. 2 of China Securities Regulatory Commission), Announcement No. 1 on

Information Disclosure by Companies Offering Their Securities to the Pubic - non-recurring profits

and losses (2008) (Notice [2008] No. 43 of China Securities Regulatory Commission) issued by

China Securities Regulatory Commission, the Company calculates the earnings per share through

the following formula.





5.40.1 Basic earnings per share

Basic earnings per share = P0/S

S=S0＋S1＋Si×Mi/M0–Sj×Mj/M0-Sk

Among which: P0 is the net profit attributable to ordinary shareholders or the net profit

attributable to ordinary shareholders after deducting the non-recurring profits and losses; S

is the weighted average number of outstanding ordinary shares; S0 is the total number of

shares as at January 1, 2013; S1 is the increase of shares due to transfer of accumulated

funds to share capital or dividends distribution during the reporting period; Sj is the

decrease of shares due to repurchase during the reporting period; Sk is the shares reduction

during the reporting period; M0 is the months of reporting period; Mi was the accumulated

months from the next month of share increment to the end of reporting period; Mj is the

accumulated months from the next month of share increment to the end of reporting period.

5.40.2 Diluted earnings per share

Diluted earnings per share =P1/(S0＋S1＋Si×Mi/M0–Sj×Mj/M0–Sk+ weighted average

number of such ordinary shares as warrants, options, convertible bonds)

Among which, P1 is the net profit attributable to ordinary shareholders or the net profit

attributable to ordinary shareholders after deducting the non-recurring profits and losses,

which is adjusted according to Accounting Standards for Business Enterprises and relevant

rules in consideration of the effect of dilutive potential ordinary shares. In calculating the

diluted earnings per share, in view of the effect of all dilutive potential ordinary shares on

net profit attributable to ordinary shareholders, on net profit attributable to ordinary

shareholders of the Company after deducting the non-recurring profits and losses and on

weighted average number, which shall be recorded in diluted earnings per share in an

descending order in dilution strength, until the diluted earnings per share reached the

minimum value.

Earnings per share are calculated as follows.

(1) Basic earnings per share

Basic earnings per share is calculated by dividing consolidated net profit attributable

to ordinary shareholders by weighted average number of outstanding ordinary shares

of the Company:


Consolidated net profit attributable to ordinary

shareholders 10,747,161,554.27 8,438,233,558.38

Weighted average number of outstanding ordinary

shares of the Company 7,137,994,391.00 7,137,994,391.00

Basic earnings per share (RMB/share) 1.51 1.18

Weighted average number of ordinary shares is calculated as follows:


Ordinary shares in issue as at January 1, 2013 7,137,994,391.00 5,948,328,659.00

Increase of shares due to transfer of accumulated

funds to share capital or dividends distribution

during the reporting period 1,189,665,732.00

Weighted average number of ordinary shares

issued in 2013

Less: weighted average number of ordinary shares

repurchased in 2013


shares 7,137,994,391.00 7,137,994,391.00





(2) Diluted earnings per share

Diluted earnings per share are calculated by dividing the adjusted consolidated net

profit attributable to ordinary shareholders by adjusted weighted average number of

outstanding ordinary shares of the Company:


Consolidated net profit attributable to ordinary

shareholders (diluted) 10,747,161,554.27 8,438,233,558.38


shares of the Company (diluted) 7,137,994,391.00 7,137,994,391.00

Diluted earnings per share (RMB/share) 1.51 1.18

Weighted average number of ordinary shares (diluted) is calculated as follows:


Weighted average number of outstanding

ordinary shares in calculating basic earnings per

share as at December 31, 2013. 7,137,994,391.00 7,137,994,391.00

[Effect of convertible bonds]

[Effect of options]

Weighted average number of ordinary shares as

at December 31, 2013 (diluted) 7,137,994,391.00 7,137,994,391.00

The Company granted share options on May 4, 2012. The exercise price as adjusted at

the end of 2013 was RMB 7.898. Such option scheme might potentially lead to the

existence of dilutive common stocks in subsequent periods.

5.41 Other comprehensive income


1. Income (losses) from available-for-sale financial assets

Less: effect of income tax arising from available-for-sale financial assets

Net amount included in other comprehensive income in prior period and

transferred to current profits and losses

Sub-total

2. Shares in other comprehensive income of investee calculated by equity

method 2,028.00

Less: effect of income tax arising from shares in other comprehensive

income of investee calculated by equity method



Sub-total 2,028.00

3. Incomes (or losses) from cash-flow hedging instrument

Less: Effect of income tax arising from cash-flow hedging instrument



Adjustment for initially recognized amount of conversion of hedged item

Sub-total

4. Difference arising from conversion of foreign currencies in financial

statements -1,449,354.82 14,431.42

Less: net amount of disposal of overseas operation transferred to current

profits and losses

Sub-total -1,449,354.82 14,431.42

5. Others

Less: effect of income tax arising from others included in other

comprehensive income

Net amount of others included in other comprehensive income in prior

period and transferred to current profits and losses

Sub-total

Total -1,449,354.82 16,459.42





5.42 Notes to the items of statements of cash flows

5.42.1 Receipt of other cash related to operating activities

Item Year 2013 Cash received from relevant entities 14,548,726,362.69

Earnest money for house purchases and collections on behalf of owners 261,073,679.65

Others 651,747,415.80

Total 15,461,547,458.14

5.42.2 Payment of other cash related to operating activities

Item Year 2013

Cash paid to relevant entities 12,904,926,676.95 Period expense 2,457,566,060.70 Others 1,017,474,013.28 Total 16,379,966,750.93

5.42.2 Payment of other cash related to financing activities

Item Year 2013 Financial charges and others 144,311,752.51 Total 144,311,752.51

5.43 Supplementary information to the statements of cash flows

5.43.1 Supplementary information to the statements of cash flows


1. Net profit adjusted to cash flow from operating activities

Net profit 11,864,462,305.31 9,978,598,275.36

Plus: provision for assets impairment 59,882,558.32 70,794,150.32

Depreciation of fixed assets, depletion of oil and gas assets,

and depreciation of productive biological assets 305,706,452.51 282,466,674.42

Amortization of intangible assets 4,244,078.11 3,004,461.48

Amortization of long-term deferred expenses 23,486,708.98 12,626,622.70

Loss on disposal of fixed assets, intangible assets and other

long-term assets ("-" for gains) -446,684.77 -95,889.79

Loss on write-off of fixed assets ("-" for gains)

Loss on fair value changes ("-" for gains)

Financial expenses ("-" for gains) 1,039,984,211.01 795,679,045.47

Investments loss ("-" for gains) -635,052,586.69 -411,368,972.97

Decrease in deferred income tax assets ("-" for increases) -261,796,897.04 -271,928,039.67

Increase in deferred income tax liabilities ("-" for decreases) -6,278,431.22 -34,463,944.26

Decreases in inventories (“-” for increases) -50,263,472,872.89 -37,536,379,207.43

Decreases in operating receivables (“-” for increases) -8,598,042,955.96 -3,080,021,937.12

Increases in operating payables (“-” for decreases) 36,713,217,336.34 33,283,670,036.48

Others

Net cash flows from operating activities -9,754,106,777.99 3,092,581,274.99

2.Significant investing and financing activities involving no

cash receipts and payments:

Conversion of debt into capital

Convertible corporate bonds maturing within one year

Fixed assets acquired under financing leases

3. Net changes in cash and cash equivalents

Balance of cash as at December 31, 2013 33,112,173,949.23 32,580,034,779.81

Less: balance of cash as at January 1, 2013 32,580,034,779.81 18,152,615,651.13

Plus: balance of cash equivalents as at December 31, 2013

Less: balance of cash equivalents as at January 1, 2013

Net increase in cash and cash equivalents 532,139,169.42 14,427,419,128.68





5.43.2 Subsidiaries and other business units acquired or disposed in 2013


1. Information relevant to subsidiaries and other business units

acquired:

(1) Price for acquiring subsidiaries and other business units 927,055,742.15 130,460,000.00

(2) Cash and cash equivalents paid for acquiring subsidiaries and

other business units 743,255,742.15 130,460,000.00

Less: cash and cash equivalents held by subsidiaries and other

business units 40,456,317.72 2,447.62

(3) Net cash paid for acquiring subsidiaries and other business

units 702,799,424.43 130,457,552.38

(4) Net assets of subsidiaries acquired 96,377,036.06 19,478,134.62

Current assets 3,631,943,982.45 452,398,057.01

Non-current assets 175,287,356.23

Current liabilities 3,710,854,302.62 432,919,922.39

Non-current liabilities

2. Information relevant to subsidiaries and other business units

disposed:

(1) Price for disposing of subsidiaries and other business units 31,598,054.48

(2) Cash and cash equivalents received from disposal of

subsidiaries and other business units 31,598,054.48

Less: cash and cash equivalents held by subsidiaries and other

business units 4,201,058.00

(3) Net cash received from disposal of subsidiaries and other

business units 27,396,996.48

(4) Net assets of subsidiaries disposed 34,077,211.66

Current assets 184,601,999.22

Non-current assets 55,705,108.54

Current liabilities 206,229,896.10

Non-current liabilities

5.43.3 Breakdowns of cash and cash equivalents:

Item Balance as at

December 31, 2013

Balance as at

January 1, 2013

1. Cash 33,112,173,949.23 32,580,034,779.81

Including: cash on hand 8,546,377.74 8,016,631.34

Unrestricted bank deposit 33,096,603,837.87 32,567,811,462.25

Other unrestricted monetary funds 7,023,733.62 4,206,686.22

2. Cash equivalents

Including: bond investments maturing within three months

3. Balance of cash and cash equivalents as at December 31,

2013 33,112,173,949.23 32,580,034,779.81

6 There were no accounting treatments for asset securitization in 2013.





7 Related parties and related party transactions (All the following amounts are expressed in RMB unless otherwise stated)

7.1 Parent company of the Company

Name of parent

company

Relationship with

the Company

Type of

enterprise

Registration

place

Legal

representative Business nature

Registered

capital

Shareholding ratio in

the Company (%)

Voting ratio in the

Company (%)

Ultimate controller

of the Company

Organization

code

Poly Southern Group

Corporation

Controlling

shareholder

Wholly

state-owned Guangzhou Zhang Ling

Real estate development

and operation, property

management, real estate

agency service, wholesale

and retail trade

RMB 100.5

million 42.14 42.14

China Poly Group

Corporation 190472278

Note: Poly Southern is a wholly-owned subsidiary of Poly Group.

7.2 Subsidiaries of the Company:

See Note 4.1 for details of the Company’s subsidiaries.

7.3 Joint ventures and associates of the Company

See Note 5.7 for details of long-term equity investment.

7.4 Other related parties of the Company Other related party Relationship Organization code

Shanghai Sanli Industrial Co., Ltd .(“Shanghai Sanli”) Under the common control of Poly Group 13221596X

Poly Finance Under the common control of Poly Group 717881749

Poly Construction and Development Corporation (“Poly Construction”) Under the common control of Poly Southern 102034148

Poly Film Investment Co., Ltd. (“Poly Film”) Under the common control of Poly Group 710930130

Guangdong Poly Asset Management Co., Ltd. (“Poly Asset”)） Under the common control of Poly Group 565999296

Poly Solar Technologies (Beijing) Co., Ltd (“Poly Solar”) Under the common control of Poly Group 69637355X

Poly International Auction Co., Ltd.(“Poly Auction”) Under the common control of Poly Group 777673773

Foshan Yongsheng Note 1 59902121

Foshan Shengxin Note 1 77853757

Foshan Shenghong Note 1 79532455

Jiangmen Kangsheng Note 1 71860905

Chung Hong Tai (Hong Kong) Limited (“HK CHT”) Note 1

ECIC Limited Partnership Note 2 559470775

Note 1: This entity is the subsidiary of ECIC (Tianjin) Equity Investment Fund Management Co., Ltd, an associate of the Company.

Note 2: In 2010, ECIC (Tianjin) Equity Investment Fund Management Co., Ltd., an associate of the Company, formed ECIC (Tianjin) Equity Investment Fund Partnership

(Limited Partnership) as a general partner. The Company is a limited partner in this Limited Partnerhsip. The Company has contributed RMB 600,000,000.00 to the

Limited Partnership and RMB 444,000,000 has not been contributed as of the end of 2013.





7.5 Related party transactions

7.5.1 For the subsidiaries under the Company’s control and included in the scope of

consolidation, the transactions between among them and transactions between the

parent company and subsidiaries have been eliminated.

7.5.2 Purchase of goods, rendering and receipt of labor services

Related party Content of related

party transactions

Pricing method

and

decision-making

procedure

Year 2013 Year 2012

Amount

Proportion in

similar

transactions (%)

Amount

Proportion in

similar

transactions (%)

Purchase of goods/receipt of labor

services:

Poly

Construction

Project

contracting

As agreed in

agreement 19,742,614.17 0.02 1,589,175.00 0.0021

Poly Solar

Purchase of

goods

As agreed in

agreement 482,760.00

Poly Auction

Purchase of

goods

As agreed in

agreement 435,850.00

Sale of goods/rendering of labor

services:

Shengshi Xinhe

Project

contracting

As agreed in

agreement 90,668,912.93 0.30 142,525,358.24 0.21

Zhongding

Fuzhou

Project

contracting

As agreed in

agreement 181,298,839.42 0.59 112,091,303.44 0.16

Zhongliansheng

Fujian

Project

contracting

As agreed in

agreement 114,217,637.60 0.37 90,632,845.71 0.13

7.5.3 Leases among related parties

Name of lessor Name of lessee Category of leasing

assets

Starting date of

lease Ending date of lease

Pricing basis for

determining the

leasing income

Leasing income

recognized in 2013

Poly

Commercial

Poly Film The Poly Canal

in the South

China Sea

2009-03-26 2029-03-25

As agreed in

agreement

2,889,326.39

Guangzhou

Elegance

Poly Film The Guangzhou

Central Square 2010-08-31 2030-08-31

As agreed in

agreement

1,390,720.00

The Company ECIC Fund

Management

Guangzhou Poly

Center 2011-04-01 2020-09-30

As agreed in

agreement

1,949,316.00

The Company Poly Southern Guangzhou Poly

Center 2011-12-01 2019-08-30

As agreed in

agreement

1,715,544.00

The Company Poly Asset Guangzhou Poly

Center 2011-12-01 2019-08-30

As agreed in

agreement

1,192,488.00

7.5.4 Related Guarantee

See Note 9 for details of the guarantees provided inside the Company and the guarantees

provided by the Company for joint ventures.





7.5.5 Money deposits among related parties

Borrowing funds from related parties

Related parties Amount of

borrowing Starting date Maturity date Remark

Borrowing in

2013:

Poly Finance 200,000,000.00 2013-02-05 2015-02-05

The interest rate was the

benchmark interest rate for loan

during the corresponding period

increased by 5%.

Poly Finance 100,000,000.00 2013-03-26 2015-03-26




increased by 5%.

Poly Finance

(Note) 300,000,000.00 2013-04-23 2014-04-23




increased by 5%.

Poly Finance 200,000,000.00 2013-08-07 2015-08-07



during the corresponding period.

Poly Finance 100,000,000.00 2013-12-02 2015-12-01




Poly Finance 100,000,000.00 2013-12-11 2015-12-11




Poly Finance 300,000,000.00 2013-12-31 2014-12-31




increased by 5%.

Repayment in

2013:

Poly Finance 60,000,000.00 2011-01-19 2014-01-19

The borrowing in 2011

amounted to RMB 190,000,000,

part of which was repaid in

2013.

Poly Finance 180,000,000.00 2011-01-19 2013-01-19



which was fully repaid in 2013.

Poly Finance 10,000,000.00 2012-04-20 2014-04-20


amounted to RMB

2,000,000,000, part of which

was repaid in 2013.

Poly Finance 5,000,000.00 2012-10-24 2014-10-24




2013.

Poly Finance 95,000,000.00 2011-10-13 2014-10-13




Poly Finance 5,000,000.00 2012-11-20 2014-11-20




2013.

Poly Finance 15,000,000.00 2012-06-27 2014-06-27




2013.





Related parties Amount of

borrowing Starting date Maturity date Remark

Poly Finance 5,000,000.00 2013-02-05 2015-02-05




2013.

Poly Finance 400,000,000.00 2011-10-28 2013-10-28




Poly Finance 2,000,000.00 2013-03-26 2015-03-26



which was repaid in 2013.

Poly Finance 600,000,000.00 2012-01-05 2014-01-06




Note: The amount was lent by Poly Group to the Company through Poly Finance in the

form of entrusted loan.

7.5.6 There was no assets transfer or debt restructuring with related parties in 2013.

7.5.7 Other related parties transactions

Related party Transaction type Amount Proportion in the item (%)

Poly Finance (Note) Deposit 1,739,422,879.69 5.15

ECIC Fund Management Receipt of equity

investment 520,200,000.00 11.53

HK CHT Receipt of equity

investment 497,664,000.00 11.03

Foshan Yongsheng Receipt of equity

investment 222,434,520.00 4.93

Foshan Shenghong Receipt of equity

investment 40,000,000.00 0.89

Foshan Shengxin Receipt of equity

investment 93,750,000.00 2.08

ECIC Limited Partnership Receipt of equity

investment 75,000,000.00 1.66

Note: As at December 31, 2013, deposit balance of the Company in Poly Finance totaled

RMB 1, 739,422,879.69. The interest rate for the deposits was subject to relevant rules of

People’s Bank of China.

7.5.8 Receivables and payables among related parties

Item Name of related parties Balance as at

December 31, 2013

Balance as at

January 1, 2013

Other receivables Zhongding Fuzhou 476,055,440.00

Other receivables Zhongliansheng Fujian 200,900.25

Other receivables The Changchun River Valley 60,713,600.00

Other receivables Shengshi Xinhe 8,319,611.02

Other receivables ECIC Limited Partnership 397,219,519.86

Other receivables ECIC Fund Management 175,385,961.45

Other receivables Nanjing Xueshang 351,892,184.20

Other receivables Wuhan Qingneng 230,700,000.00

Other receivables Poly Rentai 406,925,400.00

Other receivables Guangzhou Bao’ao 151,955.40

Other receivables Guangzhou Zhongyao 90,000,410.40

Other receivables Dongguan Wanhong 647,286,000.00

Other receivables Hangzhou Jinmu 129,303,062.00





Item Name of related parties Balance as at

December 31, 2013

Balance as at

January 1, 2013

Other payables Zhongding Fuzhou 16,793,901.68

Other payables Poly Group 1,555,499,150.00 1,565,797,315.07

Other payables Shanghai Sanli 41,589,979.17 43,094,729.17

Other payables ECIC Fund Management 38,195,186.90

Other payables ECIC Limited Partnership 1,011,003,349.32

Other payables Shengshi Xinhe 1,415,116.63

Other payables Zhongliansheng Fujian 199,701,468.97

Other payables Foshan Yongsheng 1,274,843,500.00

Other payables Foshan Shengxin 187,500,000.00

Other payables Foshan Shenghong 220,040,400.00

Other payables Jiangmen 4,000,000.00

Other payables Tianjin Munan 17,000,000.00

Amounts received in

advance Shengshi Xinhe 47,735,150.30 65,424,002.73

Amounts received in

advance Zhongding Fuzhou 37,806,254.97 45,588,221.32

Amounts received in

advance Zhongliansheng Fujian 380,158.00 27,402,595.24

Amounts received in

advance Nanjing Xueshang 15,530,516.63

7.5.9 The Company does not have commitments to related parties.

8 Share-based payment

8.1 General information of share-based payment

Total amount of all equity instruments granted by the

Company in 2013

Total amount of all equity instruments exercised by the

Company in 2013

Total amount of all equity instruments expired in 2013 1,032,000

Range of exercise price of outstanding options by the

Company as at December 31, 201 and the remaining

contractual period

As at December 31, 2013, the exercise price of

outstanding options by the Company was RMB

7.898, and the remaining contractual period is

4.34 years

Range of exercise price of other equity instruments of

the Company as at December 31, 2013 and the

remaining contractual period

None

On April 26, 2012, the Share Option Incentive Plan (amendment draft) of Poly Real Estate (Group)

Co., Ltd. was approved by the 2011 annual general meeting, and on the same day, the Resolution

Concerning the Matters Related to Grant of Share Options was approved in the second meeting of

the fourth board of directors, determining the grant date for this share option incentive plan to be

May 4, 2012. The Company completed the grant of the share options on the grant date. The

number of options granted under this share option incentive plan was 55,670,000, with an exercise

price of RMB 9.97 and fair value of RMB 310,449,300 in total. The waiting period is two years

upon grant date and exercise of options shall occur in three exercise periods. The quantity of

options to be exercised in the first, second and third exercise period is 30%, 30% and 40% of total

options granted, respectively.

According to the motion for 2011 profit distribution and transfer of capital reserves to share capital

that was approved at general meeting of shareholders, and based on the total share capital as at

December 31, 2011, the Company distributed on June 18, 2012 cash dividends of RMB 2.15

(including tax) for every 10 shares to all shareholders, and issued 2 shares for every 10 shares of

capital reserves. The exercise price of share options was accordingly adjusted to RMB 8.13 from

RMB 9.97. According to the profit distribution plan for 2012 approved by the Company’s general

meeting of 2013, the Company distributed cash dividends of RMB 2.32 (including tax) for every





10 shares to all shareholders. The exercise price of share options was correspondingly adjusted to

RMB 7.898 from RMB 8.13.

8.2 Equity-settled share-based payment

Determination of fair value of equity instruments

as at grant date B-S (Black-Scholes) option pricing model

Determination of best estimate of exercisable

equity instruments

The most probable exercise number was estimated

according to the amount of remaining exercisable

instruments as at the balance sheet date and the dismissal

of employees with options granted

Reason for material difference between the

estimates for 2013 and 2012 None

Accumulated amount of equity-settled

share-based payment in capital reserves 171,242,409.34

Total expenses recognized for equity-settled

share-based payment 101,881,633.16

The Company accounts for incentive plan according to Accounting Standard for Business

Enterprises No. 11 - Share-based payment. At each of balance sheet date during the waiting period,

the Company calculates and recognizes administrative expenses for the current period based on

estimated quantity of options to be exercised and the fair value of each share option as at grant date,

and records them in capital reserves. During the exercise period, the Company no longer adjusts

recognized administrative expenses and capital reserves. On exercise date, the Company assesses

the circumstances of exercise and recognizes share capital and share premium, and in the meantime

transfers capital reserves (other capital reserves) recognized during the waiting period. In 2012 the

Company recorded the amortization of cost of equity incentive plan totaling RMB 101,881,600 in

administrative expenses, and increased the capital reserves by RMB 101,881,600.

8.3 There were no cash-settlements for share-based payments in 2013.

8.4 Share-based services

Total share-based payments in exchange for employee services 101,881,633.16

Total share-based payment in exchange for other services

8.5 Adjustment to and termination of share-based payment

There was no adjustment or termination of share-based payment during the reporting period.

9 Contingencies

9.1 Guarantees provided by the Company for subsidiaries

As at December 31, 2013, the guarantee provided by the Company for subsidiaries amounted to

RMB 66,225,401,900 in total, with an increase of 14,439,224,200 in 2013, details of which are as

follows:

Guarantee Type of debt

Balance of

guarantee

(RMB’0,000)

Life of borrowing

Date of borrowing Maturity

date

Fuli Construction &

Installation

Short-term borrowing 10,000.00 2013-03-28 2014-03-28





Poly Zhongshan Short-term borrowing 50,000.00 2013-12-31 2014-12-31

Hebei Poly Short-term borrowing 30,000.00 2013-04-23 2014-04-23

Shaanxi Rong’an Short-term borrowing 30,000.00 2013-12-31 2014-12-30

Beijing Poly Ying Non-current borrowing maturing within one year 57,200.00 2011-07-29 2014-07-28

Jinchenghua Non-current borrowing maturing within

one year 10,000.00 2012-06-21 2014-12-21





Non-current borrowing maturing within

one year 1,500.00 2012-07-23 2014-07-31

Shibo Hongye Non-current borrowing maturing within

one year 500.00 2013-08-07 2014-08-21

Poly Chengdu Non-current borrowing maturing within

one year 10,000.00 2011-04-06 2014-01-29

Xindu Poly


one year 15,000.00 2012-05-24 2014-03-30


one year 1,453.00 2012-08-15 2014-03-30

Chengdu Baohua


one year 37,500.00 2012-06-01 2014-11-30


one year 11,250.00 2012-07-27 2014-11-30


one year 3,750.00 2013-02-25 2014-11-30


one year 3,750.00 2013-03-12 2014-11-30


one year 3,750.00 2013-05-09 2014-11-30

Dalian Bingang


one year 6,000.00 2011-08-25 2014-08-22


one year 6,000.00 2011-09-01 2014-08-31

Poly Zengcheng

Non-current borrowing maturing within one year 93,500.00 2011-06-13 2014-06-13


one year 5,000.00 2012-07-30 2014-06-13

Poly Zhongshan



one year 5,000.00 2012-11-01 2014-10-01

Poly Zhuhai



one year 17,000.00 2012-04-01 2014-02-13



one year 13,000.00 2013-03-15 2014-08-13

Non-current borrowing maturing within one year 20.00 2013-07-19 2014-12-20

Hefei Poly


one year 5,000.00 2012-07-12 2014-06-30



one year 5,000.00 2012-10-15 2014-12-31



one year 1,000.00 2012-12-28 2014-12-20



one year 20,000.00 2013-05-29 2014-06-30



one year 1,000.00 2013-06-27 2014-12-30

Heifei Hesheng Non-current borrowing maturing within one year 4,900.00 2013-06-27 2014-12-31

Hebei Poly Non-current borrowing maturing within

one year 9,500.00 2012-10-24 2014-10-24

Hunan Poly Non-current borrowing maturing within one year 36,925.00 2011-04-08 2014-04-08

Nanhu Property


one year 26,441.00 2011-10-31 2014-10-31


Shunde Poly


one year 5,000.00 2011-01-10 2014-01-10


Foshan Hengshun Non-current borrowing maturing within

one year 80,000.00 2012-09-26 2014-03-25





Jiangsu Ningyuan


one year 1,000.00 2011-03-11 2014-03-11


one year 500.00 2011-03-14 2014-03-14


one year 4,000.00 2011-03-31 2014-03-31


one year 1,000.00 2011-04-26 2014-04-26


one year 1,000.00 2011-05-06 2014-05-06


one year 1,000.00 2011-06-21 2014-06-21

Liaoning Poly Non-current borrowing maturing within

one year 14,000.00 2012-01-31 2014-12-31

Shenyang Champagne Non-current borrowing maturing within

one year 8,000.00 2013-06-28 2014-07-20


one year 4,000.00 2012-08-24 2014-08-24

Qingdao Guanghui


one year 25,000.00 2012-07-04 2014-12-21


one year 12,000.00 2013-01-30 2014-12-20


one year 19,000.00 2012-10-10 2014-12-21

Shanghai Jiankun Non-current borrowing maturing within one year 15,000.00 2011-01-19 2014-01-19

Junlan Property


one year 7,000.00 2012-09-29 2014-12-31



one year 10,000.00 2013-09-18 2014-12-31

Shanghai Jiancui Non-current borrowing maturing within one year 200.00 2012-03-30 2014-03-31

Shanghai Jianxi


one year 200.00 2013-09-18 2014-09-30



one year 7,000.00 2013-09-18 2014-09-25

Shanghai Jianheng Non-current borrowing maturing within one year 14,800.00 2011-07-26 2014-07-26

Shanghai Hongrong


one year 5,000.00 2013-06-26 2014-07-15



one year 200.00 2013-07-01 2014-12-31

Poly Tianjin



one year 20,404.00 2011-07-14 2014-07-13

Tianjin Kunlun Non-current borrowing maturing within one year 14,500.00 2012-11-30 2014-11-30

Wuhan Jinqiao Non-current borrowing maturing within

one year 16,000.00 2012-04-06 2014-12-31

Wuhan Lin Yu



one year 19,000.00 2011-05-30 2014-05-30


Wuhan Lin Hai


one year 6,000.00 2012-11-29 2014-11-30



one year 20,000.00 2012-08-24 2014-08-24


Wuhan Kangqiao


one year 10,000.00 2012-11-08 2014-11-08



one year 8,000.00 2013-04-01 2014-12-31





Wuhan Jingu


one year 6,000.00 2013-04-28 2014-10-10


one year 100.00 2013-07-31 2014-09-21


one year 200.00 2013-08-27 2014-09-21


one year 500.00 2013-12-18 2014-12-31


one year 930.00 2013-12-21 2014-12-31

Poly Bogahua Non-current borrowing maturing within

one year 500.00 2012-06-27 2014-12-25

Poly Wuhan Non-current borrowing maturing within

one year 4,000.00 2011-08-15 2014-06-30

Changchun East Long


Changchun Hengfu Non-current borrowing maturing within one year 8,400.00 2012-02-24 2014-02-20

Changchun East Long


one year 500.00 2011-06-01 2014-02-24



one year 6,500.00 2011-06-01 2014-06-01

Changchun Hengfu

Non-current borrowing maturing within one year 500.00 2013-08-31 2014-09-30


one year 3,500.00 2012-02-24 2014-08-20


one year 500.00 2013-08-31 2014-12-30

Hangzhou Jianyi


one year 3,750.00 2011-05-16 2014-03-24


one year 3,750.00 2011-06-09 2014-03-24


one year 750.00 2011-12-16 2014-03-24


one year 1,500.00 2012-02-09 2014-03-24


one year 3,000.00 2012-04-01 2014-03-24


one year 1,840.00 2012-11-12 2014-03-24


one year 30,000.00 2013-02-28 2014-03-24

Shaoxing Poly


one year 5,000.00 2012-07-20 2014-10-19


one year 6,000.00 2012-08-06 2014-10-19


one year 5,000.00 2012-08-31 2014-10-19

Zhejiang Poly



one year 5,000.00 2011-12-29 2014-08-08



one year 8,000.00 2012-03-12 2014-08-08



one year 7,500.00 2013-06-03 2014-08-08

Chongqing Investment



one year 15,000.00 2013-12-09 2014-12-31



one year 8,200.00 2013-06-28 2014-12-21



one year 2,800.00 2012-09-25 2014-12-21

Non-current borrowing maturing within 2,300.00 2013-04-28 2014-12-21





one year



one year 11,000.00 2011-01-19 2014-01-19



one year 30,000.00 2012-06-08 2014-05-10

Chongqing Baocheng Non-current borrowing maturing within one year 1,188.00 2013-12-18 2014-12-27

Fuli Construction &

Installation


one year 40,000.00 2012-09-18 2014-09-18

Shibo Hongye

Long-term borrowing 80,000.00 2013-08-08 2016-07-10




Beijing Poly Xing Long-term borrowing 100,000.00 2013-08-23 2015-08-23


Beijing Poly Xing Long-term borrowing 80,000.00 2010-10-15 2015-09-16

Shibo Hongye Long-term borrowing 19,500.00 2013-08-07 2015-08-21

Jinchenghua Long-term borrowing 17,000.00 2012-06-21 2015-06-21


Chengdu Stone Elephant

Lake Long-term borrowing 17,670.00 2010-09-25 2015-09-20

Poly Chengdu









Xindu Poly





Poly Deyang








Chengdu Yachi




Chengdu Baoxin





Dalian Hongqi Long-term borrowing 48,000.00 2013-03-29 2015-03-28

Poly Fujian Long-term borrowing 27,000.00 2013-12-01 2015-12-01

Poly Guangzhou Long-term borrowing 29,990.00 2012-07-10 2015-07-09
























Poly Zengcheng







Poly Zhongshan




Poly Dongguan Long-term borrowing 15,000.00 2012-12-22 2015-12-21

Dongguan Investment



Long-term borrowing 100.00 2013-09-11 2016-09-10





Poly Zhuhai






Zhuhai Poly Long-term borrowing 20,000.00 2013-11-21 2016-11-21

Hefei Hesheng









Hefei Poly Long-term borrowing 2,000.00 2012-10-15 2015-06-25










Hefei Hezhu




Hebei Poly












Nanhu Property





Chenzhou Qianjiasheng Long-term borrowing 15,000.00 2013-12-03 2016-10-13

Hunan Poly





Nanhu Property Long-term borrowing 30,000.00 2012-10-31 2016-04-30


South China Holdings Long-term borrowing 75,350.00 2013-11-07 2025-11-06


Shunde Poly

















Nanhai Hairong











Foshan Zhengao




Foshan Hengshun Long-term borrowing 20,000.00 2013-03-22 2016-03-14

Foshan Hengxin










Foshan Hongsheng




Qingxing Xinghai Long-term borrowing 15,000.00 2014-12-17 2016-12-16


Foshan Xincheng Long-term borrowing 40,000.00 2013-01-14 2016-01-13

Jiangmen Hongxin






Poly Hailingdao















Poly Jiangsu




Jiangsu Ningxiang













Jiangsu Ningheng Long-term borrowing 15,000.00 2013-11-22 2015-05-21

Jiangsu Ningsheng















Jiangxi Jintongtia Long-term borrowing 14,900.00 2012-10-23 2015-10-21


Nanchang Ruida






Shenyang Xihu





Shenyang Champagne Long-term borrowing 2,000.00 2013-06-28 2016-06-28


Shenyang Wanyi




Poly Yingkou Long-term borrowing 30,000.00 2013-01-16 2016-01-15

Dandong Poly




Qingdao Guanghui Long-term borrowing 8,900.00 2012-07-04 2015-07-05

Poly Qingdao Long-term borrowing 32,000.00 2012-08-24 2015-08-23

Qingdao Guangyuan Long-term borrowing 27,700.00 2013-01-30 2016-01-30

Qingdao Guangheng Long-term borrowing 10,000.00 2013-12-11 2015-12-11

Shaanxi Rong’an Long-term borrowing 48,000.00 2013-12-19 2016-12-18

Shaanxi Mindong Long-term borrowing 9,633.90 2013-12-06 2016-12-05


Xi’an Xinrongjia Long-term borrowing 26,500.00 2013-10-28 2016-10-27

Shanghai Jiancui
























Shanghai Jiancui







Shanghai Jianrong













Jiashan Property




Shanghai Tianjin Long-term borrowing 5,400.00 2013-01-30 2016-01-30

Shanghai Hongrong







Shanghai Jianxi





Tianjin Kunlun




Shengxin Longmao Long-term borrowing 30,000.00 2013-07-19 2015-09-20

Tianjin Sunac Long-term borrowing 30,549.00 2013-09-06 2016-09-05


Wuhan Jinqiao Long-term borrowing 1,200.00 2012-04-06 2015-04-06








Wuhan Lin Yu Long-term borrowing 9,000.00 2012-02-29 2015-02-28


Wuhan Lin Hai




Wuhan Kangqiao







Wuhan Jingu













Poly Bogaohua Long-term borrowing 9,908.99 2012-06-27 2015-06-30


Changchun Poly Long-term borrowing 42,000.00 2012-12-25 2015-12-24


Changchun Hengfu Long-term borrowing 10,700.00 2012-02-24 2015-02-24


Hnagzhou Jianjia








Hangzhou Jianjin Long-term borrowing 50,000.00 2013-07-26 2016-07-01


Hangzhou Jianlin





Cixi Poly




Hangzhou Jianjin Long-term borrowing 20,000.00 2013-09-10 2016-09-10

















Chongqing Baocheng




Chongqing Zhonghui









Total

6,622,540.19

9.2 Guarantees provided by subsidiaries for the Company

As at December 31, 2013, the guarantees provided by subsidiaries for the Company amounted to

RMB 4,096,900,000 in total, with an increase of RMB 924,000,000 in 2013, details of which are as

follows.

Guarantee Type of liability

Balance of

guarantee

(RMB’0,000)

Life of loan

Date of borrowing Maturity date

Poly Beijing

Non-current liability maturing within one year 30,000.00 2011-09-09 2014-03-21 Shanghai Jianjin


Poly Beijing

Non-current liability maturing within one year 40,000.00 2011-09-09 2014-09-21 Shanghai Jianjin


Southern China

Industrial



Poly Beijing Long-term borrowing 70,000.00 2012-10-19 2015-10-18

Poly Beijing

Long-term borrowing 142,300.00 2011-09-09 2016-09-08 Shanghai Jianjing

Chognqing Investment

Poly Guangzhou Long-term borrowing 47,390.00 2012-04-25 2015-04-24

Total 409,690.00

9.3 Guarantees provided by subsidiaries for subsidiaries

As at December 31, 2013, the guarantees provided by subsidiaries for subsidiaries amounted to

RMB 5,925,550,000 in total, with an increase of RMB 2,275,550,000 in 2013, details of which are

as follows.

Guarantor Guarantee Type of liability

Balance of

guarantee

(RMB’0,000)

Life of loan


Hengli Hong

Kong

Poly Real Estate

Finance Ltd. Bonds payable 304,845.00 2013-08-06 2018-08-06

Poly Wuhan Wuhan Lin Yu Non-current liability maturing

within one year 19,000.00 2011-05-30 2014-05-30






Balance of

guarantee

(RMB’0,000)

Life of loan


Poly Beijing Beijing Poly Ying Non-current liability maturing

within one year 57,200.00 2011-07-29 2014-07-28

Poly Beijing Beijing Poly Ying Non-current liability maturing

within one year 5,000.00 2013-08-20 2014-09-20

Poly Beijing Beijing Shoukai Long-term borrowing 38,250.00 2013-08-23 2016-08-22

Poly Beijing Beijing Poly Ying Long-term borrowing 25,000.00 2013-08-20 2015-08-20

30,000.00 2013-09-03 2015-08-20

Poly Beijing Beijing Shoukai Long-term borrowing 13,260.00 2013-10-18 2016-09-18

Chongqing

Investment Chengdu Huayang Long-term borrowing

20,000.00 2013-05-30 2016-05-29

20,000.00 2013-08-05 2016-08-04

Hunan Poly Nanhu Property Long-term borrowing 30,000.00 2013-03-31 2015-03-31

Poly Chengdu Jiangsu Ningsheng Long-term borrowing

10,000.00 2012-04-27 2015-04-26

2,000.00 2012-05-02 2015-04-26

18,000.00 2012-05-24 2015-04-26

Total 592,555.00

Note: The guarantees provided by Poly Wuhan for Wuhan Lin Yu are jointly provided by the

Company and Poly Wuhan. The guarantees with an amount of RMB 572,000,000 provided by Poly

Beijing for Beijing Poly Ying are jointly provided by the Company and Poly Beijing. The

guarantees provided by Poly Chengdu for Jiangsu Ningcheng are jointly provided by the Company

and Poly Chengdu.

9.4 Guarantees provided for joint ventures

As at December 31, 2013, the guarantees provided by the Company for joint ventures amounted to

RMB 669,000,000 in total, with an increase of RMB 49,753,700 in 2013, details of which are as

follows.


Balance of

guarantee

(RMB’0,000)

Life of loan

Date of

borrowing Maturity date

The Company Shengshi Xinhe Short-term borrowing 26,500.00 2013-07-25 2014-07-24

Changchun

Hengfu

The Changchun

River Valley

Non-current liability maturing

within one year 7,500.00 2011-06-04 2014-06-03

The Company Shengshi Xinhe Non-current liability maturing

within one year 10,400.00 2011-12-27 2014-12-27

The Company Shengshi Xinhe Non-current liability maturing

within one year 2,500.00 2012-12-19 2014-06-11

The Company Nanjing Xueshang Long-term borrowing 20,000.00 2013-12-03 2016-10-30

Total 66,900.00

9.5 Bank mortgage loan guarantee

The headquarters of the Company and its subsidiaries provide mortgage loan guarantee for buyers

of commercial residential buildings as a real estate business convention. As at December 31, 2013,

the balance of accumulated guarantees amounted to RMB 33,406,574,100. The guarantees are

divided into phased guarantees and whole course guarantees. The period of phased guarantees

starts from the date the guarantee contract becoming effective and ends on the settlement of the

mortgage registration which is delivered to the bank for custody. As at December 31, 2013, the

phased guarantees undertaken by the Company amounted to RMB 33,395,444,100, and the whole

course guarantees undertaken by the Company amounted to RMB 11,130,000.

9.6 Pledge of assets

In order to obtain bank loans, as at the end of reporting period the Company pledged the following

assets.





Assets type Project Book value (RMB’0,000)

Inventories

The Beijing Poly Central Park 289,483.82

Beijing Poly Hyde Park 205,523.09

Beijing Poly Fengdan I 75,176.13

Beijing Poly Xiyue Spring 138,344.31

The Beijing Poly Spring Plaza 411,084.54

The Beijing Poly Dongjun 69,581.46

Chengdu Poly Xinyu Garden 24,978.73

The Chengdu Poly Park 198 129,660.86

The Chengdu Poly Cambridge 184,850.56

The Chengdu Poly Beisen Mansion 66,607.73

The Chengdu Poly Garden 59,670.36

The Chengdu Poly Stone Elephant Lake Project 974.66

Chengdu Poly Xinyu Garden 12,268.83

The Chengdu Poly Lily Mansion 84,133.73

The Deyang Poly International City 85,716.63

The Chengdu Poly Champagne International 47,066.09

The Chengdu Poly Center 40,923.96

The Chengdu Poly Leaves Whisper 56,559.49

The Chengdu Poly Phoenix Tree 56,523.47

Chengdu Poly Rose Whisper 75,613.23

The Zhongshan Poly Spring Plaza 12,409.42

The Zhongshan Poly International Plaza 9,019.04

The Guangzhou Poly West Coast Residence 9,911.76

The Guangzhou Poly Park 963.58

The Guangzhou Poly Yunxi 271,232.63

The Guangzhou Poly Luokewei Square 8,519.39

Dongguan Poly Forest Whisper 35,170.43

The Zhuhai Poly Mayflower 99,199.56

The Hefei Poly Lafei Mansion 97,156.89

Hefei Poly Phoenix Tree 17,716.91

The Hefei Poly Champagne International 83,500.00

Hefei Poly Mayflower 197,300.65

The Shijiazhuang Poly Garden 116,258.65

The Changsha Poly International Plaza 67,054.00

Chenzhou Poly Suxianlinyu 23,760.00

The Changsha Poly Lugu Forest Whisper 42,293.27

Nanjing Poly Zijing Mansion 44,500.00

Nanjing Poly Luolan Spring 63,879.24

Nanjing Poly Central Park 82,173.54

The Nanjing Poly Phoenix Tree 13,818.47






Wuxi Poly Central Park 31,386.63

The Dalian Poly West Mountains Forest Whisper 50,235.00

The Shenyang Poly Cambridge Residence 53,891.00

Shenyang Poly Champagne Garden 33,291.00

The Shenyang Poly Mayflower 12,054.00

The Dandong Poly Jinjiang Forest Whisper 81,586.00

The Shanghai Poly Champagne Garden 86,079.26

The Shanghai Poly Blue Forest Whisper 163,103.15

The Shanghai Poly Leaves of Forest 328,160.13

The Nantong Poly Champagne International 84,078.62

The Tianjin Poly Begonia Bay 29,785.00

The Tianjin Poly Rose Bay 1,867.00

Tianjin Poly Chanson Lake 36,234.00

The Tianjin Poly Horizon Capital 20,913.00

The Wuhan Poly Champagne International 17,325.39

The Wuhan Poly Central Residence 1,803.94

The Wuhan Poly Mahu Project 67.20

The Wuhan Poly Park 24,802.25

The Wuhan Poly Guanshan Village Project 33,729.09

The Wuhan Poly Dreams City 4,514.58

The Wuhan Poly Mayflower 7,260.00

The Hangzhou Poly Champagne International 60,255.00

The Shaoxing Poly Lakeside Reverie 26,780.00

The Hangzhou Poly Rose Bay 81,164.00

The Hangzhou Poly City Green 74,829.50

The Hangzhou Poly Joffre County 144,200.00

Hangzhou Poly Phoenix Tree 96,970.84

Zhejiang Poly Luo Lanxiang Valley 91,103.95

The Ningbo Poly Lakeside World 70,614.73

The Chongqing Poly Flowers in City Center 93,538.01

Chongqing Poly Linyuxi 23,410.65

The Chongqing Poly River Pearl 24,090.09

The Chongqing Poly Champagne Garden 1,956.89

Chongqing Poly Aishangli 72,755.98

The Nanchang Poly International Garden Mid-Levels 18,072.82

Nanchang Poly Lily Garden 21,041.87

The Qingdao Poly Haishang Luolan 162,481.68

The Qingdao Poly Champagne International 94,776.62

Qingdao Poly Leaf Mansion 92,217.70

Qingdao Poly Manyueshan 104,223.79






The Foshan Poly East Bay 32,571.23

The Qingyuan Poly Garden 7,437.95

The Yang Jiang Poly Silver Beach 115,897.70

Xi'an Poly Gold Champagne 42,512.08

Xi'an Poly Spring Plaza 76,743.33

Sub-total 6,142,391.76

Investment properties

Guangzhou Poly Center 36,596.11

The Guangzhou Poly International Plaza 20,900.76

The Guangzhou Poly World Trade Center 210,507.81

The Nanhai Poly Water City 111,337.83

Sub-total 379,342.51

Fixed assets The Guangzhou Poly International Plaza 7,799.56

Total 6,529,533.83

10 Commitments

10.1 Significant commitments

10.1.1 There was neither outbound investment contract that has been signed but not

performed or fully performed nor relevant financial expenses.

10.1.2 Signed contracts with large amount under performance or to be performed and their

financial impact

As at December 31, 2013, the outstanding capital to be provided as agreed in signed

contracts (mainly land and construction and installation contracts) reached an amount of

RMB 4,317,757,400, which shall be paid by the Company in several years upon

performance of obligations by other contract parties under the contracts. The details are as

follows.

(Unit: RMB’0,000):

Item Contract

amount

Accumulated

amount paid

Balance as at

December 31,

2013

Payment within

1 year

Payment

within 1-2

years

Payment

within 2-3

years

Payment for

over 3 years

Land transfer

contract 4,971,717.02 2,638,947.70 2,332,769.32 1,830,800.63 315,000.00 186,968.69 0.00

Construction &

installation project

contract 10,594,010.16 6,503,117.03 4,090,893.13 3,102,916.53 711,884.91 221,367.18 54,724.51

Other agreed

expenses 19,640.16 11,526.87 8,113.29 7,316.11 523.62 268.08 5.48

Total 15,585,367.34 9,153,591.60 6,431,775.74 4,941,033.27 1,027,408.53 408,603.95 54,729.99

10.1.3 There were neither signed significant lease contracts being performed or to be

performed nor their financial impact for the current period in 2013.

10.1.4 There were no signed significant merger & acquisition agreements being performed

or to be performed in the current period in 2013.

10.1.5 There were no signed significant restructuring plans being performed or to be

performed in the current period in 2013.

10.2 Performance of commitments in prior periods

There are no commitments in prior periods required to be disclosed.





11 Post balance sheet events

11.1 There are no significant post balance sheet date events required to be disclosed.

11.2 Post balance sheet date profit distribution

On March 29, 2014, the Company’s board of directors approved the motion for 2013 profit distribution

and transfer of capital reserves to share capital, in which the Company plans to distribute cash dividends

of RMB 2.94 (including tax) for every 10 shares to all shareholders with the dividend amounting to

RMB 2,098,570,350.95, and to issue 5 shares for every 10 shares of capital reserves, based on the total

shares of 7,137,994,391.00 as at December 31, 2013. This motion is yet to be submitted to the general

meeting of shareholders for approval.

11.3 There are no other post balance sheet date events required to be disclosed.

12 Other significant events In 2010, certain China Construction Bank staff was suspected of colluding with social lawbreakers in

forging seals for illegal appropriation of funds totaling RMB 90,000,000 that was deposited at the

Jiefang Park Road Sub-branch of China Construction Bank by Poly Bogaohua (Wuhan) Real Estate Co.,

Ltd. This event was already disclosed in the Company’s 2010 annual report. The funds totaling RMB

20,000,000 that had been frozen has been relieved and recovered in 2010, with the rest of RMB

70,000,000 still unrecovered. According to the facts, evidence and relevant judicial documents, this

deposit should be under protection by governing laws. On the one hand, the Company continues to

recover the funds through litigation proceedings and on the other hand strengthens the request for

collection of funds from the bank. As the criminal trials for individuals involved in this case are still in

process, recovery of funds will have to be after the verdict to enter into force.

13 Notes to the main items of financial statements of parent company (All the following amounts are expressed in RMB unless otherwise stated)


13.1.1 Aging analysis of accounts receivable:

Aging



Amount Proportion

(%) Amount

Proportion

(%) Amount

Proportion

(%) Amount

Proportion

(%)

Within 1 year

(including 1 year) 5,240,000.00 59.52 262,000.00 5.00 27,926,383.18 29.40 1,396,319.16 5.00

1-2 years (including

2 years) 2,722,762.20 30.93 136,138.11 5.00 3,539,292.55 3.73 176,964.63 5.00

2-3 years (including

3 years) 840,589.55 9.55 42,029.48 5.00

Over 3 years 63,505,618.82 66.87 3,175,280.94 5.00

Total 8,803,351.75 100.00 440,167.59 5.00 94,971,294.55 100.00 4,748,564.73 5.00

13.1.2 Accounts receivable by type:

Type



Book balance

Provision

for bad

debt

Book balance

Provision

for bad

debt

Book balance

Provision

for bad

debt

Book balance

Provision

for bad

debt


with large single amount

and accrued for provision

of bad debt on a single

basis





Type



Book balance

Provision

for bad

debt

Book balance

Provision

for bad

debt

Book balance

Provision

for bad

debt

Book balance

Provision

for bad

debt


accrued for provision of

bad debt by portfolio:

Accounts receivable

accrued for provision of

bad debt by percentage of

outstanding amount in

portfolio

8,803,351.75 100.00 440,167.59 5.00 94,971,294.55 100.00 4,748,564.73 5.00

Sub-total of portfolios 8,803,351.75 100.00 440,167.59 5.00 94,971,294.55 100.00 4,748,564.73 5.00


with insignificant single

amount but accrued for

provision of bad debt on a

single basis

Total 8,803,351.75 100.00 440,167.59 5.00 94,971,294.55 100.00 4,748,564.73 5.00

No accounts receivable with significant single amount were provided for allowances for bad debt on an individual basis as at December 31, 2013. Accounts receivable in portfolio with allowances for bad debt provided using the percentage method

Name of portfolio Book balance Proportion of provision (%) Provision for bad debt

Within 1 year (including 1 year) 5,240,000.00 5.00 262,000.00

1-2 years (including 2 years) 2,722,762.20 5.00 136,138.11

2-3 years (including 3 years) 840,589.55 5.00 42,029.48

Over 3 years

Total 8,803,351.75 5.00 440,167.59

There were no accounts receivable with insignificant single amount but accrued for

provision for bad debt on a single basis as at December 31, 2013.

13.1.3 No accounts receivable were reversed or recovered in 2013.

13.1.4 No accounts receivable were actually written off during the reporting period.

13.1.5 Of accounts receivable as at December 31, 2013, no amounts were due from shareholders holding more than 5% (inclusive) voting shares of the Company.

13.1.6 Top five accounts receivable

Company name Relationship with

the Company Book balance Aging

Proportion in total

accounts receivable (%)

1. China Merchants Bank,

Guangzhou Branch Customer 2,722,762.20 1-2 years 30.94

2. Ma Minlan Customer 576,000.00 2-3years 6.54

3. Xu Yicha, Wang Ruiyu Customer 500,000.00 Within 1 year 5.68

4. Yan Weixing Customer 450,000.00 Within 1 year 5.11

5. Zhong Jinlin Customer 400,000.00 Within 1 year 4.54

Total 4,648,762.20 52.81

13.1.7 There were no account receivables from related parties as at December 31, 2013.





13.1.8 There were no accounts receivable whose recognition was terminated due to transfer

of financial assets as at December 31, 2013.

13.1.9 There were no accounts receivables transferred whose recognition was fully

terminated in 2013.

13.1.10 There were no asset backed securities transactions in 2013 using account

receivables as the underlying asset subject matter.





13.2 Other receivables

14.2.1 Aging analysis of other receivables

Aging



Amount Proportion (%) Amount Proportion (%) Amount Proportion (%) Amount Proportion (%)

Within 1 year

(including 1 year) 46,307,610,775.69 93.64 143,241.00 22,064,010,441.05 75.55 1,691,157.17 0.01

1-2 years

(including 2 years) 2,877,487,884.24 5.82 1,024,771.24 0.04 7,130,630,018.85 24.42 1,167,749.24 0.02

2-3 years

(including 3 years) 261,344,734.84 0.53 1,146,519.20 0.44 9,314,722.60 0.03 465,736.13 5.00

Over 3 years 4,672,461.27 0.01 233,623.06 5.00

Total 49,451,115,856.04 100.00 2,548,154.50 29,203,955,182.50 100.00 3,324,642.54

14.2.2 Other receivables by type:

Type



Amount Proportion

(%) Amount

Proportion

(%) Amount

Proportion

(%) Amount

Proportion

(%)

1. Other receivables with large single

amount and accrued for provision of bad

debt on a single basis

48,637,975,391.62 98.36 28,155,486,003.25 96.41

2. Other receivables accrued for provision

of bad debt by portfolio -

Other receivables accrued for provision of

bad debt by percentage of outstanding

amount in portfolio

50,963,090.00 0.10 2,548,154.50 5.00 66,492,850.80 0.23 3,324,642.54 5.00

Sub-total of portfolios 50,963,090.00 0.10 2,548,154.50 5.00 66,492,850.80 0.23 3,324,642.54 5.00

3. Other receivables with insignificant

single amount but accrued for provision of

bad debt on a single basis

762,177,374.42 1.54 981,976,328.45 3.36

Total 49,451,115,856.04 100.00 2,548,154.50 5.00 29,203,955,182.50 100.00 3,324,642.54 5.00

Other receivables with significant mount were the parent company’s receivables from internal entities totaling RMB 8,637,975,391.62.





Other receivables in portfolio with allowances for bad debt provided using the percentage method


provision (%)

Provision for bad

debt

Within 1 year (including 1 year) 2,864,819.93 5.00 143,241.00

1-2 years (including 2 years) 20,495,424.87 5.00 1,024,771.24

2-3 years (including 3 years) 22,930,383.93 5.00 1,146,519.20

Over 3 years 4,672,461.27 5.00 233,623.06

Total 50,963,090.00 5.00 2,548,154.50

The other receivables with insignificant single amount as at December 31, 2013 were the

parent company’s current account receivable from internal entities.

13.2.3 Of other receivables as at December 31, 2013, no amount was due from shareholders

holding more than 5% (inclusive) voting shares of the Company.

13.2.4 Top five other receivables:

Company name Relationship with

the Company Book balance Aging

Proportion in

total other

receivables (%)

Nature or

content

1. Guangdong Poly Subsidiary of the

Company

9,009,019,890.82 Within 2

years

18.21 Current

account

2. Shanghai Poly Subsidiary of the

Company

3,960,928,927.50 Within 1 year 8.01 Current

account

3.South China

Holdings

Subsidiary of the

Company


account

4. Jiangsu Ningheng Subsidiary of the

Company


account

5. Zhejiang Poly Subsidiary of the

Company


account

Total 20,282,262,445.26 41.01

13.2.5 Nature or content of other receivables with significant amount:

Company name Amount Nature or content of

other receivables

1. Guangdong Poly 9,009,019,890.82 Current account

2. Shanghai Poly 3,960,928,927.50 Current account

3. Poly South China Holdings 2,875,693,444.90 Current account

4. Jiangsu Ningheng 2,250,200,225.10 Current account

5. Zhejiang Poly 2,186,419,956.94 Current account

Total 20,282,262,445.26

13.2.6 There were no other receivables whose recognition was terminated due to transfer of

financial assets as at December 31, 2013.

13.2.7 There were no other receivables transferred whose recognition was fully terminated in

2013.

13.2.8 There were no asset backed security transactions in 2013 using other receivables as

subject matter.






13.3.1 Details of long-term equity investments

Investee Accounting

method Cost of investment

Balance as at

January 1, 2013

Increase or

decrease

Including: share

of other

comprehensive

income of

associates and

joint ventures

Balance as at

December 31,

2013

Shareholding

ratio in

investee (%)

Voting

ratio in

investee

(%)

Remark on

different

ratios of

shareholding

and voting in

investee

Provision

for

impairment

Provision

for

impairment

in 2013

Cash dividends in

2013

Associates:

ECIC Fund

Management

Equity

method 40,000,000.00 144,132,780.55 86,086,933.20 230,219,713.75 40 40 24,000,000.00

Sub-total of equity

method 40,000,000.00 144,132,780.55 86,086,933.20 230,219,713.75 24,000,000.00

Subsidiaries:

Poly Guangzhou Cost method 10,200,000.00 10,200,000.00 10,200,000.00 51 51

Poly Zengcheng Cost method 50,000,000.00 50,000,000.00 50,000,000.00 100 100

Guangdong Poly Cost method 200,000,000.00 200,000,000.00 200,000,000.00 100 100

Science City Cost method 60,151,633.08 60,151,633.08 60,151,633.08 100 100

Huachu Corporation Cost method 5,513,643.69 5,513,643.69 5,513,643.69 87.5 87.5

Ziwei Garden Project of

Guangzhou Poly Cost method 65,000,000.00 65,000,000.00 65,000,000.00 50 50

Guangzhou Tianli Cost method 110,710,800.00 110,710,800.00 110,710,800.00 51 51

Guangzhou Gemdale Cost method 39,939,666.56 39,939,666.56 39,939,666.56 100 100

Guangzhou Jinnuo Cost method 9,000,000.00 9,000,000.00 9,000,000.00 60 60

Poly Dongguan Cost method 50,000,000.00 50,000,000.00 50,000,000.00 100 100

Dongguan Investment Cost method 80,000,000.00 80,000,000.00 80,000,000.00 80 80

Zhuhai Poly Cost method 50,000,000.00 50,000,000.00 50,000,000.00 100 100

Zhongshan Poly Cost method 50,000,000.00 50,000,000.00 50,000,000.00 100 100

Hong Kong Hengli Cost method 915,200.00 915,200.00 915,200.00 100 100

Poly International Trade Cost method 51,000,000.00 51,000,000.00 51,000,000.00 51 51

Pazhou Investment Cost method 80,000,000.00 80,000,000.00 80,000,000.00 59.2 59.2

Poly Shenyang Cost method 60,000,000.00 60,000,000.00 60,000,000.00 60 60 144,000,000.00

Liaoning Poly Cost method 80,000,000.00 80,000,000.00 80,000,000.00 80 80

Shenyang Hirota Cost method 201,080,853.55 201,080,853.55 201,080,853.55 100 100

Poly Dalian Cost method 100,000,000.00 100,000,000.00 100,000,000.00 100 100

Changchun Hengfu Cost method 50,000,000.00 50,000,000.00 50,000,000.00 100 100

Changchun Liuhe Cost method 80,000,000.00 80,000,000.00 80,000,000.00 80 80 128,000,000.00

Poly Beijing Cost method 303,687,210.30 303,687,210.30 303,687,210.30 100 100





Investee Accounting


Balance as at

January 1, 2013

Increase or

decrease

Including: share

of other

comprehensive

income of

associates and

joint ventures

Balance as at

December 31,

2013

Shareholding

ratio in

investee (%)

Voting

ratio in

investee

(%)

Remark on

different

ratios of

shareholding

and voting in

investee

Provision

for

impairment

Provision

for

impairment

in 2013

Cash dividends in

2013

Jinchenghua Cost method 22,500,000.00 22,500,000.00 22,500,000.00 75 75 135,000,000.00

Shanghai Poly Cost method 60,865,617.21 60,870,386.26 60,870,386.26 61 61

Junlan Property Cost method 4,000,000.00 4,000,000.00 4,000,000.00 40 40

Shanghai Jianjin Cost method 50,000,000.00 50,000,000.00 50,000,000.00 100 100

Shanghai Jianlin Cost method 100,000,000.00 100,000,000.00 100,000,000.00 100 100 380,000,000.00

Shanghai Jianqiao Cost method 18,000,000.00 18,000,000.00 18,000,000.00 90 90

South China Holdings Cost method 99,953,633.62 100,000,000.00 100,000,000.00 100 100

Foshan Poly Cost method 200,000.00 200,000.00 200,000.00 1 1

Chongqing Investment Cost method 500,000,000.00 100,000,000.00 400,000,000.00 500,000,000.00 100 100 80,000,000.00

Poly Tianjin Cost method 200,000,000.00 200,000,000.00 200,000,000.00 100 100

Poly Wuhan Cost method 108,280,000.00 108,280,000.00 108,280,000.00 100 100 102,704,200.00

Poly Bogaohua Cost method 105,000,000.00 105,000,000.00 105,000,000.00 70 70

Zhejiang Poly Cost method 100,000,000.00 100,000,000.00 100,000,000.00 100 100

Hangzhou Jianyi Cost method 49,000,000.00 49,000,000.00 49,000,000.00 49 49

Poly Chengdu Cost method 200,000,000.00 200,000,000.00 200,000,000.00 100 100 8,417,700.00

Chengdu Baorong Cost method 25,500,000.00 25,500,000.00 25,500,000.00 51 51

Hunan Poly Cost method 43,017,582.83 39,603,534.61 3,000,000.00 42,603,534.61 86 86

Nanchang Ruida Cost method 635,400,000.00 635,400,000.00 635,400,000.00 100 100

Jiangxi Jintongtia Cost method 22,500,000.00 22,500,000.00 22,500,000.00 75 75 52,500,000.00

Manchang Minya Cost method 112,894,545.68 112,894,545.68 112,894,545.68 60 60

Poly Jiangsu Cost method 100,000,000.00 100,000,000.00 100,000,000.00 100 100

Jiangsu Ningyuan Cost method 50,000,000.00 50,000,000.00 50,000,000.00 51 51

Qingdao Anxin Cost method 51,000,000.00 51,000,000.00 51,000,000.00 51 51

Qingdao Industrial Cost method 500,000,000.00 100,000,000.00 400,000,000.00 500,000,000.00 100 100 132,509,167.33

Poly Yangjiang Cost method 60,000,000.00 60,000,000.00 60,000,000.00 100 100

Poly Hailindao Cost method 50,000,000.00 50,000,000.00 50,000,000.00 100 100

Poly Xi’an Cost method 700,000.00 700,000.00 700,000.00 70 70

Poly Baotou Cost method 44,000,000.00 44,000,000.00 44,000,000.00 55 55 82,500,000.00

Hefei Poly Cost method 51,000,000.00 51,000,000.00 51,000,000.00 51 51

Zhengzhou Hengtian Cost method 100,000,000.00 100,000,000.00 100,000,000.00 50 50

Fuli Construction &

Installation Cost method 433,137,341.43 433,137,341.43 433,137,341.43 100 100





Investee Accounting


Balance as at

January 1, 2013

Increase or

decrease

Including: share

of other

comprehensive

income of

associates and

joint ventures

Balance as at

December 31,

2013

Shareholding

ratio in

investee (%)

Voting

ratio in

investee

(%)

Remark on

different

ratios of

shareholding

and voting in

investee

Provision

for

impairment

Provision

for

impairment

in 2013

Cash dividends in

2013

Jiali Decoration Cost method 35,935,700.00 35,935,700.00 35,935,700.00 100 100

Poly Digital Cost method 4,500,000.00 4,500,000.00 4,500,000.00 50 50

Guangzhou Property Cost method 50,114,738.86 50,000,000.00 50,000,000.00 100 100

Poly Agency Cost method 12,347,853.92 12,347,853.92 12,347,853.92 100 100 77,540,000.00

Poly Jinhan Cost method 1,632,000.00 1,632,000.00 1,632,000.00 51 51 38,734,500.00

Zhonggong Design

Institute Cost method 12,724,024.60 10,567,840.00 2,156,184.60 12,724,024.60 60 60 2,156,184.60

Chongqing Golf Cost method 46,301,526.23 46,301,526.23 46,301,526.23 90 90

Xi’an Xinrongjia Cost method 130,460,000.00 130,460,000.00 130,460,000.00 100 100

Poly Sanya Cost method 200,000,000.00 200,000,000.00 200,000,000.00 100 100

Poly Fujian Cost method 100,000,000.00 100,000,000.00 100,000,000.00 100 100

Sanya Baoxin Cost method 150,000,000.00 150,000,000.00 150,000,000.00 50 50

Poly Commercial Cost method 100,000,000.00 100,000,000.00 100,000,000.00 100 100

Shaanxi Mindong Cost method 102,000,000.00 102,000,000.00 102,000,000.00 51 51

Shaanxi Poly Cost method 500,000,000.00 500,000,000.00 500,000,000.00 100 100

Hefei Hexin Cost method 17,000,000.00 17,000,000.00 17,000,000.00 85 85

Hong Kong Hengfu Cost method 6,225,000.00 6,225,000.00 6,225,000.00 100 100

Liaoning Industrial Cost method 200,000,000.00 200,000,000.00 200,000,000.00 100 100

Hunan Investment Cost method 500,000,000.00 500,000,000.00 500,000,000.00 100 100

Wuxi Zhiyuan Cost method 51,000,000.00 51,000,000.00 51,000,000.00 51 51

Zhanjiang Xingsheng Cost method 14,000,000.00 14,000,000.00 14,000,000.00 65 65

Poly Jiangxi Cost method 500,000,000.00 500,000,000.00 500,000,000.00 100 100

Hefei Heheng Cost method 331,509,750.00 331,509,750.00 331,509,750.00 51 51

Guangzhou Urban

Reconstruction Cost method 100,000,000.00 100,000,000.00 100,000,000.00 100 100

Other investees:

Poly Finance Cost method 76,802,985.00 76,802,985.00 76,802,985.00 10 10 3,301,232.86

ECIC Limited

Partnership Cost method 444,000,000.00 564,000,000.00 -120,000,000.00 444,000,000.00

Sub-total of cost method 9,370,701,306.56 6,465,332,720.31 2,904,890,934.60 9,370,223,654.91 1,367,362,984.79

Total 9,410,701,306.56 6,609,465,500.86 2,990,977,867.80 9,600,443,368.66 1,391,362,984.79





13.3.2 Long-term equity investment sold at a price that is obviously higher than the book

value in 2013

None.

13.4 Revenue and cost of goods sold

13.4.1 Operating income and operating cost


Income from main operations 8,962,516,965.30 2,196,616,062.00

Income from other operations 188,916,075.91 164,754,878.29

Total operating income 9,151,433,041.21 2,361,370,940.29

Operating costs 5,680,516,660.96 1,591,071,765.66

13.4.2 The presentation of business by industry is as follows.

Name of

industry

Year 2013 Year 2012

Income from

main operations

Cost of

main operations

Income from

main operations

Cost of

main operations

Property

sales 8,962,516,965.30 5,652,516,110.15 2,196,616,062.00 1,561,928,608.04

Total 8,962,516,965.30 5,652,516,110.15 2,196,616,062.00 1,561,928,608.04

13.4.3 The presentation of main business operations by region is as follows.

Name of

industry

Year 2013 Year 2012

Income from

main operations

Cost of

main operations

Income from

main operations

Cost of

main operations

Guangzhou

region 8,962,516,965.30 5,652,516,110.15 2,196,616,062.00 1,561,928,608.04

Total 8,962,516,965.30 5,652,516,110.15 2,196,616,062.00 1,561,928,608.04

13.4.4 Revenue from top five customers

Name of customer Total operating income

Proportion in total operating

income

of the Company (%)

Guangdong Material Industry (Group) Co.,

Ltd. 1,567,718,000.00 17.13

Guangzhou Automobile Group Co., Ltd. 1,318,672,000.00 14.41

Liang Jiaxiang 18,300,000.00 0.20

Hong Cuiping 14,670,000.00 0.16

Xie Peiting 14,600,000.00 0.16

Total 2,933,960,000.00 32.06

13.5 Details of investment income

13.5.1 Details of investment income


Long-term equity investment income calculated by cost method 1,367,362,984.79 1,568,441,376.11

Long-term equity investment income calculated by equity method 110,086,933.20 82,464,084.02

Investment income from disposal of long-term equity investment 21,975,390.44

Investment income from holding held-for-trading financial assets

Investment income from holding held-to-maturity investment

Investment income from holding available-for-sale financial assets

Investment income from disposal of held-for-trading financial assets

Investment income from held-to-maturity investment

Investment income from available-for-sale financial assets

Others

Total 1,477,449,917.99 1,672,880,850.57





13.5.2 Long-term equity investment income calculated using cost method



Fuli Construction &

Installation 300,000,000.00

Guangzhou Gemdale 176,000,000.00

Poly Beijing 182,940,000.00

Shanghai Jianjin 160,000,000.00

South China

Holdings 134,600,000.00

Poly Shenyang 120,000,000.00

Tianjin Poly 102,568,000.00

Shanghai Jianlin 380,000,000.00 There were no dividends in 2012.

Total 380,000,000.00 1,176,108,000.00

Note: The above investment income accounts for more than 5% of total profits.

13.5.3 Long-term equity investment income calculated using equity method

Investee Year 2013 Year 2012 Reason for increase or decrease

in comparison with year 2012

ECIC Fund Management 110,086,933.20 82,464,084.02 Increase of profit of investee in

2013

13.5.4 There were no significant restrictions in collecting the remittance of investment

income in the current period.

13.6 Supplementary information to the statements of cash flows


1. Net profit adjusted to cash flow from operating activities

Net profit 2,892,153,827.71 1,839,514,158.89

Plus: provision for assets impairment -5,084,885.18 1,606,064.01

Depreciation of fixed assets, depletion of oil and gas assets,

depreciation of productive biological assets 35,457,412.12 39,553,607.92

Amortization of intangible assets 2,283,357.78 1,822,467.55

Amortization of long-term deferred expenses 1,625.01

Losses on disposal of fixed assets, intangible assets and other

long-term assets ("-" for gains) 19,424.52 54,915.28

Losses on write-off of fixed assets ("-" for gains)

Losses on changes in fair value ("-" for gains)

Financial expenses ("-" for gains) 354,219,885.94 -154,995,176.18

Investments losses ("-" for gains) -1,477,449,917.99 -1,672,880,850.57

Decreases in deferred income tax assets ("-" for increases) -25,819,160.06 -1,235,385.27

Increases in deferred income tax liabilities ("-" for decreases)

Decreases in inventories (“-” for increases) 3,880,146,627.24 -863,078,730.62

Decreases in operating receivables (“-” for increases) -19,634,465,147.52 -1,902,184,062.95

Increases in operating payables (“-” for decreases) 18,840,755,721.97 5,707,204,183.28

Others

Net cash flows from operating activities 4,862,218,771.54 2,995,381,191.34

2. Significant investing and financing activities not involving

cash receipt and payment

Conversion of debt into capital

Convertible corporate bonds maturing within one year

Fixed assets acquired under financing leases

3. Net changes in cash and cash equivalents

Balance of cash as at December 31, 2013 3,489,569,720.57 7,097,116,519.52

Less: Balance of cash as at January 1, 2013 7,097,116,519.52 1,857,308,384.78

Plus: Balance of cash equivalents as at December 31, 2013






Less: Balance of cash equivalents as at January 1, 2013

Net increase in cash and cash equivalents -3,607,546,798.95 5,239,808,134.74

14 Supplementary information (All the following amounts are expressed in RMB unless otherwise stated)

14.1 Details of non-recurring profit and loss in the current period

14.1.1 According to the Announcement No. 1 on Information Disclosure for Companies

Issuing Securities to the Public - Non-recurring Profit and Loss (2008) [Notice [2008]

No. 43 of the China Securities Regulatory Commission], the non-recurring profit and

loss details of the Company are presented as follows.

Item Amount Remark

1. Gain or loss on disposal of non-current assets, including the offset of

provision for assets impairment 446,684.77

2. Approval beyond authority, or documents without formal approval, or

sporadic tax return, deduction and exemption

3. Government subsidies included in current profit and loss (closely related to

enterprise business, excluding the government subsidies with quota or quantity

in accordance with the unified state standards)

4. Payment for the use of state funds charged from non-financial enterprises and

included in current profit and loss

5. Gain arising from the situation when the cost of acquisition of the investment

of subsidiaries, associates and joint ventures is less than the fair value of shares

of net identifiable assets of investee upon the acquisition of investment

6. Gain or loss on exchange of non-monetary assets

7. Gain or loss on entrusting others to make investments or manage assets

8. Provision for assets impairment due to force majeure, including natural

disasters and etc.

9. Gain or loss on debt restructuring

10. Enterprise restructuring charges, including charges for staffing, integration

and etc.

11. Gain or loss arising from the excess of unfair transaction price over the fair

value of the transaction

12. Current net profit of subsidiaries formed by the combination of enterprises

under the common control from January 1, 2013 to the combining date

13. Gain or loss from contingencies not related to normal business of the

Company

14. Gain or loss on changes in fair value of held-for-trading financial assets,

trading financial liabilities except for the effective hedging business related to

normal business of the Company, and the investment income from disposal of

held-for-trading financial assets, trading financial liabilities and

available-for-sale financial assets

15. Reversal of provision for impairment of accounts receivable for which

impairment tests were made on a single basis

16. Gain or loss on outward entrusted loan

17. Gain or loss on changes in fair value of investment properties of which the

subsequent measurements were made based on the fair value

18. Effect of one-off adjustment for current profit and loss as required by tax

laws and accounting rules on current profit and loss

19. Income from trustee fees for operation on commission

20. Other non-operating income and expenses other than the above items 94,425,515.20

21. Other items of profit and loss in conformity with the definition of

non-recurring profit and loss

22. Effect of minority equity -5,012,037.81

23. Effect of income tax -27,657,704.38

Total 62,202,457.78





14.1.2 The Company did not classify any non-recurring profit and loss items, which either

are “other profit and loss items meeting definition of non-recurring profit and loss

items” or are non-recurring profit and loss items as judged based on the Company’s

business nature and operations, as recurring profit and loss items.

14.2 Rate of return on net assets and earnings per share:

According to “Rule 9 on Information Disclosure by Companies Offering Securities to the Public-

calculations and Disclosures of Rate of Return on Net Assets and Earnings Per Share (revised in

2010)” (Notice [2010] No. 2 of China Securities Regulatory Commission), Announcement No. 1

on Information Disclosure by Companies Offering Their Securities to the Pubic-Non-recurring

Profits and Losses (2008) (Notice [2008] No. 43 of China Securities Regulatory Commission)

issued by China Securities Regulatory Commission, the rate of return on net assets and earnings

per share are as follows.

Profit during the reporting period

Weighted average

rate of return on net

assets (%)

Earnings per share (RMB)

Basic earnings per share Diluted earnings per

share

Net profit attributable to ordinary

shareholders of the Company 22.95 1.51 1.51

Net profit attributable to ordinary

shareholders of the Company after deducting

the non-recurring profit and loss 22.81 1.50 1.50

14.3 Fluctuations of main financial statement items and the reasons (unit: RMB’0,000)

14.3.1 Balance sheet

Item

Balance as at

December 31,

2013

Balance as at

January 1,

2012

Amount of

movement

Extent of

movement (%) Reason for movement

Other

receivables 773,688.74 251,221.94 522,466.80 207.97

Increases in current accounts with

shareholders of cooperative

partners of associates, joint

ventures and subsidiaries

Inventories 23,990,729.60 18,964,382.31 5,026,347.29 26.50

Increases in land price and

engineering cost of real estate

projects

Long-term

equity

investment

338,208.29 135,079.42 203,128.87 150.38

Increase in recognition of

adjustment for profit and loss of

associates and joint ventures

Fixed assets 198,503.95 137,843.13 60,660.82 44.01 Increases in use of investment in

self-use and self-run properties

Accounts

payable 1,867,070.34 1,279,288.76 587,781.58 45.95

Increases in cost withheld,

expenses of real estate and project

funds payable

Tax payables -621,852.52 -408,459.76 -213,392.76 -52.24 Increases in taxes withheld for

advance house purchase payments

Other payables 2,583,519.58 1,529,202.76 1,054,316.82 68.95 Increases in the payment from

partners of subsidiaries

Long-term

borrowing 7,510,130.06 5,585,041.33 1,925,088.73 34.47

Duly increases in loans according

to the demands for funds to

expand the operating scale

Bonds payables 298,954.87 298,954.87 New issuance of USD bonds

Minority equity 1,739,030.66 1,229,313.97 509,716.69 41.46

Increase of minority shareholders’

contributions and cooperative

corporations





14.3.2 Income statement

Item Year 2013 Year 2012 Amount of

movement

Extent of

movement (%) Reason for movement

Operating

income 9,235,552.42 6,890,575.67 2,344,976.75 34.03

Increases in floor area for

completion and growth of other

business

Operating costs 6,265,521.52 4,397,208.18 1,868,313.34 42.49 Growth of operating income resulted

in increase of cost

Selling expenses 218,517.64 164,561.09 53,956.55 32.79

Increases in project in sale and sales

volume, resulting in increases in

advertising expenses, promotion

expenses, employee compensation

and other expenses

Investment

income 63,505.26 41,136.90 22,368.36 54.38

Profit growth gained by associates

and joint ventures

15 Approval for disclosure of financial statements These financial statements were approved by the board of directors on March 29, 2014.

Poly Real Estate (Group) Co., Ltd.

March 29, 2014

POLY REAL ESTATE GROUP CO., LTD. AUDITOR S REPORT …

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