Macau E&M Holding Limited - Proxy Solicitation & Information Statement 2017

THIS CIRCULAR IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION

If you are in any doubt as to any aspect of this circular or as to the action to be taken, you should consult your licensed securities dealer or registered institution in securities, bank manager, solicitor, professional accountant or other professional adviser.

If you have sold or transferred all your shares in Shenzhen Investment Limited , you should at once hand this circular to the purchaser or to the transferee or to the bank, licensed securities dealer or registered institution in securities, or other agent through whom the sale or transfer was effected, for transmission to the purchaser or the transferee.

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this circular, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this circular.

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(Incorporated in Hong Kong with limited liability) (Stock Code: 00604)

MAJOR TRANSACTION CAPITAL CONTRIBUTION TO HENGDA REAL ESTATE GROUP COMPANY LIMITED

A letter from the board of directors of Shenzhen Investment Limited is set out on pages 7 to 25 of this circular.

24 November 2017

CONTENTS

			Page
Definitions . . . . . . .		. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	1
Letter from the	Board. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		7
Appendix I	–	Financial information of the Group . . . . . . . . . . . . . . . . . .	I-1
Appendix II	–	Financial information of Hengda Real Estate . . . . . . . . . .	II-1
Appendix III	–	Unaudited pro forma financial information
		of the Group following the Capital Contribution . . . . . .	III-1
Appendix IV	–	Valuation report of Hengda Real Estate Group . . . . . . . .	IV-1
Appendix V	–	General information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	V-1

– i –

DEFINITIONS

In this circular, the following expressions shall have the following meanings unless the context otherwise requires:–

“Accountants’ Report Waiver”
has the meaning ascribed to it under the section headed “ Letter from the Board – Waiver from strict compliance with Rules 5.02, 14.66(11), 14.67(6)(a)(i) and 14.67(7) of the Listing Rules – B. Waiver from strict compliance with Rules 14.67(6)(a)(i) and 14.67(7) of the Listing Rules in relation to the preparation and inclusion of accountants’ report and management discussion and analysis ”
“Board”

the board of Directors

“Business Day”
any day (not being a Saturday, Sunday or a statutory holiday) on which banks in the PRC are open for normal business
“Buy-back Option” has the meaning ascribed to it in paragraph (i) under the section headed “ Letter from the Board – The Investment Agreement – Exit rights ”
“Capital Contribution”
the contribution of RMB5.5 billion to the capital of Hengda Real Estate by the Subsidiary pursuant to the terms of the Investment Agreement
“CBRE”
CBRE Limited
“China Evergrande”
China Evergrande Group, a company incorporated in the Cayman Islands, the shares of which are listed on the Main Board of the Stock Exchange
“Company”
Shenzhen Investment Limited, a company incorporated in Hong Kong with limited liability, the shares of which are listed on the Main Board of the Stock Exchange
“connected person”
has the meaning ascribed to it under the Listing Rules
“controlling shareholder”
has the meaning ascribed to it under the Listing Rules
“CSRC”
the China Securities Regulatory Commission
“Director(s)”
the director(s) of the Company

– 1 –

DEFINITIONS

“First Announcement”
the announcement of the Company dated 31 May 2017 in relation to the entering into of the Principal Investment Agreement
“First Round Investors”
the first round strategic investors who have invested in Hengda Real Estate by contributing to its capital pursuant to the first round investment agreements entered into by them with Hengda Real Estate and Kailong Real Estate as announced by China Evergrande in its announcement dated 31 December 2016
“First Supplemental Investment Agreement”
the supplemental agreement dated 31 May 2017 entered into amongst the Subsidiary, Kailong Real Estate and Hengda Real Estate in relation to the amendments to the terms of the Principal Investment Agreement and such supplemental agreement has lapsed upon the taking effect of the Third Supplemental Investment Agreement after the Third Supplemental Investment Agreement was signed by the parties thereto
“Group” the Company and its subsidiaries
“Hengda Real Estate”
恒大地產集團有限公司 (Hengda Real Estate Group Company Limited*), a limited liability company established in the PRC and approximately 73.88% of its equity interest is held by Kailong Real Estate as at the Latest Practicable Date
“Hengda Real Estate Group” Hengda Real Estate and its subsidiaries
“HK$”
Hong Kong dollars, the lawful currency of Hong Kong
“Hong Kong” the Hong Kong Special Administrative Region of the PRC
“Investment Agreement”
the Principal Investment Agreement, as amended and supplemented by the First Supplemental Investment Agreement and further amended and supplemented by the Second Supplemental Investment Agreement and the Third Supplemental Investment Agreement
“Investors”

the First Round Investors, the Second Round Investors and the Third Round Investors

– 2 –

DEFINITIONS

“Kailong Real Estate”

廣州市凱隆置業有限公司 (Guangzhou Kailong Real Estate Company Limited*), a limited liability company established in the PRC and a wholly-owned subsidiary of China Evergrande

“Latest Practicable Date”
21 November 2017, being the latest practicable date prior to the printing of this circular for the purpose of ascertaining certain information for inclusion in this circular
“Listco”
a PRC company the shares of which are listed on the Shanghai Stock Exchange or the Shenzhen Stock Exchange, including but not limited to Shenzhen Real Estate
“Listing Rules” the Rules Governing the Listing of Securities on the Stock Exchange
“Lock-up Period”
has the meaning ascribed to it under the section headed “ Letter from the Board – The Investment Agreement – Lock-up undertaking by Kailong Real Estate ”
“MD&A Waiver”
has the meaning ascribed to it under the section headed “ Letter from the Board – Waiver from strict compliance with Rules 5.02, 14.66(11), 14.67(6)(a)(i) and 14.67(7) of the Listing Rules – B. Waiver from strict compliance with Rules 14.67(6)(a)(i) and 14.67(7) of the Listing Rules in relation to the preparation and inclusion of accountants’ report and management discussion and analysis ”
“Mr. Hui”
Mr. Hui Ka Yan, a director and controlling shareholder of China Evergrande
“net profit”
for the purpose of the Investment Agreement, the net profits attributable to the holding company after deducting extraordinary profits and losses
“Performance Undertaking Amount(s)”

the undertaking in respect of the minimum amount(s) of net profit of Hengda Real Estate for the Performance Undertaking Period given by Kailong Real Estate and Hengda Real Estate under the Investment Agreement

“Performance Undertaking Period”
the three financial years ending 31 December 2017, 2018 and 2019

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DEFINITIONS

“PRC”

“Principal Investment Agreement”
“Property Valuation Waiver”
“Proposed Reorganisation”
“PwC”
“Reorganisation Agreement”
“RMB”
“Second Announcement”

the People’s Republic of China, for the purpose of this circular, excludes Hong Kong, Taiwan and the Macau Special Administrative Region of the PRC

the principal investment agreement dated 31 May 2017 entered into amongst the Subsidiary, Kailong Real Estate and Hengda Real Estate in relation to the Capital Contribution (as amended and supplemented by the First Supplemental Investment Agreement)
has the meaning ascribed to it under the section headed “ Letter from the Board – Waiver from strict compliance with Rules 5.02, 14.66(11), 14.67(6)(a)(i) and 14.67(7) of the Listing Rules – A. Waiver from strict compliance with Rules 5.02 and 14.66(11) of the Listing Rules in relation to the inclusion of a valuation report for property interests held by Hengda Real Estate (the “Property Valuation Waiver ”)”
the proposed major assets reorganisation of Shenzhen Real Estate where Shenzhen Real Estate will by way of issue of RMB ordinary shares (A shares) and/or the payment of cash consideration, acquire 100% of the equity interest in Hengda Real Estate, which will result in Kailong Real Estate becoming the controlling shareholder of Shenzhen Real Estate
PricewaterhouseCoopers Zhong Tian LLP

the reorganisation agreement to be entered into between Kailong Real Estate, Hengda Real Estate, Shenzhen Real Estate and SIH in relation to the Proposed Reorganisation

Renminbi, the lawful currency of the PRC
the announcement of the Company dated 29 June 2017 in relation to the entering into of the Second Supplemental Investment Agreement

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DEFINITIONS

“Second Round Investors”
“Second Supplemental Investment Agreement”
“SFO”
“Share(s)”
“Shareholder(s)”
“Shenzhen Real Estate”
“Shum Yip Group”
“Shum Yip Holdings”
“SIH”
“Stock Exchange”
the second round strategic investors (including the Subsidiary) who have invested in Hengda Real Estate by contributing to its capital pursuant to the second round investment agreements entered into by them with Hengda Real Estate and Kailong Real Estate as announced by China Evergrande in its announcement dated 31 May 2017
the supplemental agreement dated 28 June 2017 entered into amongst the Subsidiary, Kailong Real Estate, Hengda Real Estate and Mr. Hui in relation to the amendments to the terms of the Principal Investment Agreement
the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong)
the ordinary share(s) of the Company
shareholder(s) of the Company
深圳經濟特區房地產(集團)股份有限公司 (Shenzhen Special Economic Zone Real Estate & Properties (Group) Co. Ltd.*), a joint stock company established in the PRC, the shares of which are listed on the Shenzhen Stock Exchange (Shenzhen Stock Exchange A share stock code: 000029, B share stock code: 200029)
深業集團有限公司 (Shum Yip Group Limited*), a company established in the PRC and the holding company of Shum Yip Holdings, which is ultimately wholly-owned by Shenzhen Municipal People’s Government and under the administration of 深圳市人民政府國有資產監督管理委員會 (Shenzhen SASAC) Shum Yip Holdings Company Limited (深業(集團)有限公司), a company incorporated in Hong Kong and wholly-owned by Shum Yip Group
深圳市投資控股有限公司 (Shenzhen Investment Holding Co. Ltd.*), a company established in the PRC, the controlling shareholder of Shenzhen Real Estate

The Stock Exchange of Hong Kong Limited

– 5 –

DEFINITIONS

“Subsidiary”
馬鞍山市茂文科技工業園有限公司 (Maanshan Maowen Technology Park Co. Ltd.*), a company established in the PRC with limited liability and an indirect wholly-owned subsidiary of the Company
“Third Announcement”

the announcement of the Company dated 6 November 2017 in relation to the entering into of the Third Supplemental Investment Agreement

“Third Round Investors”

the third round strategic investors who have agreed to invest in Hengda Real Estate by contributing to its capital pursuant to the Third Round Investment Agreements

“Third Round Investment Agreements”
the third round investment agreements entered into by the Third Round Investors with Hengda Real Estate, Kailong Real Estate and Mr. Hui as announced by China Evergrande in its announcement dated 6 November 2017
“Third Supplemental Investment Agreement”
the supplemental agreement dated 6 November 2017 entered into amongst the Subsidiary, Kailong Real Estate and Hengda Real Estate in relation to the amendments to the terms of the Principal Investment Agreement (as amended and supplemented by the Second Supplemental Investment Agreement)
“Valuation Report”
has the meaning ascribed to it under the section headed “ Letter from the Board – Waiver from strict compliance with Rules 5.02, 14.66(11), 14.67(6)(a)(i) and 14.67(7) of the Listing Rules – A. Waiver from strict compliance with Rules 5.02 and 14.66(11) of the Listing Rules in relation to the inclusion of a valuation report for property interests held by Hengda Real Estate (the “Property Valuation Waiver ”)”
“%”

per cent.

The English translation is for identification purpose only.

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LETTER FROM THE BOARD

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(Incorporated in Hong Kong with limited liability)

(Stock Code: 00604)

Executive Directors: Dr. LU Hua (Chairman) Mr. HUANG Wei (President) Mr. MOU Yong Mr. LIU Chong

Non-Executive Directors:

Registered office: 8th Floor, New East Ocean Centre, 9 Science Museum Road, Tsim Sha Tsui, Kowloon, Hong Kong

Dr. WU Jiesi Mr. LIU Shichao

Independent Non-Executive Directors:

Mr. WU Wai Chung, Michael Mr. LI Wai Keung Dr. WONG Yau Kar, David

24 November 2017

To the Shareholders

Dear Sir or Madam,

MAJOR TRANSACTION CAPITAL CONTRIBUTION TO HENGDA REAL ESTATE GROUP COMPANY LIMITED

INTRODUCTION

Reference is made to the First Announcement in relation to the entering into of the Principal Investment Agreement among the Subsidiary (an indirect wholly-owned subsidiary of the Company), Kailong Real Estate and Hengda Real Estate (both are subsidiaries of China Evergrande), pursuant to which the Subsidiary has agreed to contribute an amount of RMB5.5 billion to the capital of Hengda Real Estate in return for approximately 2.0522% of the enlarged equity interest in Hengda Real Estate.

Reference is also made to the Second Announcement in relation to the entering into of the Second Supplemental Investment Agreement among the Subsidiary, Kailong Real Estate, Hengda Real Estate and Mr. Hui (a director and controlling shareholder of China Evergrande), pursuant to which the parties thereto agreed to amend the terms of the Principal Investment Agreement in relation to exit rights of the Subsidiary as disclosed in the First Announcement under the section headed “ The Investment Agreement – Exit rights ”.

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LETTER FROM THE BOARD

Reference is further made to the Third Announcement in relation to the entering into of the Third Supplemental Investment Agreement among the Subsidiary, Kailong Real Estate and Hengda Real Estate, pursuant to which the parties thereto agreed to amend the terms of the Principal Investment Agreement (as amended and supplemented by the Second Supplemental Investment Agreement) in relation to the Performance Undertaking Amounts, and dividend payment prior to and after the entering into of the Reorganisation Agreement as disclosed in the First Announcement under the section headed “ The Investment Agreement – Performance undertaking and indemnity ”.

The purpose of this circular is to provide you with, among other things, further information on the Investment Agreement and the Capital Contribution and other information as required under the Listing Rules.

THE INVESTMENT AGREEMENT

Set out below is a summary of the principal terms of the Investment Agreement:

Date

_Date _	_of _	_the _	Principal Investment Agreement:	31 May 2017
_Date _	_of _	_the _	Second Supplemental Investment Agreement:	28 June 2017
_Date _	_of _	_the _	Third Supplemental Investment Agreement:	6 November 2017

Parties to the Principal Investment Agreement

(1) the Subsidiary;
(2) Kailong Real Estate; and
(3) Hengda Real Estate.

Parties to the Second Supplemental Investment Agreement

(1) the Subsidiary;
(2) Kailong Real Estate;
(3) Hengda Real Estate; and
(4) Mr. Hui.

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LETTER FROM THE BOARD

Parties to the Third Supplemental Investment Agreement

(1) the Subsidiary;
(2) Kailong Real Estate; and
(3) Hengda Real Estate.

To the best of the knowledge, information and belief of the Directors, having made all reasonable enquiries, Kailong Real Estate, Hengda Real Estate and their ultimate beneficial owners (including Mr. Hui) are third parties independent of and not connected with the Company or its connected persons.

Amount of Capital Contribution

Pursuant to the terms of the Investment Agreement, the Subsidiary has contributed an amount of RMB5.5 billion to the capital of Hengda Real Estate, in return for equity interest in Hengda Real Estate which was determined as follows:

Shareholding percentage =	Amount of the Capital Contribution
	RMB198 billion (being the accepted valuation of Hengda Real Estate prior to the capital contribution by the Investors) + Total capital contribution to Hengda Real Estate actually made by the Investors

By making the Capital Contribution, the Subsidiary has acquired approximately 2.0522% of the enlarged equity interest of Hengda Real Estate (which will subsequently be diluted to approximately 1.7626% of the enlarged equity interest of Hengda Real Estate after the capital contributions to Hengda Real Estate pursuant to the Third Round Investment Agreements are made).

Conditions

The Capital Contribution is conditional upon the satisfaction of the following conditions within 10 Business Days after the date of the Principal Investment Agreement:

(A) The Subsidiary having completed the following approval procedures in relation to the Capital Contribution:–
(a) the Subsidiary having received approval of the Capital Contribution from its board of directors/executive director(s), shareholders (if necessary) or similar decision making body;

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LETTER FROM THE BOARD

(b) if the Subsidiary is a wholly State-owned enterprise or a State-controlled enterprise, the approval of the Capital Contribution by the State-owned Assets Administration Bureau or its authorised departments having been obtained;
(c) other approvals from the relevant supervisory departments; and
(B) Hengda Real Estate and Kailong Real Estate having completed the following approval procedures in relation to the Capital Contribution:–
(a) the shareholders of Hengda Real Estate having approved the Capital Contribution and the amendments to the articles of association of Hengda Real Estate in accordance with the Investment Agreement; and
(b) the board of directors of China Evergrande (and if necessary, the shareholders of China Evergrande) having approved the Capital Contribution.

As at the date of the Principal Agreement, all of the conditions mentioned in (A) above (if applicable) had been fulfilled and, as informed by Hengda Real Estate and Kailong Real Estate, all the conditions mentioned in (B) above had also been fulfilled.

Basis of determining the amount of the Capital Contribution

The Subsidiary had contributed an amount of RMB5.5 billion to the capital of Hengda Real Estate, of which RMB69,444,444 was contributed to the registered capital of Hengda Real Estate and the remaining to its capital reserve.

The amount of Capital Contribution was determined after arm’s length negotiations with reference to, among others, the net asset value and registered capital of Hengda Real Estate and the appreciation in the value of the total shareholders’ equity of Hengda Real Estate as indicated by an independent third party valuer as at 30 June 2016 as referred to in the announcement of China Evergrande dated 31 December 2016, the development strategy of Hengda Real Estate, the prevailing market conditions, the land reserves of Hengda Real Estate and the development potentials of such projects, and potential synergy and benefits of the Proposed Reorganisation. Please refer to the section headed “ Letter from the Board – Reasons for and benefit of the entering into of the Investment Agreement ” below for further information.

Timing for the Capital Contribution

The Capital Contribution amount was payable by the Subsidiary within 3 Business Days from the signing of the Principal Investment Agreement. Accordingly, such amount was paid by the Subsidiary on 31 May 2017.

The parties to the Principal Investment Agreement agreed to procure Hengda Real Estate to complete the capital verification procedures and process the relevant registration of the Capital Contribution with the Market Supervisory Administration Bureau (市場監督管理局) within 20 Business Days from the date of receipt of all capital contribution amount by Hengda Real Estate from the Investors. The above mentioned procedures and processes were completed on 1 June 2017, and accordingly, the Subsidiary has acquired approximately 2.0522% of the

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LETTER FROM THE BOARD

enlarged equity interest in Hengda Real Estate in return for the Capital Contribution (which will subsequently be diluted to approximately 1.7626% of the enlarged equity interest of Hengda Real Estate after the capital contributions to Hengda Real Estate pursuant to the Third Round Investment Agreements are made).

Performance undertaking and indemnity

Performance undertaking

Under the terms of the Investment Agreement, Kailong Real Estate and Hengda Real Estate have undertaken to the Subsidiary that the Performance Undertaking Amounts of Hengda Real Estate for the financial years of 2017, 2018 and 2019 will not be less than RMB24.3 billion, RMB50 billion and RMB55 billion, respectively.

The Performance Undertaking Amounts of Hengda Real Estate for the financial years ending 31 December 2018 and 2019, however, were to be finally determined with reference to the valuation report issued by a valuer with relevant securities and futures industry qualifications and approved by the relevant authorised State-owned assets supervision and administration commission, in relation to the valuation of the equity interests of all shareholders of Hengda Real Estate as at 30 June 2017 but in any event will not be less than RMB30.8 billion and RMB33.7 billion, respectively.

As at the Latest Practicable Date, the valuation report has been issued, and the Performance Undertaking Amounts of Hengda Real Estate for the financial years ending 31 December 2018 and 2019 were finally determined to be RMB50 billion and RMB55 billion respectively.

Dividend payment prior to the entering into of the Reorganisation Agreement

The Subsidiary, Kailong Real Estate and Hengda Real Estate have agreed that prior to the entering into of the Reorganisation Agreement and subject to Hengda Real Estate continues to operate normally, Hengda Real Estate will distribute at least 68% of its net profit for each of the financial years under the Performance Undertaking Period to its shareholders in accordance with their respective percentage of equity interest in it as cash dividends.

If the net profit of Hengda Real Estate for any financial year in the Performance Undertaking Period (as audited and confirmed by auditors with relevant securities and futures industry qualifications to be employed by Hengda Real Estate) is less than the Performance Undertaking Amount for that financial year, the proportional dividend to be paid by Hengda Real Estate to the Subsidiary will be adjusted upward in accordance with the following formulae:

(A) Percentage ratio of the proportional dividend payable to all of the Investors

Percentage of equity interest held by Percentage ratio of the all of the Investors proportional dividend payable = (Actual net profit of Hengda Real to all of the Investors Estate for that financial year/the Performance Undertaking Amount for that year)

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LETTER FROM THE BOARD

If the percentage ratio of the proportional dividend payable to all of the Investors calculated by the above formula is greater than 100%, then such percentage shall be 100%.

(B) Percentage ratio of the proportional dividend payable to the Subsidiary

Percentage ratio of the proportional dividend payable to the Subsidiary =	Percentage of equity interest held by the Subsidiary × Percentage ratio of the proportional dividend payable to all of the Investors Percentage of equity interest held by all of the Investors

The dividend payment arrangement mentioned above will lapse upon the execution of the Reorganisation Agreement.

Dividend payment after the entering into of the Reorganisation Agreement

Following completion of the Proposed Reorganisation, dividend payment will be made by Listco in accordance with the applicable requirements of the CSRC, the relevant stock exchange and the constitutional documents of Listco. On conditions that Listco maintains the ability to continue with its operations normally, and that there is no breach of the laws of the PRC, the constitutional documents of Listco and its dividend distribution system, after the end of each financial year during the Performance Undertaking Period, Kailong Real Estate shall propose that Listco distributes a cash dividend of at least 68% of its distributable net profit for such year, and for any other year within the Performance Undertaking Period when cash dividend has not been paid in accordance with the arrangement mentioned under this section or the section headed “ Dividend payment prior to the entering into of the Reorganisation Agreement ” above (as the case may be). Kailong Real Estate is also required to vote in favour of such proposal at the relevant shareholders’ meeting of Listco.

If, for any reasons, the Proposed Reorganisation is terminated after the execution of the Reorganisation Agreement, Hengda Real Estate will make up for any shortfall in the dividend paid to the Subsidiary during the period between the execution of the Reorganisation Agreement and the termination of the Proposed Reorganisation in accordance with the terms of the Investment Agreement as if the Reorganisation Agreement had not been entered into.

After the termination of the listing procedures contemplated under the Proposed Reorganisation, Hengda Real Estate should follow the dividend payment arrangement mentioned in the section headed “ Dividend payment prior to the entering into of the Reorganisation Agreement ” above. Thereafter, if the listing procedures are recommenced, the dividend payment arrangements mentioned under the sections headed “ Dividend payment prior to the entering into of the Reorganisation Agreement ” and “ Dividend payment after the entering into of the Reorganisation Agreement ” will apply as appropriate.

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LETTER FROM THE BOARD

Exit rights

If the Proposed Reorganisation as contemplated under the Reorganisation Agreement is not completed by 31 January 2020 and the failure to complete is not caused by reasons attributable to the Subsidiary, the Subsidiary may within two months of the expiry of such deadline demand Kailong Real Estate to either:

(i) buy back the entire equity interest in Hengda Real Estate held by the Subsidiary at the original amount of capital contributed by it, provided that Kailong Real Estate may choose not to buy back such equity interest from the Subsidiary, in which case, the Subsidiary will have the right to request Mr. Hui to buy back the entire equity interest held by the Subsidiary at the original amount of capital contributed by it (“ Buy-back Option ”); or
(ii) transfer shares in Hengda Real Estate to the Subsidiary at nil consideration in accordance with the following formula as compensation:

Percentage of equity interest in Hengda Real Estate held by the Percentage of equity Subsidiary on the signing of the interest in Hengda Real compensation agreement Estate to be transferred by = × 50% (excluding any additional equity Kailong Real Estate to the interest acquired by the Subsidiary as compensation Subsidiary after the date of the Principal Investment Agreement)

Upon completion of the compensation procedures mentioned above, the Subsidiary will have the right to transfer its equity interest in Hengda Real Estate through listing-for-sale at property and share rights exchange or other means, with Kailong Real Estate or Mr. Hui having a right of first refusal to purchase such equity interest upon the same terms and conditions.

The Subsidiary’s entitlement to dividend distribution of Hengda Real Estate for 2019 is unaffected by the exercise of the exit rights mentioned above.

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LETTER FROM THE BOARD

Lock-up undertaking by Kailong Real Estate

Kailong Real Estate has undertaken that, after the completion of the Proposed Reorganisation, if pursuant to the Administrative Measures on Significant Asset Restructuring of Listed Companies (《上市公司重大資產重組管理辦法》) and other relevant regulations issued by the CSRC, the Subsidiary is prohibited from transferring the shares of Listco which were issued to it by Listco as consideration for the acquisition of the Subsidiary’s equity interest in Hengda Real Estate within a specified period of time (the “ Lock-up Period ”), Kailong Real Estate will not, until after the first anniversary of the expiry date of the Lock-up Period, transfer the shares of Listco issued to it by Listco as consideration for the acquisition of Kailong Real Estate’s equity interest in Hengda Real Estate (other than a transfer to the other companies controlled by person actually controlling Kailong Real Estate).

Undertaking by the Subsidiary

The Subsidiary has undertaken to Kailong Real Estate and Hengda Real Estate that for a period of three years from completion of the Capital Contribution or immediately prior to the completion of the Proposed Reorganisation (whichever is earlier), it will not transfer its interests in Hengda Real Estate (whether in whole or in part) or create any encumbrances over such interests without the consent of Kailong Real Estate. The Subsidiary has also undertaken that from the date of completion of the Capital Contribution to completion of the Proposed Reorganisation, it will not alter its direct or indirect interests in Hengda Real Estate or carry out any acts which would adversely affect the Proposed Reorganisation.

INFORMATION ABOUT HENGDA REAL ESTATE

Hengda Real Estate is a limited liability company established in the PRC and is principally engaged in the business of property development in the PRC.

According to the audited financial statements of Hengda Real Estate provided to the Company, the financial results of Hengda Real Estate for the two years ended 31 December 2015 and 2016 are as follows:

			For the year ended	For the year ended
			31 December
			2016	2015
			(audited)	(audited)
			RMB’million	RMB’million
Net	profit	before tax	26,510	29,284
Net	profit	after tax	17,701	21,484

The consolidated net asset value of Hengda Real Estate as at 31 December 2016 was RMB88,142 million.

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LETTER FROM THE BOARD

China Evergrande announced on 3 October 2016 that Kailong Real Estate and Hengda Real Estate had entered into a cooperation agreement with Shenzhen Real Estate and SIH pursuant to which the parties agreed to work towards the entering into of the Reorganisation Agreement with regard to the Proposed Reorganisation. Under the Proposed Reorganisation, Shenzhen Real Estate will, by way of issue of RMB ordinary shares and/or payment of cash consideration, acquire all of the equity interest in Hengda Real Estate. Upon completion of the Proposed Reorganisation, Kailong Real Estate will become the controlling shareholder of Shenzhen Real Estate and China Evergrande’s real estate related assets will effectively be listed on the Shenzhen Stock Exchange A-share market through the Proposed Reorganisation.

REASONS FOR AND BENEFIT OF THE ENTERING INTO OF THE INVESTMENT AGREEMENT

The Capital Contribution was made after considering various factors including the following:–

1. The development strategy of Hengda Real Estate and potential synergy and benefits of the Proposed Reorganisation

The development strategy of Hengda Real Estate complements that of the Group. The Group’s current development strategy is to focus on property development in Shenzhen, other first-tier cities in the PRC, as well as second-tier cities where the Group has already established a presence. Such strategy was formulated with reference to the Group’s available land reserves, human resources structure and organizational structure. In contrast, Hengda Real Estate’s development projects span across the whole country, reaching not only third-tier and fourth-tier cities, but also certain economically-vibrant counties. Tapping into Hengda Real Estate’s wider market share and presence in cities which are unexplored by the Group, it was believed that by investing in Hengda Real Estate, it would strengthen the Group’s resilience to potential market fluctuations.

2. The prevailing market conditions

The Group is principally engaged in property development, property investment and property management in the PRC. Based on the Group’s solid experience and knowledge of the property market in the PRC, the Group is optimistic about the future macroeconomic development of the country, as well as the prospect of its property market. Against this wider backdrop of a vibrant economy and property market, it was trusted that the Capital Contribution to Hengda Real Estate, one of the largest property developers in the PRC, will yield handsome return for the Group.

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LETTER FROM THE BOARD

3. The land reserves of Hengda Real Estate and the development potentials of its projects

Against the property market boom in the PRC since 2016, the cost of land acquisition has escalated to new heights. In some cities, the extent of increase in land prices has already surpassed that of property prices. Land bank is a scarce resource which has become a general concern of property developers in the PRC. Hengda Real Estate boasted a grand reserve of undeveloped land with massive construction area. By investing in Hengda Real Estate, the Group may share in the future profits generated from Hengda Real Estate’s abundant land reserve.

4. The terms of the Investment Agreement being beneficial to the Group

The Capital Contribution was viewed as a relatively valuable investment opportunity to the Group, which was expected to bring about favourable returns. With the benefit of the following terms, details of which are disclosed above, for the three financial years of 2017, 2018 and 2019, the Group will effectively enjoy an average annual return of not less than 9.3% from the dividends that it will receive from Hengda Real Estate:–

(a) the net profit of Hengda Real Estate for the three financial years of 2017, 2018 and 2019 shall not be less than RMB24.3 billion, RMB50 billion and RMB55 billion, respectively;
(b) prior to the entering into of the Reorganisation Agreement and subject to Hengda Real Estate continues to operate normally, Hengda Real Estate will distribute at least 68% of its net profit for each of the financial years under the Performance Undertaking Period to its shareholders in accordance with their respective percentage of equity interest in it as cash dividends;
(c) following completion of the Proposed Reorganisation, on conditions mentioned under the section headed “ Dividend payment after the entering into of the Reorganisation Agreement ” above, after the end of each financial year during the Performance Undertaking Period, Kailong Real Estate will propose that Listco distributes a cash dividend of at least 68% of its distributable net profit for such year, and for any other year within the Performance Undertaking Period when cash dividend has not been paid in accordance with the arrangement mentioned under the section headed “ Dividend payment after the entering into of the Reorganisation Agreement ” above or the section headed “ Dividend payment prior to the entering into of the Reorganisation Agreement ” above (as the case may be), and Kailong Real Estate will also vote in favour of such proposal at the relevant shareholders’ meeting of Listco;

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LETTER FROM THE BOARD

(d) if the net profit of Hengda Real Estate for any financial year in the Performance Undertaking Period (as audited and confirmed by auditors with relevant securities and futures industry qualifications to be employed by Hengda Real Estate) is less than the Performance Undertaking Amount for that financial year, the proportional dividend to be paid by Hengda Real Estate to the Subsidiary will be adjusted upward in accordance with the terms of the Investment Agreement; and
(e) if the Proposed Reorganisation as contemplated under the Reorganisation Agreement is not completed by 31 January 2020 and the failure to complete is not caused by reasons attributable to the Subsidiary, the Subsidiary may within two months of the expiry of such deadline exercise its exit rights stipulated under the Investment Agreement and the exercise of such exit rights will not affect the Subsidiary’s entitlement to dividend distribution of Hengda Real Estate for 2019.

Therefore, from a business point of view, the Directors considered that the Capital Contribution was an appropriate and reasonable investment.

5. The net asset value and registered capital of Hengda Real Estate and the value of the total shareholders’ equity of Hengda Real Estate as indicated by an independent third party valuer as at 30 June 2016 as referred to in the announcement of China Evergrande dated 31 December 2016

Taking all of the above factors into account, and with reference to the Group’s available financial resources and investment arrangement, the Group had ultimately agreed to contribute an amount of RMB5.5 billion to the capital of Hengda Real Estate.

The equity interest in return for the Capital Contribution was determined according to a formula applicable to all Investors alike, which took into account the net asset value and registered capital of Hengda Real Estate, the value of the total shareholders’ equity of Hengda Real Estate (as indicated by an independent third party valuer (engaged by another Investor independent from the Group) as at 30 June 2016 as referred to in the announcement of China Evergrande dated 31 December 2016), as well as the total capital contribution to Hengda Real Estate actually made by the First Round Investors and the Second Round Investors (the “ Total Capital Contribution ”). Such formula is disclosed under the section headed “ Letter from the Board – The Investment Agreement – Amount of Capital Contribution ”. With the valuation of Hengda Real Estate prior to the capital contribution by the First Round Investors and the Second Round Investors being accepted by all the First Round Investors and the Second Round Investors to be RMB198 billion, and with the Total Capital Contribution being determined to be RMB39.5 billion, the Group has acquired approximately 2.0522% of the enlarged equity interest of Hengda Real Estate following the making of the capital contributions made by the Second Round Investors to Hengda Real Estate. The Group’s percentage of equity interest in Hengda Real Estate will subsequently be diluted to approximately 1.7626% of the enlarged equity interest of Hengda Real Estate after the capital contributions to Hengda Real Estate pursuant to the Third Round Investment Agreements are made.

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LETTER FROM THE BOARD

The Capital Contribution and the terms of the Investment Agreement (including the terms of the Second Supplemental Investment Agreement, which requires Mr. Hui to buy back the entire equity interest held by the Subsidiary at the original amount of capital contributed by it in case Kailong Real Estate chooses not to buy back such equity interest from the Subsidiary, and provides better exit opportunity to the Subsidiary in case the Proposed Reorganisation as contemplated under the Reorganisation Agreement does not materialise, and the terms of the Third Supplemental Investment Agreement, which provides for the possibility of an increase in the Performance Undertaking Amount in the financial years ended 2018 and 2019 and additional measures with a view to ensure that the amount of dividend payment following completion of the Proposed Reorganisation as agreed under the Investment Agreement will be given effect to) were determined after arm’s length negotiations, and the Investment Agreement was concluded based on normal commercial terms. After considering the various factors including those mentioned above, the Directors consider that the terms of the Investment Agreement and the transactions contemplated thereunder are fair and reasonable and in the interests of the Company and the Shareholders as a whole.

As of the Latest Practicable Date, the Capital Contribution has been paid from the Group’s internal resources.

FINANCIAL EFFECTS OF THE TRANSACTIONS

Following the completion of the Capital Contribution, the Group has acquired a minority shareholding of approximately 2.0522% in Hengda Real Estate (which will subsequently be diluted to approximately 1.7626% of the enlarged equity interest of Hengda Real Estate after the capital contributions to Hengda Real Estate pursuant to the Third Round Investment Agreements are made). Hengda Real Estate has not become a subsidiary or associate of the Company, and the financial results of Hengda Real Estate will not be consolidated in the financial statements of the Group nor be equity accounted for in the Group’s consolidated financial statements as an associate. For details of the unaudited pro forma financial information of the Group following the Capital Contribution, please refer to Appendix III to this circular.

Assets and liabilities

According to the annual report of the Group for the year ended 31 December 2016, the Group had total assets, total liabilities and net assets of approximately HK$96,546 million, HK$60,325 million and HK$36,221 million respectively as at 31 December 2016. Based on the unaudited pro forma consolidated statement of assets and liabilities of the Group as set out in Appendix III to this circular, the Capital Contribution would not result in any change in total assets, total liabilities or net assets of the Group.

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LETTER FROM THE BOARD

Earnings

Since the Group would only be interested in 2.0522% of the equity interest in Hengda Real Estate after completion of the Capital Contribution and such percentage will be reduced to 1.7626% after the making of the capital contributions to Hengda Real Estate pursuant to the Third Round Investment Agreements (assuming that there is no other change to the issued share capital of Hengda Real Estate after the Latest Practicable Date), the financial results and financial position of Hengda Real Estate will not be consolidated with those of the Group. The Group’s interest in Hengda Real Estate would only be accounted for as other financial assets which would be recorded at its fair value.

Save for the dividends that may be declared and distributed by Hengda Real Estate (if any) to the Group and any changes in fair value of the shares of Hengda Real Estate, the Capital Contribution is not expected to have any significant impact on the earnings of the Group.

LISTING RULES IMPLICATIONS

As one of the applicable percentage ratios under Rule 14.07 of the Listing Rules in respect of the Capital Contribution is more than 25% but less than 100%, the Capital Contribution constitutes a major transaction for the Company and is subject to the reporting, announcement and shareholders’ approval requirements under Chapter 14 of the Listing Rules. As no Shareholder is interested in the Investment Agreement and the transactions contemplated thereunder (including the Capital Contribution) and thus no Shareholder is required to abstain from voting if the Company were to convene a general meeting for the approval of the Investment Agreement and the transactions contemplated thereunder (including the Capital Contribution), and the Company has already obtained written approvals of the Investment Agreement (including the Second Supplemental Investment Agreement and the Third Supplemental Investment Agreement) and the transactions contemplated thereunder (including the Capital Contribution) from Shum Yip Holdings, a Shareholder holding 4,897,856,631 Shares (representing approximately 60.78% of the issued share capital of the Company), pursuant to Rule 14.44 of the Listing Rules, the Company is exempted from the requirement to obtain Shareholders’ approval of the Investment Agreement (including the Second Supplemental Investment Agreement and the Third Supplemental Investment Agreement) and the transactions contemplated thereunder (including the Capital Contribution) at a general meeting. Accordingly, this circular is despatched to the Shareholders for information purpose only.

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LETTER FROM THE BOARD

The Buy-back Option granted to the Subsidiary under the Investment Agreement constitutes an option under Rule 14.72 of the Listing Rules. As the exercise of the Buy-back Option is at the discretion of the Subsidiary, pursuant to Rule 14.75(1) of the Listing Rules, on the grant of such option, only the premium will be taken into consideration for the purpose of transaction classification. As no premium is payable for the grant of the Buy-back Option to the Subsidiary, such grant does not constitute a notifiable transaction of the Company. The Company will comply with the Listing Rules requirements, if applicable, on the exercise of the Buy-back Option.

WAIVER FROM STRICT COMPLIANCE WITH RULES 5.02, 14.66(11), 14.67(6)(a)(i) AND 14.67(7) OF THE LISTING RULES

A. Waiver from strict compliance with Rules 5.02 and 14.66(11) of the Listing Rules in relation to the inclusion of a valuation report for property interests held by Hengda Real Estate (the “Property Valuation Waiver”)

Pursuant to Rules 5.02 and 14.66(11) of the Listing Rules, for an acquisition of a company whose assets consist solely or mainly of property, where any of the percentage ratios of the acquisition is or is above 25%, a valuation of and information on the property in conformity with Chapter 5 of the Listing Rules must be included in the circular issued to shareholders in connection with the acquisition. In this regard, the Company would be, but for the Property Valuation Waiver, required under the Listing Rules to include a valuation report for property interests held by Hengda Real Estate.

The Company has applied to the Stock Exchange for the Property Valuation Waiver, on the following grounds:

1. The Company has no access to information required for the compilation of the valuation report

The Company has enquired with China Evergrande and Hengda Real Estate as to whether the necessary property information and documents in relation to the properties of Hengda Real Estate, which an independent qualified valuer would require to compile a valuation report in compliance with the contents requirements under Chapter 5 of the Listing Rules, could be made available to the Company. As the Company (through the Subsidiary) is merely a minority shareholder holding only approximately 2.0522% interest in Hengda Real Estate (which will subsequently be diluted to approximately 1.7626% of the enlarged equity interest of Hengda Real Estate after the capital contributions to Hengda Real Estate pursuant to the Third Round Investment Agreements are made), the Company has not been granted any access to such information. It is therefore impossible for the Company to arrange for the preparation of a valuation report which satisfies the requirements under Chapter 5 of the Listing Rules.

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LETTER FROM THE BOARD

2. Valuation report in relation to the property interests of the Hengda Real Estate Group as arranged by China Evergrande is publicly available and has been reproduced in Appendix IV to this circular as alternative disclosure

From China Evergrande’s perspective, the Capital Contribution from the Group, together with the capital contributions from other Second Round Investors to Hengda Real Estate (together, the “ Capital Increase ”), constituted a deemed disposal of China Evergrande’s interest in Hengda Real Estate, and, as disclosed by China Evergrande, was a major transaction for China Evergrande under Chapter 14 of the Listing Rules. China Evergrande was therefore similarly subject to the requirements under Rules 5.02 and 14.66(11) of the Listing Rules to include in its circular in relation to the Capital Increase a valuation report in relation to the property interests of Hengda Real Estate.

China Evergrande issued a circular in relation to the Capital Increase on 13 June 2017, in which a valuation report from CBRE containing a summary of its valuation on the properties interests held by Hengda Real Estate as of 31 March 2017 was included (the “ Valuation Report ”). CBRE has confirmed in the Valuation Report that all requirements contained in Chapter 5 and Practice Note 12 of the Listing Rules were complied with. The circular issued by China Evergrande mentioned above is published on the website of the Stock Exchange at www.hkexnews.hk and therefore is publicly available. As an alternative disclosure, a copy of the Valuation Report has been reproduced in Appendix IV to this circular.

3. Impracticable and unduly burdensome to arrange for the valuation report

Given that the Hengda Real Estate Group has interests in over 1,500 properties located in various provinces of the PRC and that the Group only has a small percentage shareholding interest in Hengda Real Estate, it would be impracticable, unduly burdensome, costly and disproportionate to require the Company to prepare a valuation report in respect of such property interests in compliance with Chapter 5 of the Listing Rules.

Based on the grounds and alternative disclosure mentioned above, the Stock Exchange has granted the Property Valuation Waiver sought by the Company and the Company is therefore not required to include a valuation report for the property interests held by Hengda Real Estate in this circular in strict compliance with Rules 5.02 and 14.66(11) of the Listing Rules.

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LETTER FROM THE BOARD

B. Waiver from strict compliance with Rules 14.67(6)(a)(i) and 14.67(7) of the Listing Rules in relation to the preparation and inclusion of accountants’ report and management discussion and analysis

(I) Accountants’ report

Pursuant to Rule 14.67(6)(a)(i) of the Listing Rules, a listed issuer is required to include in its circular an accountants’ report on the business, company or companies being acquired in accordance with Chapter 4 of the Listing Rules. There is a proviso in the said Rule 14.67(6)(a)(i) which provides that where any company in question has not or will not become a subsidiary of the listed issuer, the Stock Exchange may be prepared to relax such requirements. Pursuant to the said Rule, an accountants’ report is required to relate to the three financial years immediately preceding the issue of the circular and (where applicable) a stub period ending 6 or less months before the issue of the circular. The financial information on the business, company or companies being acquired as contained in such accountants’ report is also required to be prepared using accounting policies which should be materially consistent with those of the listed issuer.

As the Group has only acquired approximately 2.0522% of the enlarged registered capital of Hengda Real Estate following completion of the Capital Contribution (which will subsequently be diluted to approximately 1.7626% of the enlarged equity interest of Hengda Real Estate after the capital contributions to Hengda Real Estate pursuant to the Third Round Investment Agreements are made), pursuant to the proviso to Rule 14.67(6)(a)(i), the Company has applied to the Stock Exchange for a waiver from strict compliance with the requirement under Rule 14.67(a)(i) of the Listing Rules to include an accountants’ report on Hengda Real Estate (the “ Accountants’ Report Waiver ”), on the following grounds:-

1. The Group has only acquired a very small interest in the registered capital of Hengda Real Estate

Pursuant to the Capital Contribution, the Group has acquired a minority shareholding of only approximately 2.0522% in Hengda Real Estate (which will subsequently be diluted to approximately 1.7626% of the enlarged equity interest of Hengda Real Estate after the capital contributions to Hengda Real Estate pursuant to the Third Round Investment Agreements are made). Hengda Real Estate has not become a subsidiary or an associate of the Company, and the financial results of Hengda Real Estate will not be consolidated in the financial statements of the Group nor be equity accounted for in the Group’s consolidated financial statements as an associate. Requiring the Company to arrange for an accountants’ report on Hengda Real Estate to be prepared for inclusion in this circular would thus be out of proportion to the size of the Capital Contribution.

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LETTER FROM THE BOARD

2. The Company has no access to Hengda Real Estate’s non-public financial information, and strict compliance will be impossible and unduly burdensome

The Company has requested China Evergrande and Hengda Real Estate to assist in and provide information for the preparation of the required accountants’ report on Hengda Real Estate for inclusion in this circular. However, given that (i) the financial information of Hengda Real Estate which was not generally available to the shareholders of Hengda Real Estate and the shareholders of China Evergrande was considered inside information or sensitive information of the China Evergrande group; (ii) Hengda Real Estate constitutes China Evergrande’s major asset; and (iii) China Evergrande is itself subject to regulations in Hong Kong (including the Listing Rules), China Evergrande and Hengda Real Estate considered it inappropriate to disclose, and has not disclosed, such financial information and underlying books and accounts of Hengda Real Estate to the Company (being a minority investor of Hengda Real Estate, and a competitor of China Evergrande in the businesses of property development, property investment and property management) or the Company’s accountants for the preparation of an accountants’ report on Hengda Real Estate to be included in this circular. Therefore, strict compliance with the requirement to prepare the relevant accountants’ report would be impossible and unduly burdensome to the Company.

3. Certain audited annual financial statements of Hengda Real Estate Group are publicly available and has been reproduced in Appendix II to this circular as alternative disclosure

In the second quarter of 2015, Hengda Real Estate issued public bonds to qualified investors and such bonds are listed on the Shanghai Stock Exchange. In accordance with the rules and regulations in the PRC, certain documents in relation to Hengda Real Estate and the bonds have since then been published by Hengda Real Estate and made available on the website of Shanghai Stock Exchange (http://www.sse.com.cn) on a regular basis, and such documents include (i) the 2015 annual report on corporate bonds of Hengda Real Estate, enclosing, among others, the audited annual financial statements of Hengda Real Estate for the year ended 31 December 2015 (which also shows certain financial information of Hengda Real Estate for the year ended 31 December 2014 for comparison purpose); (ii) the 2016 annual report on corporate bonds of Hengda Real Estate, enclosing, among others, the audited annual financial statements of Hengda Real Estate for the year ended 31 December 2016 (in each case audited by PwC and prepared based on the China Accounting Standards for Business Enterprises (“ CASBE ”), being accounting standards expressly recognized by the Listing Rules in the case of a PRC issuer under Rule 4.11(c) of the Listing Rules); and (iii) the unaudited consolidated and company-level statement of financial position of Hengda Real Estate as at 30 June 2017, the unaudited consolidated and company-level statement of profit and loss of Hengda Real Estate for the 6 months ended 30 June 2017, the unaudited consolidated and company-level statement of cash flow of Hengda Real Estate for the 6 months ended 30 June 2017, the unaudited consolidated and company-level statement of changes in equity of Hengda Real Estate for the 6 months ended 30 June 2017, and the notes to the unaudited consolidated and company-level financial

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LETTER FROM THE BOARD

statements of Hengda Real Estate for the 6 months ended 30 June 2017 prepared based on CASBE and therefore such reports and unaudited financial statements are publicly available. As an alternative disclosure, such annual reports and unaudited financial statements has been reproduced in Appendix II to this circular.

4. Hengda Real Estate is the major asset of China Evergrande, which in turn is a company listed on the Stock Exchange

The waiver sought is consistent with the spirit underlying Rule 14.67A(1) of the Listing Rules, which provides for the relaxation of certain disclosure requirements in a major transaction circular if the conditions specified in such Rule are satisfied, including without limitation, (a) the unavailability of non-public information being caused by lack of cooperation by the board of directors in the target company and/or legal or regulatory restrictions; and (b) the target company being listed on a recognised stock exchange (including the Stock Exchange).

(II) Management discussion and analysis

Pursuant to Rule 14.67(7) of the Listing Rules, the Company is also required to include in this circular a discussion and analysis of results of Hengda Real Estate covering all those matters set out in paragraph 32 of Appendix 16 to the Listing Rules for the period reported in the required accountants’ report.

Since the Company is not able to obtain the necessary non-public financial information of Hengda Real Estate for the purpose of preparing the required accountants’ report for the reasons given above, the Company is similarly unable to obtain the necessary non-public financial information of Hengda Real Estate for the purpose of preparing, and it is impracticable and unduly burdensome to require the Company to prepare, the relevant management discussion and analysis. The Company has therefore applied for waiver to dispense with the requirements to comply with Rule 14.67(7) in relation to this circular (the “ MD&A Waiver ”).

Based on the grounds and alternative disclosure mentioned above, the Stock Exchange has granted the Accountants’ Report Waiver and the MD&A Waiver sought by the Company and the Company is therefore not required to include an accountants’ report on Hengda Real Estate in strict compliance with Rule 14.67(6)(a)(i) of the Listing Rules or a management discussion and analysis on the results of Hengda Real Estate in strict compliance with Rule 14.67(7) of the Listing Rules.

GENERAL

The Group is principally engaged in property development, property investment and property management.

China Evergrande and its subsidiaries are principally engaged in the development of large scale residential properties and integrated commercial properties in the PRC.

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LETTER FROM THE BOARD

RECOMMENDATION

The Directors consider that the terms of the Investment Agreement and the transactions contemplated thereunder are on normal commercial terms, are fair and reasonable, and the entering into of the Investment Agreement and the transactions contemplated thereunder are in the best interests of the Company and the Shareholders as a whole.

ADDITIONAL INFORMATION

Your attention is drawn to the financial and general information as set out in the appendices to this circular.

By order of the Board of Shenzhen Investment Limited LU Hua Chairman

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FINANCIAL INFORMATION OF THE GROUP

APPENDIX I

1. FINANCIAL INFORMATION OF THE GROUP

Details of the audited financial information of the Group for each of the three years ended 31 December 2014, 2015 and 2016 are disclosed in the following annual reports of the Company for the years ended 31 December 2014, 2015 and 2016, respectively, and details of the unaudited interim financial information of the Group for the six months ended 30 June 2017 are disclosed in the following interim report of the Company for the six months ended 30 June 2017, which have been published and are available on the website of the Stock Exchange (www.hkex.com.hk) and the website of the Company (http://www.shenzheninvestment.com):

the annual report 2014 of the Company for the year ended 31 December 2014 which is published on 27 April 2015 (available on: http://www.hkexnews.hk/listedco/listconews/SEHK/2015/0427/LTN20150427678.pdf), please refer to pages 76 to 240 in particular;
the annual report 2015 of the Company for the year ended 31 December 2015 which is published on 27 April 2016 (available on: http://www.hkexnews.hk/listedco/listconews/SEHK/2016/0427/LTN20160427254.pdf), please refer to pages 92 to 242 in particular;
the annual report 2016 of the Company for the year ended 31 December 2016 which is published on 27 April 2017 (available on: http://www.hkexnews.hk/listedco/listconews/SEHK/2017/0427/LTN201704271070.pdf), please refer to pages 103 to 241 in particular; and
the interim report 2017 of the Company for the six months ended 30 June 2017 which is published on 21 September 2017 (available on: http://www.hkexnews.hk/listedco/listconews/SEHK/2017/0921/LTN20170921193.pdf), please refer to pages 22 to 72 in particular.

The said financial statements are hereby incorporated by reference in, and form an integral part of, this circular.

2. INDEBTEDNESS STATEMENT

As at the close of business on 30 September 2017, being the latest practicable date for the purpose of this indebtedness statement prior to printing of this circular, the Group had total outstanding interest-bearing bank loans, entrusted loans due to the ultimate holding company and other borrowing of approximately HK$24,059 million, comprising unsecured current bank loans of approximately HK$3,446 million, unsecured non-current bank loans of approximately HK$15,726 million, unsecured non-current entrusted loans due to the ultimate holding company of approximately HK$1,544 million, secured non-current bank loans of approximately HK$470 million, and unsecured other borrowing of approximately HK$2,873 million. As at 30 September 2017, certain land and buildings and investment properties of the Group had been pledged to banks to secure bank loans granted to the Group.

As at 30 September 2017, the Group had given guarantees to a maximum extent of approximately HK$6,516 million to banks for housing loans extended by the banks to the purchasers of the Group’s properties.

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FINANCIAL INFORMATION OF THE GROUP

APPENDIX I

Save as aforesaid or otherwise disclosed herein, as at the close of business on 30 September 2017, the Group did not have any debt securities and loan capital issued and outstanding, and authorised or otherwise created but unissued, bank overdrafts, loans or other similar indebtedness, liabilities under acceptances or acceptance credits, debentures, mortgages, charges, hire purchase commitments, guarantees or other material contingent liabilities.

3. MATERIAL ADVERSE CHANGE

As at the Latest Practicable Date, the Directors were not aware of any material adverse change in the financial or trading position of the Group since 31 December 2016, being the date to which the latest published audited consolidated financial statements of the Group were made up.

4. WORKING CAPITAL

The Directors are of the opinion that, after taking into account the effects of the Capital Contribution and the financial resources available to the Group, the Group has sufficient working capital to satisfy its requirements for at least the next 12 months from the date of publication of this circular in the absence of unforeseen circumstances.

5. FINANCIAL AND TRADING PROSPECT OF THE GROUP

Business outlook

The Shenzhen market is in the period of adjustment, but quality assets still have long-term value

Real estate market is complex and volatile. Stringent macro-controlling policies are the cause of the adjustment period, which is represented by slacking supply and demand, a substantial decrease in transaction volume and a relatively stable price. It is anticipated that the macro-controlling policies on real estate will continue to the end of the year 2017, and the transaction volume and price will remain at the current level. In the long run, Shenzhen will become a technology innovative center of the PRC. As the development strategy of the Guangdong – Hong Kong – Macau big bay area is being carried out, Shenzhen will further stand out as “a core area of technology innovation”, with rising competitiveness and stronger attractiveness to non-local population, accordingly, the conflict between robust housing demand and scarcity of land resources can hardly be changed in the short term. The aforementioned fundamentals will strongly support the long term development of the real estate market in Shenzhen, and our Group’s quality assets located at core areas of Shenzhen will have long-term value.

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FINANCIAL INFORMATION OF THE GROUP

APPENDIX I

Against the stringent macro-controlling policies, the Group will consistently make it a priority to ensure Shareholders’ interests and focus on corporate profit growth and realization of the long-term value of its assets. The Group will take into account the macro-controlling policies and current market conditions when seeking for the achievement of generating long-term value for its high-quality projects by adjusting sales models, on condition that corporate capital chain and profit growth will be maintained.

Housing rental is becoming predominant as the long-term effective mechanism of the real estate industry gradually develops

As the real estate industry in the PRC develops in the last 20 years, the current average living space per capita in the PRC has reached up to 40 square meters, resulting in the market increase reaching its limit. The Central Government recently proposed to establish a long-term effective mechanism for real estate to guide real estate companies to deleverage to control risks. The return of building houses to the purpose of living is an important principle for the establishment of a long-term effective mechanism for real estate and will also become the policy direction in the future. Of which, the development of the housing rental market will play an important part in accelerating the supply-side structural reform in real estate market and establishing the housing system of co-development of purchasing and rental market.

The Group has previously ventured into the long-term leasing apartment business segment through its previous launch of the “Youth Apartment Scheme” together with relevant authorities in Shenzhen. We will continue to pay attention to the formulation of relevant policies and project opportunities on long-term leasing apartment business in key cities, put great efforts in creating our proprietary brand for long-term leasing apartments and explore sustainable business opportunities of long-term leasing apartment development in key cities.

Means of acquiring land needs to be changed as it is more and more difficult to acquire land resources

Given the current real estate market condition, costs and risks in acquiring land through public market have risen, and it is extremely difficult to acquire quality projects. The Group upholds the principle of “cooperation + collaboration” and applies the following methods of resources acquisition flexibly with reference to suitability on a case by case basis:

deepening its cooperation with its parent company to increase its land reserves in Shenzhen and the big bay area;
strengthening the cooperation on mergers and acquisitions with state-owned and private enterprises to increase new projects in Shenzhen;
leveraging on the Group’s advantage as a coordinator in urban areas reformation in Shenzhen as well as its professional abilities in introducing industries, comprehensive operation and arranging public space and ancillary facilities to secure more quality land resources by collaborating with the government in the process of urban redevelopment;

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FINANCIAL INFORMATION OF THE GROUP

APPENDIX I

capitalizing on its overseas investment advantage and improving professional abilities in park operation services to proactively expand more resources in the construction of the Guangdong – Hong Kong – Macau big bay area, and continue to identify project opportunities in key cities including but not limited to Hong Kong, Guangzhou and Nanjing.

Financial strategy

The Group will adhere to the consistent principle of maintaining healthy financial position, and will endeavour to reduce financing costs, and to improve capital turnover efficiency to provide concrete protection of financial resources for its business development.

Corporate prospect

Consistently following the corporate vision of “Leader in Value Creation for City Spaces”, the Group will continue to firmly intensify the development in Shenzhen while focusing on the development strategies in the first-and second-tier key cities. By intensifying the development in Shenzhen, maintain steady growth in the size of development and sales; by moderately enlarging the scale of its investment properties, optimizing its investment properties portfolio, constantly seek higher asset quality and level of return; and by building an operation and service platform with core competitiveness, leverage on its professional operation advantages to continuously enhance value of the urban space.

Through unremitting efforts, the Group will be able to achieve a balance between scale expansion and value enhancement in the next five years and a constant optimization of the structure of land reserves and assets by leveraging on urban operation advantage, proactively innovating methods of resource acquisition, establishing itself in Shenzhen whilst paying attention to the Guangdong – Hong Kong – Macau big bay area to bring better returns to the Shareholders.

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

The followings are the English translations of the texts of (i) the 2015 annual report on corporate bonds of Hengda Real Estate, enclosing, among others, the audited annual financial statements of Hengda Real Estate for the year ended 31 December 2015, which were audited by PwC in the report dated 15 April 2016; (ii) the 2016 annual report on corporate bonds of Hengda Real Estate, enclosing, among others, the audited annual financial statements of Hengda Real Estate for the year ended 31 December 2016, which were audited by PwC in the report dated 28 April 2017; and (iii) the unaudited financial statements of Hengda Real Estate for the 6 months ended 30 June 2017, all published on the website of the Shanghai Stock Exchange ((i), (ii) and (iii) above together, the “Financial Information on Hengda Real Estate”). For the avoidance of doubt, references in the Financial Information on Hengda Real Estate in this Appendix II to “the Company” are to Hengda Real Estate and not to the Company.

The Financial Information on Hengda Real Estate was originally prepared in Chinese. The English version in this Appendix appears for information purposes only. In case of any discrepancy or inconsistency between the Chinese version and its English translation, the Chinese version shall prevail.

The Financial Information on Hengda Real Estate was not prepared for the Company or its shareholders, nor for the purpose of incorporation in this circular. Neither Hengda Real Estate nor PwC shall take or assume any responsibility or liability for the contents of the Financial Information on Hengda Real Estate as reproduced in this circular towards the Company, its Shareholders or any other persons making use of this circular.

The contents of the Financial Information on Hengda Real Estate has also not been independently verified by the Group or any of its affiliates, advisers, agents, directors, employees, officers or representatives. Neither the Group nor any of its affiliates, advisers, agents, directors, employees, officers or representatives make any representation as to the accuracy, completeness or fairness of the contents of the Financial Information on Hengda Real Estate, nor shall take or assume any responsibility for the contents of the Financial Information on Hengda Real Estate.

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)

**Hengda Real Estate Group Company Limited* (恒大地產集團有限公司)**

Annual Report on Corporate Bonds (2015)

April 2016

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)

Important Notice

The directors (the “Directors”), the supervisors (the “Supervisors”) and the senior management (the “Senior Management”) of the Company hereby warrant the truthfulness, accuracy and completeness of the contents of the annual report, guarantee that there are no false representations, misleading statements or material omissions, and have a corresponding liability.

PricewaterhouseCoopers Zhong Tian LLP has audited the financial statements of the Company for 2015 and has issued a standard unqualified auditor’s report.

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APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)

Material Risk Warnings

I. The risk associated with a higher gearing ratio

As at the end of 2014 and 2015, the gearing ratio of the Company was relatively high at 88.14% and 88.54% respectively. The Company may maintain a larger debt size and a higher gearing ratio as the size of the real estate development of the Company gradually expands and the project development expenditure will increase accordingly. If the continuous financing capabilities of the Company are restricted or there are material adverse changes in the macroeconomic environment in the future, the debt service obligations of the Company may increase, which may have negative effect on the ordinary course of its business activities.

II. Uncertainty risk associated with sale of inventories

As at the end of 2014 and 2015, the inventories of the Company amounted to RMB204,214 million and RMB318,764 million respectively, accounting for 46.24% and 49.01% of the total assets respectively. The inventories of the Company are primarily property inventories, which mainly include properties held for sale and properties under development. The macroeconomic situation and the state policy have greater effect on the property development business of the Company. If the supply and demand relationship in the domestic property market changes further in the future, the sales of the property projects of the Company may be affected to a greater extent, and, accordingly, there is uncertainty over the sales or liquidation of the property-related inventories to a certain extent.

III. The risk associated with the greater scale of the restricted assets

As at the end of 2015, the book amount of the restricted assets of the Company amounted to RMB202,735 million, accounting for 31.18% of the total assets for the same period. The restricted assets are primarily the assets pledged as collateral for borrowings from financial institutions. They are primarily the property projects developed by, and the cash and bank balances held by the Company and its subsidiaries. As at the end of 2015, the Company had a total of 642 subsidiaries, where the equity interests of 94 subsidiaries are pledged or partly pledged. There is uncertainty over subsequent financing and the normal use of assets of the Company to a certain extent as the Company has large-scale restricted assets.

IV. The risk associated with accumulated new borrowings and a higher external guarantee amount

As at the end of 2015, the accumulated new borrowings of the Company (excluding those from issuance of bonds) amounted to RMB142,231 million, and the accumulated bonds issued amounted to RMB40,000 million, which was higher than the net assets as at the end of 2014 (the audited net assets of the Company as at the end of 2014 amounted to RMB52,356 million) by over 20%.

As at the end of 2015, the balance of external guarantee of the Company provided to related parties and non-related parties amounted to RMB24,187 million and RMB2,714

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APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)

million respectively. The external guarantee of the Company provided in 2015 was higher than the net assets as at the end of the last year (the audited net assets of the Company as at the end of 2014 amounted to RMB52,356 million) by over 20%.

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APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)

Contents	Contents
Definitions.............................................................................................................6
I Profile of the Company and the Relevant Intermediaries.............................7
I.	Company Information.....................................................................................................7
II.	Information on Information Disclosure Affairs ...............................................................7
III.	Information on the Controlling Shareholder, the De Facto Controller, Directors,
	Supervisors and Senior Management of the Company During
	the Reporting Period ...................................................................................................8
IV.	Information on the Relevant Intermediaries ....................................................................9
II	Corporate Bonds..........................................................................................10
I.	Basic Information of Bonds .......................................................................................... 10
II.	Use of Proceeds from the Issuance of Bonds ................................................................ 10
III.	Credit Rating and Ongoing Rating Arrangements ......................................................... 11
IV.	Implementation of Credit Enhancement Mechanism, Debt Repayment Plan and
	Other Safeguard Measures ........................................................................................ 11
III	Financial and Asset Conditions.................................................................13
I.	Major Accounting Data and Financial Indicators .......................................................... 13
II.	Audit of the Annual Financial Report of the Company ................................................. 14
III.	Analysis of Changes in Major Assets and Liabilities .................................................... 15
IV.	Restricted Assets.............................................................................................19
V.	Other Bonds or Debt Financing Instruments Issued by the Company ........................... 19
VI.	Change in External Guarantees of the Company ........................................................... 20
VII.	Credit and Bank Loan Repayment ................................................................................ 21
IV	Operations and Corporate Governance....................................................22
I.	Operations, Changes in Industry Environment and Management Discussion ................ 22
II.	Operation Discussion and Analysis for the Reporting Period ....................................... 22
III.	Future Business Development and Possible Risks ........................................................ 24
IV.	Other Information about Operations of the Company ................................................... 26
V	Major Events ................................................................................................27
I.	Pending Litigation, Arbitration and Administrative Penalty of the Company ................ 27
II.	Bankruptcy Reorganization of the Company During the Reporting Period ................... 27
III.	Risk Regarding Suspension of Trading or Delisting of Corporate Bonds
	During the Term..........................................................................................27
IV.	The Company, its Controlling Shareholder and De Facto Controller being
	Investigated by Judicial Authorities for Suspected Violation of Laws,
	and the Directors, Supervisors and Senior Management of the Company
	Suspected for Being Subject to Compulsory Measures as Implemented
	by Judicial Authorities .............................................................................................. 28
V.	Other Major Events.........................................................................................28
VI	Financial Report.........................................................................................29
VII Documents available for Inspection.........................................................30

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APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)

Definitions

In this annual report, unless the context otherwise requires, the following terms shall have the following meanings:

Company or Hengda Real Estate	means	Hengda Real Estate Group Company Limited* (恒大地產集團有限公司)
Evergrande (Cayman)	means	Evergrande Real Estate Group Limited, a Hong Kong listed company registered in the Cayman Islands of the United Kingdom (stock code: 3333.HK). It wholly owns 100% equity interest of the Company through subsidiaries at multiple levels
CSRC	means	China Securities RegulatoryCommission
SZSE	means	Shenzhen Stock Exchange
SSE	means	Shanghai Stock Exchange
Bondholders	means	investors who own the corporate bonds issued by the Company registered in their name as shown in the records of the bond registrar
Articles of Association	means	the Articles of Association of Hengda Real Estate GroupCompanyLimited
Board	means	the board of directors of Hengda Real Estate Group CompanyLimited
Supervisor(s)	means	the supervisor(s) of Hengda Real Estate Group CompanyLimited
ReportingPeriod	means	1 January2015 to 31 December 2015
CompanyLaw	means	CompanyLaw of the People’s Republic of China
Securities Law	means	Securities Law of the People’s Republic of China
Administrative Measures	means	Administrative Measures for the Issuance and Trading of Corporate Bonds (《公司債券發行與交易管理辦法》)
RMB, RMB000, RMB0,000 and RMB00 million	means	Renminbi 1 Yuan, Renminbi 1,000 Yuan, Renminbi 10,000 Yuan and Renminbi 100 million Yuan, unless otherwise specified

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)

I Profile of the Company and the Relevant Intermediaries

I. Corporate Information

Chinese name: 恒大地產集團有限公司(“恒大地產”)

Legal representative: Zhao Changlong

Registered address: Room 3801, No. 78 Huangpu Avenue West, Tianhe District, Guangzhou

Office address: Room 3801, No. 78 Huangpu Avenue West, Tianhe District, Guangzhou

Postal code: 510620

Company’s website: www.evergrande.com

II. Information on Information Disclosure Affairs

Person in charge of information disclosure: Cao Shen

Contact address: 37/F, Evergrande Center, No. 78 Huangpu Avenue West, Tianhe District, Guangzhou

Tel: 020-89182201

Fax: 020-89183000

Email: [email protected]

Website where the annual reports are published: www.sse.com.cn

Address where the annual reports are kept: 37/F, Evergrande Center, No. 78 Huangpu Avenue West, Tianhe District, Guangzhou

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)

III. Information on the Controlling Shareholder, the De Facto Controller, Directors, Supervisors and the Senior Management of the Company during the Reporting Period

(I) Information on the Controlling Shareholder and the De Facto Controller of the Company

During the Reporting Period, there was no change of the controlling shareholder and the de facto controller of the Company. The information on the controlling shareholder and the de facto controller is consistent with those disclosed in the prospectus.

(II) Information on the Directors, Supervisors and Senior Management of the Company

The information on the current directors, supervisors and the senior management of the Company is set out in the following table:

Name	Currentposition
Zhao Changlong	Chairman
He Miaoling	Director
Lu Baoping	Director
Ji Xingshun	Supervisor
Xia Haijun	President
LiangWeikang	Executive Vice President
Lin Manjun	Vice President
Wu Liqun	Vice President
Tse Wai Wah	Chief Financial Officer
Xu Jianhua	Vice President
Li Guodong	Vice President
Sun Yunchi	Vice President
Wei Keliang	Vice President
Xu Zhijian	Vice President
Ju Zhiming	Vice President

The changes of the directors, supervisors and the senior management of the Company during the Reporting Period are set out below:

Name	Position during the term	Status
Ju Zhiming	Vice President	Newlyappointed

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)

IV. Information on the Relevant Intermediaries

During the Reporting Period, there was no change of the intermediaries engaged by the Company. The basic information on the specific intermediaries is set out below:

(I) Accounting Firm

Information on the institution Name PricewaterhouseCoopers Zhong Tian LLP 18/F, PricewaterhouseCoopers Center, No. 10 Zhujiang Xi Road, Office address Pearl River New City, Tianhe District, Guangzhou Signing accountants Lin Yupeng and Che Jie

(II) Entrusted Bond Managers

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Information on the institution Corporate bonds
Name Guotai Junan Securities Co. Ltd.
Office address 10/F, Tower 2, Yingtai Center, No. 28 15恒大01, 15恒大02,
Financial Street, Xicheng District, Beijing 15恒大03 and
Contact person Wei Jin 16恒地01
Contact number 010-59312900
Information on the institution Corporate bonds
Name CSC Financial Co., Ltd.
2/F, Block B, Kaiheng Center, No. 2
Office address Chaonei Avenue, Dongcheng District, 15恒大04 and
Beijing 15恒大05
Contact person Guo Chunlei, Zhou Bin and Xing Chao
Contact number 010-85130311
(III) Credit Rating Institution
Information on the intermediary
Name China Chengxin Securities Rating Co., Ltd.
21/F, Anji Building, No. 760 South Tibet Road,
Office address
Huangpu District, Shanghai
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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)

II Corporate Bonds

==> picture [342 x 406] intentionally omitted <==

----- Start of picture text -----

I. Basic Information on Bonds
2015 Corporate Bonds of
Hengda Real Estate Group 2015 Corporate Bonds of Hengda Real Estate Group
Name of bond
Company Limited (First Company Limited (Second Tranche)
Tranche)
Abbreviated name of
15恒大01 15恒大02 15恒大03
bond
Bond code 122383 122392 122393
Issuance date 18 June 2015 7 July 2015 7 July 2015
19 June 2020; if the 8 July 2019; if the 8 July 2022; if the
Bondholders exercise their Bondholders exercise their Bondholders exercise their
rights to sell back the rights to sell back the rights to sell back the
Maturity date
bonds, then the maturity bonds, then the maturity bonds, then the maturity
date of such portion of date of such portion of date of such portion of
bonds is 19 June 2018 bonds is 8 July 2017 bonds is 8 July 2020
Balance of bond RMB5 billion RMB6.8 billion RMB8.2 billion
Coupon rate 5.38% 5.30% 6.98%
The interest is calculated annually, regardless of compound interest, and is paid
Method of principal
once every year. The principal will be returned upon maturity. The last interest will
and interest payment
be paid together with the principal.
Being listed and traded
Shanghai Stock Exchange
on
Arrangement on
Public offering to the qualified investors under the Administrative Measures
suitability of investors
Interest payment of
There was no default in interest payment or risk of due repayment during the
corporate bonds during
Reporting Period.
the Reporting Period
No performance of special No performance of special No performance of special
Performance of special
terms during the Reporting terms during the Reporting terms during the Reporting
terms
Period Period Period
II. Use of Proceeds from the Issuance of Bonds
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The Company entered into a proceeds supervisory agreement with the supervisory bank and the entrusted manager within a month upon the completion of every tranche of corporate bond issuance. During the Reporting Period, the proceeds from the issuance of relevant corporate bonds were used in strict compliance with those mentioned in the prospectus as approved by the CSRC and did not exceed the scope of use as mentioned in the prospectus of bonds.

As at 31 December 2015, the use of proceeds from the relevant issuance of corporate bonds is set out below:

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)

Unit: RMB100 million

Bond code	Gross proceeds	Approved use of proceeds	Actual use of proceeds	Whether it is consistent with the use of proceeds mentioned in the prospectus	Operation of the designated account for proceeds	Balance of unutilized proceeds as at the end of the year
15恒大01	50	RMB15 billion would be used for repayment of loans from financial institutions, and RMB5 billion would be used for replenishment of working capital	All used for repayment of bank loans	Yes	Standard operation	–
15恒大02	150		RMB10 billion was used for repayment of loans from financial institutions, and RMB5 billion was used for replenishment of working capital; RMB2,146 million in the portion of replenishment of working capital was used for the replacement of existing loans			0.2
15恒大03

Note: 15恒大02及15恒大03 are two forms of bonds issued in the same tranche, so their use of proceeds are aggregated for disclosure.

III. Credit Rating and Ongoing Rating Arrangements

China Chengxin Securities Rating Co., Ltd. expects to issue the regular ongoing rating reports for 15恒大01, 15恒大02 and 15恒大03 within two months after the issue of the annual audit report of the Company. During the term of the bonds, in case of any significant event which may affect the credit rating of the bonds of the Company, the credit rating institution will study and analyze such matters and publish non-scheduled ongoing rating results. Regular and non-scheduled ongoing rating results and other relevant information will be announced on the websites of China Chengxin Securities Rating Co., Ltd. (www.ccxr.com.cn) and the Shanghai Stock Exchange (www.sse.com.cn).

During the Reporting Period, there was no difference between the rating for issuing other bonds and debt financing instruments in China and the rating of the relevant corporate bonds in this report.

IV. Implementation of Credit Enhancement Mechanism, Debt Repayment Plan and Other Safeguard Measures

During the Reporting Period, there was no change in the credit enhancement mechanism, debt repayment plan and other safeguard measures provided by the Company for the issued corporate bonds.

(I) Commitments from Evergrande (Cayman)

As at the end of the Reporting Period, Evergrande (Cayman), as the covenantor, maintained normal operation and sound performance. During the Reporting Period, no event occurred which would require Evergrande (Cayman) to perform the obligation of buying bonds.

(II) Implementation of Debt Repayment Plan and Debt Repayment Safeguard Measures

As at the end of the Reporting Period, the Company was not subject to interest payment, and the debt repayment arrangements and safeguard measures maintained sound operation.

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)

(III) Convening Bondholders’ Meetings

During the Reporting Period, the Company did not need to convene a bondholders’ meeting for the issued corporate bonds.

(IV) Performance of Duties of the Entrusted Manager

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)

III Financial and Asset Conditions

I. Major Accounting Data and Financial Indicators

(I) Major Accounting Data and Financial Indicators in the Past Two Years

Unit: RMB100 million	Unit: RMB100 million	Unit: RMB100 million	Unit: RMB100 million
Major Accounting Data and Financial Indicators	2015	2014	Change
Operatingincome	1,175.15	983.77	19.45%
Net profit attributable to shareholders of theparent company	169.06	157.65	7.24%
EBITDA	325.13	287.03	13.27%
Net cash flows from operatingactivities	-9.23	-305.93	96.98%
Net cash flows from investingactivities	-107.66	-132.09	18.49%
Net cash flows from financingactivities	549.40	380.85	44.26%
Major Accounting Data and Financial Indicators	31 December 2015	31 December 2014	Change
Balance of cash and cash equivalents as at the end of theperiod	692.20	259.68	166.56%
Net assets attributable to shareholders of theparent company	645.18	460.47	40.11%
Total assets	6,503.61	4,416.22	47.27%
Current ratio	1.31	1.35	-2.96%
Quick ratio	0.53	0.60	-11.67%
Gearingratio	88.54%	88.14%	0.45%
Interest coverage ratio	1.54	1.92	-19.79%
Cash interest coverage ratio	1.13	-1.35	183.70%
EBITDA to total liabilities ratio	0.12	0.17	-29.41%
EBITDA interest coverage ratio	1.59	1.97	-19.29%
Loan repayment ratio (%)	100	100	–
Interest repayment ratio (%)	100	100	–

The indicators are calculated as follows:
EBITDA to total liabilities ratio = EBITDA/total liabilities
Interest coverage ratio = EBIT/(interest expenses recognized in finance costs + capitalized interest expenses)
Cash Interest coverage ratio = (net cash flows from operating activities + cash interest expenses + income tax paid in cash)/cash interest expenses
EBITDA interest coverage ratio = EBITDA/(interest expenses recognized in finance costs + capitalized interest expenses)
Loan repayment ratio = actual amount of loan repayment/loan amount repayable
Interest repayment ratio = interests actually paid/interests payable

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)

(II) Analysis of Changes in Major Accounting Data and Financial Indicators
Net cash flows from operating activities

Net cash flows from operating activities represented a year-on-year increase of 96.98%, mainly due to sales growth and increase in sales proceeds;

Net cash flows from financing activities

Net cash flows from financing activities represented a year-on-year increase of 44.26%, mainly due to the larger size of financing as a result of the increase in scale of operation of the Company;

Balance of cash and cash equivalents as at the end of the period

Balance of cash and cash equivalents as at the end of the period increased, mainly due to the improvement in the net cash flows from operating activities and growth in net cash flows from financing activities;

Net assets attributable to shareholders of the parent company

Net assets attributable to shareholders of the parent company increased by 40.11% as compared to the end of last year, mainly due to the net profit attributable to shareholders of the parent company of RMB16,906 million recorded for the period;

Total assets

Total assets increased by 47.27% as compared to the end of last year, mainly due to the increases in inventories, investment properties and cash and bank balances as a result of expansion in scale of operation;

Cash interest coverage ratio

Cash interest coverage ratio grew year on year, mainly due to the gradual improvement in the net cash flows from operating activities.

II. Audit of the Annual Financial Report of the Company

PricewaterhouseCoopers Zhong Tian LLP issued a standard unqualified audit opinion for the annual financial report of the Company. For details, please refer to the 2015 Auditor’s Report on Hengda Real Estate Group Company Limited in the appendix.

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)

During the Reporting Period, there was no change in the accounting policies of the Company.

III. Analysis of Changes in Major Assets and Liabilities

(I) Analysis of Asset Structure

	Unit: RMB100 million	Unit: RMB100 million	Unit: RMB100 million	Unit: RMB100 million	Unit: RMB100 million
Item	31 December 2015		31 December 2014		Change
	Amount	Percentage	Amount	Percentage
Cash and bank balances	1,244.12	19.13%	542.07	12.27%	129.51%
Financial assets at fair value throughprofit or loss	–	–	109.50	2.48%	-100.00%
Notes receivable	2.10	0.03%	0.04	0.00%	5150.00%
Trade receivables	46.14	0.71%	62.55	1.42%	-26.24%
Other receivables	573.74	8.82%	491.57	11.13%	16.72%
Prepayments	209.27	3.22%	398.48	9.02%	-47.48%
Inventories	3,187.64	49.01%	2,042.14	46.24%	56.09%
Other current assets	67.35	1.04%	35.45	0.80%	89.99%
Total current assets	5,364.46	82.48%	3,681.80	83.37%	45.70%
Available-for-sale financial assets	0.03	0.00%	11.18	0.25%	-99.73%
Long-term receivables	89.67	1.38%	46.94	1.06%	91.03%
Long-term equityinvestments	95.55	1.47%	10.62	0.24%	799.72%
Investmentproperties	818.33	12.58%	530.59	12.01%	54.23%
Fixed assets	73.40	1.13%	64.41	1.46%	13.96%
Construction inprogress	26.05	0.40%	31.93	0.72%	-18.42%
Intangible assets	19.40	0.30%	19.65	0.44%	-1.27%
Deferred income tax assets	16.33	0.25%	18.38	0.42%	-11.15%
Long-term deferred expenses	0.39	0.01%	0.72	0.02%	-45.83%
Total non-current assets	1,139.15	17.52%	734.42	16.63%	55.11%
Total assets	6,503.61	100.00%	4,416.22	100.00%	47.27%

Cash and bank balances

As at the end of 2015, cash and bank balances amounted to RMB124,412 million, representing year-on-year growth of 129.51%, mainly due to the consistent growth in cash and bank balances by virtue of timely adjustment in development pace and sales strategy, adherence to the positioning of ordinary residential products for end users and intensified efforts in marketing and collecting sales proceeds. At the same time, the Company made flexible adjustments in financing structure to meet business development needs, and the related financing as at the end of 2015 was not fully allocated to project development and daily operations, resulting in growth of cash and bank balances.

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APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)

Financial assets at fair value through profit or loss

In 2015, the Company liquidated all the relevant investment and wealth management products according to the market conditions, resulting in nil balance as at the end of the Reporting Period.

3. Trade receivables and long-term receivables

As at the end of 2015, trade receivables amounted to RMB4,614 million, representing a year-on-year decrease of 26.24%; long-term receivables amounted to RMB8,967 million, representing a year-on-year increase of 91.03%; both of them represented year-on-year growth of 24.04% in aggregate. With the expanding scale of sales in the property business of the Company, the proceeds from sales of commodity housing receivable by the Company also increased. Most of the trade receivables had aging within 1 year and between 1 to 2 years, which was consistent with the sales policy of the Company.

4. Inventories

Inventories are mostly property inventories comprising properties held for sale and properties under development. As at the end of 2015, inventories amounted to RMB318,764 million, representing an increase of 56.09% as compared to the end of 2014, mainly due to the rapid growth of the property development business of the Company with increasing investment in new projects and properties under development.

Other current assets

Other current assets mainly comprise prepayments of land appreciation taxes, corporate income taxes and business taxes. As at the end of 2015, other current assets amounted to RMB6,735 million, representing year-on-year growth of 89.99%, mainly due to the increases in prepayments of land appreciation taxes, corporate income taxes and business taxes as a result of the increase in receipt in advance for sales of housing with increased sales of properties of the Company.

Available-for-sale financial assets

Available-for-sale financial assets mainly comprise the equity investment in non-listed companies at cost held by the Company. As at the end of 2015, the available-for-sale financial assets of the Company amounted to RMB3 million, representing a year-on-year decrease of 99.73%, mainly due to the reclassification of the investees into associates and subsidiaries of the Company resulting from the increased investment in the equity interests in the investees by the Company in 2015.

Long-term equity investments

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)

As at the end of 2015, long-term equity investments amounted to RMB9,555 million, representing a year-on-year increase of 799.72%. Long-term equity investments of the Company were investments in joint ventures and associates, among which long-term equity investments in joint ventures and associates amounted to RMB8,426 million and RMB1,129 million respectively. In November 2015, the Company acquired 50% equity interest in Great Eastern Life Assurance (China) Co., Ltd.* (中新大東方人壽保險有限公司) at a consideration of RMB3,939 million. Great Eastern Life Assurance (China) Co., Ltd. was then renamed as Evergrande Life Insurance Company Limited (“Evergrande Life”). In December 2015, the Company made additional capital investment of RMB3,000 million in Evergrande Life.

8. Investment properties

Investment properties mainly comprise self-owned commercial properties, including self-owned stores, offices and garages. As at the end of 2015, the investment properties of the Company amounted to RMB81,833 million, representing year-on-year growth of 54.23%, mainly due to the increases in the area of commercial properties under development and completed self-owned commercial properties year by year as well as the increase in value of the commercial properties.

(II) Analysis of Changes in Liabilities

Unit: RMB100 million

Item	31 December 2015	31 December 2015	31 December 2014	31 December 2014	Change
	Amount	Percentage	Amount	Percentage
Short-term borrowings	364.24	6.33%	299.28	7.69%	21.71%
Notespayable	363.12	6.31%	226.53	5.82%	60.30%
Tradepayables	794.90	13.80%	596.54	15.32%	33.25%
Receipts in advance	721.79	12.53%	416.87	10.71%	73.15%
Employee remunerationpayable	8.27	0.14%	6.35	0.16%	30.24%
Taxpayable	203.77	3.54%	147.87	3.80%	37.80%
Interestspayable	43.89	0.76%	31.70	0.81%	38.45%
Dividendspayable	10.76	0.19%	40.76	1.05%	-73.60%
Otherpayables	845.44	14.68%	614.16	15.78%	37.66%
Non-current liabilities due within oneyear	746.97	12.97%	352.57	9.06%	111.86%
Total current liabilities	4,103.15	71.26%	2,732.63	70.20%	50.15%
Long-term borrowings	1,112.43	19.32%	1,010.74	25.97%	10.06%
Bondspayable	395.49	6.87%	–	–
Long-termpayables	23.54	0.41%	69.19	1.78%	–65.98%
Deferred income tax liabilities	123.77	2.15%	80.10	2.06%	54.52%
Total non-current liabilities	1,655.23	28.74%	1,160.03	29.80%	42.69%
Total liabilities	5,758.38	100.00%	3,892.66	100.00%	47.93%

Notes payable

– II-18 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)

As at the end of 2015, notes payable amounted to RMB36,312 million, representing year-on-year growth of 60.30%, mainly due to the increase in payment with the use of notes by the Company in order to optimize its payment structure by virtue of the expanding scale of operations of the Company and suppliers’ recognition of the creditworthiness and payment ability of the Company.

Trade payables

As at the end of 2015, trade payables amounted to RMB79,490 million, representing year-on-year growth of 33.25%, mainly due to the increase in construction payments year by year as a result of the expanding scales of operation of the Company.

Receipts in advance

As at the end of 2015, receipts in advance amounted to RMB72,179 million, representing year-on-year growth of 73.15%, mainly due to the increase in sales proceeds received in advance as a result of the strong growth in contracted sales of the Company.

Tax payable

As at the end of 2015, tax payable amounted to RMB20,377 million, representing yearon-year growth of 37.80%, mainly due to the increases in land appreciation Tax payable and corporate income Tax payable with growth consistent with the growth in the scale of operation.

Interests payable

As at the end of 2015, interests payable amounted to RMB4,389 million, representing year-on-year growth of 38.45%, mainly due to the increase in new borrowings and bonds payable for the year.

Dividends payable

As at the end of 2015, dividends payable amounted to RMB1,076 million, representing a year-on-year decrease of 73.60%, mainly due to the distribution of certain dividends to shareholders by the Company in November 2015.

Other payables

As at the end of 2015, other payables amounted to RMB84,544 million, representing year-on-year growth of 37.66%, mainly due to the increases in due to related parties, land payments payable, and the payables for acquisition of subsidiaries and joint ventures.

Non-current liabilities due within one year

As at the end of 2015, non-current liabilities due within one year amounted to RMB74,697 million, representing year-on-year growth of 111.86%, mainly due to the expansion of scale of financing.

– II-19 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)

Long-term payables

As at the end of 2015, long-term payables amounted to RMB2,354 million, representing a year-on-year decrease of 65.98 %, mainly due to the decrease in cash advances from holders of the consolidated investment entities.

10. Deferred income tax liabilities

As at the end of 2015, deferred income tax liabilities amounted to RMB12,377 million, representing year-on-year growth of 54.52%. The deferred income tax liabilities of the Company mainly come from the temporary difference arising from the change in fair value of investment properties and the temporary difference arising from the excess of the book value of the assessed properties over the tax base. As at the end of 2015, the fair value of the investment properties of the Company increased, resulting in simultaneous growth in deferred income tax liabilities.

IV. Restricted Assets

As at 31 December 2015, the restricted assets of the Company amounted to RMB202,735 million, which mainly comprised restricted inventories and restricted cash and bank balances. Details are as follows:

Unit: RMB100 million	Unit: RMB100 million	Unit: RMB100 million	Unit: RMB100 million
Types of restricted assets	Book value	Reason of restriction	Percentage to total assets
Cash and bank balances	551.92	Provide guaranty or pledge for interest-bearingliabilities	8.49%
Inventories	1,314.49	Provide guaranty or pledge for interest-bearingliabilities	20.22%
Fixed assets, investment properties, land use rights and others	160.94	Provide guaranty or pledge for interest-bearing liabilities	2.48%
Total	2,027.35		31.18%

V. Other Bonds or Debt Financing Instruments Issued by the Company

In October 2015, the Company issued corporate bonds of RMB20 billion through nonpublic offering on SSE, among which the first form of bonds (15恒大04) had an issuance size of RMB17.5 billion with a term of 5 years (where the issuer shall have the right to increase the coupon rate after the end of the third year and the investors shall have the right to sell back the bonds) and an interest rate of 7.38%, and the second form of bonds (15恒大05) had an issuance size of RMB2.5 billion with a term of 5 years and an interest rate of 7.88%.

In January 2016, the Company completed the non-public offering of the first tranche of corporate bonds (16恒地01) of RMB10 billion with a term of 4 years (where the issuer shall have the right to increase the coupon rate after the end of the second year and the investors shall have the right to sell back the bonds) and an interest rate of 6.98%.

During the Reporting Period, the above bonds did not have any default in interest payment or risk of due repayment.

– II-20 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)

VI. Change in External Guarantees of the Company (I) Guarantees Provided by the Company for Related Parties and Non-related Parties

As at the end of 2015, the balance of guarantees provided by the Company for related parties and non-related parties amounted to RMB24,187 million and RMB2,714 million. The basic information of the major guaranteed parties is as follows:

Company name	Registered capital/ Statutory share capital	Principal business	Credit status	Relationship	Type of guarantee	Amount of guarantee (in RMB100 million)	Term of guarantee
Evergrande (Cayman)	USD1,000 million	Development, investment, management and construction of real estate and other services related to real estate development	Good	Indirect controlling shareholder	Pledge guarantee	191.47	One year
Zhong Yu Property Development Company Limited* (重慶中渝物業發展有限公司)	USD131 million	Real estate development	Good	Controlled by the same ultimate holding company	Guaranty guarantee	10	Two years
Hengda Grains and Oil (Group) Company Limited* (恒大糧油集團有限公司)	RMB300 million	Production, processing and sale of grains and oil	Good	Controlled by the same ultimate holding company	Guaranty guarantee	8	One year
Shenzhen Xiacun Real Estate Development Company Limited* (深圳市廈村房地產開發有限公司)	RMB100 million	Real estate development	Good	Controlled by the same ultimate holding company	Guaranty guarantee	7	One year
Dongguan Zehe Industrial Company Limited* (東莞市澤和實業有限公司)	RMB10 million	Real estate development	Good	Controlled by the same ultimate holding company	Guaranty guarantee	6.95	One year
Nanjing Hengda Fufeng Property Company Limited* (南京恒大富豐置業有限公司)	RMB229 million	Real estate development	Good	Controlled by the same ultimate holding company	Guaranty guarantee	5.5	One year
Hainan Oriental Pearl Real Estate Development Company Limited* (海南東方明珠房地產有限公司)	RMB70 million	Real estate development	Good	Controlled by the same ultimate holding company	Guaranty guarantee	4	One year
Total						232.92

As at the end of 2015, the balance of guarantees provided by the Company for Evergrande (Cayman) amounted to RMB19,147 million. The guarantees were provided for the overseas financing of Evergrande (Cayman), which were mainly used in the daily business activities, repayment of overseas interest-bearing liabilities and profit distribution.

(II) Guarantees Provided by the Company for Home Buyers

As the Company is engaged in the real estate industry, the Company has to provide guarantees for the mortgage loans of home buyers according to the relevant requirements

– II-21 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)

of the People’s Bank of China. Recently, the Company provides periodic joint-and-several guarantees for buyers of commodity housing with a term from the date of lending by mortgage banks to the date of completing the procedures of property ownership certificates by mortgage banks for home buyers. If the home buyers do not fulfill their obligations as debtors during the abovementioned guarantee period, the Company has the right to repossess the properties sold, so such guarantees do not incur actual losses for the Company. As at 31 December 2015, the Company and its subsidiaries provided guarantees for the mortgage loans of commodity housing for the banks in an amount of RMB128.667 billion.

VII. Credit and Bank Loan Repayment

With a good credit status, the Company has good credit profiles in the large banks and has obtained high credit lines from the large banks. As at the end of 2015, the aggregated credit line of the Company granted by banks amounted to RMB272.0 billion, among which RMB137.3 billion was unutilized.

As at the end of 2015, the bank loans in the interest-bearing liabilities of the Company amounted to RMB82,529 million, representing an increase of RMB21,434 million as compared to the end of 2014. During the Reporting Period, the Company made timely repayment of bank loans without any default or loan extension.

– II-22 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)

IV Operations and Corporate Governance

I. Operations, Changes in Industry Environment and Management Discussion

The Company is one of the real estate developers with the highest presence, the greatest brand influence and the strongest comprehensive strengths in China. As at the end of 2015, the Company had 339 large-scale real estate projects in 153 major cities. Adhering to its development strategy of “scale + brand”, implementing the rolling development and operating efficiently, the Company had developed strong comprehensive competitive edges. In 2015, the Company recorded operating income of RMB117,515 million, representing a year-on-year increase of 19.45%. The operations developed rapidly, and the growth in operating income scale and operations reflected the leading position of the Company in China’s real estate industry.

The profound change continued in China’s real estate industry. In line with the key note of “Stabilizing demand, destocking and accelerating transformation”, a string of accommodative policies on both supply and demand ends led to a significant recovery in market turnover. The transaction volume of commodity housing nationwide increased year-on-year by 14.4% to RMB8,728.1 billion, a record high which surpassed the level in 2013. However, the area sold of commodity housing was 1,284.95 million square meters, representing an increase of 6.5% from the last year.

On the other hand, with further market divergence and clearer urban value regression, 30 large and medium cities accounted for nearly half of the total sales nationwide. Developers returned to first and second-tier cities for land reserves, leading to the increase of land premium in first and second-tier cities.

Facing the unprecedented and profound transformation in the industry as well as the complicated market environment, the Board, based on its well-grounded judgments, was devoted to capture the opportunities in the market through constantly strengthening the principal business and foundation of real estate and optimizing the regional layout of residential property projects by leveraging its strong execution. The total assets amounted to RMB650,361 million, representing a year-on-year increase of 47.27%; the Company recorded operating income of RMB117,515 million, representing a year-on-year increase of 19.45%; profits attributable to owners of the parent company amounted to RMB16,906 million, representing a year-on-year increase of 7.24%; the total cash of the Company amounted to RMB124,412 million, representing a year-on-year increase of 129.51%.

II. Operation Discussion and Analysis for the Reporting Period

(I) Overall Operation Review for 2015

The Company was a professional real estate developer. Most of its real estate development projects were middle- to high-end residential properties, which were supplemented by the operation of commercial properties and residential ancillary facilities. The developed products included low density buildings, multi-storey garden-view houses, multi-storey residential buildings, mid-rise and high-rise residential buildings, etc.

– II-23 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)

Unit: RMB100 million

	Unit: RMB100 million	Unit: RMB100 million	Unit: RMB100 million	Unit: RMB100 million
Item	2015
	Operating income	Operating costs	Operating grossprofit	Gross profit margin
Residentialproperties	1,050.53	723.47	327.06	31.13%
Commercialproperties	68.93	21.49	47.44	68.82%
Garages andparkingspaces	5.66	2.91	2.75	48.57%
Others	50.03	35.93	14.10	28.18%
Total	1,175.15	783.8	391.35	33.30%
Item	2014
	Operating income	Operating costs	Operating grossprofit	Gross profit margin
Residentialproperties	879.42	612.22	267.20	30.38%
Commercialproperties	52.82	15.28	37.54	71.07%
Garages andparkingspaces	13.16	4.47	8.69	66.01%
Others	38.38	27.05	11.33	29.51%
Total	983.77	659.02	324.75	33.01%

Recently, the Company experienced rapid development with operating scale expanding continuously. Operating income for the period increased by RMB19,138 million or 19.45% as compared to the corresponding period of last year, of which operating income from sales of properties accounted for approximately 96%. Its principal operations performed outstandingly, while the performance of other segments also improved as compared to the corresponding period of last year. The operating costs for the period increased by RMB12,478 million or 18.93% as compared to the corresponding period of last year, which was slightly lower than the operating income growth. Such trend reflected the stringent cost control of the Company, By virtue of the above two reasons, the operating gross profit for the period increased by RMB6,660 million or 20.51%.

The composition and changes in expenses of the Company during the past two years are set out below:

Unit: RMB100 million	Unit: RMB100 million	Unit: RMB100 million	Unit: RMB100 million
Item	2015	2014	Change
Sellingexpenses	95.88	81.43	17.75%
Administrative expenses	39.71	27.95	42.08%
Financial expenses	10.66	24.95	-57.27%
Total expenses for theperiod	146.25	134.33	8.87%
Sellingexpenses/operatingincome	8.16%	8.28%	-1.45%
Administrative expenses/operatingincome	3.38%	2.84%	19.01%
Financial expenses/operatingincome	0.91%	2.54%	-64.17%
Total operating expense ratio for theperiod	12.45%	13.65%	-8.79%

The proportion of financial expenses to operating income for the period decreased mainly due to the sustained robust operation of the Company, gradual improvement in cash flows of operating activities, and more capital investment in projects, and the interests appropriated for replenishing working capital decreased accordingly.

– II-24 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)

The composition and changes in profit during the past two years are set out below:

Unit: RMB100 million	Unit: RMB100 million	Unit: RMB100 million	Unit: RMB100 million
Item	2015	2014	Change
Investment income	61.75	7.08	772.18%
Gain/loss from changes in fair value	64.69	124.07	-47.86%
Operating profit	250.13	217.33	15.09%
Non-operatingincome	3.40	7.18	-52.65%
Non-operatingexpenses	7.92	4.75	66.74%
Totalprofit	245.61	219.76	11.76%
Netprofit	185.24	170.16	8.87%
Net profit attributable to owners of the parent company	169.06	157.65	7.24%

In 2015, the investment income of the Company reached RMB6,175 million, representing a year-on-year increase of 772.18% mainly due to the investment income from the disposal of financial assets held for investment of the Company by virtue of the flourishing securities market for the year.

(II) Significant Investing activities

During the year, the Company had additional long-term equity investment in associates and joint ventures of RMB9,555 million, which did not exceed 20% of the audited net assets of the preceding year.

In November 2015, the Company acquired 50% equity interest in Great Eastern Life Assurance (China) Co., Ltd.* at a consideration of RMB3,939 million. Great Eastern Life Assurance (China) Co., Ltd. was then renamed as Evergrande Life Insurance Company Limited (“Evergrande Life”). In December 2015, the Company increased the capital investment in Evergrande Life by RMB3,000 million.

III. Future Business Development and Possible Risks

(I) Future Development Outlook

”De-stocking for a more sustainable real estate market” as explicitly put forward at the Central Economic Work Conference held in December 2015, together with the five key tasks for the Reform of the Supply Side elaborated at the twelfth meeting of the Central Leading Group on Financial and Economic Affairs held in February 2016, marked the initiation of the aforesaid reforms and ambition of the central government in 2016 to advance reforms fundamentally for a stable and healthy real estate market. In particular, an array of reform measures regarding accelerating urbanization, the household registration system, rural land transfer and abolishment of outdated administrative restrictions are expected to further boost the sustainable development of the real estate sector.

Looking forward to 2016, the management is of the view that under the new normal led by the Reform of the Supply Side, China’s economy will maintain moderately rapid

– II-25 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)

growth and long-term promising outlook with a stable real estate industry as an economic pillar. Meanwhile, the real estate market will undergo radical evolutions driven by emerging trends such as restoration of the property inherent value, polarization of the market and financialization of the industry.

Based on the research on the “new normal” of China’s economy and the real estate industry, the management will adopt comprehensive measures to optimize the regional layout of residential housing projects, to firmly strengthen sales and collection of sales proceeds, to put costs and expenses under tight control, to increase profitability, to strictly control financial risks, and to consolidate the principal real estate business.

(II) Possible Risk Exposures

1. Cyclical Economic Risk

The real estate market, where the principal businesses of the Company operate, is closely related to the macroeconomic condition, and the industry development has a stronger correlation with the domestic economy sentiment. Hence, macroeconomic factors, such as the investment scale of fixed assets and the progress of urbanization, will have greater impact on the real estate market. In recent years, the total investment in fixed assets in China has maintained rapid growth, and, accordingly, the investment in urban real estate development has also maintained a high growth rate, which created favorable external conditions for the development of the Company’s operations. However, there are numerous uncertainties in domestic economic condition at present. In the event that there is any slowdown in the domestic economy or cyclical macroeconomic fluctuation, and the Company fails to predicate such situation and adjust its operations correspondingly, the overall performance and profitability of the Company will be adversely affected.

2. Cross-Regional Real Estate Operating Risk

The real estate business of the Company covered 153 cities across China. The resources allocation has been optimizing with the use of the brand influence of “Evergrande” brand. The Company has to understand and fulfill the market demands in different regions, and allocate resources to different regions by fully utilizing its available resources. Although the Company has already established a strict, efficient internal control system, it is more difficult to manage and control with the increasing complexity in fund allocation, construction quality, safety production and contract performance as a result expansion in operation regions. In the event that the Company fails to adjust the operating strategies in different regions based on actual condition, or its internal control has been weakened, the Company may be exposed to crossregional operating and management risk, thus adversely affecting the overall operation of the Company.

Greater Risk Exposure in relation to Capital Expenditure for Land Acquisition and Project Development

– II-26 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)

land reserves balance as at the end of 2015 was 134 million square meters. The real estate development business of the Company experienced rapid growth. The expenses for project development and land acquisition increased with larger cash outflows for operating activities.

IV. Other Information about Operations of the Company

(I) Default Events

There was no significant default event in the course of business with major clients during the Reporting Period.

(II) Independence

The issuer conducts its operations strictly in accordance with relevant laws and regulations including the Company Law and the Securities Law, as well as the requirments under the Articles of Association. It has an independent and comprehensive system for asset and business, and is capable to operate independently in the market.

(III) Description on Non-operating Current Capital

As at the end of 2015, other receivables of the Company in related party transactions amounted to RMB48,844 million. As the Company is a domestic subsidiary of Evergrande (Cayman), there are numerous related parties within China and overseas market. Hence, the Company has quite a number of related party transactions with other subsidiaries of Evergrande (Cayman) in relation to daily payment and collection clearance amount, capital transfer and other aspects, generating more receivables in related party transactions under other receivables. Meanwhile, as at the end of 2015, other payables of the Company in related party transactions amounted to RMB50,037 million. Taking into account of other receivables and capital flows with related parties under other payables, net capital flows with related parties generated from non-operating activities of the Company as at the end of the reporting period amounted to RMB-1,193 million. Although the proportion of net capital flows with related parties to total assets is relatively low, the normal operations of the Company will not be significantly affected.

The breakdown of other receivables in related party transactions as at the end of 2015 is set out below:

Unit: RMB100 million	Unit: RMB100 million
Name of relatedparty	Balance
Guangzhou KailongReal Estate CompanyLimited*(廣州市凱隆置業有限公司)	100.58
Evergrande Real Estate Group(Shenzhen) Limited	67.64
Evergrande (Cayman)	60.96
QidongTongyu Real Estate Co., Ltd.*(啟東通譽置業有限公司)	25.76
Zhuhai Hongyue CommodityCompanyLimited*(珠海泓粵日用品有限公司)	16.37
Guangzhou Hengda (Zengcheng) Real Estate Development Company Limited* (廣州恒大（增城）房地產開發有限公司)	15.61
NanjingHengda FufengPropertyCompanyLimited*(南京恒大富豐置業有限公司)	12.31

– II-27 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)

Hangzhou Jingli PropertyCompanyLimited*(杭州晶立置業有限公司)	11.90
Shanghai Suihua PropertyCompanyLimited*(上海穗華置業有限公司)	9.89
Ningbo Sanli Xianghe PropertyCompanyLimited*(寧波三立祥和置業有限公司)	9.47
Hainan Oriental Pearl Real Estate Company Limited* (海南東方明珠房地產有限公司)	9.33
Guangzhou ChaofengLand Company*(廣州市超豐置業有限公司)	7.43
Changjiang Guangyi Real Estate Development Company Limited (昌江廣億房地產開發有限公司)	7.39
Huludao Jia Shan PropertyCompanyLimited*(葫蘆島嘉汕置業有限公司)	7.30
Yangzhou Honglitai Real Estate Development Company Limited (揚州宏利泰房地產開發有限公司)	7.06
Chengdu Tianfu Shuicheng Real Estate Development Company Limited* (成都天府水城房地產開發有限公司)	6.97
Benxi Jiaxi PropertyCompanyLimited*(本溪嘉熙置業有限公司)	6.59
QidongBaofengPropertyCompanyLimited*(啟東寶豐置業有限公司)	5.84
DongyingYujingPropertyCo., Ltd.(東營御景置業有限公司)	5.73
Chongqing Hengda Xinding Property Company Limited* (重慶恒大鑫鼎置業有限公司)	4.90
Others	89.40
Total	488.44

(IV) Provision of Guarantee for its Controlling Shareholder, De Facto Controller and their Related Parties in Violation of Laws

As at the end of 2015, the Company provided guarantees of RMB24,187 million in total for its related parties. During the Reporting Period, the Company did not provide any guarantee for its controlling shareholder, de facto controller or their related parties in violation of laws.

(V) Compliance of Corporate Governance

During the reporting period, the Company did not violate the Company Law and the Articles of Association in respect of corporate governance, internal control and other aspects. The Company has strictly complied with and performed relevant agreements and commitments made under the prospectus. There was no event that would have a material adverse impact on the interests of bond investors.

V Major Events

I. Pending Litigation, Arbitration and Administrative Penalty of the Company

During the Reporting Period, the Company was not subject to any pending litigation, arbitration and administrative penalty which may have a material adverse impact on the normal operation, financial position and solvency of the Company.

II. Bankruptcy Reorganization of the Company During the Reporting Period

During the Reporting Period, the Company did not undergo any bankruptcy reorganization.

III. Risk Regarding Suspension of Trading or Delisting of Corporate Bonds During the Term

During the reporting period, the corporate bonds were not exposed to any risk regarding suspension of trading or delisting during the term.

– II-28 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)

IV. The Company, its Controlling Shareholder and De Facto Controller being Investigated by Judicial Authorities for Suspected Violation of Laws, and the Directors, Supervisors and Senior Management of the Company Suspected for Being Subject to Compulsory Measures as Implemented by Judicial Authorities

During the Reporting Period, neither the Company, its controlling shareholder nor de facto controller, directors, supervisors nor senior management were subject to any pending litigation, arbitration and administrative penalty which may have a greater impact on the financial position, operating results, reputation, business activities and outlook of the Company.

V. Other Major Events

No.	Major event	Happened or not?	Updates and impacts
1	Material changes in operating directions, operating scope or external operating and product conditions of the issuer;	No
2	Changes in credit ratingof the issuer;	No
3	Major assets of the issuer being sealed up, impounded or frozen;	No
4	The issuer fails to repay debts due, causing a default;	No
5	Accumulated new borrowings or external guarantees provided by the issuer for the current year exceeds 20% of net assets as at the end of the lastyear;	Yes	Please refer to “Material Risk Warnings” of this report
6	Creditor’s rights or properties forfeited by the issuer exceed 10% of net assets as at the end of the lastyear;	No
7	The issuer incurs material loss which exceeds 10% of net assets as at the end of the lastyear;	No
8	The issuer decides to conduct capital reduction, merger, separation, dissolution and apply for bankruptcy;	No
9	The issuer is subject to material litigation, arbitration or significant administrativepenalty;	No
10	Material changes in guarantor, collateral or other remedial measures;	No
11	Material changes in the issuer which might result in no longer being in compliance with the listing requirements for the corporate bonds;	No
12	The issuer being investigated by judicial authorities for suspected violation of laws, and the issuer’s directors, supervisors and senior management being subject to compulsory measures as implemented by judicial authorities for suspected violation of laws;	No

– II-29 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)

VI Financial Report

Please refer to the appendix for the audited financial report.

– II-30 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)

VII Documents Available for Inspection

(I) The 2015 financial statements and auditor’s report of the Company;

(II) The original copies of all of the documents and announcements of the Company disclosed in the designated newspaper as approved by China Securities Regulatory Commission during the Reporting Period; and

(III) The annual report, the summary of annual report and the annual financial information disclosed publicly on the website of the Shanghai Stock Exchange.

* for identification purpose only

– II-31 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)

(This page contains no text and shall be sealed by the Company for the Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015).)

Hengda Real Estate Group Company Limited

25 April 2016

– II-32 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2015)

Appendix:

2015 audited financial report

– II-33 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

FINANCIAL STATEMENTS AND AUDITOR’S REPORT FOR YEAR 2015

[English translation for reference only. Should there be any inconsistency between the Chinese and English versions, the Chinese version shall prevail.]

– II-34 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Hengda Real Estate Group Company Limited
Financial Statements and Auditor’s Report For Year 2015
[English translation for reference only]
Content	Page
Auditor’s Report	1 - 2
Financial statements for year 2015
Consolidated and the company’s balance sheet	1 - 2
Consolidated and the company’s income statement	3
Consolidated and the company’s statement of cash flows	4
Consolidated statement of changes in owners’ equity	5
Company statement of changes in owners’ equity	6
Notes to the financial statements	7 - 68

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

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[English Translation for Reference Only]

Auditor’s Report

PwC ZT Shen Zi (2016) No.24790 (Page 1/2)

To the Board of Directors of Hengda Real Estate Group Company Limited,

We have audited the accompanying financial statements of Hengda Real Estate Group Company Limited (hereinafter “the Company”), which comprise the consolidated and company balance sheets as at 31 December 2015, and the consolidated and company income statements, the consolidated and company statements of changes in owners’ equity and the consolidated and company cash flow statements for the year then ended, and the 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 in accordance with the requirements of Accounting Standards for Business Enterprises, and for such internal control as management determines is necessary to enable the preparation of 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 China Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about 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, the auditor considers internal control relevant to the entity’s 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 entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by 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.

普華永道中天會計師事務所（特殊普通合夥）

PricewaterhouseCoopers Zhong Tian LLP, 11/F PricewaterhouseCoopers Center 2 Corporate Avenue, 202 Hu Bin Road, Huangpu District, Shanghai 200021, PRC T: +86 (21) 2323 8888, F: +86 (21) 2323 8800, www.pwccn.com

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

PwC ZT Shen Zi (2016) No.24790 (Page 2/2)

Opinion

In our opinion, the accompanying financial statements present fairly, in all material respects, the consolidated and company’s financial position of the Company as at 31 December 2015, and their financial performance and cash flows for the year then ended in accordance with the requirements of Accounting Standards for Business Enterprises.

PricewaterhouseCoopers Zhong Tian LLP

Certified Public Accountant 林宇鵬

Shanghai, the People’s Republic of China 15 April 2016

Certified Public Accountant 陳潔

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

CONSOLIDATED AND THE COMPANY BALANCE SHEET AS AT 31 DECEMBER 2015

(Expressed in millions of RMB, unless otherwise indicated)

Consol	The Company	The Company
31 December 2015 124,412 – 210 4,614 57,374 157 20,727 318,764 6,735 3,253 536,446 3 8,967 9,555 81,833 7,340 260 1,940 39 1,633 113,915 650,361	31 December 2015 28,435 – – 3 77,482 38 1,960 2,699 12 – 110,629 – 39 55,433 2,151 664 – 53 2 – 58,342 168,971	31 December 2014 14,105 – – 10 57,739 201 37 2,017 7 –
		74,116
		180 – 38,215 2,910 632 6 45 1 39
		42,028
		116,144

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

CONSOLIDATED AND THE COMPANY BALANCE SHEET AS AT 31 DECEMBER 2015 (CONTINUED) (Expressed in millions of RMB, unless otherwise indicated)

Consol	The Company	The Company
31 December 2015 36,424 36,312 79,490 72,179 827 20,377 4,389 1,076 84,544 74,697 410,315 111,243 39,549 2,354 12,377 165,523 575,838 2,500 1,565 1,250 59,203 64,518 10,005 75,523 650,361	31 December 2015 – 168 119 141 103 100 979 1,076 113,205 2,200 118,091 1,480 39,549 – 201 41,230 159,321 2,500 518 1,250 5,382 9,650 – 9,650 168,971	31 December 2014 – 83 90 66 31 15 – 4,076 102,357 200
		106,918
		2,600 – – 543
		3,143
		110,061
		2,500 518 841 2,224
		6,083 –
		6,083
		116,144

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

Person-in-charge of the Company: Zhao Changlong

Person-in-charge of accounting: 潘大榮

Head of accounting department: 王小鵬

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

CONSOLIDATED AND THE COMPANY INCOME STATEMENT FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

Consol	The Company 2015 2014 1,280 1,233 (105) (166) (190) (236) (885) (102) (1,013) (718) (228) (133) – – 4,535 3,386	The Company 2015 2014 1,280 1,233 (105) (166) (190) (236) (885) (102) (1,013) (718) (228) (133) – – 4,535 3,386
2015 117,515 (78,380) (12,310) (9,588) (3,971) (1,066) 169 6,175	2015 1,280 (105) (190) (885) (1,013) (228) – 4,535
(291)	(373)	(54)
6,469 25,013 340 (792) 24,561 (6,037) 18,524 – 16,906 1,618 – – 18,524 16,906 1,618	(142) 3,252 17 (5) 3,264 303 3,567 – 3,567 – – – 3,567 3,567 –	5 3,269 50 (62) 3,257 (12) 3,245 – 3,245 – – – 3,245 3,245 –

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

Person-in-charge of the Company: Person-in-charge of accounting: Zhao Changlong 潘大榮

Head of accounting department: 王小鵬

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

CONSOLIDATED AND THE COMPANY CASH FLOWS STATEMENT FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

Consoli	Consoli	dated
2015 137,957 118 1,158 139,233 (99,122) (6,193) (13,141) (21,700) (140,156) (923) 17,081 72 1,006 13,001 31,160 (15,757) (9,591) (13) (2,790) (13,775) (41,926) (10,766) 624 149,606 39,522 24,198 213,850 (95,102) (23,158) (40,650) (158,910) 54,940 1 43,252 25,968 69,220	2015 1,323 – 545 1,868 (650) (564) (119) (1,485) (2,818) (950) – 5,071 695 – 5,766 (191) (18,599) – – (20,429) (39,219) (33,453) – 1,480 39,522 10,460 51,462 (600) (3,132) (6,701) (10,433) 41,029 – 6,626 516 7,142	2014 213 – 191
		404
		(259) (344) (372) (432)
		(1,407)
		(1,003)
		4 4,933 2 –
		4,939
		(60) (7,172) – – (9,570)
		(16,802)
		(11,863)
		– 500 – 34,562
		35,062
		(513) (9,357) (12,331)
		(22,201)
		12,861
		–
		(5) 521
		516

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

Person-in-charge of the Company: Person-in-charge of accounting: Zhao Changlong 潘大榮

Head of accounting department: 王小鵬

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN OWNERS’ EQUITY FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

	Equity attributable to the owners of t	Equity attributable to the owners of t	he parent compa	Total owners’ equity
s	Paid-up capital 2,500 – – – – – – – – 2,500 2,500 – – – – – – – – – – 2,500	Capital reserve Other comprehensive income – (157) – – – 157 – 157 – – – – – – – – – – – – – – – – – – – – – – – – – – 1,620 – (55) – – – – – 1,565 –	Surplus reserve 398 – – – – – – 443 – 841 841 – – – – – – – – 409 – 1,250	44,713
				17,016 157
				17,173
				1,444 (18) 400 – (11,356)
				52,356
				52,356
				18,524 –
				18,524
				814 886 624 1,620 (104) – (197)
				74,523

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

Person-in-charge of the Company: Person-in-charge of accounting: Zhao Changlong 潘大榮

Head of accounting department: 王小鵬

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

THE COMPANY STATEMENT OF CHANGES IN OWNERS’ EQUITY FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

Items Opening balance at 1 January 2014 Changes for the year 2014 Subtotal of comprehensive income Net profit Total comprehensive income Capital contributed and withdrawn by owners Business combinations under common control Profit distribution Appropriation of surplus reserve Profit distribution to owners Closing balance at 31 December 2014 Opening balance at 1 January 2015 Changes for the year 2015 Subtotal of comprehensive income Net profit Total comprehensive income Profit distribution Appropriation of surplus reserve Closing balance at 31 December 2015	Paid-up capital 2,500 – – – – – 2,500 2,500 – – – 2,500	Capital reserve 520 – – (2) – – 518 518 – – – 518	Surplus reserve 398 – – – 443 – 841 841 – – 409 1,250	Retained profits 10,778 3,245 3,245 – (443) (11,356) 2,224 2,224 3,567 3,567 (409) 5,382	Total owners’ equity 14,196
					3,245
					3,245
					(2) – (11,356)
					(6,083)
					6,083
					3,567
					3,567
					–
					9,650

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

Person-in-charge of the Company: Person-in-charge of accounting: Zhao Changlong 潘大榮

Head of accounting department: 王小鵬

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

1 GENERAL INFORMATION OF THE COMPANY

Hengda Real Estate Group Company Limited (“the Company”) is a limited liability company incorporated by Guangzhou Kailong Real Estate Company Limited on 24 June 1996 in the People’s Republic of China with long approved operating period. Its registered and paid-up capital is RMB2.5 billion.

The Company’s parent company is Guangzhou Kailong Real Estate Company Limited. Its intermediate holding company is Evergrande Real Estate Group Limited, the shares of which are listed on the Stock Exchange of Hong Kong Limited. Its ultimate holding company is Xin Xin (BVI) Limited, the beneficial controller of which is Dr. Hui Ka Yan.

The approved operating scope of the Company and its subsidiaries (hereinafter collectively referred to as “the Group”) include property development, property investment, construction general contracting, building materials, property management and hotel operation. During 2015, the actual principal business of the Group falls under the approved operating scope mentioned above.

These financial statements are approved and authorised for issue by the Company’s legal representative on 15 April 2016.

2 BASIS OF PREPARATION FOR THE FINANCIAL STATEMENTS

The Group has prepared the financial statements in accordance with the Accounting Standard for Business Enterprises – Basic Standards, and the specific accounting standards and other relevant regulations issued by the Ministry of Finance on 15 February 2006 (hereinafter collectively referred to as the “Accounting Standards for Business Enterprises” or “CAS”).

The financial statements are prepared on a going concern basis.

3 STATEMENT OF COMPLIANCE WITH THE ACCOUNTING STANDARDS FOR BUSINESS ENTERPRISES

The financial statements of the Company for year 2015 are in compliance with the Accounting Standards for Business Enterprises, and truly and completely present information including the consolidated and the company’s financial position as at 31 December 2015 and the consolidated and the company’s operating results and cash flow for year 2015.

4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES

(1) Accounting year

The Company’s accounting year starts on 1 January and ends on 31 December.

(2) Recording currency

The recording currency is Renminbi (RMB).

(3) Foreign currency translation

Foreign currency transactions are translated into RMB using the spot exchange rates prevailing at the dates of the transactions.

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)

(3) Foreign currency translation (Continued)

At the balance sheet date, monetary items denominated in foreign currencies are translated into RMB using the spot exchange rates on the balance sheet date. Exchange differences arising from these translations are recognised in profit or loss for the current period, except for those attributable to foreign currency borrowings that have been taken out specifically for the acquisition or construction of qualifying assets, which are capitalised as part of the cost of those assets. Non-monetary items denominated in foreign currencies that are measured at historical costs are translated at the balance sheet date using the spot exchange rates at the date of the transactions. The effect of exchange rate changes on cash is presented separately in the cash flow statement.

(4) CASH AND CASH EQUIVALENTS

Cash and cash equivalents comprise cash on hand, deposits that can be readily drawn on demand, and short-term and highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

(5) FINANCIAL ASSETS

Financial assets are classified into the following categories at initial recognition: financial assets at fair value through profit or loss, held-to-maturity investments, receivables, and available-for-sale financial assets. The classification of financial assets depends on the Group’s intention and ability to hold the financial assets. During the reporting period, the financial assets of the Group merely included financial assets at fair value through profit or loss, receivables and available-for-sale financial assets.

(a) Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss include financial assets held for the purpose of selling in the short term.

(b) Receivables

Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market, including trade and other receivables (note 4(7)).

(c) Available-for-sale financial assets

Available-for-sale financial assets are non-derivative financial assets that are either designated in this category or not classified in any of the other categories at initial recognition. Available-for-sale financial assets are included in other current assets on the balance sheet if management intends to dispose of them within 12 months after the balance sheet date.

(d) Recognition and measurement

Financial assets are recognised at fair value on the balance sheet when the Group becomes a party to the contractual provisions of the financial instrument. In the case of financial assets at fair value through profit or loss, the related transaction costs incurred at the time of acquisition are recognised in profit or loss for the current period. For other financial assets, transaction costs that are attributable to the acquisition of the financial assets are included in their initially recognised amounts. Financial assets are derecognized when the contractual rights for collecting the cash flow of the said financial assets expire or substantially all risks and rewards related to the said financial assets have been transferred.

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)

(5) Financial assets (Continued)

(d) Recognition and measurement (Continued)

Financial assets at fair value through profit or loss and available-for-sale financial assets are subsequently measured at fair value. Investments in equity instruments are measured at cost when they do not have a quoted market price in an active market and whose fair value cannot be reliably measured. Receivables are measured at amortised cost using the effective interest method.

Gains or losses arising from change in the fair value of financial assets at fair value through profit or loss are recognised in profit or loss. Interests and cash dividends received during the period in which such financial assets are held, as well as the gains or losses arising from disposal of these assets are recognised in profit or loss for the current period.

Gains or losses arising from change in fair value of available-for-sale financial assets are recognised directly in equity, except for impairment losses and foreign exchange gains and losses arising from translation of monetary financial assets. When such financial assets are derecognised, the cumulative gains or losses previously recognised directly into equity are recycled into profit or loss for the current period. Interests on available-for-sale investments in debt instruments calculated using the effective interest method during the period in which such investments are held and cash dividends declared by the investee on available-for-sale investments in equity instruments are recognised as investment income, which is recognised in profit or loss for the period.

(e) Impairment of financial assets

The Group assesses the carrying amounts of financial assets other than those at fair value through profit or loss at each balance sheet date. If there is objective evidence that a financial asset is impaired, an impairment loss is provided for.

If an impairment loss on a financial asset carried at amortised cost incurs, the amount of loss is provided for at the difference between the asset’s carrying amount and the present value of its estimated future cash flows (excluding future credit losses that have not been incurred). If there is objective evidence that the value of the financial asset recovered and the recovery is related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed and the amount of reversal is recognised in profit or loss.

If there is objective evidence indicating an impairment loss on available-for-sale financial assets measured at fair value incurs, the cumulative losses arising from the decline in fair value that has been recognised directly in equity are transferred out from equity and into impairment loss. For an investment in debt instrument classified as availablefor-sale on which impairment losses have been recognised, if, in a subsequent period, its fair value increases and the increase can be objectively related to an event occurring after the impairment loss was recognised in profit or loss, the previously recognised impairment loss is reversed into profit or loss for the current period. For an investment in an equity instrument classified as available-for-sale on which impairment losses have been recognised, the increase in its fair value in a subsequent period is recognised directly in equity.

If an impairment loss on an available-for-sale financial asset measured at cost incurs, the amount of loss is measured at the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the current market rate of return for a similar financial asset and recognised in profit or loss for the current period. The previously recognised impairment loss will not be reversed in subsequent periods.

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)

(6) Financial liabilities

Financial liabilities are classified into the following categories at initial recognition: financial liabilities at fair value through profit or loss and other financial liabilities. The financial liabilities of the Group mainly comprise other financial liabilities, including payables, borrowings and bonds payable.

Payables, including trade and other payables, are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.

Borrowings and bonds payable are recognised initially at fair value, net of transaction costs incurred, and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities with maturities no more than one year (inclusive) are classified as current liabilities. Other financial liabilities with maturities over one year but are due within one year (inclusive) at the balance sheet date are classified as the Non-current liabilities due within one year. Others are classified as non-current liabilities.

A financial liability is derecognised or partly derecognised when the current obligation is discharged or partly discharged. The difference between the carrying amount of the financial liability or the derecognised part of the financial liability and the consideration paid is recognised in profit or loss for the current period.

Financial assets and financial liabilities are separately presented in the statement of financial position without any offsetting, except when:

(a) the Company has a legally enforceable right to offset the recognized amounts;
(b) the Company has intention to settle on a net basis, or realize the asset and settle the liability simultaneously.

(7) Receivables

Receivables comprise trade and other receivables. Trade receivables arising from sales of goods or rendering of services are initially recognised at fair value of the contractual payments from the buyers or service recipients.

Receivables with amounts that are individually significant are subject to separate assessment for impairment. If there exists objective evidence that the Group will not be able to collect the amount under the original terms, provision for impairment of that receivable is determined at the excess amount of its carry amount over the present value of the future cash flow expected to be derived from the receivable.

Receivables with amounts that are not individually significant and those receivables that have been individually assessed for impairment and have not been found impaired are classified into certain groupings based on their credit risk characteristics. The provision for bad debts is determined based on the historical loss experience for the groupings of receivables with similar credit risk characteristics, taking into consideration of the current circumstances.

When the Group transfers the Trade receivables to the financial institutions without recourse, the difference between the proceeds received from the transaction and their carrying amounts and the related taxes is recognised in profit or loss for the current period.

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)

(8) Inventories

Inventories are categorized by real estate properties and non-real estate properties. Real estate properties include completed properties and properties under development. Non-real estate properties refer to inventory goods and others.

A completed property refers to the property that has completed construction and is held for sale. A property under development refers to a property that has not completed construction and is held for sale.

Inventories are initially measured at cost. At the balance sheet date, inventories are measured at the lower of cost and net realisable value.

Costs of real estate properties include land costs, construction costs, and other direct and indirect development costs. Borrowing costs that are eligible for capitalization are also included in the costs of real estate properties.

Provision for impairment of inventories is determined at the excess amount of the carrying amounts of the inventories over their net realisable value. Net realisable value is determined based on the estimated selling price in the ordinary course of business, less the estimated costs to completion and estimated costs necessary to make the sale and related taxes.

(9) Long-term equity investments

Long-term equity investments comprise the Company’s long-term equity investments in its subsidiaries, and the Group’s long-term equity investments in its joint ventures and associates.

(a) Subsidiaries

Subsidiaries are the investees over which the Company is able to exercise control. Investments in subsidiaries are presented in the Company’s financial statements using the cost method, and are adjusted to the equity method when preparing the consolidated financial statements.

Long-term equity investments accounted for using the cost method are measured at the initial investment cost. Cash dividends or profit distributions declared by the investees are recognised as investment income in profit or loss.

(b) Joint ventures and associates

A joint venture is a joint arrangement which is structured through a separate vehicle over which the Group has joint control together with other parties and only has rights to the net assets of the arrangement based on legal forms, contractual terms and other facts and circumstances. An associate is the investee that the Group has significant influence on its financial and operating policies.

Investments in joint ventures and associates are accounted for using the equity method. Where the initial investment cost exceeds the Group’s share of the fair value of the investee’s identifiable net assets at the time of acquisition, the long-term equity investment is measured at the initial investment cost; where the initial investment cost is less than the Group’s share of the fair value of the investee’s identifiable net assets at the time of acquisition, the difference is included in profit or loss for the current period and the cost of the long-term equity investment is adjusted upwards accordingly.

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)

(9) Long-term equity investments (Continued)

For long-term equity investments accounted for using the equity method, the Group recognises the investment income according to its share of net profit or loss of the investee. The Group discontinues recognising its share of the net losses of an investee after the carrying amounts of the long-term equity investment together with any long-term interests that in substance form part of the investor’s net investment in the investee are reduced to zero. However, if the Group has obligations for additional losses and the criteria with respect to recognition of provisions under the accounting standards on contingencies are satisfied, the Group continues recognising the investment losses and the provisions. The changes of the Group’s share of the investee’s owners’ equity other than those arising from the net profit or loss, other comprehensive income and profit distribution, are recognised in Capital reserve with a corresponding adjustment to the carrying amounts of the long-term equity investment. The carrying amount of the investment is reduced by the Group’s share of the profit distribution or cash dividends declared by an investee. The unrealised profits or losses arising from the transactions between the Group and its investees are eliminated in proportion to the Group’s equity interest in the investees, based on which the investment gains or losses are recognised. Any losses resulting from transactions between the Group and its investees attributable to asset impairment losses are not eliminated.

(10) Investment properties

Investment properties, including land use rights that have already been leased out, buildings that are held for the purpose of leasing and buildings that are being constructed or developed for future use for leasing, are measured initially at cost. Subsequent expenditures incurred in relation to an investment property are included in the cost of the investment property when it is probable that the associated economic benefits will flow to the Group and their costs can be reliably measured; otherwise, the expenditures are recognised in profit or loss in the period in which they are incurred.

The Group adopts the fair value model to subsequent measurement of investment properties and does not provide depreciation or amortisation. The carrying amount of investment properties is adjusted based on their fair value at the balance sheet day and the difference between the fair value and the original carrying amount is recognised in profit or loss for the current period.

When investment properties are transferred to owner-occupied property, they are reclassified to fixed assets or intangible assets with the carrying amount determined at the fair value of the investment properties at the date of transfer and the difference between the fair value and the original carrying amount of the investment properties is recognized in profit or loss for the current period. When an owner-occupied property is transferred out for earning rentals or for capital appreciation, the fixed assets or intangible assets is transferred to investment properties with the carrying amount determined at the fair value at the date of transfer. If the fair value at the date of transfer is less than the original carrying amount of the fixed asset or the intangible asset, the difference is recognised in profit or loss for the current period, otherwise, it is included in other comprehensive income.

An investment property is derecognised on disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from its disposal. The net amount of proceeds from sale, transfer, retirement or damage of an investment property after its carrying amount and related taxes and expenses is recognised in profit or loss for the current period.

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)

(11) Fixed assets

Fixed assets comprise buildings, machinery and equipment, transportation tools and office equipment. Fixed assets purchased or constructed by the Group are initially measured at cost at the time of acquisition.

Subsequent expenditures incurred for a fixed asset are included in the cost of the fixed asset when it is probable that the associated economic benefits will flow to the Group and the related cost can be reliably measured. The carrying amount of the replaced part is derecognised. All the other subsequent expenditures are recognised in profit or loss in the period in which they are incurred.

Fixed assets are depreciated using the straight-line method to allocate the cost of the assets to their estimated residual values over their estimated useful lives. For the fixed assets that have been provided for impairment loss, the related depreciation charge is prospectively determined based upon the adjusted carrying amounts over their remaining useful lives.

The estimated useful lives, the estimated residual values expressed as a percentage of cost and the annual depreciation rates of fixed assets are as follows:

		Estimated	Annual
	Estimated useful lives	net residual values	depreciation rates
Buildings	20 to 30 years	5%	3% to 5%
Machinery and equipment	5 to 10 years	3%	10% to 19%
Transportation tools	5 to 10 years	5%	10% to 19%
Office equipment	5 to 10 years	5%	10% to 19%

The estimated useful life and the estimated net residual value of a fixed asset and the depreciation method applied to the asset are reviewed, and adjusted as appropriate at each year-end.

A fixed asset is derecognised on disposal or when no future economic benefits are expected from its use or disposal. The amount of proceeds from disposals on sale, transfer, retirement or damage of a fixed asset net of its carrying amount and related taxes and expenses is recognised in profit or loss for the current period.

(12) Construction in progress

Construction in progress is measured at actual cost. Actual cost comprises construction costs, installation costs, borrowing costs that are eligible for capitalisation and other costs necessary to bring the fixed assets ready for their intended use. Construction in progress is transferred to fixed assets when the assets are ready for their intended use, and depreciation begins from the following month.

(13) Intangible assets

Intangible assets comprise land use rights, software licenses and others. Intangible assets are measured at cost and amortized evenly over their estimated useful lives.

(a) Land use rights

Land use rights are amortised evenly over their useful lives of 40 to 70 years. If the acquisition costs of the land use rights and the buildings located thereon cannot be reasonably allocated between the land use rights and the buildings, all of the acquisition costs are recognised as fixed assets.

– 13 –

– II-50 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)

(13) Intangible assets (Continued)

(b) Software licenses

The software licenses purchased by the Group are measured at actual cost and amortised evenly over their useful lives.

(c) Periodical review of useful life and amortisation method

For an intangible asset with a finite useful life, review of its useful life and amortisation method is performed at each year-end, with adjustment made as appropriate.

The estimated useful lives, estimated net residual values and annual depreciation rates of intangible assets are as follows:

		Estimated	Annual
	Estimated useful lives	net residual values	depreciation rates
Land use rights	40 to 70	0%	1.43% to 2.50%
Others	3 to 20	0%	5% to 33.33%

(14) Long-term deferred expenses

Long-term deferred expenses refer to the expenditure for improvements to fixed assets held under operating leases. Long-term deferred expenses are amortised evenly over the expected beneficial period and are presented at actual expenditure net of accumulated amortisation.

(15) Impairment of long-term assets

Fixed assets, construction in progress, intangible assets with a finite useful life, Long-term deferred expenses and longterm equity investments in subsidiaries, joint ventures and associates are tested for impairment if there is any indication that an asset may be impaired at the balance date. If the result of the impairment test indicates that the recoverable amount of an asset is less than its carrying amount, a provision for impairment and an impairment loss are recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less disposal costs and the present value of the future cash flows expected to be derived from the asset. Provision for asset impairment is determined and recognised on the individual asset basis. If it is not possible to estimate the recoverable amount of an individual asset, the recoverable amount of a group of assets to which the asset belongs is determined. A group of assets is the smallest group of assets that is able to generate independent cash inflows.

Once the above asset impairment loss is recognised, it will not be reversed for the value recovered in the subsequent periods.

– 14 –

– II-51 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)

(16) Borrowing costs

The borrowing costs that are directly attributable to the acquisition and construction of a fixed asset that needs a substantially long period of time for its intended use commence to be capitalised and recorded as part of the cost of the asset when expenditures for the asset and borrowing costs have been incurred, and the activities relating to the acquisition and construction that are necessary to prepare the asset for its intended use have commenced. The capitalisation of borrowing costs ceases when the asset under acquisition or construction becomes ready for its intended use and the borrowing costs incurred thereafter are recognised in profit or loss for the current period. Capitalisation of borrowing costs is suspended during periods in which the acquisition or construction of an asset is interrupted abnormally and the interruption lasts for more than 3 months, until the acquisition or construction is resumed.

(17) Borrowings

Borrowings are recognised initially at fair value, net of transaction costs incurred, and subsequently measured at amortised cost using the effective interest method. Borrowings due within one year (inclusive) are classified as shortterm borrowings, and the others are classified as long-term borrowings.

(18) Employee benefits

Employee benefits refer to all forms of consideration compensation given by the Group in exchange for service rendered by employees or for the termination of employment relationship, which include short-term employee benefits, postemployment benefits and wages or salaries bore by China Evergrande Group for some of the staffs under the Group.

(a) Short-term employee benefits

Short-term employee benefits include employee wages or salaries, bonus, allowances and subsidies, staff welfare, premiums or contributions on medical insurance, work injury insurance and maternity insurance, housing funds, labour union funds and employee education costs and etc. The short-term employee benefits actually occurred are recognised in the accounting period in which the service is rendered by the employees, with a corresponding charge to the profit or loss for the current period or the cost of relevant assets. Employee benefits which are non-monetary benefits are measured at fair value.

(b) Post-employment benefits

The Group classifies post-employment benefit plans as either defined contribution plans or defined benefit plans. Defined contribution plans are post-employment benefit plans under which the Group pays fixed contributions into a separate fund and will have no obligation to pay further contributions; and defined benefit plans are post-employment benefit plans other than defined contribution plans. During the reporting period, the Group’s post-employment benefits mainly include basic pensions and unemployment insurance, both of which belong to the defined contribution plans.

(c) Basic pensions

The Group’s employees participate in the basic pension plan set up and administered by local authorities of Ministry of Human Resource and Social Security. Monthly payments of premiums on the basic pensions are calculated according to prescribed bases and percentage by the relevant local authorities. When employees retire, the relevant local authorities are obliged to pay the basic pensions to them. The amounts based on the above calculations are recognised as liabilities in the accounting period in which the service has been rendered by the employees, with a corresponding charge to the profit or loss for the current period or the cost of relevant assets.

– 15 –

– II-52 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)

(19) Construction contracts

If the outcome of a construction contract can be estimated reliably, contract revenue and cost should be recognised by reference to the percentage of completion method at the balance sheet date. The term “the outcome of a construction contract can be estimated reliably” refers to the fact where the total income of the contract can be estimated reliably, the economic benefits associated with the contract will flow to the Company, the progress of completion and the cost necessary to complete the contract can be determined reliably at the balance sheet date, and the actual contract cost incurred for the completion of the contract can be differentiated clearly and measured reliably to compare the actual contract cost with the previous estimated costs.

The stage of completion is measured by the proportion of completed works to the estimated total works of the contracts or the surveying progress of the completed works, or the proportion of contract costs actually incurred to the estimated total costs of contracts, based on the nature of construction.

For construction contract completed in the current period, the balance of total income of the actual contract is recognized as income for the period after deducting the accumulated income recognized in the previous year. Meanwhile, the balance of total accumulated cost of the actual contract is recognized as cost for the period after deducting the accumulated cost recognized in the previous year.

When the outcome of a construction contract cannot be estimated reliably, if contract costs can be recovered, contract revenue shall be recognised only to the extent that the contract costs incurred are expected to be recovered, with the contract costs recognised as expenses in the period in which they are incurred. When contract costs cannot be recovered, these costs shall be recognised as expenses promptly when incurred and no contract revenue may be recognised.

In the case where the estimated total costs of contract exceed the estimated total revenue, the estimated losses of the contract shall be included into profit or loss for the current period.

(20) Deferred income tax assets and Deferred income tax liabilities

Deferred income tax assets and Deferred income tax liabilities are calculated and recognised based on the differences arising between the tax bases of assets and liabilities and their carrying amounts (temporary differences). Deferred tax asset is recognised for the deductible losses that can be carried forward to subsequent years for deduction of the taxable profit in accordance with the tax laws. No deferred tax liability is recognised for a temporary difference arising from the initial recognition of goodwill. No deferred tax asset or deferred tax liability is recognised for the temporary differences resulting from the initial recognition of assets or liabilities due to a transaction other than a business combination, which affects neither accounting profit nor taxable profit (or deductible loss). At the balance sheet date, Deferred income tax assets and Deferred income tax liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled.

Deferred income tax assets are only recognised for deductible temporary differences, deductible losses and tax credits to the extent that it is probable that taxable profit will be available in the future against which the deductible temporary differences, deductible losses and tax credits can be utilised.

– 16 –

– II-53 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)

(20) Deferred income tax assets and Deferred income tax liabilities (Continued)

Deferred income tax liabilities are recognised for temporary differences arising from investments in subsidiaries, associates and joint ventures, except where the Group is able to control the timing of reversal of the temporary difference, and it is probable that the temporary difference will not be reversed in the foreseeable future. When it is probable that the temporary differences arising from investments in subsidiaries, associates and joint ventures will be reversed in the foreseeable future and that the taxable profit will be available in the future against which the temporary differences can be utilised, the corresponding Deferred income tax assets are recognised.

Deferred income tax assets and Deferred income tax liabilities are offset when:

the deferred taxes assets and Deferred income tax liabilities are related to the same tax payer within the Group and the same taxation authority; and,
that tax payer within the Group has a legally enforceable right to offset current tax assets against current tax liabilities in net value.

(21) Revenue recognition

The amount of revenue is determined in accordance with the fair value of the consideration received or receivable for the sales of goods and services in the ordinary course of the Group’s activities. Revenue is shown net of discounts, rebates and returns.

Revenue is recognised when the economic benefits associated with the transaction will flow to the Group, the related revenue can be reliably measured, and the specific revenue recognition criteria have been met for each type of the Group’s activities as described below:

(a) Sales of properties

Revenue from sales of properties is recognised when the Group has transferred the risks and rewards incidental to the property to the buyer, that is, the completion of construction for the relevant property and the property has been delivered to the buyer, and when it is reasonably recognized that the relevant receivables are recoverable. If the Group is required to carry out other works on the property which has been delivered to the buyer, the relevant expenses must be recognized at the same time.

Property income received but has yet to reach revenue recognition is included in receipt in advance by the Group, and will be recognized as revenue upon satisfaction of the aforementioned conditions for revenue recognition.

(b) Sales of goods

The Group sells building materials and mineral water. The sales income of the goods is confirmed when the product is delivered to the customer.

(c) Rendering of services

The income generated from property management is recognized on straight line basis during the accounting period in which the service is rendered as the contract requires.

(d) Hotel operation

Hotel income from guest room rentals, catering sales and other ancillary services is confirmed upon delivery of goods or services.

– 17 –

– II-54 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)

(21) Revenue recognition (Continued)

(e) Income from construction contracts

For the accounting policies in relation to the income from construction contracts, please refer to Note 4(19).

(22) Government grants

Government grants refer to the monetary or non-monetary assets obtained by the Group from the government, including tax rebates received, financial subsidies and others.

Government grants are recognised when the Group can comply with all attached conditions and the government grant can be received. If a government grant is a monetary asset, it will be measured at the amount received or receivable. If a government grant is a non-monetary asset, it will be measured at fair value; if it is unable to obtain its fair value reliably, it will be measured at nominal amount.

Government grants related to assets refer to government grants which are obtained by the Group for the purpose of purchase, construction or acquisition of the long-term assets. Government grants related to income refer to government grants other than those related to assets.

Government grants related to assets are recognised as deferred income, and evenly amortised to profit or loss over the useful life of the related assets. Government grants measured at nominal amount are directly recorded into profit or loss for the current period.

Government grants related to income are recorded as deferred income and recognised in profit or loss in the period in which the related expenses are recognised if the grants are intended to compensate for future expenses or loss and otherwise recognised in profit or loss for the current period in which the grants are used to compensate for expenses or losses that have been incurred.

(23) Leases

A lease that transfers substantially all the risks and rewards incidental to ownership of an asset is a finance lease. An operating lease is a lease other than a finance lease.

(a) Operating leases

Lease payments under an operating lease are recognised on a straight-line basis over the period of the lease, and are either capitalised as part of the cost of related assets, or charged as profit or loss for the current period.

Rental income from an operating lease is recognised on a straight-line basis over the period of the lease.

– 18 –

– II-55 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)

(24) Financial guarantee contract

Financial guarantee contracts are classified as financial liabilities and are initially recorded at the fair value plus the direct attributable transaction costs of the acquisition or issuance of the financial guarantee contract. After the initial recognition, the Group will calculate the financial guarantee contract with the higher of the estimated present value of the expenses required to repay the current debt, and the initially recognized amount minus accumulated amortization.

Financial guarantee liabilities are derecognised from the balance sheet when, and only when, the obligation specified in the contract is discharged or cancelled or expired.

(25) Profit Distribution

The profits to be distributed are recognized as liabilities in the current period approved by the Board of Directors.

(26) Business combinations

Business combinations involving entities not under common control

The cost of combination and identifiable net assets obtained by the acquirer in business combinations are measured at fair value at the acquisition date. Where the cost of the combination exceeds the acquirer’s interest in the fair value of the acquiree’s identifiable net assets, the difference is recognised as goodwill; where the cost of combination is lower than the acquirer’s interest in the fair value of the acquiree’s identifiable net assets, the difference is recognised in profit or loss for the current period. Costs directly attributable to the combination are included in profit or loss in the period in which they are incurred. Transaction costs associated with the issue of equity or debt securities for the business combinations are included in the initially recognised amounts of the equity or debt securities.

(27) Preparation of consolidated financial statements

The consolidated financial statements comprise the financial statements of the Company and all of its subsidiaries and the structured entities controlled by the Group.

A subsidiary is an entity that is controlled by the Group. Control refers to the right over the investee, to participate in the relevant activities of the investee and enjoy a variable return, and the ability to exercise its power over the investee to influence the amount of return. The Group has more than half of the voting rights in the investee directly or indirectly through the subsidiaries, indicating that the Group is able to control the investee and shall recognize the investee as a subsidiary and incorporate it in the consolidated scope of the consolidated financial statements. Subsidiaries are consolidated from the date on which the Group obtains control and are de-consolidated from the date that such control ceases. For a subsidiary that is acquired in business combinations involving entities under common control, it is included in the consolidated financial statements from the date when it, together with the Company, comes under the control of the same ultimate holding company. The portion of the net profits realised before the combination date is presented separately in the consolidated income statement.

Structured entity is to the decisive factors (such as where voting rights merely related to administrative affairs) when the voting right or similar rights are not taken as the designed structure of the entity when judging the controlling party of the entity, and the relevant activity of the entity is subject to the contract or corresponding arrangements.

– 19 –

– II-56 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)

(27) Preparation of consolidated financial statements (Continued)

When the Group initiates the establishment of a special asset management plan as the original equity owner and subordinated equity owner, the Group will assess whether the Group is exercising decision-making power as the principal responsible person for the structured entity. If the other parties (other investors of the structured entity) exercise the decision-making power, the Group does not control the structured entity. However, if the Group is judged to exercise the decision-making power, it is the principal responsible person and thus controls the structured entity.

Subsidiaries are consolidated from the date on which the Group obtains control and are de-consolidated from the date that such control ceases. For a subsidiary that is acquired in business combinations involving entities under common control, it is included in the consolidated financial statements from the date when it, together with the Company, comes under the control of the same ultimate holding company. The portion of the net profits realised before the combination date is presented separately in the consolidated income statement.

In preparing the consolidated financial statements, where the accounting policies and the accounting periods of the Company and subsidiaries are inconsistent, the financial statements of the subsidiaries are adjusted in accordance with the accounting policies and the accounting period of the Company. For subsidiaries acquired from business combinations involving entities not under common control, the individual financial statements of the subsidiaries are adjusted based on the fair value of the identifiable net assets at the acquisition date.

All significant intra-group balances, transactions and unrealised profits are eliminated in the consolidated financial statements. The portion of subsidiaries’ owners’ equity and the portion of subsidiaries’ net profits and losses and comprehensive income for the period not attributable to the Company are recognised as minority interests, net profit attributed to minority interests and total comprehensive income attributed to minority interests and presented separately in the consolidated financial statements under owners’ equity, net profits and total comprehensive income respectively. If the subsidiaries’ loss for the current period attributed to the minority shareholders exceed the minority interests brought down, the amount will be deducted from the minority interests. Unrealised profits and losses resulting from the sale of assets by the Company to its subsidiaries are fully eliminated against net profit attributable to shareholders of the parent company. Unrealised profits and losses resulting from the sale of assets by a subsidiary to the Company are eliminated and allocated between net profit attributable to shareholders of the parent company and minority interests in accordance with the allocation proportion of the parent company in the subsidiary. Unrealised profits and losses resulting from the sale of assets by one subsidiary to another are eliminated and allocated between net profit attributable to shareholders of the parent company and minority interests in accordance with the allocation proportion of the parent company in the seller subsidiary.

If the accounting treatment of a transaction which considers the Group as an accounting entity is different from that considers the Company or its subsidiaries as an accounting entity, it is adjusted from the perspective of the Group.

(28) Segment information

The Group identifies operating segments based on the internal organisation structure, management requirements and internal reporting system, and discloses segment information of reportable segments which is determined on the basis of operating segments.

An operating segment is a component of the Group that satisfies all of the following conditions: (1) the component is able to earn revenue and incur expenses from its ordinary activities; (2) whose operating results are regularly reviewed by the Group’s management to make decisions about resources to be allocated to the segment and to assess its performance, and (3) for which the information on financial position, operating results and cash flows is available to the Group. If two or more operating segments have similar economic characteristics and satisfy certain conditions, they are aggregated into one single operating segment.

– 20 –

– II-57 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)

(29) Critical accounting estimates and judgements

The Group continually evaluates the critical accounting estimates and key judgements applied based on historical experience and other factors, including expectations of future events that are believed to be reasonable.

The critical accounting estimates and key assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next accounting year are outlined below:

(a) Income taxes

There are some transactions and events for which the ultimate tax determination is uncertain during the ordinary course of business. Significant judgement is required from the Group in determining the provision for income taxes and recognition of deferred tax in each of these jurisdictions. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made.

(b) Land value-added tax

In accordance with the relevant PRC tax law, the Group shall pay the land value-added tax. The local tax authorities have not yet issued the “Approval Letter” for the taxable amount of land value-added tax for some development projects. The Group calculates the taxable amount based on the Provisional Rules on Land Value-Added Tax and its Implementing Rules. If the local tax authorities confirm the taxable amount and the original book amount is inconsistent, the difference will be included in the period the land value-added tax clearing is completed.

(c) Fair value assessment of investment properties

The best evidence of fair value is the current price of the properties with similar leases and other contracts on the active market. In the absence of relevant information, the Group will set the amount to be within the estimated range of reasonable fair value. When making a judgment, the Group will take into consideration information from multiple sources, including: (i) the current prices of properties of different natures, conditions or locations or of properties subject to different leases or other contracts on the active markets and shall be adjusted to reflect the differences; (ii) the recent prices of similar properties on the inactive market and are adjusted to reflect any changes in the economic condition from the date on which transaction is made at such price; and (iii) discounted cash flows made on the reliable estimate of future cash flows. The estimate is derived from the terms of any existing leases and other contracts and, if possible, from external evidences such as the prevailing market rents of similar properties in the same location and condition, using the discount rate of existing market assessments that reflect the amount of cash flow and the time uncertainty. The Group assesses the fair value of its investment properties based on the valuation determined by the independent professional qualified valuer.

(d) Provision for impairment of inventories

At the balance sheet date, the Group calculates the value of the inventories at the lower of the cost and the net realizable value. Assumptions and estimates are required for the calculation of net realizable value. If the management’s revision of estimated selling price and the cost and expenses to be incurred at the time of completion will affect the estimation of the net realizable value of the inventories, the difference will post an impact on the provision for impairment of inventories.

– 21 –

– II-58 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)

(29) Critical accounting estimates and judgements (Continued)

(e) Impairment provision for fixed assets

The Group regularly reviews whether there is any indication of impairment of the fixed assets. If the carrying amount of the assets is lower than its recoverable amount (ie, the higher value of the net selling price or the value in use), the relevant impairment provision will be recognized. In determining the value in use of the fixed assets, the Group will assess the present value of the estimated future cash flows for the expected continuous use of the assets and the sale of the assets at the end of the useful life of the assets. The Group shall adopt relevant estimates and judgments when recognizing future cash flows and discount rates.

(f) Estimate total cost of the property

The Group estimates the total cost of property construction when recognising the cost of property sales. The estimate is based on management’s detailed budgetary information on the development of the property and is regularly assessed during the construction. If the relevant estimate does not match the cost actually incurred, the difference will affect the correctness of the recognized cost of sales.

5. TAXATION

Taxes applicable to the Group are listed below with their rates:

==> picture [349 x 101] intentionally omitted <==

----- Start of picture text -----

Tax Basis of Assessment Rate
Value-added Tax Assessable value-added amount (calculated by 17%
assessable sales multiplied by applicable rate, net of
deductible input tax of the period)
Business Tax Rental or sales income 5%
Construction income 3%
Land Appreciation Tax The value-added amount in transferring the property 30% – 60% of the progressive tax
Property Tax Original costs of the property or rental income 1.2% of the original costs or 12% of
the rent
Income Tax Assessable income amount 25%
----- End of picture text -----

– 22 –

– II-59 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

6. SUBSIDIARIES

(1) Key subsidiaries consolidated in 2015

				Total	Total
		Registered		shareholding	percentage of
	Place of	capital	Nature of	percentage of	voting right of
Name of key subsidiary	incorporation	(RMB million)	business	the Company	the Company
恒大長基（沈陽）置業有限公司	PRC	1,595,375,090	Property development	99%	99%
南寧銀象房地產開發有限責任公司Nanning Yinxiang Real Estate Development Company Liability Limited	PRC	20,000,000	Property development	100%	100%
佛山市南海俊誠房地產開發有限公司Foshan Nanhai Jun Cheng Property Development Company Limited	PRC	20,000,000	Property development	100%	100%
太原俊景房地產開發有限公司Taiyuan Junjing Real Estate Development Corporation Limited	PRC	782,200,000	Property development	66%	66%
恒大地產集團蘭州置業有限公司Hengda (Lanzhou) Real Estate Group Company Limited	PRC	495,748,985	Property development	100%	100%
鄭州御邦置業有限公司Zhengzhou Yubang Property Company Limited	PRC	30,000,000	Property development	100%	100%
哈爾濱市誠業房地產開發有限公司Haerbin Chengye Real Estate Company Limited	PRC	450,000,000	Property development	100%	100%
北京沙河恒大置業有限公司Shahe Hengda (Beijing) Property Company Limited	PRC	1,330,000,000	Property development	100%	100%
江陽盛建置業有限公司	PRC	98,039,200	Property development	51%	51%
合肥粵泰置業有限公司Yuetai (Hefei) Property Company Limited	PRC	30,000,000	Property development	100%	100%
常德鑫澤置業有限公司Xinze (Changde) Property Company Limited	PRC	110,000,000	Property development	60%	60%
恒大地產集團北京有限公司Hengda (Beijing) Real Estate Group Company Limited	PRC	1,830,000,000	Property development	100%	100%
柳州恒大金碧置業有限公司Hengda Jinbi (Liuzhou) Property Company Limited	PRC	20,000,000	Property development	100%	100%
北京恒興盛房地產開發有限公司Hengxingsheng (Beijing) Real Estate Company Limited	PRC	3,520,000,000	Property development	100%	100%
邯鄲市大業房地產開發有限公司Daye (Handan) Real Estate Company Limited	PRC	150,000,000	Property development	70%	70%
北京恒龍置業有限公司Henglong (Beijing) Property Company Limited	PRC	1,200,000,000	Property development	100%	100%
成都恒大新北城置業有限公司	PRC	800,000,000	Property development	63%	63%
成都市恒大新西城置業有限公司	PRC	710,000,000	Property development	51%	51%
太原盛世君泰房地產開發有限公司Shengshi Juntai (Taiyuan) Real Estate Company Limited	PRC	261,428,600	Property development	70%	70%
太原金世恒房地產開發有限金司	PRC	589,530,000	Property development	100%	100%
鄭州恒林置業有限公司Henglin (Zhengzhou) Property Company Limited	PRC	378,200,000	Property development	51%	51%
中山長信宏展房地產有限公司Changxin Hongzhan (Zhongshan)Real Estate Company Limited	PRC	10,000,000	Property development	100%	100%
儋州信恒房地產開發有限公司Xinheng (Danzhou) Real Estate Company Limited	PRC	20,000,000	Property development	100%	100%
恒大地產重慶有限公司	PRC	4,821,000,000	Property development	100%	100%
湖北怡清雅築房地產開發有限公司Hubei Yiqingyazhu Real Estate Development Company Limited	PRC	320,000,000	Property development	100%	100%
恒大地產集團洛陽有限公司Hengda (Luoyang) Real Estate Group Company Limited	PRC	457,000,000	Property development	100%	100%
長沙寶瑞房地產開發有限公司Baorui (Changsha) Property Company Limited	PRC	470,000,000	Property development	100%	100%
恒大地產集團海南有限公司Hengda (Hainan) Real Estate Group Company Limited	PRC	352,000,000	Property development	100%	100%
濟南恒大綠州置業有限公司	PRC	870,000,000	Property development	100%	100%
恒大地產集團呼和浩特有限公司Hengda (Huhehaote) Real Estate Group Company Limited	PRC	390,000,000	Property development	100%	100%
安陽通瑞達房地產開發有限公司Tongruida (Anyang) Property Company Limited	PRC	200,000,000	Property development	100%	100%
濟南恒大西區置業有限公司Hengda West District (Jinan) Property Company Limited	PRC	1,000,000,000	Property development	60%	60%
長春泰基房地產開發有限公司Hengda (Huhehaote) Real Estate Group Company Limited	PRC	600,000,000	Property development	100%	100%
佛山市南海盈裕房地產發展有限公司Foshan Nanhai Yingyu Real Estate Development Company Limited	PRC	980,000,000	Property development	100%	100%
恒大地產鷹潭有限公司Hengda (Yingtan) Real Estate Group Company Limited	PRC	452,789,200	Property development	100%	100%

– 23 –

– II-60 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

6. SUBSIDIARIES (CONTINUED)

(1) Key subsidiaries consolidated in 2015 (Continued)

				Total	Total
		Registered		shareholding	percentage of
	Place of	capital	Nature of	percentage of	voting right of
Name of key subsidiary	incorporation	(RMB million)	business	the Company	the Company
清遠市銀湖城投資有限公司	PRC	45,000,000	Property development	100%	100%
恒大地產集團韶關有限公司Hengda Real (Shaoguan) Estate Group Company Limited	PRC	230,000,000	Property development	100%	100%
東莞市城邦房地產開發有限公司	PRC	301,000,000	Property development	100%	100%
齊齊哈爾恒大永興房地產開發有限公司Hengda Yongxing (Qiqihaer) Real Estate Company Limited	PRC	291,000,000	Property development	100%	100%
濟南恒大翡翠華庭置業有限公司Jinan Hengda Feicuihuating Property Company Limited	PRC	750,000,000	Property development	100%	100%
新鄉御景置業有限公司Xinxiang Yujing Property Corporation Limited	PRC	100,000,000	Property development	100%	100%
邢台雙達房地產開發有限公司Xingtai Shuangda Real Estate Company Limited	PRC	21,430,000	Property development	72%	72%
唐山兆瑞投資有限公司Tangshan Zhaorui Investment Company Limited	PRC	50,000,000	Property development	60%	60%
長春永基房地產開發有限公司Yongji (Changchun) Real Estate Company Limited	PRC	950,000,000	Property development	100%	100%
衢州恒大盛建置業有限公司Hengda Shengjian (Quzhou) Property Company Limited	PRC	250,000,000	Property development	100%	100%
恒大地產集團湛江御景置業有限公司Hengda (Zhanjiang) Real Estate Group Company Limited	PRC	350,000,000	Property development	100%	100%
漯河御盛房地產開發有限公司Luohe Yusheng Real Estate Company Limited	PRC	355,000,000	Property development	100%	100%
四川省仁基恒業投資有限公司Renji Hengye (Sichuan) Investment Company Limited	PRC	875,000,000	Property development	60%	60%
恒大廊坊房地產開發有限公司Hengda Langfang Real Estate Company Limited	PRC	10,000,000	Property development	100%	100%
宜昌楚天恒大房地產開發有限公司Chutian Hengda (Yichang) Real Estate Company Limited	PRC	150,000,000	Property development	60%	60%
長春京房地產開發有限公司	PRC	621,000,000	Property development	100%	100%
寧夏昊天房地產開發有限公司Haotian (Ningxia) Real Estate Company Limited	PRC	486,010,000	Property development	100%	100%
柳州恒大房地產開發有限公司Hengda (Liuzhou) Real Estate Company Limited	PRC	20,000,000	Property development	100%	100%
杭州穗華置業有限公司Hangzhou Suihua Property Company Limited	PRC	1,500,000,000	Property development	100%	100%
平頂山恒榮置業有限公司Pingdingshan Hengrong Property Company Limited	PRC	50,000,000	Property development	57%	57%
南京旭泰房地產開發有限公司Nanjing Xutai Real Estate Company Limited	PRC	970,000,000	Property development	100%	100%
南京美旭房地產開發有限公司Nanjing Meixu Real Estate Development Company Limited	PRC	1,503,000,000	Property development	100%	100%
石獅金碧置業有限公司Shishi Jinbi Property Company Limited	PRC	20,000,000	Property development	100%	100%
上海悅安置業有限公司Shanghai Yuean Property Company Limited	PRC	325,000,000	Property development	100%	100%
太原市俊恒房地產開發有限公司Taiyuan Junheng Real Estate Company Limited	PRC	50,000,000	Property development	100%	100%
大連世誠房地產開發有限公司Dalian Shicheng Real Estate Company Limited	PRC	50,000,000	Property development	60%	60%
濟南華府置業有限公司Jinan Huafu Property Company Limited	PRC	100,000,000	Property development	100%	100%
鄭州合廣置業有限公司Zhengzhou Heguang Property Company Limited	PRC	30,000,000	Property development	100%	100%
南寧金碧恒大置業有限公司Nanning Jinbi Hengda Property Company Limited	PRC	50,000,000	Property development	100%	100%
武漢三江航天投資發展有限公司Sanjiang Spaceflight (Wuhan) Investment Development Company Limited	PRC	10,000,000	Property development	100%	100%
恒大世紀城（清遠）酒店有限公司Hengda Central City (Qingyuan)Hotel Limited	PRC	6,000,000	Hotel operation	100%	100%
恒大地產集團天津薊縣酒店有限公司	PRC	8,000,000	Hotel operation	100%	100%
深圳市建設（集團）有限公司	PRC	620,000,000	Construction	48%	48%

– 24 –

– II-61 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

6. SUBSIDIARIES (CONTINUED)

(2) Key subsidiaries deconsolidated in 2015

Name of Key Subsidiaries	Reason for Deconsolidation
珠海泓粵日用品有限公司(Note 7(25))	Transfer under common control

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT

(1) Cash and bank balances

Treasury cash Bank deposits Other cash and bank balances Less: Restricted cash and bank balances Cash and cash equivalents	31 December 2015 32 69,188 55,192 124,412 (55,192) 69,220	31 December 2014 21 25,947 28,239
		54,207 (28,239)
		25,968

Other cash and bank balances, which is restricted, represents the deposits for housing mortgage, the deposits for clearance compensation, and the pledged guarantee for bank borrowings deposited to the designated bank account by the Group (note 7(35)(d)).

(2) Financial assets at fair value through profit or loss

	31	December	2015	31	December 2014
Investments in equity instruments held for trading			–		10,950

As at 31 December 2015, the Group had no financial assets at fair value through profit or loss (31 December 2014: the financial assets at fair value through profit or loss were the investment in equity instruments in the market of China’s A share with publicly available quotations in the active market).

The fair value of the equity instruments held for trading is recognised based on the last trading day of Shanghai Stock Exchange in the Years.

– 25 –

– II-62 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(3) Notes receivable

31 De	3	1 December 2014 3 1
		4
mber 2014 186 6,241 6,427 (172) 6,255	se ar 2	31 December 2015 218 4,396
		4,614 –
		4,614

An ageing analysis of trade receivables and allowance for bad debt is as follows:

Within one year Over one year but within two years Over two years	31	December 201	5 Allowance or bad debt – – – –	31	December 201	4
	Amount 4,233 353 28 4,614	Total percentage f 92% 8% 0% 100%		Amount 5,269 986 172 6,427	Total percentage f 82% 15% 3% 100%	Allowance or bad debt – – (172)
						(172)

As at 31 December 2015, trade receivables of RMB586 million (31 December 2014: RMB252 million) were past due but not impaired. The Group considered the amount to be recoverable based on the financial position and the credit report of the clients. An ageing analysis of the trade receivables is as follows:

Within one year Over one year but within two years Over two years	31 December 2015 512 68 6 586	31 December 2014 243 8 1
		252

– 26 –

– II-63 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(4) Trade and other receivables (Continued)

(b) Long-term receivables

Long-term loan instalment receivables Less: Non-current assets due within one year (c) Other receivables Deposits receivable Amounts due from related parties (note 10(4)(c)) Others Less: Allowance for bad debt	31 De 31 December 2014 1,285 43,681 4,217 49,183 (26) 49,157	31 De	cember 2015 12,220 (3,253) 8,967	3	1 December 2014 4,694 –
					4,694
					31 December 2015 2,984 48,844 5,575
					57,403 (29)
					57,374

An analysis of other receivables and allowance for bad debt is as follows:

Within one year Over one year but within two years Over two years	31	December 201	5 Allowance or bad debt – – (29) (29)	31	December 201	4
	Amount 53,657 1,853 1,893 57,403	Total percentage f 94% 3% 3% 100%		Amount 47,110 1,048 1,025 49,183	Total percentage f 96% 2% 2% 100%	Allowance or bad debt – – (26)
						(26)

As at 31 December 2015 and 31 December 2014, there were no other receivables that were past due but not impaired.

(5) Prepayments

Within one year Over one year but within two years Over two years	31 Decem	ber 2015 Total percentage 64% 19% 17% 100%	31 Decem	ber 2014
	Amount 13,376 3,945 3,606 20,927		Amount 32,019 4,580 3,249 39,848	Total percentage 81% 11% 8%
				100%

Prepayments mainly represent the prepaid land premium pending the land use right.

– 27 –

– II-64 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(6) Inventories

Products under development Completed products Others	31 December 2015 276,125 42,546 93 318,764	31 December 2014 174,311 29,903 –
		204,214

In 2015, the capitalising amount for the borrowing fees credited to the properties under development was RMB16,847 million (2014: RMB9,163 million) and the capitalising rate for the recognition of the borrowing fees was 10.26% per annum (2014: 9.21%).

(7) Other current assets

Prepaid business tax Prepaid income tax Prepaid land appreciation tax Prepaid city maintenance and construction tax Prepaid education surcharge Others	31 December 2015 2,929 1,854 1,806 71 55 20 6,735	31 December 2014 1,386 1,095 886 73 56 49
		3,545

(8) Available-for-sale financial assets

	31 December 2015	31 December 2014
Measured at fair value
– Available-for-sale equity instruments	3	1,118

As at 31 December 2015 and 31 December 2014, the Group’s available-for-sale financial assets measured at costs mainly represent the non-listed equity investments held by the Group, which are not quoted on any active markets. The variation range of reasonable estimation of the fair value fluctuates significantly and the percentage for determining the estimated fair value cannot by determined reasonably. Thus, the fair value cannot be measured reasonably. The Group has no plan to dispose these investments.

– 28 –

– II-65 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(9) Long-term equity investments

Joint ventures (a) Associates (b)	31 December 2015 8,426 1,129 9,555	31 December 2014 1,033 29
		1,062

The Group accounted for the above equity investments by equity method. The Group has not been imposed any material restrictions on realising the long-term equity investments and the above investment interests do not have any contingent liabilities or commitments.

(a) Joint ventures

				Percentage	Percentage
	Place of	Business	Registered	of	of voting
	Incorporation	Nature	Capital	shareholding	right
北京北恒中慧教育科技有限公司	PRC	Cultural	RMB10,000,000	55%	55%
Beijing Beiheng Zhonghui Education Technology		Education
Co., Ltd.
王府井恒大商業控股有限公司	PRC	Business	RMB1,000,000,000	51%	51%
Wangfujing Evergrande Commercial Holdings		Management
Company Limited
內蒙古魯橋置業有限公司	PRC	Property	RMB200,000,000	50%	50%
Inner Mongolia Luqiao Property Co., Ltd.		Development
廣州恒大淘寶足球俱樂部有限公司	PRC	Cultural	RMB375,000,000	60%	60%
Guangzhou Evergrande Taobao Football Club		Entertainment
Co., Ltd.
恒大人壽保險有限公司(“恒大人壽”)	PRC	Insurance	RMB1,000,000,000	50%	50%
Evergrande Life Insurance Co., Ltd.
(Evergrande Life)
杭州晶立置業有限公司	PRC	Property	USD370,000,000	49%	49%
Hangzhou Jingli Property Co., Ltd.		Development

The investments in joint ventures are set out as follows:

31 December 2014 Joint ventures 1,033 Key financial information of the significant joint ventures: Cash and cash equivalents Other assets (excluding cash and cash equivalents) Total assets Financial liabilities (excluding insurance liabilities) Other liabilities (including insurance liabilities) Total liabilities Net assets Share of net assets calculated by shareholding percentage (i) Goodwill Book value of investments in joint ventures	Increase in investment 7,959	Net income or loss adjusted by equity method 31 December 2015 (566) 8,426 31 December 2015 Evergrande Life 3,442 22,348 25,790 294 16,543 16,837 8,953 5,977 879 6,856	Net income or loss adjusted by equity method 31 December 2015 (566) 8,426 31 December 2015 Evergrande Life 3,442 22,348 25,790 294 16,543 16,837 8,953 5,977 879 6,856	31 December 2015 8,426

			25,790
			294 16,543
			16,837
			8,953
			5,977 879
			6,856

– 29 –

– II-66 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(9) Long-term equity investments (Continued)

(a) Joint ventures (Continued)

Operating income Interest expenses Income tax loan Net loss Other comprehensive income Total comprehensive income	From 1 November 2015 to 31 December 2015 340 (5) 59
	(175) 8
	(167)

(i) The Group calculated the share of assets by shareholding percentage based on the amount in the joint ventures’ financial statement attributable to the parent companies, which has taken the fair value of identifiable assets and liabilities when the investment was secured and the adjustment effect of the standard accounting policy into account.

On 1 November 2015, the Group acquired 50% of the equity in Great Eastern Life Assurance (China) Co., Ltd. (currently known as Evergrande Life) for RMB3,939 million. On 29 December 2015, the Group injected RMB3,000 million into Evergrande Life. According to the resolution in the general meeting of Evergrande Life, all the shareholders agreed to utilise the capital, solely shared by the Group without shareholders’ interest, for the Company’s business development.

(b) Associates

	Place of	Business	Registered	Shareholding	Voting
	Incorporation	Nature	Capital	percentage	right
北京觀止文化藝術有限公司	PRC	Culture and	RMB1,000,000	30%	30%
		Arts
北京潤業文化藝術有限公司	PRC	Culture and	RMB1,000,000	25%	25%
		Arts
濟南西開置業有限公司	PRC	Property	RMB18,000,000	30%	30%
Jinan Xikai Property Company Limited		Development
濟南西創置業有限公司	PRC	Property	RMB18,000,000	30%	30%
Jinan Xichuang Property Co., Ltd.		Development
濟南西實置業有限公司	PRC	Property	RMB18,000,000	30%	30%
Jinan Xishi Property Co., Ltd.		Development
濟南西業置業有限公司	PRC	Property	RMB18,000,000	30%	30%
Jinan Xiye Property Company Limited		Development
湖南淺水灣湘雅溫泉花園有限公司	PRC	Property	RMB30,000,000	18%	18%
		Development
上海申城影視傳媒有限公司	PRC	Culture and	RMB40,000,000	25%	25%
Shanghai Shencheng Culture Investment		Arts
Co., Ltd
前海開源資產管理（深圳）有限公司	PRC	Assets	RMB100,000,000	16%	16%
Qianhai Kaiyuan Asset Management		management
(Shenzhen) Co., Ltd.
東營御景置業有限公司	PRC	Property	RMB100,000,000	20%	20%
Dongying Yujing Property Co., Ltd.		Development
恒大地產集團（深圳）有限公司		Property	RMB130,000,000	32%	32%
		development

– 30 –

– II-67 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(9) Long-term equity investments (Continued)

(b) Associates (Continued)

The investments in associates are set out as follows:

					Net income or
					loss adjusted
	31	December	Increase in	Decrease in	by equity	31 December
		2014	investment	investment	method	2015
Associates		29	1,010	(185)	275	1,129

The Group has no associates that is individually significant.

(10) Investment properties

31 December 2014 Increase in the Year Transfer during the Year Business combinations by entities not under common control (Note 9(2)) Change in fair value Disposal in the Year 31 December 2015	Completed properties 34,273 – 11,936 579 7,822 (811) 53,799	Properties under construction 18,786 18,780 (11,936) – 2,404 – 28,034	Total 53,059 18,780 – 579 10,226 (811)
			81,833

In 2015, the capitalising amount for the borrowing fees credited to the investment properties was RMB2,350 million (2014: RMB2,711 million) and the capitalising rate for the recognition of the borrowing fees was 10.26% per annum (2014: 9.21%).

In 2015, the effect of the change in the fair value for the investment properties on the Group’s profit or loss was RMB10,226 million (2014: RMB8,650 million).

In 2015, the Group generated an income of RMB137 million for the disposal of investment properties with a carrying amount of RMB811 million.

– 31 –

– II-68 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(11) Fixed assets

Original price 31 December 2014 Construction in process transferred in Business combinations by entities not under common control (note 9(2)) Increase in the Year Decrease in the Year 31 December 2015 Accumulated depreciation 31 December 2014 Provision for the Year Decrease in the Year 31 December 2015 Net value 31 December 2015 31 December 2014	Housing and buildings 5,275 1,245 8 33 (33) 6,528 (748) (399) 8 (1,139) 5,389 4,527	Machinery and Equipment 101 23 – 34 (11) 147 (44) (11) 4 (51) 96 57	Vehicles 371 – – 68 (31) 408 (237) (60) 14 (283) 125 134	Office Equipment 2,451 – – 381 (59) 2,773 (728) (331) 16 (1,043) 1,730 1,723	Total 8,198 1,268 8 516 (134)
					9,856
					(1,757) (801) 42
					(2,516)
					7,340
					6,441

Depreciation costs credited to operation costs, management fees and sales costs in 2015 and 2014 are as follows:

Operation costs Management fees Sales costs	2015 363 343 801	2014 270 313
		693

(12) Construction in process

			Transferred
			to fixed
Name of	31 December	Increase	assets in	31 December
construction	2014	in the Year	the Year	2015
Hotel construction	3,193	680	(1,268)	2,605
Including: Capitalising amount for
borrowing fees	447	48	(164)	331

In, 2015, the capitalising rate for the recognition of the borrowing fees was 10.26% per annum (2014: 9.21%).

– 32 –

– II-69 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(13) Intangible assets

right 1,925 22 1,947 (44) (48) (92) 1,855 1,881 31 De	Others 96 76 172 (12) (75) (87) 85 84 cember 2015 3 39 cember 2015 3 4,783 7,196 2,492 21,953 36,424	Others 96 76 172 (12) (75) (87) 85 84 cember 2015 3 39 cember 2015 3 4,783 7,196 2,492 21,953 36,424	Total 2,021 98
			2,119
			(56) (123)
			(179)
	8		1,940
	8		1,965
	cember 2015 39 cember 2015 4,783 7,196 2,492 21,953 36,424		1 December 2014 72
31 De		3	1 December 2014 5,445 14,457 10,026 –
			29,928

– 33 –

– II-70 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(15) SHORT-TERM BORROWINGS (Continued)

(a) As at 31 December 2015, the secured borrowings of RMB4,783 million were secured by the fixed assets with a carrying amount of RMB690 million, the intangible asset, land use right, with a carrying amount of RMB102 million, the investment properties with a carrying amount of RMB438 million and the inventory with a carrying amount of RMB4,061 million (2014: the secured borrowings of RMB5,445 million were secured by the fixed assets with a carrying amount of RMB87 million, the investment properties with a carrying amount of RMB766 million and the inventory with a carrying amount of RMB6,112 million).
(b) As at 31 December 2015, the pledged borrowings of RMB7,196 million were pledged by the time deposit of RMB2,846 million and the equity of the subsidiaries of RMB5,473 million (2014: the pledged borrowings of RMB14,457 million were pledged by the RMB time deposit of RMB9,438 million and the equity of the subsidiaries of RMB5,044 million).
(c) As at 31 December 2015, the guaranteed borrowings of RMB2,492 million (2014: RMB10,026 million) were guaranteed by the Company’s intermediate holding company, Evergrande Real Estate Group Limited.

As at 31 December 2015, the weighted average interest rate for short-term borrowings was 7.21% (2014: 8.13%) per annum.

(16) Notes payable

Commercial promissory notes Bank promissory notes (17) Receipts in advance Receipts in property presales Others	31 December 2015 36,016 296 36,312 31 December 2015 72,014 165 72,179	31 December 2014 21,823 830
		22,653
		31 December 2014 41,542 145
		41,687

As at 31 December 2015 and 31 December 2014, all the Group’s receipts in advance were matured within one year.

– 34 –

– II-71 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(18) Remuneration payables

31 Dece	i	31 Decem	ber 2015 31 807 20 827 Decrease in the Year (5,095) (226) (210) (177) (17) (16) (199) (50) (5,780) 2014 Amount payable en 413 33 446	December 2014 634 1
				635
		Increase n the Year 5,212 273 220 185 18 17 209 39 5,953 at the eriod 19 1 20		31 December 2015 737 48 10 8 1 1 11 1
				807
201 payable 408 27 435	nce the P	at the eriod 19 1 20	2014 Amount payable 413 33 446	Balance at the d of the Period 1 –
				1

– 35 –

– II-72 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(19) Tax payables

Land appreciation tax payable Income tax payable Business tax payable City maintenance and construction tax payable Tax on Deeds Education surcharge payable Tax payables on land use Value-added tax payable Others (20) Other payables Amounts due to related parties (note 10(4)(d)) Land premium payable Deposits and receipts under custody payable Amounts due to minority shareholders Acquisition of subsidiary payable Acquisition of joint venture payable Others (21) Long-term payables Combined structural shares (a) Amounts due to minority shareholders (b)	31 December 2015 12,456 6,346 893 139 110 107 71 33 222 20,377 31 December 2015 50,037 13,025 7,938 4,437 3,217 2,157 3,733 84,544 31 December 2015 1,760 594 2,354	31 December 2014 8,677 5,098 558 44 160 32 64 40 114
		14,787
		31 December 2014 42,001 5,726 4,924 5,955 – – 2,810
		61,416
		31 December 2014 5,620 1,299
		6,919

(a) The amount includes the cash advances of approximately RMB1,760 million (2014: RMB5,620 million) from the owners of consolidated investment entities, bears the average interest rate of 9.6% (2014: 8.0%) per annum and is repayable in 2019.

(b) The amount includes the cash advances of approximately RMB527 million (2014: RMB690 million) from the minor shareholders, bears the average interest rate of 12% (2014: 12%) per annum and is subject to the concerned loan agreement.

– 36 –

– II-73 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(22) Long-term borrowings

Secured borrowings Secured (a) Pledged (b) Guaranteed (c) Unsecured borrowings Less: Long-term borrowings due within one year Secured borrowings Secured Pledged Guaranteed Unsecured borrowings	31 December 2015 106,409 54,588 11,093 13,850 185,940 (37,285) (24,508) (5,999) (6,905) (74,697) 111,243	31 December 2014 73,509 41,690 21,132 –
		136,331
		(18,783) (7,819) (8,655) –
		(35,257)
		101,074

(a) As at 31 December 2015, the secured borrowings of RMB106,409 million were secured by the fixed assets with a carrying amount of RMB5,572 million, the investment properties with a carrying amount of RMB2,291 million, the inventory with a carrying amount of RMB113,560 million and the intangible asset, land use right, with a carrying amount of RMB1,002 million (2014: the secured borrowings of RMB73,509 million were secured by the fixed assets with a carrying amount of RMB5,786 million, the investment properties with a carrying amount of RMB3,325 million, the inventory with a carrying amount of RMB90,300 million and the intangible asset, land use right, with a carrying amount of RMB728 million).

(b) As at 31 December 2015, the pledged borrowings of RMB54,588 million were pledged by the time deposit of RMB48,162 million and the equity of the subsidiaries of RMB41,491 million (2014: the pledged borrowings of RMB41,690 million were pledged by the RMB time deposit of RMB5,400 million and the equity of the subsidiaries of RMB13,566 million).
(c) As at 31 December 2015, the guaranteed borrowings of RMB11,093 million (2014: RMB21,132 million) were guaranteed by the Company’s intermediate holding company, Evergrande Real Estate Group Limited.

As at 31 December 2015, the weighted average interest rate for long-term borrowings was 9.51% (31 December 2014: 9.55%) per annum.

– 37 –

– II-74 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(23) Bond payables

Public issuance of corporate bonds Non-public issuance of corporate bonds	31 December 2015 19,817 19,732
	39,549

On 19 June 2015, the Company publicly issued a 5-year corporate bond, with a total amount of RMB5 billion and simple interest rate fixed at 5.38% calculated and paid once every year.

On 7 July 2015, the Company publicly issued a 4-year corporate bond, with a total amount of RMB6.8 billion and simple interest rate fixed at 5.30% calculated and paid once every year.

On 7 July 2015, the Company publicly issued a 7-year corporate bond, with a total amount of RMB8.2 billion and simple interest rate fixed at 6.98% calculated and paid once every year.

On 16 October 2015, the Company non-publicly issued a 5-year corporate bond, with a total amount of RMB17.5 billion and simple interest rate fixed at 7.38% calculated and paid once every year.

On 16 October 2015, the Company non-publicly issued a 5-year corporate bond, with a total amount of RMB2.5 billion and simple interest rate fixed at 7.88% calculated and paid once every year.

Apart from the company bond non-publicly listed on 16 October 2015 with a total amount of RMB2.5 billion, other company bonds include early redemption rights, deemed as attached derivatives unrelated to the main contract. The management of the Company considered the fair value of the said early redemption rights to be insignificant either upon initial recognition or at 31 December 2015 (2014: nil).

– 38 –

– II-75 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(24) Deferred income tax assets and liabilities

Deferred income tax assets and deferred income tax liabilities which are not yet offset are set out below:

(a) Deferred income tax assets

ber 2	015 Deductible temporary difference 3,928 1,585 181 840 6,534 31 Decem	31 Decem	31 Decem	ber 2014
		Deferred income tax assets 1,532 217 – 89 1,838 ber 2015 31 933 700 1,633 ts is set out as fo ber 2015 31 3,115 ax assets is set o ber 2015 31 – 539 886 951 276 463 3,115		Deductible temporary difference 6,126 868 – 357
				7,351
d inc defer		ber 2015 933 700 1,633 ts is set ou ber 2015 3,115 ax assets i ber 2015 – 539 886 951 276 463 3,115		December 2014 1,096 742
				1,838
	ome tax asse 31 Decem		t as fo 31	llows: December 2014 2,915
	red income t 31 Decem		s set o 31	ut as follows: December 2014 263 539 886 951 276 –
				2,915

– 39 –

– II-76 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(24) Deferred income tax assets and liabilities (Continued)

(d) Deferred income tax liabilities

31 Decem	31 Decem	ber 2014
Deferred income tax liabilities 11,325 1,052 12,377 usive	Deferred income tax liabilities 7,660 350 8,010 ber 2015 31 925 11,452 12,377	Temporary difference of tax payables 21,041 1,398
		22,439
	ber 2015 925 11,452 12,377	December 2014 994 7,016
		8,010

(25) Capital reserve

Capital reserve was mainly generated by transfer of subsidiaries under common control.

31 December 2014 Transfer of subsidiaries under common control (a) Acquisition of minority interests of some subsidiaries 31 December 2015	– 1,620 (55)
	1,565

(a) On 31 May 2015, the Group transfer all the equity in the wholly-owned subsidiary 珠海泓粵日用品有限公司 to Hengda Beverage Group Limited, both of which are under common control, for a consideration of RMB nil. As of the date of transfer, the accumulated loss of RMB1,620 million for 珠海泓粵日用品有限公司 was accrued as capital reserve for transfer income under common control.

(26) Surplus reserve

In accordance with the PRC Company Law and the Article of the Company, the Company withdraws 10% of the net profit for statutory surplus reserve, which can be waived once the statutory surplus reserve reaches 50% of the registered capital or above. The statutory surplus reserve can offset loss or increase net capital upon approval. With the resolution by the Board, the Company withdrew RMB409 million of the statutory surplus reserve in 2015 (2014: RMB443 million).

– 40 –

– II-77 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(27) Operating income and operating costs

Sale of flats Construction Income from hotels Rental income Sales of good and others (28) Business tax and surcharges Land Appreciation Tax Business Tax City Construction Tax Educational Surcharge Others (29) Financial expenses – net Interest expenses Less: Interest income Service fees Loss on translation difference	201 Operating income 112,512 1,451 482 126 2,944 117,515	5 Operating costs 74,787 1,383 314 22 1,874 78,380	5 Operating costs 74,787 1,383 314 22 1,874 78,380	Operating income 94,539 1,148 338 50 2,302	201	4 Operating costs 63,197 1,018 212 22 1,453
				98,377		65,902
				2015 5,755 5,745 412 295 103 12,310 2015 (1,924) 1,393 (514) (21) (1,066)		2014 4,913 4,778 342 242 149
						10,424
						2014 (2,652) 272 (114) (1)
						(2,495)

– 41 –

– II-78 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(30) Fees by nature

Operation costs, sales fees and management fees in the profit statement are set out below by nature:

Costs of property sales Advertising expenses Employee remuneration expenses Costs of sales Depreciation and amortisation Sales commissions Administrative fees Tax expenses Professional service fees Vocational travelling expenses Operating lease fees Business hospitality fees Transportation fees Others (31) Gain on changes in fair value Investment properties Financial assets at fair value through profit or loss (32) Investment income Investment income from financial assets held at fair value through profit or loss Loss on long-term equity investment by equity method Gain on disposal of subsidiaries Others	2015 74,787 6,049 3,274 1,785 957 721 478 419 311 267 201 56 20 2,614 91,939 2015 10,226 (3,757) 6,469 2015 6,238 (291) – 228 6,175	2014 63,197 4,520 3,296 1,453 735 469 441 222 171 93 190 180 178 1,695
		76,840
		2014 8,650 3,757
		12,407
		2014 – (104) 719 93
		708

– 42 –

– II-79 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(33) Non-operating income and non-operating expenses

(a) Non-operating income Government grant Income from beaching of agreement Income from default Income from disposal of fixed assets and intangible assets Others (b) Non-operating expenses Overdue fines Penalty expenses Defaults on delivery of flats Donation expenses Loss on disposal of fixed assets and intangible assets Others (34) Income tax expenses Current income tax Deferred income tax	2015 118 74 61 – 87 340 2015 192 149 100 84 30 237 792 2015 3,966 2,071 6,037	2014 11 15 50 396 246
		718
		2014 45 73 124 170 – 63
		475
		2014 3,043 1,917
		4,960

Income tax fees were adjusted based on the income tax calculated by gross profit stated in the consolidated profit statement and the applicable tax rate:

Gross profit Income tax calculated by applicable tax rate Non-taxable income Non-deductible costs, fees and losses Deductible loss on unrecognised deferred income tax assets Income tax fees	2015 24,561 6,140 (587) 368 116 6,037	2014 21,976
		5,494 (1,179) 576 69
		4,960

– 43 –

– II-80 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(35) Notes to the statement of cash flows

(a) Operating cash flow adjusted by net profit

Net profit Add: Depreciation of fixed assets Long-term fees to be amortised Amortisation of intangible assets Gain on disposal of fixed assets, intangible assets and investment properties Bad debt allowance written-off Gain on change in fair value Financial expenses Investment loss/(gain) Increase in deferred income tax assets Increase in deferred income tax liabilities Increase in inventory Increase in operating receivables Increase in operating payables Net cash flow generated from operating activities	2015 18,524 801 33 123 (107) (169) (12,707) 2,405 63 (249) 3,603 (81,878) (2,574) 71,209 (923)	2014 17,016 693 12 30 (407) – (12,407) 2,380 (708) (865) 2,834 (54,540) (14,510) 29,879
		(30,593)

(b) Investments and fund-raising activities not involving cash in/out

In 2015 and 2014, the Group has no material investments and fund-raising activities which do not involve cash in/out.

Balance of cash and cash equivalents at the end of the Year Less: Opening cash and cash equivalents at the beginning of the Year Increase/(decrease) in cash and cash equivalents (d) Cash and cash equivalents Cash and bank balances (note 7(1)) Less: Restricted cash and bank balances Balance of cash and cash equivalents at the end of the Year	2015 69,220 (25,968) 43,252 31 December 2015 124,412 (55,192) 69,220	2014 25,968 (31,685)
		(5,717)
		31 December 2014 54,207 (28,239) 25,968

– 44 –

– II-81 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(35) Notes to the statement of cash flows (Continued)

(e) Net cash received upon disposal of subsidiaries

Cash received upon disposal of subsidiaries

On 31 May 2015, the Group transferred all the equity 珠海泓粵日用品有限公司 to Hengda Beverage Group Limited. Information on the disposal date is set out below:

Price of disposal Cash and cash equivalents received on disposal Less: Disposal of cash and cash equivalents held by珠海泓粵日用品有限公司 Net cash received on disposal	Amount – – (13)
	(13)

Net assets of 珠海泓粵日用品有限公司:

Current assets Non-current assets Current liabilities Total	Date of disposal 130 507 (2,257) (1,620)	31 December 2014 501 30 (2,587)
		2,056

Incomes, fees and profits of 珠海泓粵日用品有限公司 from 1 January 2015 to the date of disposal are set out as follows:

Income Less: Costs and fees Total loss Less: Income tax fee Net loss	Amount 60 (177)
	(117) –
	(117)

(f) Cash paid for/generated from other investment activities

Cash received from other investment activities mainly includes the receipt of capital payment from the connected parties and cash paid for other investment activities mainly includes the capital provided for the connected parties.

(g) Cash paid for/generated from other fund-raising activities

Cash received from other fund-raising activities mainly includes the receipt of capital provided by the connected parties and cash paid for other investment activities mainly includes the capital payment to the connected parties.

– 45 –

– II-82 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

8 SEGMENT INFORMATION

The reporting segments of the Group are the business segments providing different products and services. Since different skills and marketing strategies are needed for different businesses, the Group individually manages the business activities and assesses business results for different segments to precisely allocate resources.

The Group has three reporting segments, namely:

Property development
Investment properties operation
Other business

Transfer prices between segments were determined with reference to that to third parties.

Assets were allocated based on segment operation and asset location and liabilities were allocated based on segment operation. Fees that indirectly vested to segments were allocated between segments based on income ratio.

– 46 –

– II-83 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

8 SEGMENT INFORMATION (CONTINUED)

(a) Segment information for 2015 is set out as follows:

Transaction income Inter-segment transaction income Transactions with outside parties Gain on investment in associates Gain/(loss) on investment in joint ventures Depreciation and amortisation fees Segment results Profit or loss on change of fair value of financial assets at fair value through profit or loss Other investment gains Financial fees Gross profit Income tax expenses Net profit Segment assets Unallocated amount Total assets Segment liabilities Unallocated amount Total liabilities Increase in other non-current assets (fixed assets, intangible assets, construction in process and capital expenditure of investment properties)	Property development 112,512 – 112,512 275 14 617 15,056 542,524 275,665 524	Investment properties operation 1,117 (43) 1,074 – – – 9,165 81,833 – 19,359	Other segments Inter-segment offsetting 13,207 (9,321) (9,278) 9,321 3,929 – – – (580) – 340 – (1,303) – 17,633 – 5,506 – 778 –	Total 117,515 –
				117,515
				275 (566) 957 22,918
				(3,757) 6,466 (1,066)
				24,561 (6,037)
				18,524
				641,990 8,371
				650,361
				281,171 294,667
				575,838
				20,661

– 47 –

– II-84 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

8 SEGMENT INFORMATION (CONTINUED)

(b) Segment information for 2014 is set out as follows:

Transaction income Inter-segment transaction income Transactions with outside parties Loss on investment in associates Loss on investment in joint ventures Depreciation and amortisation fees Segment results Profit or loss on change of fair value of financial assets at fair value through profit or loss Other investment gains Financial fees Gross profit Income tax expenses Net profit Segment assets Unallocated amount Total assets Segment liabilities Unallocated amount Total liabilities Increase in other non-current assets (fixed assets, intangible assets, construction in process and capital expenditure of investment properties)	Property development 94,539 – 94,539 (50) – 404 12,608 354,527 180,349 1,908	Investment properties operation 150 (100) 50 – – – 8,668 53,059 – 15,506	Other segments Inter-segment offsetting 12,221 (8,533) (8,433) 8,533 3,788 – – – (54) – 331 – (1,374) – 17,703 – 14,240 – 1,592 –	Total 98,377 –
				98,377
				(50) (54) 735 19,902
				3,757 812 (2,495) 21,976 (4,960)
				17,016
				425,289 16,333
				441,622
				194,589 194,677
				389,266
				19,006

As at 31 December 2015 and 31 December 2014, the Group’s non-current assets were in the People’s Republic of China.

Unallocated assets include the financial assets in fair value through profit or loss, other current assets, the available-forsale financial assets and the deferred income tax assets.

Unallocated liabilities include short-term borrowings, tax payables, non-current liabilities due within one year, longterm borrowings, bond payables and deferred income tax liabilities.

– 48 –

– II-85 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015	(Expressed in millions of RMB, unless otherwise indicated)	INCREASE IN THE SCOPE OF CONSOLIDATION	Acquisition of Subsidiaries	In 2015, the Group acquired controlling interests of certain real estate development companies in the PRC with a total consideration of approximately RMB20,566 million. These companies	only held parcels of land and did not conduct any substantial operation before they were acquired by the Group. Thus, the management is of the view that the acquisitions do not constitute	acquisition of businesses, and should be deemed as the acquisition of land use rights. These acquisitions resulted in an increase in the minority interests of the Group in the amount of RMB886	million.	Business combinations by entities not under common control	The subsidiaries acquired from business combinations by entities not under common control:	Time at which the Acquisition Equity ratio Acquisition The basis of	Acquiree Nature of business acquirerobtains control cost acquired method Acquisition date acquisition date	武漢三江航天房地產開發有限公司 Real estate development 30 September 2015 1,607 67% Paid in cash 30 September 2015 Obtaining effective control	商丘世龍房地產開發有限公司 Real estate development 27 July 2015 765 100% Paid in cash 27 July 2015 Obtaining effective control	中山長信宏展房地產有限公司 Real estate development 29 October 2015 758 100% Paid in cash 29 October 2015 Obtaining effective control	佛山市長信宏龍房地產有限公司 Real estate development 29 October 2015 418 100% Paid in cash 29 October 2015 Obtaining effective control	泉州安盛置業有限公司 Real estate development 25 May 2015 380 100% Paid in cash 25 May 2015 Obtaining effective control	新鄉市三聯置業有限公司 Real estate development 8 July 2015 225 100% Paid in cash 8 July 2015 Obtaining effective control	廣西梧州市萬國房地產開發有限公司 Real estate development 11 June 2015 30 60% Paid in cash 11 June 2015 Obtaining effective control	柳州市兆福地產置業有限公司 Real estate development 18 September 2015 2,086 100% Paid in cash 18 September 2015 Obtaining effective control	陝西碩華置業有限公司 Real estate development 24 September 2015 323 100% Paid in cash 24 September 2015 Obtaining effective control	濟南華府置業有限公司 Real estate development Acquired 70% on 27 May 571 100% Paid in cash 27 May 2015 Obtaining effective control	2015 with a cost of	RMB400 million; acquired	30% on 29 March 2013	with a cost of RMB9 million.	7,163	–49–
		9	(1)					(2)	(a)

– II-86 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

9 INCREASE IN THE SCOPE OF BUSINESS CONSOLIDATION (CONTINUED)

(2) Business combinations by entities not under common control (continued)

(b) Details of the combination cost and goodwill recognized are as follows:

Combination Cost - Cash Consideration Fair value of the equity interests originally held as at acquisition date Less: Fair value of the identifiable net assets obtained Goodwill	6,992 171 (7,163)
	–

(c) Details of the assets, liabilities and acquisition-related cash flow of the acquiree as at the acquisition date are set out as follows:

Cash and bank balances Trade receivables Prepayments Inventories Investment properties Fixed assets Other non-current assets Less: Trade payables Receipts in advance Deferred income tax liabilities Long-term borrowings Non-current liabilities due within one year Net assets Less: Minority interests Net assets obtained Cash consideration Less: Cash and cash equivalents of the subsidiaries acquired Unpaid consideration Net cash paid for the acquisition of subsidiaries	Fair value Acquisition date 985 1,529 83 14,941 579 8 344 (4,587) (3,797) (764) (1,344) – 7,977 (814) 7,163 6,992 (985) (3,217) 2,790	Carrying	amounts
		Acquisition date 985 1,529 83 11,474 419 8 344 (4,587) (3,797) – (1,344) – 5,114 (2) 5,112	31 December 2014 373 4,128 349 10,264 437 9 141 (8,220) (1,803) – (2,444) (1,837)
			1,397 (2)
			1,395

– 50 –

– II-87 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

9 INCREASE IN THE SCOPE OF BUSINESS CONSOLIDATION (CONTINUED)

(2)

Business combinations by entities not under common control (continued)

(d)	The revenue, net profit and cash flow of the acquiree from the acquisition date to the period ended 31 December 2015	The revenue, net profit and cash flow of the acquiree from the acquisition date to the period ended 31 December 2015
	are set out as follows:
	Operating income	3,600
	Net profit	403
	Cash flows from operating activities	1,717
	Net cash flows	1,072

The Group adopts valuation techniques such as the market approach and the income approach to determine the fair value of the assets and liabilities of the acquiree as at the acquisition date.

10 RELATED PARTIES AND RELATED PARTY TRANSACTIONS

(1) Parent company and subsidiaries

The general information and other related information of the subsidiaries are set out in Note 6.

(a) General information of the parent company

Guangzhou Kailong Real Estate Company Limited (b) Registered capital and changes in registered capital of the parent company Guangzhou Kailong Real Estate Company Limited (c) The percentages of shareholding and voting rights in the Company held by Guangzhou Kailong Real Estate Company Limited	Place of registration China 31 Dec	Nature of business Real estate development
		ember 2015 and 2014 600,000,000
	the parent company: 31 December 2	015 and 2014
	Percentage of shareholding 100%	Percentage of voting rights 100%

– 51 –

– II-88 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

10 RELATED PARTIES AND RELATED PARTY TRANSACTIONS (CONTINUED)

(2) Natures of the principal related parties which do not have a controlling relationship with the Group

Name of the company

Relationship with the Group

Chaozhou Hengda Property Company Limited 啟東通譽置業有限公司句容天工置業有限公司啟東鑫華置業有限公司成都天府水城房地產開發有限公司金碧物業有限公司西安金圖置業有限公司海南東方明珠地產有限公司南京恆大富豐置業有限公司北海南國天堂房地產開發有限公司揚州宏利泰房地產開發有限公司東莞市鴻郡置業有限公司昌江廣億房地產開發有限公司深圳市厦村房地產開發有限公司桂森林加房地產有限公司本溪嘉熙置業有限公司西安盈裕置業有限公司寧波御城置業有限公司葫蘆島嘉汕置業有限公司盤錦嘉鼎置業有限公司深圳市吉厦房地產開發有限公司佛山市南海新中房地產發展有限公司廣州恆大（增城）房地產開發有限公司深圳市恆大糧油銷售有限公司深圳市恆大飲品有限公司恆大乳業有限公司廣州市佳穗置業有限公司恆大長白山礦泉水股份有限公司珠海泓粵日用品有限公司上海穗華置業有限公司寧波三立祥和置業有限公司廣州市超豐置業有限公司重慶恒大鑫鼎置業有限公司鎮江佳祺置業有限公司恒大糧油集團有限公司

Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company

– 52 –

– II-89 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

10 RELATED PARTIES AND RELATED PARTY TRANSACTIONS (CONTINUED)

(2) Natures of the principal related parties which do not have a controlling relationship with the Group (continued)

Name of the company

Relationship with the Group

Chengbo (Ningbo) Property Company Limited Under the control of the same ultimate holding company Prime Sun Holding Limited Under the control of the same ultimate holding company 淮安佳鑫置業有限公司 Under the control of the same ultimate holding company 深圳市久初投資有限公司 Under the control of the same ultimate holding company 東莞市澤和實業有限公司 Under the control of the same ultimate holding company 呼和浩特市金碧物業服務有限公司 Under the control of the same ultimate holding company Shengtong (BVI) Limited Under the control of the same ultimate holding company 西安嘉智置業有限公司 Under the control of the same ultimate holding company 恒大飲品集團有限公司 Under the control of the same ultimate holding company 啟東衡美置業有限公司 Under the control of the same ultimate holding company 恒大企業集團有限公司 Under the control of the same ultimate holding company 重慶尖置房地產有限公司 Under the control of the same ultimate holding company 重慶中渝物業發展有限公司 Under the control of the same ultimate holding company Shengyu (BVI) Limited Under the control of the same ultimate holding company 東莞市慶鵬心怡房地產開發有限公司 Under the control of the same ultimate holding company 愛美高房地產（成都）有限公司 Under the control of the same ultimate holding company 深圳市鴻騰投資管理有限公司 Under the control of the same ultimate holding company 愛美高房實業（成都）有限公司 Under the control of the same ultimate holding company 恒大置業（深圳）有限公司 Under the control of the same ultimate holding company 汕頭市恒悅置業有限公司 Under the control of the same ultimate holding company 恒大畜牧業有限公司 Under the control of the same ultimate holding company 深圳市恒大健康產業有限公司 Under the control of the same ultimate holding company 深圳市恒大酒店管理有限公司 Under the control of the same ultimate holding company 恒大人參有限公司 Under the control of the same ultimate holding company 四川愛美高房地產有限公司 Under the control of the same ultimate holding company 啟東譽豪置業有限公司 Under the control of the same ultimate holding company 啟東勤盛置業有限公司 Under the control of the same ultimate holding company 廣州市俊匯房地產開發有限公司 Under the control of the same ultimate holding company 廣州市金碧華府物業有限公司 Under the control of the same ultimate holding company 深圳恒大母嬰用品有限公司 Under the control of the same ultimate holding company 安圖恒大長白山礦泉水有限公司 Under the control of the same ultimate holding company

The details of joint ventures and associates are set out in note 7(9).

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APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

10 RELATED PARTIES AND RELATED PARTY TRANSACTIONS (CONTINUED)

(3) Related party transactions

(a) Pricing policy

The prices of business transactions between the Group and related parties are determined through negotiations by both sides, with reference to the market prices.

(b) Sales of goods

Companies under the control of the same ultimate holding company Associates Joint ventures (c) Rendering of services Companies under the control of the same ultimate holding company Associates Joint ventures (d) Purchase of goods Companies under the control of the same ultimate holding company Joint ventures (e) Receiving of services Companies under the control of the same ultimate holding company Joint ventures	2015 973 124 27 1,124 2015 588 4 16 608 2015 212 64 276 2015 1,844 18 1,862	2014 681 28 –
		709
		2014 631 – –
		631
		2014 296 51
		347
		2014 1,329 10
		1,339

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APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

10 RELATED PARTIES AND RELATED PARTY TRANSACTIONS (CONTINUED)

(3) Related party transactions (continued)

(f) Providing and accepting funds

During 2015 and 2014, there were financial transactions between the Group and certain related parties, the transaction amounts of which are included in “cash received from other investing activities” and “cash paid for other investing activities” under investing activities, as well as “cash received from other financing activities” and “cash paid for other financing activities” under financing activities in the cash flow statement. The balance of financial transactions with related parties is set out in Note 10(4).

(g) Remuneration of key management

	2015	2014
Remuneration of key management	101	91

(h) Guarantee

The commitments in relation to related parties contracted for but not yet necessary to be stated on the balance sheet by the Group as at the balance sheet date are as follows:

– Acceptance of guarantees EVERGRANDE REAL ESTATE GROUP LIMITED – Provision of guarantees Companies under the control of the same ultimate holding company (4) Balance receivable and payable by the principal related parties (a) Trade receivables Companies under the control of the same ultimate holding company (b) Trade payables Companies under the control of the same ultimate holding company	31 December 2015 38,837 31 December 2015 24,112 31 December 2015 218 31 December 2015 597	31 December 2014 45,383
		31 December 2014 3,386
		31 December 2014 186
		31 December 2014 455

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APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

10 RELATED PARTIES AND RELATED PARTY TRANSACTIONS (CONTINUED)

(4) Balance receivable and payable by the principal related parties (continued)

(c) Other receivables

Companies under the control of the same ultimate holding company Associates Joint ventures	31 December2015 46,584 575 1,685 48,844	31 December 2014 42,194 1,486 1
		43,681

As at 31 December 2015 and 31 December 2014, the abovementioned other receivables were amounts with the related parties that were interest-free, unsecured, unguaranteed and had no fixed terms of repayment.

(d) Other payables Companies under the control of the same ultimate holding company Associates Joint ventures	31 December 2015 48,886 663 488 50,037	31 December 2014 40,900 1,101 –
		42,001

As at 31 December 2015 and 31 December 2014, the abovementioned other payables were amounts with the related parties that were interest-free, unsecured, unguaranteed and had no fixed terms of repayment.

11 COMMITMENTS

(1) Operating lease commitments

The future minimum lease payments of the Group due under the signed irrevocable operating leases contracts are summarized as follows:

Within 1 year 1 to 2 years 2 to 3 years Over 3 years	31 December 2015 149 109 46 42 346	31 December 2014 204 96 81 42
		423

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

11 COMMITMENTS (CONTINUED)

(2) Capital commitments

Construction and installation contracts contracted for which is or going to be performed Land contracts contracted for which is or going to be performed	31 December 2015 69,890 18,523 88,413	31 December 2014 67,037 15,336
		82,373

12 CONTINGENCIES Mortgage guarantee of property owners (a) Third party financing guarantee (b)	31 December 2015 138,667 3,185 131,852	31 December 2014 83,182 –
		83,182

(a) The Group provided guarantees in respect of the banking facilities of certain purchasers of the Group’s property units according to relevant regulations. Such guarantees terminate upon the earlier of (i) issuance of the real estate ownership certificate which will generally be available within an average period of two to three years upon the completion of guarantee registration; or (ii) the satisfaction of mortgaged loan by the purchasers of properties. Pursuant to the terms of the guarantees, in case of default in mortgage payments by these purchasers during the period of guarantee, the Group shall repay the outstanding mortgage principals together with accrued interest and penalty owed by the defaulted purchasers to the banks. After payment of the principals, interest and penalty, the Group is entitled to take over the legal title of the related mortgaged properties.

The management of the Group considers that the fair value of these guarantee contracts at the date of inception was minimal and in case of default in mortgage payments by the purchasers, the net realisable value of the related real estates is sufficient to cover the repayment of the outstanding mortgage principals together with the accrued interest and penalty. Therefore, no provision has been made in the financial statements for the guarantees.

(b) The Group provided financing guarantees for certain cooperation parties (primarily sub-contractors) that are independent of the Group, based on their history of performance in contracts. The Group closely monitors the repayment of such financing guarantees. The management of the Group considers that the possibility of the Group’s exposure to compensation risk due to such guarantees is remote, therefore no provision has been made in the financial statements for guarantees.

13 FINANCIAL INSTRUMENT AND RISK

The Group’s operating activities expose it to a variety of financial risks: market risk (primarily currency risk and interest rate risk), credit risk and liquidity risk. The Group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group’s financial performance.

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

13 FINANCIAL INSTRUMENT AND RISK (CONTINUED)

(1) Market risk

(a) Foreign exchange risk

The Group’s major operational activities are carried out in Mainland China and a majority of the businesses are settled in RMB. The Group is exposed to foreign exchange risk arising from the assets, liabilities and transactions denominated in foreign currencies, primarily with respect to HK dollars and US dollars. The Group’s finance department is responsible for monitoring the scale of the Company’s transactions and amount of the assets and liabilities denominated in foreign currencies to minimise the foreign exchange risk. During 2015 and 2014, the Group did not enter into any forward exchange contracts or currency swap contracts.

As at 31 December 2015 and 31 December 2014, the amounts in RMB equivalent of the Group’s financial assets and financial liabilities denominated in foreign currencies are set out below:

	31 December 2015
USD 23 4,039 4,062 5,069 18 5,087	HKD 4 2,138 2,142 1,358 3 1,361 31 December 2014	Total 27 6,177
		6,204
		6,427 21
		6,448

USD 2 606 2,329 58 2,993	HKD 1 6,705 – 188 6,893	Total 3
		7,311 2,329 246
		9,886

As at 31 December 2015, if the RMB had strengthened/weakened by 5% against foreign currencies while other variables had been held constant, the Group’s net profit for the year would have been approximately RMB9 million higher/lower (31 December 2014: approximately RMB371 million higher/lower) for various financial assets denominated in foreign currencies and financial liabilities denominated in USD. The difference would have no effect on other comprehensive income.

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

13 FINANCIAL INSTRUMENT AND RISK (CONTINUED)

(1) Market risk (continued)

(b) Interest rate risk

The Group’s interest rate risk mainly arises from long-term interest-bearing debts. Financial liabilities issued at floating rates expose the Group to cash flow interest rate risk. Financial liabilities issued at fixed rates expose the Group to fair value interest rate risk. The Group determines the relative proportions of its fixed rate and floating rate contracts depending on the prevailing market conditions. As at 31 December 2015 and 31 December 2014, the Group’s longterm interest-bearing debts are mainly floating rate bank borrowings denominated in RMB, amounting to RMB29,961 million and RMB36,738 million respectively.

The Group’s finance department at its headquarters continuously monitors the interest rate position of the Group. Increases in interest rates will increase the cost of new interest-bearing debts and the interest expenses with respect to the Group’s outstanding floating rate debts, and therefore could have a material adverse effect on the Group’s financial results. The management may make timely adjustments with reference to the latest market conditions, which could mean entering into interest rate swap arrangements to mitigate its exposure to interest rate risk. During 2015 and 2014, the Group had no interest rate swap arrangement.

As at 31 December 2015, if interest rates on the floating rate borrowings had strengthened/weakened by 100 basis points while other variables had been held constant, the Group’s net profit would have been approximately RMB20 million lower/higher(31 December 2014: RMB50 million higher or lower).

(2) Credit risk

Credit risk is managed on the grouping basis. Credit risk mainly arises from cash at bank, trade receivables, other receivables and notes receivable, etc.

The Group expects that there is no significant credit risk associated with cash at bank since they are mainly deposited at state-owned banks and other large or medium size listed banks. The Group does not expect that there will be any significant losses from non-performance by these counterparties.

In addition, the Group has policies to limit the credit exposure on trade receivables, other receivables and notes receivable. The Group assesses the credit quality of and sets corresponding credit limits on its customers by taking into account their financial position, the availability of guarantee from third parties, their credit history and other factors such as current market conditions. The credit history of the customers is regularly monitored by the Group. In respect of customers with a poor credit history, the Group will use written payment reminders, or shorten or cancel credit periods, to ensure the overall credit risk of the Group is limited to a controllable extent.

(3) Liquidity risk

The Group performs cash flow forecasting and continuously monitors its short-term and long-term liquidity requirements to ensure that it maintains reasonable cash reserves. Meanwhile, the Group maintains sufficient headroom on its undrawn committed borrowing facilities from major financial institutions so that it does not breach the requirements of borrowing agreements to meet the short-term and long-term liquidity requirements.

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

13 FINANCIAL INSTRUMENT AND RISK (CONTINUED)

(3) Liquidity risk (continued)

The financial liabilities of the Group at the balance sheet date are set out by their maturity date below at their undiscounted contractual cash flows:

	31	December 201	5
Within 1 year 37,051 36,312 79,490 84,544 4,389 919 80,757 4,501 2,600 – 330,653	1 to 2 years – – – – – – – 53,186 2,690 1,458 57,334 31	2 to 5 years – – – – – – – 24,223 38,519 1,473 84,215 December 201	Over 5 years – – – – – – – 39,714 8,993 – 48,707 4	Total 37,051 36,312 79,490 84,544 4,389 919 80,757 121,624 52,892 2,931
				500,909

Within 1 year 32,368 22,653 59,654 61,416 3,170 4,076 36,863 9,653 – 229,853	1 to 2 years – – – – – – – 47,511 1,502 49,013	2 to 5 years – – – – – – – 10,085 6,141 16,226	Over 5 years – – – – – – – 45,591 – 45,591	Total 32,368 22,653 59,654 61,416 3,170 4,076 36,863 112,840 7,643
				340,683

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

13 FINANCIAL INSTRUMENT AND RISK (CONTINUED)

(3) Liquidity risk (continued)

Prudent liquidity risk management refers to maintaining sufficient cash and availability of funds through different sources of capital, including raise of bank borrowings, issuance of bonds, proceeds from pre-sale of properties and proceeds from shareholders’ contribution. Due to the dynamic nature of the businesses, the Group maintains flexibility of the general working capital through having an adequate amount of cash and cash equivalents as well as different financing sources.

The Group has formulated certain alternative plans to mitigate the potential effects on the anticipated cash flow should there be materially adverse changes in the economic environment. Such plans include adjusting and further slowing down the construction plans for properties under development, implementing cost control measures, accelerating sales with more flexible pricing, seeking joint venture partners to co-develop in quality projects, selling certain land use rights and investment properties at an acceptable price and renegotiating the payment terms of certain land acquisitions with related parties. The Group will implement such plans as and when appropriate based on the evaluation of cost and profit in the future.

14 FAIR VALUE ESTIMATES

Based on the lowest level input that is significant to the fair value measurement in its entirety, the fair value hierarchy has the following levels:

Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Unobservable inputs for the asset or liability.

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

14 FAIR VALUE ESTIMATES (CONTINUED)

(1) Assets continuously measured at fair value

As at 31 December 2015, the assets continuously measured at fair value by the above three levels are analysed as below:

	Level 1	Level 2	Level 3	Total
Non-financial assets
Investment properties	–	–	81,833	81,833

As at 31 December 2014, the assets continuously measured at fair value by the above three levels are analysed as below:

Financial assets Financial assets at fair value through profit or loss - Investments in equity instruments held for trading Non-financial assets Investment properties Total assets	Level 1 10,950 – 10,950	Level 2 – – –	Level 3 – 53,059 53,059	Total 10,950
				53,059
				64,009

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

14 FAIR VALUE ESTIMATES (CONTINUED)

(1) Assets continuously measured at fair value (continued)

The Group takes the date on which events causing the transfers between the levels take place as the timing for recognising the transfers. There is no transfer between level 1 and level 2 for the year.

The fair value of a financial instrument in an active market is determined at the quoted price in the active market.

Information about fair value measurements in level 3 are as follows:

Investment properties Completed - Commercial building Parking space In progress - Commercial building Parking space	Fair value as at 31 December 2015 Valuation technique 4,456 Income approach 21,965 Direct comparison 27,378 Direct comparison 14,859 Residual method Residual method 81,833	Inputs
		Name Range/weighted average Relationship to fair value Observable/ unobservable Ultimate yield 4%-5% Negative Unobservable Capitalisation rate 4%-7% Negative Unobservable Expected vacancy rate 0%-10% Negative Unobservable Monthly rental (RMB/square meter) 42-280 Positive Unobservable Market price (RMB/square meter) 6,907-77,500 Positive Unobservable Market price (RMB/per parking space) 84,300-381,000 Positive Unobservable Market price (RMB/square meter) 5,360-26,531 Positive Unobservable Budgeted cost (RMB/square meter) 100-6,038 Negative Unobservable Developer’s profit 2%-30% Negative Unobservable Market price (RMB/parking space) 91,230-288,000 Positive Unobservable Budgeted cost (RMB/square meter) 100-2,754 Negative Unobservable Developer’s profit 2%-20% Negative Unobservable

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

14 FAIR VALUE ESTIMATES (CONTINUED)

(1) Assets continuously measured at fair value (continued)

Investment properties Completed - Commercial building Parking space In progress - Commercial building Parking space	Fair value as at 31 December 2014 Valuation technique Inputs Name Range/weighted average Relationship to fair value Observable/ unobservable 1,825 Income approach Discount rate 4%-5.5% Negative Unobservable Capitalisation rate 5%-6% Negative Unobservable Expected vacancy rate 0%-5% Negative Unobservable Monthly rental (RMB/square meter) 46-1,000 Positive Unobservable 12,603 Direct comparison Market price (RMB/square meter) 6,052-76,000 Positive Unobservable 19,845 Direct comparison Market price (RMB/per parking space) 85,850-390,800 Positive Unobservable 10,213 Residual method Market price (RMB/squre meter) 4,625-23,929 Positive Unobservable Budgeted cost (RMB/square meter) 186-4,279 Negative Unobservable Developer’s profit 2%-25% Negative Unobservable 8,573 Residual method Market price (RMB/parking space) 90,000-167,000 Positive Unobservable Budgeted cost (RMB/square meter) 100-2,895 Negative Unobservable Developer’s profit 2%-20% Negative Unobservable 53,059	Inputs

(2) Assets and liabilities not measured at fair value but disclosed at fair value

The Group’s financial assets and liabilities measured at amortised cost mainly represent receivables, available-for-sale financial assets, short-term borrowings, payables and long-term borrowings.

The carrying amounts of such financial assets and liabilities not measured at fair values approximate their fair values since the impact of discount is insignificant or the long-term borrowings have a floating rate.

(3) The fair value of long-term borrowings is the present value of the contractually determined stream of future cash flows discounted at the rate of interest applied at that time by the market to instruments of comparable credit status and providing substantially the same cash flows on the same terms, which is subject to level 3.

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

15 CAPITAL MANAGEMENT

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders, and to maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, refund capital to shareholders, issue new shares or sell assets to reduce debts.

The Group’s total capital is calculated as ‘owners’ equity’ as shown in the consolidated balance sheet. The Group is not subject to external mandatory capital requirements, and monitors capital on the basis of asset-to-liability ratio.

As at 31 December 2015 and 31 December 2014, the Group’s asset-to-liability ratio is set out as below:

==> picture [375 x 184] intentionally omitted <==

----- Start of picture text -----

31 December 2015 31 December 2014
Asset-to-liability ratio 88.54% 88.14%
16 SIGNIFICANT NOTES TO THE COMPANY’S FINANCIAL STATEMENTS
(1) Trade receivables
31 December 2015 31 December 2014
Amounts due from third parties 3 10
The aging of trade receivables and the corresponding provisions made for bad debts are analysed as below:
31 December 2015 31 December 2014
Percentage of Provision Percentage of Provision
Amount total amount for bad debts Amount total amount for bad debts
Within 1 year 3 100% – 10 100% –
----- End of picture text -----

As at 31 December 2015 and 31 December 2014, none of the trade receivables was overdue but unimpaired.

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

16 SIGNIFICANT NOTES TO THE COMPANY’S FINANCIAL STATEMENTS (CONTINUED)

(2) Other receivables

Related parties Third parties	31 December 2015 75,797 1,685 77,482	31 December 2014 56,216 1,523
		57,739

The aging of other receivables and the corresponding provisions made for bad debts are analysed as below:

Within 1 year 1 to 2 years Over 2 years	31 December 201	5 rovisions for bad debts – – – –	31 December 201	4
	Amount Percentage of total amount P 77,316 100% 50 0% 116 0% 77,482 100%		Amount Percentage of total amount P 46,654 81% 10,937 19% 148 0% 57,739 100%	rovisions for bad debts – – –
				–

As at 31 December 2015 and 31 December 2014, none of the other receivables was overdue but unimpaired.

(3) Long-term equity investments

Subsidiaries Joint ventures (a) Associates (b)	31 December 2015 54,306 976 151 55,433	31 December 2014 37,182 1,033 –
		38,215

There is no significant restriction on the realisation of the long-term equity investments held by the Company. The Company has adopted the cost method to account for the above subsidiaries, and equity method for the above joint ventures and associates.

(a) Joint ventures

			Registered
	Place of	Nature of	capital	Percentage of	Percentage of
	registration	business	(RMB)	shareholding	voting rights
北京北恒中慧教育科技有限公司	China	Cultural	10,000,000	55%	55%
		education
王府井恒大商業控股有限公司	China	Commercial	50,000,000	51%	51%
		management
Guangzhou Evergrande Taobao Football	China	Cultural	375,000,000	60%	60%
Club Corp., Ltd.		entertainment

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

16 SIGNIFICANT NOTES TO THE COMPANY’S FINANCIAL STATEMENTS (CONTINUED)

(3) Long-term equity investments (continued)

(a) Joint ventures (continued)

Investments in joint ventures are set out below:

Joint ventures None of the joint ventures is material to the	31 December 2014 1,033 Company on its ow	Increase in investment 408 n.	Adjustment of net profit/loss using the equity method (465)	31 December 2015 976

Associates
	Place of		Nature of	Registered capital		Percentage of	Percentage of
	registration		business		(RMB)	shareholding	voting rights
北京觀止文化藝術有限公司	China		Culture and arts		1,000,000	30%	30%
北京潤業文化藝術有限公司	China		Culture and arts		1,000,000	25%	25%
前海開源資產管理（深圳）有限公司	China		Assets management		100,000,000	16%	16%
恒大地產集團（深圳）有限公司	China	Real	estate development		130,000,000	32%	32%
					Adjustment of
	31 December		Increase	in	net profit/loss using		31 December
	2014		investment		the equity method		2015
Associates		–		59		92	151

None of the associates is material to the Company on its own.

(4) Operating income and operating costs Income from service fees and others	2015 Operating income Operating costs 1,280 105	2014
		Operating income Operating costs 1,233 166

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2015

(Expressed in millions of RMB, unless otherwise indicated)

16 SIGNIFICANT NOTES TO THE COMPANY’S FINANCIAL STATEMENTS (CONTINUED)

(5) Investment income

Income from long-term equity investment accounted for using the cost method Losses from long-term equity investment accounted for using the equity method	31 December 2015 4,908 (373) 4,535	31 December 2014 3,440 (54)
		3,386

(6) Notes to the cash flow statement Reconciliation from net profit to cash flows from operating activities:

Net profit Add: Depreciation of fixed assets Amortisation of intangible assets Losses/(gains) arising from changes in fair value Interest expenses/(income) Investment income (Increase)/decrease in deferred income tax net liabilities Increase in inventories Increase in operating receivables Increase in operating payables Net cash flows from operating activities	2015 3,567 71 7 142 566 (4,535) (303) (577) (623) 735 (950)	2014 3,245 53 1 (5) (253) (3,386) 12 (193) (2,053) 1,576
		(1,003)

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)

**Hengda Real Estate Group Company Limited* (恒大地產集團有限公司)**

Annual Report on Corporate Bonds (2016)

April 2017

– II-106 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)

Important Notice

PricewaterhouseCoopers Zhong Tian LLP has audited the financial statements of the Company for 2016 and has issued a standard unqualified auditor’s report.

– II-107 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)

Material Risk Warnings

I. The risk associated with a higher gearing ratio

The gearing ratio of the Company is relatively high. A higher gearing ratio may be maintained as the business size of the Company gradually expands and the project development expenditure and the proceeds from pre-sales increase accordingly. If the continuous financing capabilities of the Company are restricted or there are material adverse changes in the macroeconomic environment in the future, the debt service obligations of the Company may increase, which may have negative effect on the ordinary course of its business activities.

II. Uncertainty risk associated with sale of inventories

The inventories of the Company are primarily property inventories, which mainly include properties held for sale and properties under development. The macroeconomic situation and the state policy have greater effect on the property development business of the Company. If the supply and demand relationship in the domestic property market changes further in the future, the sales of the property projects of the Company may be affected to a greater extent, and, accordingly, there is uncertainty over the sales or liquidation of the property-related inventories to a certain extent.

III. The risk associated with the greater scale of the restricted assets

The restricted assets of the Company are primarily the assets pledged as collateral for borrowings from financial institutions. They are primarily the property projects developed by, and the cash and bank balances held by the Company and its subsidiaries. In addition, the equity interests of some subsidiaries of the Company are pledged or partly pledged. There is uncertainty over subsequent financing and the normal use of assets to a certain extent as the Company has large-scale restricted assets.

IV. The risk associated with accumulated new borrowings and a higher external guarantee amount

As at the end of 2016, the accumulated new borrowings of the Company amounted to RMB238,151 million, which was higher than the net assets as at the end of 2015 by over 20%. The restated net assets as at the end of 2015 of the Company amounted to RMB97,046 million.

As at the end of 2016, the balance of external guarantee of the Company was RMB98,781 million, which was higher than the net assets as at the end of the last year by over 20%. The restated net assets as at the end of 2015 of the Company amounted to RMB97,046 million.

V. The risk associated with transfer of assets at nil consideration

The Company proposes to realize its listing in the A-share market through a material asset reorganization (the “Reorganization for Listing”). The underlying assets of the

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)

Reorganization for Listing are primarily the property development business of the Company. During the Reporting Period, Evergrande Group Co., Ltd. (恒大集團有限公司), a domestic subsidiary indirectly held by China Evergrande as to 100% equity interest, transferred the net book amount of approximately 52% equity interest in Shenzhen Construction Group Corporation Limited (深圳市建設（集團）有限公司) and approximately 51% equity interest in 恒大地產集團（深圳）有限公司to Hengda Real Estate at nil consideration for the purpose of the Reorganization for Listing.

Meanwhile, the Company had disposed of the businesses not within the scope of the underlying assets of the Reorganization for Listing. During the Reporting Period, the Company transferred, among other things, its equity interests in, Evergrande Tourism Group Company Limited (恒大旅遊集團有限公司) and Evergrande Real Estate Group (Nanchang) Company Limited (恒大地產集團（南昌）有限公司) to Evergrande Group Co., Ltd.* (恒大集團有限公司), which was under control of the same ultimated holding company, at nil consideration (the “Transfer”). The disposed property was higher than the net assets as at the end of 2015 by over 10%. The restated net assets as at the end of 2015 of the Company amounted to RMB97,046 million. After the Transfer, Hengda Real Estate will focus on the property development business.

In accordance with the undertakings of the Company and the agreements with strategic investors, the strategic investors had made capital contribution of RMB30,000 million to the Company as at 1 April 2017.

As at the disclosure date of this report, the risk factors of the corporate bonds do not significantly change as compared with the descriptions in the related chapters such as “Risk Factors” in the prospectuses of each tranche of the bonds.

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)

Definitions.............................................................................................................6	Definitions.............................................................................................................6
I Profile of the Company and the Relevant Intermediaries.............................7
I.	Company Information..................................................................................................7
II.	Information on Information Disclosure Affairs..........................................................7
III.	Information on the Controlling Shareholder, the De Facto Controller, Directors,
	Supervisors and Senior Management of the Company During
	the Reporting Period................................................................................................8
IV.	Information on the Relevant Intermediaries...............................................................9
II	Corporate Bonds..........................................................................................10
I.	Basic Information of Bonds.......................................................................................10
II.	Adjustment in Coupon Rates of Bonds.....................................................................10
III.	Use of Proceeds from the Issuance of Bonds.............................................................11
IV.	Credit Rating and Ongoing Rating Arrangements...................................................11
V.	Implementation of Credit Enhancement Mechanism, Debt Repayment Plan and
	Other Safeguard Measures.....................................................................................12
III	Financial and Asset Conditions.................................................................13
I.	Major Accounting Data and Financial Indicators....................................................13
II.	Audit of the Annual Financial Report of the Company............................................15
III.	Analysis of Changes in Major Assets and Liabilities................................................15
IV.	Restricted Assets.........................................................................................................21
V.	Other Bonds or Debt Financing Instruments Issued by the Company....................22
VI.	External Guarantees of the Company.......................................................................22
VII. Credit and Bank Loan Repayment............................................................................23
IV	Operations and Corporate Governance....................................................24
I.	Operations, Changes in Industry Environment and Management Discussion........24
II.	Operation Discussion and Analysis for the Reporting Period..................................24
III.	Future Business Development and Possible Risks....................................................27
IV.	Other Information about Operations of the Company.............................................28
V	Major Events..............................................................................................................31
I.	Pending Litigation, Arbitration and Administrative Penalty of the Company........31
II.	Bankruptcy Reorganization of the Company During the Reporting Period...........31
III.	Risk Regarding Suspension of Trading or Delisting of Corporate Bonds
	During the Term.....................................................................................................31
IV.	The Company, its Controlling Shareholder and De Facto Controller being
	Investigated by Judicial Authorities for Suspected Violation of Laws, and
	the Directors, Supervisors and Senior Management of the Company Suspected
	for Being Subject to Compulsory Measures as Implemented by
	Judicial Authorities.................................................................................................31
V.	Other Major Events...................................................................................................31
VI	Financial Report.........................................................................................33
VII Documents available for Inspection.........................................................34

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)

Definitions

In this annual report, unless the context otherwise requires, the following terms shall have the following meanings:

Company or Hengda Real Estate	means	Hengda Real Estate Group Company Limited* (恒大地產集團有限公司)
China Evergrande	means	China Evergrande Group, a Hong Kong listed company registered in the Cayman Islands of the United Kingdom (stock code: 3333.HK). It wholly owns 100% equity interest of the Company through subsidiaries at multiple levels
CSRC	means	China Securities RegulatoryCommission
SSE	means	Shanghai Stock Exchange
SZSE	means	Shenzhen Stock Exchange
Bondholders	means	investors who own the corporate bonds issued by the Company registered in their name as shown in the records of the bond registrar
Articles of Association	means	the Articles of Association of Hengda Real Estate GroupCompanyLimited
Board	means	the board of directors of Hengda Real Estate Group CompanyLimited
Supervisor(s)	means	the supervisor(s) of Hengda Real Estate Group CompanyLimited
ReportingPeriod	means	1 January2016 to 31 December 2016
CompanyLaw	means	CompanyLaw of the People’s Republic of China
Securities Law	means	Securities Law of the People’s Republic of China
Administrative Measures	means	Administrative Measures for the Issuance and Trading of Corporate Bonds (《公司債券發行與交易管理辦法》)
RMB, RMB000, RMB0,000 and RMB00 million	means	Renminbi 1 Yuan, Renminbi 1,000 Yuan, Renminbi 10,000 Yuan and Renminbi 100 million Yuan, unless otherwise specified

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)

I Profile of the Company and the Relevant Intermediaries

I. Corporate Information

Chinese name: 恒大地產集團有限公司

Legal representative: Zhao Changlong

Registered address: Room 3901, Zhuoyue Houhai Financial Center, No. 126 Haide 3rd Road, Nanshan District, Shenzhen

Office address: Room 3801, No. 78 Huangpu Avenue West, Tianhe District, Guangzhou

Postal code: 510620

Company’s website: www.evergrande.com

II. Information on Information Disclosure Affairs

Person in charge of information disclosure: Fu Fei

Contact address: 37/F, Evergrande Center, No. 78 Huangpu Avenue West, Tianhe District, Guangzhou

Tel: 020-89182321

Fax: 020-89183000

Email: [email protected]

Website where the annual reports are published: www.sse.com.cn

Address where the annual reports are kept: 37/F, Evergrande Center, No. 78 Huangpu Avenue West, Tianhe District, Guangzhou

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)

III. Information on the Controlling Shareholder, the De Facto Controller, Directors, Supervisors and the Senior Management of the Company during the Reporting Period

(I) Information on the Controlling Shareholder and the De Facto Controller of the Company

(II) Information on the Directors, Supervisors and Senior Management of the Company

The information on the directors, supervisors and the senior management of the Company as at 31 December 2016 is set out in the following table:

Name	Currentposition
Zhao Changlong	Chairman and General Manager
He Miaoling	Director
Lu Baoping	Director
Ji Xingshun	Supervisor
LiangWeikang	Executive Vice President
Lin Manjun	Vice President
Li Guodong	Vice President and Financial Controller

The changes of the directors, supervisors and the senior management of the Company during the Reporting Period are set out below:

Name	Position during the term	Status
Xia Haijun	President	Designated to other position of the controllingshareholder
Pan Darong	Chief Financial Officer	Designated to other position of the controllingshareholder
Wu Liqun	Vice President	Designated to other position of the controllingshareholder
Shi Junping	Vice President	Designated to other position of the controllingshareholder
Wei Keliang	Vice President	Designated to other position of the controllingshareholder

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)

IV. Information on the Relevant Intermediaries

During the Reporting Period, there was no change of the intermediaries engaged by the Company. The basic information on the specific intermediaries is set out below:

(I) Accounting Firm


Information on the institution
Name	PricewaterhouseCoopers ZhongTian LLP
Office address	6/F, DBS Bank Tower, No. 1318, Lujiazui Ring Road, Pudong New Area, Shanghai
Signingaccountants	Lin Yupengand Wei Ze

(II) Entrusted Bond Managers

==> picture [342 x 215] intentionally omitted <==

----- Start of picture text -----

Information on the institution Corporate bonds
Name Guotai Junan Securities Co. Ltd.
Office address 10/F, Tower 2, Yingtai Center, No. 28 15恒大01, 15恒大02,
Financial Street, Xicheng District, Beijing 15恒大03, 16恒地01
Contact person Wei Jin and 16恒地02
Contact number 010-59312900
Information on the institution Corporate bonds
Name CSC Financial Co., Ltd.
2/F, Block B, Kaiheng Center, No. 2
Office address Chaonei Avenue, Dongcheng District,
Beijing 15恒大04 and
15恒大05
Guo Chunlei, Yuan Shengwen and Xing
Contact person
Chao
Contact number 010-85130311
----- End of picture text -----

(III) Credit Rating Institution


Information on the intermediary
Name	China Chengxin Securities RatingCo., Ltd.
Office address	21/F, Anji Building, No. 760 South Tibet Road, Huangpu District, Shanghai

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)

II Corporate Bonds

I. Basic Information on Bonds

Name of bond	2015 Corporate Bonds of Hengda Real Estate Group Company Limited (First Tranche)	2015 Corporate Bonds of Hengda Real Estate Group Company Limited (Second Tranche)	2015 Corporate Bonds of Hengda Real Estate Group Company Limited (Second Tranche)
Abbreviated name of bond	15恒大01	15恒大02	15恒大03
Bond code	122383	122392	122393
Issuance date	19 June 2015	8 July2015	8 July2015
Maturity date	19 June 2020; if the Bondholders exercise their rights to sell back the bonds, then the maturity date of such portion of bonds is 19 June 2018	8 July 2019; if the Bondholders exercise their rights to sell back the bonds, then the maturity date of such portion of bonds is 8 July2017	8 July 2022; if the Bondholders exercise their rights to sell back the bonds, then the maturity date of such portion of bonds is 8 July2020
Balance of bond	RMB5 billion	RMB6.8 billion	RMB8.2 billion
Coupon rate	5.38%	5.30%	6.98%
Method of principal and interest payment	The interest is calculated annually, regardless of compound interest, and is paid once every year. The principal will be returned upon maturity. The last interest will bepaid together with theprincipal.
Being listed and traded on	Shanghai Stock Exchange
Arrangement on suitability of investors	Public offering to the qualified investors under the Administrative Measures
Interest payment of corporate bonds during the Reporting Period	There was no default in interest payment or risk of due repayment during the Reporting Period.
Performance of special terms	No performance of special terms during the Reporting Period	No performance of special terms during the Reporting Period	No performance of special terms during the Reporting Period

II. Adjustment in Coupon Rates of Bonds

Pursuant to the relevant agreements under the Resolution on Transfer of Assets of Hengda Real Estate Group Company Limited of the Company considered and approved at the 2016 first bondholders’ meeting of 2015 corporate bonds issued by Hengda Real Estate Group Company Limited (first tranche) and the 2016 first bondholders’ meeting of 2015 corporate bonds issued by Hengda Real Estate Group Company Limited (second tranche) convened on 8 November 2016 (for details, please refer to the relevant announcements of the 2016 first bondholders’ meeting convened by the Company), the Company shall pay interest to the Bondholders for compensation. Pursuant to the Announcement on the Payment of Capital Contribution by the Strategic Investor for Capital Verification and Adjustment in Coupon Rates of Bonds dated 1 April 2017, the adjustments in the interest rates of the bonds are set

out below:

Abbreviated name of bond	Original coupon rate	Increment in coupon rate	Upward adjustment in interest rate	Upward adjustment in interest rate	Recovery of interest rate	Recovery of interest rate
			Coupon rate 1	Interest period	Coupon rate 2	Starting date for interest calculation
			10

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)

15恒大01	5.38%	0.10%	5.48%	2017-06-19 to 2018-06-18	5.38%	2018-06-19
15恒大02	5.30%	0.10%	5.40%	2017-07-08 to 2018-07-07	5.30%	2018-07-08
15恒大03	6.98%	0.10%	7.08%	2017-07-08 to 2018-07-07	6.98%	2018-07-08

III. Use of Proceeds from the Issuance of Bonds

The Company entered into a proceeds supervisory agreement with the supervisory bank and the entrusted manager within a month upon the completion of every tranche of corporate bond issuance. The proceeds (net of issuance expenses) were used through the designated account. The use, plan and other commitments of proceeds were consistent with those mentioned in the prospectus.

As at 31 December 2016, the use of proceeds from the relevant issuance of corporate bonds is set out below:

Unit: RMB100 million

Bond code	Gross proceeds	Approved use of proceeds	Balance of unutilized proceeds as at the date of this report
15恒大01	50	In aggregate, RMB15 billion was used for repayment of loans from financial institutions of the Company and its subsidiaries, and RMB5 billion was used for replenishment of working capital of the Companyand its subsidiaries.	0
15恒大02	150		0
15恒大03

Note: 15恒大02 and 15恒大03 are two forms of bonds issued in the same tranche, so their use of proceeds are aggregated for disclosure.

IV. Credit Rating and Ongoing Rating Arrangements

On 8 June 2016, China Chengxin Securities Rating Co., Ltd. disclosed the Ongoing Rating Report for 2015 Corporate Bonds of Hengda Real Estate Group Company Limited (First and Second Tranches) (2016), pursuant to which the ongoing credit rating of the Company was maintained at AAA, and the credit rating of the above bonds was AAA. China Chengxin Securities Rating Co., Ltd. expects to issue the regular ongoing rating reports for 15恒大01, 15恒大02 and 15恒大03 within two months after the issue of the annual audit report of the Company. During the term of the bonds, in case of any significant event which may affect the credit rating of the bonds of the Company, the credit rating institution will study and analyze such matters and publish non-scheduled ongoing rating results. Regular and non-scheduled ongoing rating results and other relevant information will be announced on the websites of China Chengxin Securities Rating Co., Ltd. (www.ccxr.com.cn) and the Shanghai Stock Exchange (www.sse.com.cn).

During the Reporting Period, there was no difference between the rating for issuing other bonds and debt financing instruments in China and the rating of the relevant corporate bonds in this report.

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)

V. Implementation of Credit Enhancement Mechanism, Debt Repayment Plan and Other Safeguard Measures

During the Reporting Period, there was no change in the credit enhancement mechanism, debt repayment plan and other safeguard measures provided by the Company for the issued corporate bonds.

(I) Commitments from China Evergrande

As at the end of the Reporting Period, China Evergrande, as the covenantor, maintained normal operation and sound performance. During the Reporting Period, no event occurred which would require China Evergrande to perform the obligation of buying bonds.

(II) Implementation of Debt Repayment Plan and Debt Repayment Safeguard Measures

During the Reporting Period, the Company paid bond interest to the Bondholders in strict compliance with the arrangements as agreed in the prospectus.

(III) Convening Bondholders’ Meetings

Pursuant to the relevant requirements under the Prospectus and the Rules of Bondholders’ Meeting of the bonds, namely 15恒大01, 15恒大02 and 15恒大03, Guotai Junan Securities Co. Ltd., as the entrusted bond manager, convened the 2016 first bondholders’ meeting for 15恒大01, 15恒大02 and 15恒大03. The notice of meeting was published by way of announcement on 19 October 2016. On 8 November 2016, the 2016 first bondholders’ meeting of the Company was convened at 40/F, Evergrande Center, No. 78 Huangpu Avenue West, Tianhe District, Guangzhou. The Resolution on Transfer of Assets of Hengda Real Estate Group Company Limited was considered and approved at the meeting.

(IV) Performance of Duties of the Entrusted Manager

During the Reporting Period, the entrusted bond manager strictly complied with the Bond Entrusted Management Agreement of the corporate bonds to perform its duties as an entrusted manager and keep tracking the conditions of the Company for better understanding, and convened the 2016 bondholders’ meeting to form valid resolutions. The entrusted manager disclosed the 2015 Entrusted Management Report of 15恒大01, 15恒大02 and 15恒大03 on 29 June 2016 and the Interim Entrusted Management Reports of 15恒大01, 15恒大02 and 15恒大03 on 9 September, 14 October, 15 November, 9 December and 21 December 2016 respectively. For details of the reports, please refer to the website of the Shanghai Stock Exchange (http://www.sse.com.cn). The 2016 Entrusted Management Report is expected to be disclosed on the website of the Shanghai Stock Exchange by 30 June 2017.

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)

III Financial and Asset Conditions

The financial and accounting information and the related analysis in this section reflect the financial and asset conditions of the Company in the last two years. PricewaterhouseCoopers Zhong Tian LLP had audited the Company’s financial reports for 2015 and 2016 and issued standard unqualified audit opinions. Unless otherwise specified, the financial and accounting data in this section is extracted from the above financial reports. It should be noted that, the Company completed the combination with Guangzhou Hengda Zengcheng Real Estate Development Co., Ltd.* (廣州恒大增城房地產開發有限公司) and other companies (the “acquired companies”) in 2016. The combination was a business combination under common control as the Company and the acquired companies were under the non-temporary ultimate control of China Evergrande before and after the combination. On the date of combination, the assets and liabilities of the acquired companies were consolidated into the consolidated financial statements of the Company at their carrying amount on the date of combination. The operating results and cash flows of the acquired companies for 2016 were also consolidated into the consolidated financial statements of the Company as if the consolidated reporting entity subsisted in the previous period. In addition, the Company also restated the 2015 comparative data in the consolidated financial statements to incorporate the financial position, operating results and cash flows of the acquired companies.

I. Major Accounting Data and Financial Indicators

(I) Major Accounting Data and Financial Indicators in the Past Two Years

Unit: RMB100 million

Major Accounting Data and Financial Indicators	2016	2015	Change
Operatingincome	2,050.97	1,306.86	56.94%
Net profit attributable to shareholders of theparent company	158.40	196.46	-19.37%
EBITDA	430.71	371.65	15.89%
Net cash flows from operatingactivities	-158.34	0.19	-83436.84%
Net cash flows from investingactivities	-1,181.61	-134.76	776.83%
Net cash flows from financingactivities	2,137.20	760.22	181.13%
Major Accounting Data and Financial Indicators	31 December 2016	31 December 2015	Change
Balance of cash and cash equivalents as at the end of theperiod	1,711.85	913.01	87.50%
Net assets attributable to shareholders of theparent company	532.25	815.82	-34.76%
Total assets	12,401.38	7,475.88	65.89%
Current ratio	1.49	1.37	8.76%
Quick ratio	0.56	0.52	7.69%
Gearingratio	92.89%	87.02%	6.75%
Interest coverage ratio	1.10	1.51	-26.95%
Cash interest coverage ratio	1.69	1.13	49.56%
EBITDA to total liabilities ratio	0.07	0.11	-36.36%
EBITDA interest coverage ratio	1.14	1.56	-26.92%

– II-118 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)

Loan repayment ratio (%)	100	100	0.00%
Interest repayment ratio (%)	100	100	0.00%

The indicators are calculated as follows:

EBITDA to total liabilities ratio = EBITDA/total liabilities (Note)
Interest coverage ratio = EBIT/(interest expenses recognized in finance costs + capitalized interest expenses)
Cash Interest coverage ratio = (net cash flows from operating activities + cash interest expenses + income tax paid in cash)/cash interest expenses
EBITDA interest coverage ratio = EBITDA/(interest expenses recognized in finance costs + capitalized interest expenses)
Loan repayment ratio = actual amount of loan repayment/loan amount repayable 6. Interest repayment ratio = interests actually paid/interests payable

Note: All liabilities refer to all interest-bearing liabilities

(II) Analysis of Changes in Major Accounting Data and Financial Indicators
Operating income

Operating income increased by 56.94% as compared to last year, mainly due to the significant increase of sales income from properties carried forward in 2016 as compared to the same period of last year as a result of the continuous substantial growth in contracted sales of the Company in recent years.

Net cash flows from operating activities

Net cash flows from operating activities represented a significant year-on-year decrease. As a result of the increased cash expenditures for the expansion in land reserve and scale of operation of the Company, the cash flows from operating activities were negative in 2016.

Net cash flows from investing activities

Net cash flows from investing activities represented a year-on-year increase of 776.83%, mainly due to the execution of the acquisition contracts of the second half of 2015 by the Company during the Reporting Period, which expanded the scale of acquisition and increased the demand of making payment for external investment.

Net cash flows from financing activities

Net cash flows from financing activities represented a year-on-year increase of 181.13%, mainly due to the new borrowings and bond issuance in meeting capital requirements by the Company as a result of the significant increase in scale of operation in 2016 as compared to last year.

Balance of cash and cash equivalents as at the end of the period

Balance of cash and cash equivalents as at the end of the period represented a year-on-year increase of 87.50%, mainly due to the substantial increase in cash and bank balances of the Company as at the end of the Reporting Period as a result of the growth in net cash flows from financing activities.

Net assets attributable to shareholders of the parent company

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)

Net assets attributable to shareholders of the parent company decreased by 34.76% as compared to the end of last year, mainly due to the decrease in net assets attributable to the parent company as a result of the transfer of Evergrande Tourism Group Company Limited (恒大旅遊集團有限公司), Evergrande Real Estate Group (Nanchang) Company Limited (恒大地產集團（南昌）有限公司) and other companies held by the Company to Evergrande Group Co., Ltd.* (恒大集團有限公司), which is a company under the control of the same ultimate holding company, at nil consideration in 2016.

7. Total assets

Total assets increased by 65.89% as compared to the end of last year, mainly due to the increases in inventories, investment properties and cash and bank balances as a result of expansion in scale of operation.

Cash interest coverage ratio

Cash interest coverage ratio increased by 49.56% as compared to last year, mainly due to the consistent growth in proceeds from contracted sales and significant amount of bank deposits of the Company.

9. EBITDA to total liabilities ratio

EBITDA to total liabilities ratio decreased by 36.36% as compared to last year, mainly due to the additional liabilities for fulfilling the capital needs of projects as a result of the expansion in scale of operation of the Company.

II. Audit of the Annual Financial Report of the Company

PricewaterhouseCoopers Zhong Tian LLP issued a standard unqualified audit opinion for the annual financial report of the Company. For details, please refer to the 2016 Auditor’s Report on Hengda Real Estate Group Company Limited in the appendix.

During the Reporting Period, there was no change in the accounting policies of the Company.

III. Analysis of Changes in Major Assets and Liabilities

(I) Analysis of Asset Structure

Unit: RMB100 million

Item	31 December 2016	31 December 2016	31 December 2015	31 December 2015	Change
	Amount	Percentage	Amount	Percentage
Cash and bank balances	2,751.91	22.19%	1,510.67	20.21%	82.16%
Financial assets at fair value throughprofit or loss	30.76	0.25%	0.00	0.00%	–
Notes receivable	0.68	0.01%	0.45	0.01%	51.11%

– II-120 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)

Item	31 December 2016	31 December 2016	31 December 2015	31 December 2015	Change
	Amount	Percentage	Amount	Percentage
Trade receivables	84.47	0.68%	37.12	0.50%	127.56%
Prepayments	521.59	4.20%	321.64	4.30%	62.17%
Interests receivable	2.81	0.02%	0.22	0.00%	1177.27%
Dividends receivable	0.00	0.00%	0.00	0.00%	–
Other receivables	286.27	2.31%	350.89	4.69%	-18.42%
Inventories	6,470.97	52.18%	3,788.58	50.68%	70.80%
Non-current assets due within oneyear	70.19	0.57%	53.03	0.71%	32.36%
Other current assets	144.66	1.17%	75.34	1.01%	92.01%
Total current assets	10,364.31	83.57%	6,137.94	82.10%	68.86%
Available-for-sale financial assets	348.40	2.81%	7.87	0.11%	4326.94%
Long-term receivables	87.46	0.71%	103.05	1.38%	-15.13%
Long-term equityinvestments	7.27	0.06%	85.49	1.14%	-91.50%
Investmentproperties	1,301.96	10.50%	963.82	12.89%	35.08%
Fixed assets	132.08	1.07%	91.77	1.23%	43.93%
Construction inprogress	44.78	0.36%	35.75	0.48%	25.26%
Intangible assets	51.38	0.41%	32.42	0.43%	58.48%
Goodwill	10.03	0.08%	0.00	0.00%	–
Long-term deferred expenses	2.04	0.02%	1.44	0.02%	41.67%
Deferred income tax assets	38.09	0.31%	16.33	0.22%	133.25%
Other non-current assets	13.58	0.11%	0.00	0.00%	–
Total non-current assets	2,037.07	16.43%	1,337.94	17.90%	52.25%
Total assets	12,401.38	100.00%	7,475.88	100.00%	65.89%

Cash and bank balances

As at the end of 2016, cash and bank balances amounted to RMB275,191 million, representing year-on-year growth of 82.16%. The growth was mainly due to the increase in receipts in advance as a result of the rapid growth in the contracted sales of the Company by virtue of timely adjustment in development pace and sales strategy, adherence to the positioning of ordinary residential products for end users and intensified efforts in marketing and collecting sales proceeds. At the same time, with the expansion in business development, the Company made flexible adjustments in financing structure and increased the amount of additional financing, resulting in a significant increase in the balance of cash and bank balances of the Company as at the end of 2016 as compared to the end of 2015.

2. Financial assets at fair value through profit or loss

As at the end of 2016, the Company had additional financial assets at fair value through profit or loss of RMB3,076 million, mainly due to the additional equity investments in A share-listed companies of the Company in 2016.

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)

Notes receivable

As at the end of 2016, notes receivable amounted to RMB68 million, representing year-on-year growth of 51.11%. With the expanding scale of sales in the property business of the Company, the commercial acceptance bills receivable by the Company also increased, resulting in the increased balance as at the end of the Reporting Period.

4. Trade receivables

As at the end of 2016, trade receivables amounted to RMB8,447 million, representing year-on-year growth of 127.56%. With the expanding scale of sales in the property business of the Company, the proceeds from sales of commodity housing receivable by the Company also increased. Most of the trade receivables had aging within 1 year, which was consistent with the sales policy of the Company.

5. Prepayments

As at the end of 2016, prepayments amounted to RMB52,159 million, representing year-on-year growth of 62.17%. During the Reporting Period, the prepayments of the Company mainly comprised the land prepayments to the transferors before the completion of the procedures of land use right transfer.

Interests receivable

As at the end of 2016, interest receivable amounted to RMB281 million, representing year-on-year growth of 1,177.27%, mainly due to the increased in the interests receivable of the margin deposits of financial institutions as at the end of the period.

Inventories

Inventories are mostly property inventories comprising properties held for sale and properties under development. As at the end of 2016, inventories amounted to RMB647,097 million, representing an increase of 70.80% as compared to the end of 2015, mainly due to the rapid growth of the property development business of the Company with increasing investment in new projects and properties under development.

Other current assets

Other current assets mainly comprise prepayments of land appreciation taxes, corporate income taxes and business taxes. As at the end of 2016, other current assets amounted to RMB14,466 million, representing year-on-year growth of 92.01%, mainly due to the increases in prepayments of land appreciation taxes, corporate income taxes and business taxes as a result of the increase in receipt in advance for sales of housing with increased sales of properties of the Company.

Available-for-sale financial assets

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APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)

Available-for-sale financial assets mainly comprise the equity investment in A share-listed companies at fair value held by the Company. As at the end of 2016, the available-for-sale financial assets of the Company amounted to RMB34,840 million, representing year-on-year growth of 4,326.94%, mainly due to the increased equity investment in A share-listed companies in China of the Company in 2016.

10. Long-term equity investments

As at the end of 2016, long-term equity investments amounted to RMB727 million, representing a year-on-year decrease of 91.50%, mainly due to transfer out of the joint ventures held by the Company. As at the end of the year, long-term equity investments were investments in joint ventures and associates, among which long-term equity investments in joint ventures and associates amounted to RMB566 million and RMB161 million respectively.

11. Investment properties

Investment properties mainly comprise self-owned commercial properties, including self-owned stores, offices and garages. As at the end of 2016, the investment properties of the Company amounted to RMB130,196 million, representing year-on-year growth of 35.08%, mainly due to the increases in the number of projects acquired and the area of self-owned commercial properties for leasing through combination not under common control year by year as well as the increase in value of the commercial properties held by the Company.

12. Fixed assets

Fixed assets mainly comprise buildings, machinery and equipment, transportation and office equipment. As at the end of 2016, fixed assets amounted to RMB13,208 million, representing year-on-year growth of 43.93%, mainly due to the transfer of some construction in progress and investment properties to fixed assets and additional fixed assets from business combination not under common control in 2016.

Intangible assets

Intangible assets mainly comprise land use rights. As at the end of 2016, intangible assets amounted to RMB5,138 million, representing year-on-year growth of 58.48%, mainly due to the increase in land use rights for buildings.

14. Goodwill

As at the end of 2016, the Company had additional goodwill of RMB1,003 million, which was mainly generated from the external acquisition of some projects by the Company in 2016.

Long-term deferred expenses

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APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)

As at the end of 2016, the long-term deferred expenses of the Company amounted to RMB204 million, representing year-on-year growth of 41.67%, mainly due to the increase in renovation costs.

16. Deferred income tax assets

As at the end of 2016, the deferred income tax assets of the Company amounted to RMB3,809 million, representing year-on-year growth of 133.25%.The deferred income tax assets of the Company mainly came from the internal unrealized operating income, deductible losses before tax and the temporary difference from the change in fair value of available-for-sale financial assets. The growth as at the end of 2016 mainly came from the decrease in the fair value of available-for-sale financial assets, resulting in the growth in deferred income tax assets. For the project companies which suffered from loss at the early stage but were expected to be profitable in the future, the Company recognized the loss as deferred income tax assets.

17. Other non-current assets

As at the end of 2016, the Company had additional other non-current assets of RMB1,358 million, which mainly comprised prepayments for the acquisition of fixed assets and intangible assets.

(II) Analysis of Changes in Liabilities

Unit: RMB100 million

Item	31 December 2016	31 December 2016	31 December 2015	31 December 2015	Change
	Amount	Percentage	Amount	Percentage
Short-term borrowings	887.06	7.70%	379.57	5.83%	133.70%
Notespayable	436.75	3.79%	420.69	6.47%	3.82%
Tradepayables	1,324.57	11.50%	877	13.48%	51.03%
Receipts in advance	1,834.04	15.92%	816.1	12.54%	124.73%
Employee remunerationpayable	14.11	0.12%	11.08	0.17%	27.35%
Taxpayable	349.54	3.03%	245.66	3.78%	42.29%
Interestspayable	97.58	0.85%	52.01	0.80%	87.62%
Dividendspayable	41.89	0.36%	23.7	0.36%	76.75%
Otherpayables	1,147.10	9.96%	828.93	12.74%	38.38%
Non-current liabilities due within oneyear	807.54	7.01%	834.08	12.82%	-3.18%
Total current liabilities	6,940.18	60.24%	4,488.82	69.00%	54.61%
Long-term borrowings	3,321.37	28.83%	1,433.57	22.04%	131.69%
Bondspayable	470.05	4.08%	395.49	6.08%	18.85%
Long-termpayables	413.45	3.59%	23.59	0.36%	1652.65%
Deferred income tax liabilities	214.43	1.86%	103.45	1.59%	107.28%
Other non-current liabilities	160.48	1.39%	60.50	0.93%	165.26%

– II-124 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)

Item	31 December 2016	31 December 2016	31 December 2015	31 December 2015	Change
	Amount	Percentage	Amount	Percentage
Total non-current liabilities	4,579.78	39.76%	2,016.60	31.00%	127.10%
Total liabilities	11,519.96	100.00%	6,505.42	100.00%	77.08%

Short-term borrowings

Short-term borrowings comprise guaranteed borrowings and credit borrowings. As at the end of 2016, short-term borrowings amounted to RMB88,706 million, representing year-on-year growth of 133.70%, mainly due to the increases in mortgage, pledge and guaranteed borrowings of the Company during the Reporting Period.

Trade payables

As at the end of 2016, trade payables amounted to RMB132,457 million, representing year-on-year growth of 51.03%, mainly due to the increase in construction payments year by year as a result of the expanding scales of operation of the Company.

Receipts in advance

As at the end of 2016, receipts in advance amounted to RMB183,404 million, representing year-on-year growth of 124.73%, mainly due to the increase in sales proceeds received in advance as a result of the strong growth in contracted sales of the Company.

Tax payable

As at the end of 2016, tax payable amounted to RMB34,954 million, representing year-on-year growth of 42.29%, mainly due to the increases in land appreciation tax payable and corporate income tax payable with growth consistent with the growth in the scale of operation.

5. Interests payable

As at the end of 2016, interests payable amounted to RMB9,758 million, representing year-on-year growth of 87.62%, mainly due to the increase in new borrowings and bonds payable for the year.

Dividends payable

As at the end of 2016, dividends payable amounted to RMB4,189 million, representing year-on-year growth of 76.75%, mainly due to the unpaid dividends payable to the original shareholders of the acquired companies for the business combination under common control in 2016.

7. Other payables

As at the end of 2016, other payables amounted to RMB114,710 million, representing year-on-year growth of 38.38%, mainly due to the increases in land payments payable and real estate projects under combination in 2016.

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APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)

Long-term borrowings

As at the end of 2016, long-term borrowings amounted to RMB332,137 million, representing year-on-year growth of 131.69%, mainly due to the increases in mortgage, pledge, guaranteed and credit borrowings of the Company during the Reporting Period.

9. Long-term payables

As at the end of 2016, long-term payables amounted to RMB41,345 million, representing year-on-year growth of 1,652.65%, mainly due to the increase in contribution from preference holders of the consolidated investment entities. The investors made cash contribution in advance for certain property development projects under cooperation with the Company.

10. Deferred income tax liabilities

As at the end of 2016, deferred income tax liabilities amounted to RMB21,443 million, representing year-on-year growth of 107.28%, mainly due to the recognition of deferred income tax liabilities for the temporary difference of tax payable of the newly acquired subsidiaries not under common control during the period. Besides, due to the increase in fair value of investment properties during the Reporting Period, the change in fair value of investment properties gave rise to temporary difference, resulting in simultaneous growth in deferred income tax liabilities.

11. Other non-current liabilities

As at the end of 2016, other non-current liabilities amounted to RMB16,048 million, representing year-on-year growth of 165.26%, mainly due to the increase in business combination not under common control.

IV. Restricted Assets

As at 31 December 2016, the restricted assets of the Company amounted to RMB372,864 million, which mainly comprised restricted inventories and restricted cash and bank balances. Details are as follows:

Unit: RMB100 million

Types of restricted assets	Book value	Reason of restriction	Percentage to total assets
Cash and bank balances	1,040.06	Provide pledge for interest- bearing liabilities and deposits for construction progress, land bidding and others	8.39%
Inventories	2,497.30	Provide pledge for interest-bearing liabilities	20.14%
Fixed assets, investment properties, land use rights and others	191.28	Provide pledge for interest-bearing liabilities	1.54%
Total	3,728.64		30.07%

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)

V. Other Bonds or Debt Financing Instruments Issued by the Company

In October 2015, the Company issued corporate bonds of RMB20 billion through non-public offering on SSE, among which the first form of bonds (15 恒大04) had an issuance size of RMB17.5 billion with a term of 5 years (where the issuer shall have the right to increase the coupon rate after the end of the third year and the investors shall have the right to sell back the bonds) and an interest rate of 7.38%, and the second form of bonds (15恒大05) had an issuance size of RMB2.5 billion with a term of 5 years and an interest rate of 7.88%.

In July 2016, the Company completed the non-public offering of the second tranche of corporate bonds (16恒地02) of RMB4.2 billion with a term of 3 years (where the issuer shall have the right to increase the coupon rate after the end of the second year and the investors shall have the right to sell back the bonds) and an interest rate of 6.80%.

During the Reporting Period, the above bonds did not have any default in interest payment or risk of due repayment.

VI. External Guarantees of the Company

(I) External Guarantees of the Company

As at the end of 2016, the balance of external guarantees of the Company amounted to RMB98,781 million, which were mainly the guarantees provided for the strategic partners of the Company and for the financing activities closely related to the business development of the Company. The guaranteed parties included construction parties of construction projects, suppliers of materials and equipment, construction parties of garden decorations and other partners or related parties related to the business of the Company. During the Reporting Period, the guaranteed parties maintained good credit status and made timely repayments of principal or interest as scheduled according to the contracts. There was no event subject to risk in the external guarantees of the Company. The Company provided external guarantees in strict compliance with the laws, regulations and the Articles of Association and performed various decision making procedures and risk evaluation in order to control any possible risk.

(II) Guarantees Provided by the Company for Home Buyers

As the Company is engaged in the real estate industry, the Company has to provide guarantees for the mortgage loans of home buyers according to the relevant requirements of the People’s Bank of China. Recently, the Company provides periodic joint-and-several guarantees for buyers of commodity housing with a term from the date of lending by mortgage banks to the date of completing the procedures of property ownership certificates by mortgage banks for home buyers. If the home buyers do not fulfill their obligations as debtors during

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)

the abovementioned guarantee period, the Company has the right to repossess the properties sold, so such guarantees do not incur actual losses for the Company. As at 31 December 2016, the Company and its subsidiaries provided guarantees for the mortgage loans of commodity housing for the banks in an amount of RMB247.721 billion.

VII. Credit and Bank Loan Repayment

With a good credit status, the Company has good credit profiles in the large banks and has obtained high credit lines from the large banks. As at the end of 2016, the aggregated credit line of the Company granted by banks amounted to RMB581.9 billion, among which RMB134.9 billion was unutilized.

As at the end of 2016, the bank loans in the interest-bearing liabilities of the Company amounted to RMB204.741 billion, representing an increase of RMB112.555 billion as compared to the end of 2015. During the Reporting Period, the Company made timely repayment of bank loans without any default or loan extension.

– II-128 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)

IV Operations and Corporate Governance

I. Operations, Changes in Industry Environment and Management Discussion

The Company is one of the real estate developers with the highest presence, the greatest brand influence and the strongest comprehensive strengths in China. As at the end of 2016, the Company had 551 large-scale real estate projects in 209 major cities. Adhering to its development strategy of “scale + efficiency”, implementing the rolling development and operating efficiently, the Company had developed strong comprehensive competitive edges. In 2016, the Company recorded operating income of RMB205,097 million, representing a year-on-year increase of 56.94%. The operations developed rapidly, and the growth in operating income scale and operations reflected the leading position of the Company in China’s real estate industry.

In 2016, while the supply-side reform was pushed forward, the development of the national economy in China remained steady overall with significant improvement in the quality of growth. The five missions namely “capacity deduction, destocking, deleveraging, cost reduction and weak link improvement” made steady progress. Throughout the year, the real estate market in China continued to boom, and the transactions presented a trend of increasing sales price and volume. The accumulated sales of commodity housing reached 1.57 billion square meters, representing a year-on-year increase of 22.5%. The sales of commodity housing amounted to RMB11.8 trillion, representing a year-on-year increase of 34.8%. At the same time, the adjustment policies on real estate during the year had significant effect. In the first half of 2016, due to the downward pressure on the economy and high inventory level, the macro-economic policy was relatively eased by reduction in bank reserve ratio, interest rates, tax and down payment. With the intensive introduction of favorable measures, the market demand was quickly unleashed. The housing prices in certain popular cities rose significantly. Hence, the local governments gradually implemented new adjustment and tightening policies, resulting in regional divergence: the housing prices were adjusted and tightened for the popular cities with enhanced regulation while the destocking strategy continued for the thirdand fourth-tier cities by working on both the demand and supply side to remodel the market environment.

Facing the complicated market environment and the intense industry competition, the management made well-grounded judgments based on its keen insights, forward-thinking and strategic layout and was decisive in capturing market opportunities at the timing of the introduction of favorable policies. As at the end of 2016, the total assets amounted to RMB1,240,138 million, representing a year-on-year increase of 65.89%; the Company recorded operating income of RMB205,097 million, representing a year-on-year increase of 56.94%; profits attributable to owners of the parent company amounted to RMB15,840 million, representing a year-on-year decrease of 19.37%; the total cash of the Company amounted to RMB275,191 million, representing a year-on-year increase of 82.16%.

II. Operation Discussion and Analysis for the Reporting Period

(I) Overall Operation Review for 2016

As a leading enterprise in premium real estate market in China, the Company had

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APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)

conducted numerous scientific, efficient projects across China. At the same time, the Company had developed a scale-based, standardized, professional and branded real estate development mode, covering numerous product series such as residential property, commercial property, hotel etc. The Company was a professional real estate developer. Most of its real estate development projects were middle- to high-end residential properties, which were supplemented by the operation of commercial properties and residential ancillary facilities. The developed products included multi-storey garden-view houses, multi-storey residential buildings, mid-rise and high-rise residential buildings, etc.

Unit: RMB100 million

Item	2016	2016	2016	2016
	Operating income	Operating costs	Operating grossprofit	Gross profit margin
Residentialproperties	1,892.11	1,297.97	594.14	31.40%
Commercialproperties	65.33	47.38	17.95	27.48%
Others	93.53	62.16	31.37	33.54%
Total	2,050.97	1,407.51	643.46	31.37%
Item	2015
	Operating income	Operating costs	Operating grossprofit	Gross profit margin
Residentialproperties	1,173.40	785.17	388.23	33.09%
Commercialproperties	81.70	45.31	36.39	44.54%
Others	51.76	37.58	14.28	27.59%
Total	1,306.86	868.06	438.80	33.58%

Recently, the Company experienced rapid development with operating scale expanding continuously. Operating income for the period increased by RMB74,411 million or 56.94% as compared to the corresponding period of last year, of which operating income from sales of properties accounted for approximately 95.44%. Its principal operations performed outstandingly, while the performance of other segments also improved as compared to the corresponding period of last year. The operating costs for the period increased by RMB53,945 million or 62.14% as compared to the corresponding period of last year, which was slightly higher than the operating income growth. The operating gross profit for the period increased by RMB20,466 million or 46.64%.

The composition and changes in expenses of the Company during the past two years are set out below:

Unit: RMB100 million

Item	2016	2015	Change
Sellingexpenses	139.07	102.46	35.73%
Administrative expenses	59.16	41.12	43.87%
Financial expenses	38.10	12.44	206.27%
Total expenses for theperiod	236.33	156.02	51.47%
Sellingexpenses/operatingincome	6.78%	7.84%	-13.52%
Administrative expenses/operatingincome	2.88%	3.15%	-8.57%
Financial expenses/operatingincome	1.86%	0.95%	95.79%
Total operating expense ratio for theperiod	11.52%	11.94%	-3.52%

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)

Since the operating scale of the Company had expanded in 2016, the operating income increased, and the expenses for the period increased accordingly. Among the expenses, the proportion of selling expenses and administrative expenses to operating income declined mainly due to the improved internal management efficiency of the Company, which was beneficial for the Company’s long-term development. The proportion of financial expenses to operating income for the period rose mainly due to the expansion of the operating scale of the Company, an increase in the number of new development projects or newly acquired projects, and a rise of new borrowings during the reporting period, and the interest expense increased accordingly.

The composition and changes in profit during the past two years are set out below:

Unit: RMB100 million	Unit: RMB100 million	Unit: RMB100 million	Unit: RMB100 million
Item	2016	2015	Change
Investment income	0.06	61.32	-99.90%
Gain/loss from changes in fair value	38.53	86.48	-55.45%
Asset impairment losses	-3.74	0.04	-9450.00%
Operating profit	283.74	297.36	-4.58%
Non-operatingincome	6.42	2.90	121.38%
Non-operatingexpenses	25.06	7.42	237.74%
Totalprofit	265.10	292.84	-9.47%
Netprofit	177.01	214.84	-17.61%
Net profit attributable to owners of the parent company	158.40	196.46	-19.37%

In 2016, the gain/loss from changes in fair value of Hengda Real Estate mainly derived from the increase in fair value of its owned commercial buildings, offices and car parking spaces. During the year, the number of new commercial buildings decreased. The growth of gains arising from changes in fair value of investment properties declined.

Non-operating income mainly included the income from forfeited deposit, default penalty, etc. As the operating scale of the Company had expanded in 2016, the income from forfeited deposit and default penalty also increased accordingly.

The increase in non-operating expenses in 2016 was mainly due to the donation of RMB1,469 million made by the Company during the reporting period, reflecting that the Company performed its corporate social responsibility in a better way.

(II) Significant Investing activities

In 2016, the audited net cash flows from investing activities of the Company amounted to RMB-118,161 million mainly due to the expansion in operating scale, the rapid development and the aggressive external merger and acquisition activities.

In 2016, the largest single equity or non-equity investment was not higher than the restated net assets of the Company as at the end of 2015 of RMB97,046 million by over 20%. 26

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)

As the Company is a major domestic subsidiary of China Evergrande, the cash outflows of the capital flow between related parties were higher. For details about the outstanding funds between related parties as of 2016, please refer to IV. “(III) Description on Non-operating Funds” under Chapter IV of this report.

III. Future Business Development and Possible Risks

(I) Future Development Outlook

According to the Central Economic Work Conference held in December 2016, the realization of quick economic recovery is emphasized. In respect of the property market, on the one hand, the housing price level has to be maintained at a steady level to meet the significant housing demand from the mobile labor force, thus serving the development of the real economy. On the other hand, the development of the real economy should create favorable conditions for mitigating risk exposures in the proper market. This indicates that the central government is going to focus on establishing a long-term mechanism for the stable and healthy development of the property market under the active fiscal policy and steady monetary policy in 2017.

Looking forward to 2017, the management is of the opinion that the major focus of the overall economy will continue to be stable and make progress while maintaining stability while revitalizing the real economy. The supply side reform will be further implemented. “Destocking” will be a crucial task and the consistent healthy growth of the real estate industry will continue to facilitate the robust economic development in China. Moreover, the macro-control policies on the real estate industry will become divergent, and specific policy formulated based on the actual condition of cities will be implemented. The competition in the real estate industry will be intensified.

Based on the comprehensive judgment on the “new normal” of China’s economy and the real estate industry, the management will exploit potentialities of and adapt to market changes and focus on its own development based on the domestic and foreign economic conditions. It will further optimize the system for sales and collection of sales proceeds, enlarge its land bank and maintain strict cost control while optimizing debt structure and improving profit management. It will also improve the quality of its products and services, thus steadily facilitate the development of the Company.

(II) Possible Risk Exposures

1. Cyclical Economic Risk

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APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)

has also maintained a high growth rate, which created favorable external conditions for the development of the Company’s operations. However, there are numerous uncertainties in domestic economic condition at present. In the event that there is any slowdown in the domestic economy or cyclical macroeconomic fluctuation, and the Company fails to predicate such situation and adjust its operations correspondingly, the overall performance and profitability of the Company will be adversely affected.

2. Cross-Regional Real Estate Operating Risk

The real estate business of the Company covered 209 cities across China. The resources allocation has been optimizing with the use of the brand influence of “Evergrande” brand. The Company has to understand and fulfill the market demands in different regions, and allocate resources to different regions by fully utilizing its available resources. Although the Company has already established a strict, efficient internal control system, it is more difficult to manage and control with the increasing complexity in fund allocation, construction quality, safety production and contract performance as a result expansion in operation regions. In the event that the Company fails to adjust the operating strategies in different regions based on actual condition, or its internal control has been weakened, the Company may be exposed to cross-regional operating and management risk, thus adversely affecting the overall operation of the Company.

Greater Risk Exposure in relation to Capital Expenditure for Land Acquisition and Project Development

The real estate development business is a capital intensive operation with long construction phase. The timing of preliminary land acquisition, construction safety investment and collection of sales proceeds will experience mismatch to a certain extent. The Company has to maintain sufficient land reserve in order to ensure continuous and steady operation. The land reserves of the Company are located across China with a large scale. The total land reserves balance as at the end of 2016 was 192 million square meters. The real estate development business of the Company experienced rapid growth. The expenses for project development and land acquisition increased with larger cash outflows for operating activities.

IV. Other Information about Operations of the Company

(I) Default Events

There was no significant default event in the course of business with major clients during the Reporting Period.

(II) Independence

(III) Description on Non-operating Current Capital

As at the end of 2016, other receivables of the Company amounted to RMB28,627 million, which were primarily comprised of other operating receivables of RMB26,183 million

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APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)

in aggregate. Non-operating receivables in related party transactions amounted to RMB2,619 million. The breakdown of other receivables as at the end of 2016 is set out below:

Unit: RMB00 million

Item	End of 2016
Other non-operatingreceivables	26.19
Including: Other non-operating receivables arising from related party transactions	26.19
Other operatingreceivables	261.83
Including: Deposit receivables	79.81
Amount due from minorityinterest	42.35
Receivables from disposal of subsidiaries	67.76
Others	71.91
Provision for bad debts	1.75
Total	286.27

Other operating receivables primarily include necessary deposits in day-to-day operations such as construction deposit and land deposits, as well as relevant operating receivables for the daily operation of cooperative development projects. Other receivables of the Company primarily include operating receivables included in other receivables such as property maintenance fund.

Non-operating capital flows primarily derive from related party transactions. As the Company is a major domestic subsidiary of China Evergrande, there are numerous related parties within China and overseas market. Hence, the Company has certain related party transactions with other subsidiaries of China Evergrande in relation to daily payment and collection clearance amount, capital transfer and other aspects, generating receivables in related party transactions under other receivables.

The breakdown of non-operating other receivables in related party transactions as at the end of 2016 is set out below:

Unit: RMB00 million

end of 2016 is set out below: Unit:	RMB00 million
Name of relatedparty	Balance
Inner Mongolia Luqiao PropertyCo., Ltd.*(內蒙古魯橋置業有限公司)	1.72
Jinan Evergrande Chengxi PropertyCo., Ltd.*(濟南恒大城西置業有限公司)	9.26
Guangzhou Evergrande Football Club Corp. Ltd.*(廣州恒大足球俱樂部有限公司)	0.24
Evergrande Life Insurance Co., Ltd.*(恒大人壽保險有限公司)	4.56
Jinan Xishi PropertyCo., Ltd.*(濟南西實置業有限公司)	3.80
Chongqing Verakin Wenhao Real Estate Company Limited* (重慶同景文浩置業有限公司)	0.41
Chongqing Verakin Wenhong Real Estate Company Limited* (重慶同景文宏置地有限公司)	0.08
Jinan XichuangPropertyCo., Ltd.*(濟南西創置業有限公司)	0.04
ANJI	5.73
Evergrande Internet Financial Services (Shenzhen) Co., Ltd.* (恒大互聯網金融服務（深圳）有限公司)	0.10
Cultural IndustryGroup*(文化產業集團)	0.16
Xinhend (Danzhou) Real Estate Development Company Limited* (儋州信恒房地產開發有限公司)	0.05
QidongEvergrande Hotel Co., Ltd.*(啟東恒大酒店有限公司)	0.02
Evergrande	0.01
QidongXinhua PropertyCo., Ltd.*(啟東鑫華置業有限公司)	0.01

– II-134 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)

Total 26.19

The Company has generated higher other payables with related parties under capital transfer within the Group in its daily operations. The balance of amount due to related parties under other payables as at the end of 2016 amounted to RMB29.017 billion. Taking into account of other receivables and capital flows with related parties under other payables, net capital flows with related parties generated from non-operating activities of the Company as at the end of the reporting period amounted to RMB26.398 billion. Although the proportion of net capital flows with related parties to total assets is relatively low, the normal operations of the Company will not be significantly affected.

During the term of the bonds, new non-operating activities are conducted strictly in accordance to internal control system such as the Administrative Measures for Headquarters of Evergrande Real Estate Group (《恒大地產集團總部管理辦法》) and the Administrative Measures for Regional Company of Evergrande Real Estate Group (《恒大地產集團地區公司管理辦法》). The capital demand side shall apply for capital utilization approval. Such approval will be submitted to the accounting and financial managers of the capital supply side, and the capital allocation is subject to final approval by different approval officers based on the credit line.

The Company has guaranteed that it will disclose the specific details about the transactions, fund collection arrangements and other information in its regular financial reports during the term of the bonds. When preparing the regular financial report, the Company will review the proportion of capital flows in new non-operating activities or capital borrowing. If the balance of the accumulated capital flows in new non-operating activities exceeds 20% of the net assets as at the end of the previous year, the Company will immediately inform the custodian, and submit and disclose the announcement in respect of major event to the stock exchange, which set out the reasons, status of the event and its impacts, in accordance with the rules under laws, regulations and relevant rules. The bond custodian shall perform its obligations strictly in accordance with the requirements under the Professional Code of Conduct for Custodians and the agreements made under the Bond Custodian Agreement. It shall review the capital flows in non-operating activities and actual fund collection during the term of the bonds on regular basis. If there is any transaction which might affect its solvency or it is expected that such transaction will be occurred, the bond custodian shall immediately disclose relevant information.

(IV) Provision of Guarantee for its Controlling Shareholder, De Facto Controller and their Related Parties in Violation of Laws

During the reporting period, the Company did not provide any guarantee for its controlling shareholder, de facto controller or their related parties in violation of laws.

(V) Compliance of Corporate Governance

– II-135 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)

V Major Events

I. Pending Litigation, Arbitration and Administrative Penalty of the Company

II. Bankruptcy Reorganization of the Company During the Reporting Period

During the Reporting Period, the Company did not undergo any bankruptcy reorganization.

III. Risk Regarding Suspension of Trading or Delisting of Corporate Bonds During the Term

During the reporting period, the corporate bonds were not exposed to any risk regarding suspension of trading or delisting during the term.

V. Other Major Events

No.	Major event	Happened or not?	Updates and impacts
1	Material changes in operating directions, operating scope or external operating and product conditions of the issuer;	No
2	Changes in credit ratingof the issuer;	No
3	Major assets of the issuer being sealed up, impounded or frozen;	No
4	The issuer fails to repay debts due, causing a default;	No
5	Accumulated new borrowings or external guarantees provided by the issuer for the current year exceeds 20% of net assets as at the end of the lastyear;	Yes	Please refer to “Material Risk Warnings” of this report
6	Creditor’s rights or properties forfeited by the issuer exceed 10% of net assets as at the end of the last year;	Yes	Please refer to “Material Risk Warnings” of this report
7	The issuer incurs material loss which exceeds 10% of net assets as at the end of the lastyear;	No
8	The issuer decides to conduct capital reduction, merger, separation, dissolution and apply for bankruptcy;	No

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)

No.	Major event	Happened or not?
9	The issuer is subject to material litigation, arbitration or significant administrativepenalty;	No
10	Material changes in guarantor, collateral or other remedial measures;	No
11	Material changes in the issuer which might result in no longer being in compliance with the listing requirements for the corporate bonds;	No
12	The issuer being investigated by judicial authorities for suspected violation of laws, and the issuer’s directors, supervisors and senior management being subject to compulsory measures as implemented by judicial authorities for suspected violation of laws;	No

– II-137 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)

VI Financial Report

Please refer to the appendix for the 2016 audited financial report of the Company.

– II-138 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)

VII Documents Available for Inspection

(I) The 2016 financial statements and auditor’s report of the Company signed and sealed by the responsible officer of the Company, the head of the accounting department and the responsible officer of the accounting firm (the head of accounting department);

(III) The annual report, the summary of annual report and the annual financial information disclosed publicly on the website of the Shanghai Stock Exchange.

for identification purpose only

– II-139 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)

(This page contains no text and shall be sealed by the Company for the Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016).)

Hengda Real Estate Group Company Limited

28 April 2017

– II-140 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Annual Report on Corporate Bonds of Hengda Real Estate Group Company Limited* (恒大地產集團有限公司) (2016)

Appendix:

2016 audited financial report

– II-141 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

FINANCIAL STATEMENTS AND AUDITOR’S REPORT FOR YEAR 2016

[English translation for reference only. Should there be any inconsistency between the Chinese and English versions, the Chinese version shall prevail.]

– II-142 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Hengda Real Estate Group Company Limited
Financial Statements and Auditor’s Report For Year 2016
[English translation for reference only]
Content	Page
Auditor’s Report	1 - 2
Financial statements for year 2016
Consolidated and the company’s balance sheet	1 - 2
Consolidated and the company’s income statement	3
Consolidated and the company’s statement of cash flows	4
Consolidated statement of changes in owners’ equity	5 - 6
Company statement of changes in owners’ equity	7
Notes to the financial statements	8 - 90

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

==> picture [60 x 45] intentionally omitted <==

[English Translation for Reference Only]

Auditor’s Report

PwC ZT Shen Zi (2017) No.26243 (Page 1/2)

To the Board of Directors of Hengda Real Estate Group Company Limited,

We have audited the accompanying financial statements of Hengda Real Estate Group Company Limited (hereinafter “the Company”), which comprise the consolidated and company balance sheets as at 31 December 2016, and the consolidated and company income statements, the consolidated and company statements of changes in owners’ equity and the consolidated and company cash flow statements for the year then ended, and the notes to the financial statements.

Management’s Responsibility for the Financial Statements

Auditor’s Responsibility

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

普華永道中天會計師事務所（特殊普通合夥）

PricewaterhouseCoopers Zhong Tian LLP, 11/F PricewaterhouseCoopers Center 2 Corporate Avenue, 202 Hu Bin Road, Huangpu District, Shanghai 200021, PRC T: +86 (21) 2323 8888, F: +86 (21) 2323 8800, www.pwccn.com

– II-144 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

PwC ZT Shen Zi (2017) No.26243 (Page 2/2)

Opinion

In our opinion, the accompanying financial statements present fairly, in all material respects, the consolidated and company’s financial position of the Company as at 31 December 2016, and their financial performance and cash flows for the year then ended in accordance with the requirements of Accounting Standards for Business Enterprises.

PricewaterhouseCoopers Zhong Tian LLP

Certified Public Accountant 林宇鵬

Shanghai, the People’s Republic of China 28 April 2017

Certified Public Accountant 魏澤

– 2 –

– II-145 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

CONSOLIDATED AND THE COMPANY BALANCE SHEET AS AT 31 DECEMBER 2016

(Expressed in millions of RMB, unless otherwise indicated)

Consol	idated	The Company	The Company
31 December 2016 275,191 3,076 68 8,447 52,159 281 – 28,627 647,097 7,019 14,466 1,036,431 38,840 8,746 727 130,196 13,208 4,478 5,138 1,003 204 3,809 1,358 203,707 1,240,138	31 December 2015 (Restated) 151,067 – 45 3,712 32,164 22 – 35,089 378,858 5,303 7,534	31 December 2016 76,962 – – 185 288 301 11,545 107,743 2,264 – 24 199,312 1,781 – 60,654 2,414 833 – 82 – 2 – – 65,766 265,078	31 December 2015 28,435 – – 3 1,960 – 38 77,482 2,699 – 12
	613,794		110,629
	787 10,305 8,549 96,382 9,177 3,575 3,242 – 144 1,633 –		– 39 55,433 2,151 664 – 53 – 2 – –
	133,794		58,342
	747,588		168,971

– 1 –

– II-146 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

CONSOLIDATED AND THE COMPANY BALANCE SHEET AS AT 31 DECEMBER 2016 (CONTINUED)

(Expressed in millions of RMB, unless otherwise indicated)

Consol	idated	The Company	The Company
31 December 2016 88,706 43,675 132,457 183,404 1,411 34,954 9,758 4,189 114,710 80,754 694,018 332,137 47,005 41,345 21,443 16,048 457,978 1,151,996 2,500 14 (3,089) 42 769 52,989 53,225 34,917 88,142 1,240,138	31 December 2015 (Restated) 37,957 42,069 87,700 81,610 1,108 24,566 5,201 2,370 82,893 83,408	31 December 2016 1,100 54 429 356 74 46 1,711 – 183,709 7,106 194,585 19,715 47,005 – 100 – 66,820 261,405 2,500 14 199 42 – 918 3,673 – 3,673 265,078	31 December 2015 – 168 119 141 103 100 979 1,076 113,205 2,200
	448,882		118,091
	143,357 39,549 2,359 10,345 6,050		1,480 39,549 – 201 –
	201,660		41,230
	650,542		159,321
	2,500 5,872 56 1,250 – 71,904		2,500 518 – 1,250 – 5,382
	81,582 15,464		9,650 –
	97,046		9,650
	747,588		168,971

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

Person-in-charge of the Company: Zhao Changlong

Person-in-charge of accounting: Pan Hanling

Head of accounting department: 王小鵬

– 2 –

– II-147 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

CONSOLIDATED AND THE COMPANY INCOME STATEMENT FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

Consol	idated	The Company 2016 2015 2,371 1,280 155 105 306 190 1,392 885 1,383 1,013 1,107 228 28 – (623) (142) 23,423 4,535	The Company 2016 2015 2,371 1,280 155 105 306 190 1,392 885 1,383 1,013 1,107 228 28 – (623) (142) 23,423 4,535
2016 205,097 140,751 15,824 13,907 5,916 3,810 374 3,853 6	2015 (Restated) 130,686 86,806 13,326 10,246 4,112 1,244 (4) 8,648 6,132	2016 2,371 155 306 1,392 1,383 1,107 28 (623) 23,423
(647)	(421)	(506)	(373)
28,374 642	29,736 290	20,800 7	3,252 17
53	–	–	–
2,506	742	64	5
10	3	–	–
26,510 8,809 17,701 1,512 15,840 1,861 (2,573) (2,573)	29,284 7,800 21,484 1,673 19,646 1,838 56 56	20,743 (91) 20,834 – 20,834 – 199 199	3,264 (303) 3,567 – 3,567 – – –
(197) (3,145) 769	– 56 –	– 199 –	– – –
15,128 13,267 1,861	21,540 19,702 1,838	21,033 21,033 –	3,567 3,567 –

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

Person-in-charge of the Company: Person-in-charge of accounting: Zhao Changlong Pan Hanling

Head of accounting department: 王小鵬

– 3 –

– II-148 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

CONSOLIDATED AND THE COMPANY CASH FLOWS STATEMENT FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

Consoli	dated	The Company	The Company
2016 273,372 3,123 276,495 (237,159) (11,551) (22,817) (20,802) (292,329) (15,834) 4,577 107 2,912 1,899 19,169 28,664 (16,897) (45,954) (44,120) (39,854) (146,825) (118,161) 16,874 411,748 14,111 90,736 533,469 (211,403) (33,876) (74,470) (319,749) 213,720 159 79,884 91,301 171,185	2015 (Restated) 148,550 1,944	2016 2,373 1,356 3,729 (285) (802) (473) (3,509) (5,069) (1,340) 2,808 12,867 473 23 16 16,187 (307) (37,102) – (29,365) (66,774) (50,587) – 30,712 14,111 70,540 115,363 (13,227) (1,710) (9,638) (24,575) 90,788 – 38,861 7,142 46,003	2015 1,324 544
	150,494		1,868
	(114,790) (8,616) (14,999) (12,070)		(650) (564) (119) (1,485)
	(150,475)		(2,818)
	19		(950)
	18,049 24 1,191 – 7,855		– 5,071 695 – –
	27,119		5,766
	(18,429) (4,726) (4,866) (12,574)		(191) (18,599) – (20,429)
	(40,595)		(39,219)
	(13,476)		33,453
	624 192,790 39,522 15,392		– 1,480 39,522 10,460
	248,328		51,462
	(116,259) (25,424) (30,623)		(600) (3,132) (6,701)
	(172,306)		(10,433)
	76,022		41,029
	112		–
	62,677 28,624		6,626 516
	91,301		7,142

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

Person-in-charge of the Company: Person-in-charge of accounting: Zhao Changlong Pan Hanling

Head of accounting department: 王小鵬

– 4 –

– II-149 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Total owners’	equity							52,356	16,571	68,927			21,484	56	21,540		624	(141)		1,649		2,905	1,620		80	63		–	(221)	97,046
Minority	interests							6,309	2,445	8,754			1,838	–	1,838		624	(85)		1,649		2,905	–		–	–		–	(221)	15,464
						Retained	profits	42,706	9,961	52,667			19,646	–	19,646		–	–		–		–	–		–	–		(409)	–	71,904
	Equity attributable to the owners of the parent company	Exchange	differences	arising from	Other translation	Capital comprehensive Surplus of financial	reserve income reserve statements	– – 841 –	4,165 – – –	4,165 – 841 –			– – – –	– 56 – –	– 56 – –		– – – –	(56) – – –		– – – –		– – – –	1,620 – – –		80 – – –	63 – – –		– – 409 –	– – – –	5,872 56 1,250 –
						Paid-up	capital	2,500	–	2,500			–	–	–		–	–		–		–	–		–	–		–	–	2,500
							Items	Closing balance at 31 December 2014	Business combinations under common control	Opening balance at 1 January 2015 (Restated)	Changes for the year 2015	Subtotal of comprehensive income	Net profit	Other comprehensive income	Total comprehensive income	Capital contributed and withdrawn by owners	Capital contributed by owners	Acquisition of minority interests of some subsidiaries	Increase in minority interests through the acquisition of	assets	Increase in minority interests through the acquisition of	businesses	Disposal of subsidiaries	Amounts of share-based payment recognized in	owners’ equity	Others	Profit distribution	Appropriation of surplus reserve	Profit distribution to owners	Closing balance at 31 December 2015 (Restated)

– II-150 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

Total owners’	equity							97,046			17,701	(2,573)	15,128		16,874	(7,490)		1,172		6,707	(9,454)	(28,155)		55	48		–	(3,789)	88,142
Minority	interests							15,464			1,861	–	1,861		16,874	(6,769)		1,172		6,707	–	(173)		–	–		–	(219)	34,917
						Retained	profits	71,904			15,840	–	15,840		–	–		–		–	(6,839)	(24,304)		–	–		(42)	(3,570)	52,989
	Equity attributable to the owners of the parent company	Exchange	differences	arising from	Other translation	Capital comprehensive Surplus of financial	reserve income reserve statements	5,872 56 1,250 –			– – – –	– (3,342) – 769	– (3,342) – 769		– – – –	(721) – – –		– – – –		– – – –	(2,615) – – –	(2,625) 197 (1,250) –		55 – – –	48 – – –		– – 42 –	– – – –	14 (3,089) 42 769
						Paid-up	capital	2,500			–	–	–		–	–		–		–	–	–		–	–		–	–	2,500
							Items	Opening balance at 1 January 2016 (Restated)	Changes for the year 2016	Subtotal of comprehensive income	Net profit	Other comprehensive income	Total comprehensive income	Capital contributed and withdrawn by owners	Capital contributed by owners	Acquisition of minority interests of some subsidiaries	Increase in minority interests through the acquisition of	assets	Increase in minority interests through the acquisition of	businesses	Business combinations under common control	Disposal of subsidiaries	Amounts of share-based payment recognized in	owners’ equity	Others	Profit distribution	Appropriation of surplus reserve	Profit distribution to owners	Closing balance at 31 December 2016

– II-151 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

THE COMPANY STATEMENT OF CHANGES IN OWNERS’ EQUITY FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

Items Opening balance at 1 January 2015 Changes for the year 2015 Net profit Appropriation of surplus reserve Closing balance at 31 December 2015 Opening balance at 1 January 2016 Changes for the year 2016 Net profit Other comprehensive income Business combinations under common control Disposal of subsidiaries Others Appropriation of surplus reserve Closing balance at 31 December 2016	Paid-up capital 2,500 – – 2,500 2,500 – – – – – – 2,500	Capital reserve Other comprehensive income 518 – – – – – 518 – 518 – – – – 199 2,141 – (2,659) – 14 – – – 14 199	Surplus reserve 841 – 409 1,250 1,250 – – – (1,250) – 42 42	Retained profits 2,224 3,567 (409) 5,382 5,382 20,834 – – (25,256) – (42) 918	Total owners’ equity
					6,083 3,567 –
					9,650
					9,650 20,834 199 2,141 (29,165) 14 –
					3,673

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

Person-in-charge of the Company: Person-in-charge of accounting: Zhao Changlong Pan Hanling

Head of accounting department: 王小鵬

– 7 –

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

1 GENERAL INFORMATION OF THE COMPANY

The Company’s parent company is Guangzhou Kailong Real Estate Company Limited. Its intermediate holding company is China Evergrande Group, the shares of which are listed on the Stock Exchange of Hong Kong Limited. Its ultimate holding company is Xin Xin (BVI) Limited, the beneficial controller of which is Dr. Hui Ka Yan.

The approved operating scope of the Company and its subsidiaries (hereinafter collectively referred to as “the Group”) include property development, property investment, construction general contracting, building materials, property management and hotel operation. During 2016, the actual principal business of the Group falls under the approved operating scope mentioned above.

These financial statements are approved and authorised for issue by the Company’s legal representative on 28 April 2017.

2 BASIS OF PREPARATION FOR THE FINANCIAL STATEMENTS

The financial statements are prepared on a going concern basis.

In 2016, the Group merged with Guangzhou Hengda (Zengcheng) Real Estate Development Company Limited, Guangzhou Junhui Real Estate Development Company Limited, Nanjing Hengda Fufeng Property Company Limited, Hengda Xinlong (Shenyang) Real Estate Company Limited, 寶豐集團有限公司, 昇褀集團有限公司, Shui Wah Investment Limited, 盛通(BVI)有限公司, 盛譽有限公司, 盛口企業有限公司, 昌興控股有限公司, 瑞宇企業有限公司, 上豐有限公司, Marvel First Developments Limited, 雅立集團有限公司, Instant Choice development Ltd. and Hengda (Shenzhen) Real Estate Group Property Company Limited (the “Acquired Entities”), all of which under the control of China Evergrande Group. Such transactions are considered to have involved business combinations by entities under common control and will be accounted in accordance with the relevant provisions of business combinations by entities under common control under Accounting Standard for Business Enterprises No. 20 – “Business combinations”. Therefore, the consolidated balance sheet as at 31 December 2015, the consolidated statement of income, the consolidated statement of changes in owners’ equity and the consolidated statement of cash flow for the year then ended have been restated to include the assets, liabilities and profits calculated from the date on which the Acquired Entities came under common control. Please refer to Note 9(3) for more disclosure on business combinations by entities under the same control.

3 STATEMENT OF COMPLIANCE WITH THE ACCOUNTING STANDARDS FOR BUSINESS ENTERPRISES

The financial statements of the Company for year 2016 are in compliance with the Accounting Standards for Business Enterprises, and truly and completely present information including the consolidated and the company’s financial position as at 31 December 2016 and the consolidated and the company’s operating results and cash flow for year 2016.

4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES

(1) Accounting year

The Company’s accounting year starts on 1 January and ends on 31 December.

– 8 –

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APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)

(2) Recording currency

The recording currency is Renminbi (RMB).

(3) Foreign currency translation

(a) Foreign currency transaction

Foreign currency transactions are translated into RMB using the spot exchange rates prevailing at the dates of the transactions.

(b) Translation of foreign currency financial statements

The asset and liability items in the balance sheets for overseas operations are translated at the spot exchange rates on the balance sheet date. Among the owners’ equity items, the items other than “retained profits” are translated at the spot exchange rates of the transaction dates. The income and expense items in the income statements of overseas operations are translated at the spot exchange rates of the transaction dates. The differences arising from the above translation are presented in other comprehensive income. The cash flows of overseas operations are translated at the spot exchange rates on the dates of the cash flows. The effect of exchange rate changes on cash is presented separately in the cash flow statement.

(4) Cash and cash equivalents

(5) Financial assets

(a) Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss include financial assets held for the purpose of selling in the short term.

(b) Receivables

Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market, including trade and other receivables (note 4(7)).

– 9 –

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)

(5) Financial assets (Continued)

(c) Available-for-sale financial assets

(d) Recognition and measurement

(e) Impairment of financial assets

– 10 –

– II-155 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)

(5) Financial assets (Continued)

(f) Derecognition of financial assets

A financial asset is derecognised when any of the below criteria is met: (1) the contractual rights to receive the cash flows from the financial asset expire; (2) the financial asset has been transferred and the Group transfers substantially all the risks and rewards of ownership of the financial asset to the transferee; or (3) the financial asset has been transferred and the Group has not retained control of the financial asset, although the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset.

On derecognition of a financial asset, the difference between the carrying amount and the sum of the consideration received and the cumulative changes in fair value that had been recognised directly in equity, is recognised in profit or loss.

(6) Financial liabilities

Payables, including trade and other payables, are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.

Borrowings and bonds payable are recognised initially at fair value, net of transaction costs incurred, and subsequently measured at amortised cost using the effective interest method.

Financial assets and financial liabilities are separately presented in the statement of financial position without any offsetting, except when:

(a) the Company has a legally enforceable right to offset the recognized amounts;
(b) the Company has intention to settle on a net basis, or realize the asset and settle the liability simultaneously.

– 11 –

– II-156 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)

(7) Receivables

(a) Receivables with amounts that are individually significant and subject to separate assessment for provision for bad debts

Receivables with individual amounts greater than RMB10 million and other receivables with individual amounts greater than RMB30 million are considered significant.

Provision for bad debts for those individually significant amounts is determined at the excess amount of its carry amount over the present value of the future cash flow expected to be derived from the receivable.

(b) Receivables that are subject to provision for bad debts on grouping basis by credit risk characteristics

The basis of grouping credit risk characteristics:

Items Methods of determining provision Portfolio of receivable from sale of properties No provision for bad debts Portfolio of related parties current account No provision for bad debts Portfolio of minorities shareholders current account No provision for bad debts Portfolio of margin and reserve No provision for bad debts Others Provision for bad debts based on aging analysis approach

The provision ratios used under the ageing analysis method for the above groupings are as follows:

	Provision ratios used	Provision ratios used
	for Trade receivables	for other receivables
Within one year	1%	1%
Over one year but within two years	2%	2%
Over two years	5%	5%

– 12 –

– II-157 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)

(7) Receivables (Continued)

(c) Receivables with amounts that are not individually significant but subject to separate assessment for provision for bad debts

The reason for making separate assessment for provision for bad debts is that there exists objective evidence that the Group will not be able to collect the amount under the original terms of the receivable.

The provision for bad debts is determined at the excess amount of its carry amount over the present value of the future cash flow expected to be derived from the receivable.

(d) When the Group transfers the Trade receivables to the financial institutions without recourse, the difference between the proceeds received from the transaction and their carrying amounts and the related taxes is recognised in profit or loss for the current period.
(8) Inventories

Inventories are initially measured at cost. At the balance sheet date, inventories are measured at the lower of cost and net realisable value.

(9) Long-term equity investments

Long-term equity investments comprise the Company’s long-term equity investments in its subsidiaries, and the Group’s long-term equity investments in its joint ventures and associates.

Subsidiaries are the investees over which the Company is able to exercise control. A joint venture is a joint arrangement which is structured through a separate vehicle over which the Group has joint control together with other parties and only has rights to the net assets of the arrangement based on legal forms, contractual terms and other facts and circumstances. An associate is the investee that the Group has significant influence on its financial and operating policies.

Investments in subsidiaries are presented in the Company’s financial statements using the cost method, and are adjusted to the equity method when preparing the consolidated financial statements. Investments in joint ventures and associates are accounted for using the equity method.

– 13 –

– II-158 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)

(9) Long-term equity investments (Continued)

(a) Determination of investment cost

For long-term equity investments acquired through a business combination: for long-term equity investments acquired through a business combination involving entities under common control, the investment cost shall be the acquirer’s share of the carrying amount of owners’ equity of the party being acquired at the combination date; for long-term equity investments acquired through a business combination involving entities not under common control, the investment cost shall be the combination cost.

For long-term equity investments acquired not through a business combination: for long-term equity investments acquired by payment in cash, the initial investment cost shall be the purchase price actually paid; for long-term equity investments acquired by issuing equity securities, the initial investment cost shall be the fair value of the equity securities issued.

(b) Subsequent measurement and recognition of related profit and loss

For long-term equity investments accounted for using the equity method, where the initial investment cost exceeds the Group’s share of the fair value of the investee’s identifiable net assets at the time of acquisition, the long-term equity investment is measured at the initial investment cost; where the initial investment cost is less than the Group’s share of the fair value of the investee’s identifiable net assets at the time of acquisition, the difference is included in profit or loss for the current period and the cost of the long-term equity investment is adjusted upwards accordingly.

Control is the power to govern an investee, so as to obtain variable returns from its involvement with the investee, and has the ability to use its power over the investee to affect the amount of the investor’s returns.

Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control.

Significant influence is the power to participate in the financial and operating policy decisions of the investee, but is not control or joint control over those policies.

– 14 –

– II-159 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)

(9) Long-term equity investments

(d) Impairment of long-term equity investments

The carrying amounts of long-term equity investments in subsidiaries, joint ventures and associates are reduced to the recoverable amounts when the recoverable amounts are below their carrying amounts (Note 4(16)).

(10) Investment properties

(11) Fixed assets

(a) Recognition and initial measurement of fixed assets

– 15 –

– II-160 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)

(11) Fixed assets (Continued)

(b) Depreciation methods of fixed assets

The estimated useful lives, the estimated residual values expressed as a percentage of cost and the annual depreciation rates of fixed assets are as follows:

		Estimated	Annual
	Estimated useful lives	net residual values	depreciation rates
Buildings	15 to 30 years	5%	3% to 6%
Machinery and equipment	5 to 10 years	3%	10% to 19%
Transportation tools	5 to 10 years	5%	10% to 19%
Office equipment	5 to 10 years	5%	10% to 19%

The estimated useful life and the estimated net residual value of a fixed asset and the depreciation method applied to the asset are reviewed, and adjusted as appropriate at each year-end.

(c) The carrying amount of a fixed asset is reduced to the recoverable amount when the recoverable amount is below the carrying amount (Note 4(16)).
(d) Disposal of fixed assets

(12) Construction in progress

– 16 –

– II-161 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)

(13) Intangible assets

Intangible assets comprise land use rights, software licenses and others. Intangible assets are measured at cost and amortized evenly over their estimated useful lives.

(a) Land use rights

(b) Software licenses

The software licenses purchased by the Group are measured at actual cost and amortised evenly over their useful lives.

(c) Periodical review of useful life and amortisation method

For an intangible asset with a finite useful life, review of its useful life and amortisation method is performed at each year-end, with adjustment made as appropriate.

The estimated useful lives, estimated net residual values and annual depreciation rates of intangible assets are as follows:

		Estimated	Annual
	Estimated useful lives	net residual values	depreciation rates
Land use rights	40 to 70	0%	1.43% to 2.50%
Others	3 to 20	0%	5% to 33.33%

(14) Goodwill

For business combinations involving entities not under common control, where the cost of the combination exceeds the acquirer’s interest in the fair value of the acquiree’s identifiable net assets, the difference is recognised as goodwill.

(15) Long-term deferred expenses

– 17 –

– II-162 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)

(16) Impairment of long-term assets

Goodwill that is separately presented in the financial statements is tested at least annually for impairment, irrespective of whether there is any indication that it may be impaired. In conducting the test, the carrying value of goodwill is allocated to the related asset groups or a combination of asset groups which are expected to benefit from the synergies of the business combinations. If the result of the test indicates that the recoverable amount of an asset group or a combination of asset groups, including the allocated goodwill, is lower than its carrying amount, the corresponding impairment loss is recognised. The impairment loss is first deducted from the carrying amount of goodwill that is allocated to the asset group or the combination of asset groups, and then deducted from the carrying amounts of other assets within the asset groups or the combination of asset groups in proportion to the carrying amounts of assets other than goodwill.

Once the above asset impairment loss is recognised, it will not be reversed for the value recovered in the subsequent periods.

(17) Borrowing costs

For the specific borrowings obtained for the acquisition or construction of an asset qualifying for capitalisation, the amount of borrowing costs eligible for capitalisation is determined by deducting any interest income earned from depositing the unused specific borrowings in the banks or any investment income arising on the temporary investment of those borrowings during the capitalisation period.

For the general borrowings obtained for the acquisition or construction of an asset qualifying for capitalisation, the amount of borrowing costs eligible for capitalisation is determined by applying the weighted average effective interest rate of general borrowings, to the weighted average of the excess amount of cumulative expenditures on the asset over the amount of specific borrowings. The effective interest rate is the rate at which the estimated future cash flows during the period of expected duration of the borrowings or applicable shorter period are discounted to the initial amount of the borrowings.

(18) Borrowings

– 18 –

– II-163 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)

(19) Employee benefits

(a) Short-term employee benefits

(b) Post-employment benefits

(c) Basic pensions

(d) Termination benefits

The Group provides compensation for terminating the employment relationship with employees before the end of the employment contracts or as an offer to encourage employees to accept voluntary redundancy before the end of the employment contracts. The Group recognises a liability arising from compensation for termination of the employment relationship with employees, with a corresponding charge to profit or loss at the earlier of the following dates: when the Group cannot unilaterally withdraw an employment termination plan or a curtailment proposal; and when the Group recognises costs or expenses related to the restructuring that involves the payment of termination benefits.

The termination benefits expected to be paid within one year since the balance sheet date are classified as current liabilities.

– 19 –

– II-164 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)

(20) Construction contracts

In the case where the estimated total costs of contract exceed the estimated total revenue, the estimated losses of the contract shall be included into profit or loss for the current period.

(21) Deferred income tax assets and Deferred income tax liabilities

Deferred income tax assets and Deferred income tax liabilities are offset when:

the deferred taxes assets and Deferred income tax liabilities are related to the same tax payer within the Group and the same taxation authority; and,
that tax payer within the Group has a legally enforceable right to offset current tax assets against current tax liabilities in net value.

– 20 –

– II-165 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)

(22) Revenue recognition

(a) Sales of properties

Property income received but has yet to reach revenue recognition is included in receipts in advance by the Group, and will be recognized as revenue upon satisfaction of the aforementioned conditions for revenue recognition.

(b) Sales of goods

The Group sells building materials and mineral water. The sales income of the goods is confirmed when the product is delivered to the customer.

The income generated from property management is recognized on straight line basis during the accounting period in which the service is rendered as the contract requires.

(d) Hotel operation

Hotel income from guest room rentals, catering sales and other ancillary services is confirmed upon delivery of goods or services.

(e) Income from construction contracts

For the accounting policies in relation to the income from construction contracts, please refer to Note 4(20).

(23) Government grants

Government grants refer to the monetary or non-monetary assets obtained by the Group from the government, including tax rebates, financial subsidies and others.

– 21 –

– II-166 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)

(23) Government grants (Continued)

(24) Leases

A lease that transfers substantially all the risks and rewards incidental to ownership of an asset is a finance lease. An operating lease is a lease other than a finance lease.

(a) Finance leases

As the lessor, at the beginning of the lease, the Group upon reorganisation shall take the sum of minimum lease receivables and initial direct costs as the book value of the finance lease receivable and record the unguaranteed residual amount. The difference between the sum of minimum lease receivables, initial direct costs and the unguaranteed residual amount and its present value is recognized as unrealized finance income. Unrealized finance income is calculated at the effective interest rate during the term of lease to recognise the current finance income.

(b) Operating leases

Rental income from an operating lease is recognised on a straight-line basis over the period of the lease.

(25) Financial guarantee contract

Financial guarantee liabilities are derecognised from the balance sheet when, and only when, the obligation specified in the contract is discharged or cancelled or expired.

(26) Profit Distribution

The profits to be distributed are recognized as liabilities in the current period approved by the Board of Directors.

– 22 –

– II-167 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)

(27) Business combinations

(a) Business combinations involving entities under common control

The consideration paid and net assets obtained by the acquirer in a business combination are measured at the carrying amount. The difference between the carrying amount of the net assets obtained from the combination and the carrying amount of the consideration paid for the combination is treated as an adjustment to Capital reserve (share premium). If the Capital reserve (share premium) is not sufficient to absorb the difference, the remaining balance is adjusted against retained earnings. Costs directly attributable to the business combinations are included in profit or loss in the period in which they are incurred. Transaction costs associated with the issue of equity or debt securities for the business combinations are included in the initially recognised amounts of the equity or debt securities.

(b) Business combinations involving entities not under common control

(28) Preparation of consolidated financial statements

The consolidated financial statements comprise the financial statements of the Company and all of its subsidiaries and the structured entities controlled by the Group.

– 23 –

– II-168 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)

(28) Preparation of consolidated financial statements (Continued)

(29) Segment information

(30) Critical accounting estimates and judgements

(a) Income taxes

(b) Land value-added tax

– 24 –

– II-169 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

4 SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES (CONTINUED)

(30) Critical accounting estimates and judgements (Continued)

(d) Provision for impairment of inventories

(e) Estimate total cost of the property

– 25 –

– II-170 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

5. TAXATION

Taxes applicable to the Group are listed below with their rates:

Tax	Basis of Assessment	Rate
Value-added Tax	Assessable value-added amount (calculated by	3%, 5%, 6%, 11% or 17%
	assessable sales multiplied by applicable rate,
	net of deductible input tax of the period)
Business Tax (a)	Rental or sales income and property management	5%
	income of property
	Construction income	3%
Land Appreciation Tax	The value-added amount in transferring the property	30% – 60% of the progressive tax
Property Tax	Original costs of the property or rental income	1.2% of the original costs or 12% of
		the rent
Income Tax	Assessable income amount	25%

(a) In accordance with the Provisions on Matters Concerning the Pilot Collection of Value-Added Tax in Lieu of Business Tax (《營業稅改征增值稅試點有關事項的規定》) set out in the Notice of the Ministry of Finance and the State Administration of Taxation on the Full Implementation of the Pilot Program of Levying Value-added Tax in Lieu of Business Tax (《財政部國家稅務局關於全面推開營業稅改征增值稅試點的通知》) (Caishui [2016] No. 36) issued by the Ministry of Finance and the State Administration and the relevant regulations, from 1 May 2016, the property sales, the construction, the property management and the hotel operations of the Group are applicable to value-added tax, with a rate of 11% for property sales income and Construction income, 6% for property management income, and 5% and 3% for property sales and Construction charged by simple rates respectively.

6. SUBSIDIARIES

(1) First tier subsidiaries of the company

	Principal place
	of business and		Shareholding
Name of subsidiary	incorporation	Business nature	percentage	Acquired by
廣州市俊匯房地產開發有限公司Guangzhou Junhui Real Estate Development Co., Ltd.	Guangzhou City	Property Development	100%	Establishment
廣州通瑞達房地產實業有限公司Guangzhou Tongruida Real Estate Industrial Co., Ltd.	Guangzhou City	Property Development	100%	Establishment
廣州市俊鴻房地產開發有限公司Guangzhou Junhong Real Estate Development Co., Ltd.	Guangzhou City	Property Development	100%	Establishment
恒大地產集團武漢有限公司Hengda Real Estate Group (Wuhan) Company Limited	Wuhan City	Property Development	100%	Establishment
恒大地產集團重慶有限公司Hengda Real Estate Group(Chongqing) Company Limited	Chongqing City	Property Development	100%	Establishment
恒大地產集團成都有限公司Hengda (Chengdu) Real Estate Group Company Limited	Chengdu City	Property Development	100%	Establishment
南京恒大富豐置業有限公司Nanjing Hengda Fufeng Real Estate Company Limited	Nanjing City	Property Development	100%	Establishment
武漢鑫金觀光產業園有限公司Wuhan Xinjin Tourist Park Company Limited	Wuhan City	Property Development	100%	Establishment
彭山縣鑫鑫觀光產業園有限公司Pengshan Xinxin Tourist Park Company Limited	Meishan City	Property Development	100%	Establishment
安寧市淦鑫觀光產業園有限公司Anning Ganxin Tourist Park Company Limited	Anning City	Property Development	100%	Establishment
恒大（清新）生態示範園有限公司Hengda (Qingxin) Designated Eco-park Company Limited	Qingxin City	Property Development	100%	Establishment
恒大（佛岡）湯塘農場有限公司Hengda (Fogang) Tangtang Farm Company Limited	Qingyuan City	Property Development	100%	Establishment
廣州恒大生態農業開發基地有限公司Guangzhou Hengda Eco-agricultural Development Base Company Limited Guangzhou City		Property Development	100%	Establishment
恒大地產集團天津薊縣有限公司Hengda (Tianjin) Jixian Real Estate Group Company Limited	Tianjin City	Property Development	100%	Establishment
鄂州鑫金生態觀光產業園有限公司E’zhou Xinjin Ecology Sightseeing Park Company Limited	Xinjin City	Property Development	100%	Establishment
重慶市鑫恒觀光農業有限公司Chongqing Xinheng Sightseeing Industry Park Company Limited	Chongqing City	Property Development	100%	Establishment
恒大鑫隆（瀋陽）置業有限公司Hengda Xinlong (Shengyang) Real Estate Company Limited	Shengyang City	Property Development	100%	Establishment
鶴山市鑫鑫觀光產業園有限公司Heshan Xinxin Tourist Park Company Limited	Heshan City	Property Development	100%	Establishment
恒大盛宇（清新）置業有限公司Hengda Shengyu (Qingxin) Company Limited	Qingyuan City	Property Development	100%	Establishment
恒大地產集團鄭州有限公司Hengda (Zhengzhou) Real Estate Group Company Limited	Zhengzhou City	Property Development	100%	Establishment

– 26 –

– II-171 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

6. SUBSIDIARIES (CONTINUED)

(1) First tier subsidiaries of the company (Continued)

	Principal place
	of business and		Shareholding
Name of subsidiary	incorporation	Business nature	percentage	Acquired by
廣州市金碧房地產代理有限公司Guangzhou Jinbi Real Estate Agency Company Limited	Guangzhou City	Property Management	100%	Establishment
廣州市金碧世家物業服務有限公司Guangzhou Jinbi Shijia Property Service Company Limited	Guangzhou City	Property Management	100%	Establishment
廣州市金碧恒盈物業服務有限公司Guangzhou Jinbi Hengying Property Service Company Limited	Guangzhou City	Property Management	100%	Establishment
恒大地產集團西安有限公司Hengda (Xi’an) Real Estate Group Company Limited	Xi’an City	Property Development	100%	Establishment
恒大地產集團洛陽有限公司Hengda (Luoyang) Real Estate Group Company Limited	Luoyang City	Property Development	100%	Establishment
恒大地產集團太原有限公司Hengda (Taiyuan) Real Estate Group Company Limited	Taiyuan City	Property Development	100%	Establishment
西安曲江投資建設有限公司Xi’an Qujiang Investment Construction Company Limited	Xi’an City	Property Development	100%	Acquisition
西安祺雲置業有限公司Xi’an Qiyun Land Company Limited	Xi’an City	Property Development	100%	Acquisition
恒大地產集團南寧有限公司Hengda Nanning Real Estate Group Company Limited	Nanning City	Property Development	100%	Establishment
恒大地產集團貴陽置業有限公司Hengda Real Estate Group Guiyang Property Company Limited	Guiyang City	Property Development	100%	Acquisition
南京漢典房地產開發有限公司Nanjing Handian Property Development Company Limited	Nanjing City	Property Development	100%	Acquisition
湖南雄震投資有限公司Hunan Xiongzhen Investment Company Limited	Changsha City	Property Development	100%	Acquisition
恒大地產集團合肥有限公司Hengda Hefei Real Estate Group Company Limited	Hefei City	Property Development	100%	Establishment
恒大地產集團長沙置業有限公司Hengda Changsha Property Company Limited	Changsha City	Property Development	100%	Establishment
廣州恒暉建築工程有限公司Guangzhou Henghui Construction Company Limited	Guangzhou City	Construction	100%	Establishment
廣州市恒合工程監理有限公司	Guangzhou City	Construction	100%	Establishment
恒大園林集團有限公司Hengda Landscaping Group Company Limited	Guangzhou City	Construction	100%	Establishment
廣州恒大裝飾工程有限公司	Guangzhou City	Construction	100%	Establishment
佛山市恒大金屬建築材料有限公司Foshan Hengda Metallic Construction Material Company Limited	Foshan City	Construction	100%	Establishment
廣州市恒大廣告有限公司Guangzhou Hengda Advertising Company Limited	Guangzhou City	Advertisement Design	100%	Establishment
荊州市晴川建築設計院有限公司Jingzhou Architecture Design Institute Company Limited	Jingzhou City	Advertisement Design	100%	Establishment
廣州市恒大材料設備有限公司Hengda (Guangzhou) Material and Equipment Company Limited	Guangzhou City	Construction	100%	Establishment
佛山市南海俊誠房地產開發有限公司Foshan Nanhai Jun Cheng Property Development Company Limited	Foshan City	Property Development	100%	Acquisition
恒大地產集團廣東房地產開發有限公司Hengda Real Estate Group Guangdong Property Development
Company Limited	Guangzhou City	Property Development	100%	Acquisition
恒大地產集團包頭有限公司Hengda (Baotou) Real Estate Group Company Limited	Baotou City	Property Development	100%	Establishment
廣東恒大排球俱樂部有限公司	Guangzhou City	Culture and Sport	100%	Establishment
江西宏吉投資有限公司Jiangxi Hongji Investment Company Limited	Nanchang City	Property Development	100%	Acquisition
恒大地產集團石家莊有限公司Hengda (Shijiazhuang) Real Estate Group Company Limited	Shijiazhuang City	Property Development	100%	Establishment
恒大地產集團濟南置業有限公司Hengda (Jinan) Real Estate Group Company Limited	Jinan City	Property Development	100%	Establishment
恒大地產集團天津有限公司Hengda (Tianjin) Real Estate Group Company Limited	Tianjin City	Property Development	100%	Establishment
恒大地產集團佛岡有限公司Hengda (Fogang) Real Estate Group Company Limited	Qingyuan City	Property Development	100%	Establishment
恒大地產集團上海盛建置業有限公司	Shanghai City	Property Development	100%	Establishment
深圳市中心港房地產開發有限公司Shenzhen Central Port Real Estate Development Company Limited	Shenzhen City	Property Development	100%	Establishment
太原名都房地產開發有限公司Taiyuan Real Estate Development Co., Ltd.	Taiyuan City	Property Development	100%	Acquisition
恒大地產集團海南有限公司Hengda (Hainan) Real Estate Group Company Limited	Haikou City	Property Development	100%	Establishment
太原俊景房地產開發有限公司Taiyuan Junjing Real Estate Development Co., Ltd.	Taiyuan City	Property Development	100%	Establishment
重慶恒大君鑫房地產開發有限公司Chongqing Hengda Junxin Property Development Co., Ltd.	Chongqing City	Property Development	100%	Establishment
淮安恒大富豐房地產開發有限公司Huai’an Evergrande Fufeng Property Development Co., Ltd.	Huai’an City	Property Development	100%	Establishment
恒大地產集團蘭州置業有限公司Hengda Real Estate Group Lan Zhou Property Co., Ltd.	Lan Zhou City	Property Development	100%	Acquisition
恒大地產集團長春有限公司Hengda (Changchun) Real Estate Group Company Limited	Changchun City	Property Development	100%	Establishment
恒大地產（沈陽）投資有限公司	Mukden City	Property Development	100%	Establishment
恒大地產集團（中山）有限公司Hengda (Zhongshan) Real Estate Group Company Limited	Zhongshan City	Property Development	100%	Acquisition
恒大地產集團鹿泉有限公司Hengda Real Estate Group Luquan Co., Ltd.	Shijiazhuang City	Property Development	100%	Establishment
儋州恒大濱海投資有限公司Danzhou Hengda Binhai Investment Co., Ltd.	Danzhou City	Property Development	100%	Establishment
恒大地產集團景德鎮置業有限公司Hengda Real Estate Group Jingdezhen Property Development Co., Ltd.	Jingdezhen City	Property Development	100%	Establishment
恒大地產集團昆明有限公司Hengda Real Estate Group Kunming Co., Ltd.	Kunming City	Property Development	100%	Establishment
恒大地產集團呼和浩特有限公司Hengda Real Estate Group Hohhot Co., Ltd.	Hohhot City	Property Development	100%	Establishment

– 27 –

– II-172 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

6. SUBSIDIARIES (CONTINUED)

(1) First tier subsidiaries of the company (Continued)

	Principal place
	of business and		Shareholding
Name of subsidiary	incorporation	Business nature	percentage	Acquired by
丹陽恒大置業有限公司Danyang Evergrande Property Co., Ltd.	Danyang City	Property Development	100%	Establishment
恒大地產集團石嘴山有限公司Hengda Real Estate Group Shizuishan Co., Ltd.	Shizuishan City	Property Development	100%	Establishment
運城市金恒房地產開發有限公司Yuncheng Jinheng Real Estate Development Co., Ltd.	Yuncheng City	Property Development	100%	Establishment
銅陵恒大置業有限公司Tongling Hengda Property Co., Ltd.	Tongling City	Property Development	100%	Establishment
淮北粵通置業有限公司Huaibei Yuetong Property Co., Ltd.	Huaibei City	Property Development	100%	Establishment
恒大地產集團自貢有限公司Hengda Real Estate Group (Zigong) Co., Ltd.	Zigong City	Property Development	100%	Establishment
恒大地產集團雲浮有限公司Hengda Real Estate Group Yunfu Co., Ltd.	Yunfu City	Property Development	100%	Establishment
臨汾市紫旌房地產開發有限公司Linfen Zijin Real Estate Development Company Limited	Linfen City	Property Development	100%	Acquisition
恒大地產集團銀川有限公司Hengda Real Estate Group Yinchuan Co., Ltd.	Yinchuan City	Property Development	100%	Establishment
恒大地產集團銀川有限公司Hengda Real Estate Group Harbin Co., Ltd.	Harbin City	Property Development	100%	Establishment
廣州市金碧大世界飲食娛樂有限公司Guangzhou Jinbi Dashijie Catering and Entertainment Company Limited Guangzhou City		Hotel Business	100%	Acquisition
北京潤業文化藝術有限公司	Beijing City	Property Development	100%	Acquisition
廣州恒大民族歌舞團有限公司	Guangzhou City	Culture and Sport	100%	Establishment
佛山市南海盈裕房地產發展有限公司	Foshan City	Property Development	100%	Establishment
恒大地產南京置業有限公司	Nanjing City	Property Development	100%	Establishment
宿遷恒大華府置業有限公司Suqian Hengda Huafu Property Company Limited	Suqian City	Property Development	100%	Establishment
連雲港恒大城置業有限公司	Lianyungang City	Property Development	100%	Establishment
岳陽金碧置業有限公司	Yueyang City	Property Development	100%	Establishment
恒大地產集團韶關有限公司Hengda Real (Shaoguan) Estate Group Company Limited	Shaoguan City	Property Development	100%	Establishment
太原俊濠房地產開發有限公司	Taiyuan City	Property Development	100%	Establishment
深圳市建設（集團）有限公司Shenzhen Construction (Group) Corporation Limited	Shenzhen City	Construction	100%	Acquisition
大同俊景房地產開發有限公司Datong Junjing Real Estate Company Limited	Datong City	Property Development	100%	Establishment
恒大地產集團烏魯木齊有限公司Hengda Real (Urumqi) Estate Group Company Limited	Urumqi City	Property Development	100%	Establishment
恒大地產集團鹽城有限公司Hengda (Yancheng) Real Estate Group Company Limited	Yancheng City	Property Development	100%	Establishment
恒大世紀城（清遠）酒店有限公司	Qingyuan City	Property Development	100%	Establishment
呂梁市俊匯房地產開發有限公司	Luliang City	Property Development	100%	Establishment
嘉興恒大置業有限公司	Jiaxing City	Property Development	100%	Establishment
運城經濟開發區壹加壹房地產開發有限公司	Yuncheng City	Property Development	100%	Acquisition
運城市鑫萬瑞房地產開發有限公司	Yuncheng City	Property Development	100%	Acquisition
東莞市城邦房地產開發有限公司	Dongguan City	Property Development	100%	Acquisition
恒大地產集團（深圳）有限公司Hengda (Shenzhen) Real Estate Group Company Limited	Shenzhen City	Property Development	100%	Establishment
重慶恒大酒店有限公司	Chongqing City	Hotel Business	100%	Establishment
南昌中電投高新置業有限公司	Nanchang City	Property Development	100%	Acquisition
恒大足球學校Evergrande Football School	Guangzhou City	Culture and Sport	100%	Establishment
恒大商業有限公司	Guangzhou City	Hotel Business	100%	Establishment
海鹽盛建置業有限公司	Haiyan City	Property Development	100%	Establishment
恒大地產集團恩平有限公司Hengda (Enping) Real Estate Group Company Limited	Enping City	Property Development	100%	Establishment
恒大地產集團白洋淀溫泉城有限公司	Baoding City	Property Development	100%	Establishment
廣州市品宴餐飲企業管理有限公司	Guangzhou City	Hotel Business	100%	Establishment
恒大地產集團陽江有限公司Hengda (Yeungkong) Real Estate Group Company Limited	Yeungkong City	Property Development	100%	Establishment
北京觀止文化藝術有限公司	Beijing City	Culture and Sport	100%	Acquisition
平湖恒大名都置業有限公司	Pinghu City	Property Development	100%	Establishment
烏海市俊景房地產開發有限公司	Wuhai City	Property Development	100%	Establishment
廣州市恒大酒店有限公司	Guangzhou City	Hotel Business	100%	Establishment
無錫恒大房產開發有限公司	Wuxi City	Hotel Business	100%	Establishment
恒大地產集團天津薊縣有限公司Hengda Real Estate Group Tianjin Ji County Co., Ltd.	Tianjin City	Hotel Business	100%	Establishment
恒大地產集團防城港有限公司Hengda Real Estate Group Fangchenggang Co., Ltd.	Fangchenggang CityProperty Development		100%	Establishment

– 28 –

– II-173 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

6. SUBSIDIARIES (CONTINUED)

(1) First tier subsidiaries of the company (Continued)

	Principal place
	of business and		Shareholding
Name of subsidiary	incorporation	Business nature	percentage	Acquired by
彭山恒大酒店有限公司	Meishan City	Hotel Business	100%	Establishment
成都金堂恒大酒店有限公司	Chengdu City	Hotel Business	100%	Establishment
陽泉市燎原房地產開發有限公司	Yangquan City	Property Development	100%	Acquisition
恒大地產集團九江有限公司Hengda Real Estate Group Jiujiang Co., Ltd.	Jiujiang City	Property Development	100%	Establishment
衛州恒大盛建置業有限公司	Weizhou City	Property Development	100%	Establishment
恒大地產集團湛江御景置業有限公司	Chankiang City	Property Development	100%	Establishment
廣州市恒大永昌置業有限公司	Guangzhou City	Property Development	100%	Establishment
廣州市恒大卓越置業有限公司	Guangzhou City	Property Development	100%	Establishment
恒大地產集團河源有限公司Hengda Real Estate Group Heyuan Co., Ltd.	Heyuan City	Property Development	100%	Establishment
恒大健康產業有限公司Evergrande Health Limited	Guangzhou City	Culture and Sport	100%	Establishment
恒大地產集團吉安有限公司Hengda Real Estate Group Jian Co., Ltd.	Jian City	Property Development	100%	Establishment
北京天力興業投資有限公司	Beijing City	Property Development	100%	Acquisition
北京沙澗恒大置業有限公司	Beijing City	Property Development	100%	Establishment
恒大地產集團天津世博國際會議中心	Tianjin City	Hotel Business	100%	Establishment
恒大地產集團大連有限公司Hengda Real Estate Group Dalian Co., Ltd.	Dalian City	Property Development	100%	Establishment
合肥粵誠置業有限公司	Hefei City	Property Development	100%	Establishment
合肥粵祺置業有限公司	Hefei City	Property Development	100%	Establishment
合肥粵褀商業運營有限公司	Hefei City	Property Development	100%	Establishment
合肥粵泰置業有限公司	Hefei City	Property Development	100%	Establishment
合肥粵泰商業營運管理有限公司	Hefei City	Property Development	100%	Establishment
合肥粵豐置業有限公司	Hefei City	Property Development	100%	Establishment
恒大地產集團北京有限公司Hengda Real Estate Group Beijing Co., Ltd.	Beijing City	Property Development	100%	Establishment
寧夏昊天房地產開發有限公司	Yinchuan City	Property Development	100%	Establishment
北京恒粵置業有限公司	Beijing City	Property Development	100%	Establishment
林芝華錦日用品有限公司	Nyingchi City	Hotel Business	100%	Establishment
恒大地產集團福州有限公司Hengda Real Estate Group Fuzhou Co., Ltd.	Fuzhou City	Property Development	100%	Establishment
廣州市鑫源投資有限公司	Guangzhou City	Hotel Business	100%	Establishment
太原市俊恒房地產開發有限公司	Taiyuan City	Property Development	100%	Establishment
武漢恒大酒店有限公司	Wuhan City	Hotel Business	100%	Establishment
雙鴨山恒大酒店有限公司	Shuangyashan City	Hotel Business	100%	Establishment
太原盛世君泰房地產開發有限公司	Taiyuan City	Property Development	100%	Acquisition
太原金世恒房地產開發有限公司	Taiyuan City	Property Development	100%	Establishment
北京恒世投資有限公司	Beijing City	Property Development	100%	Establishment
太原萬恒房地產開發有限公司	Taiyuan City	Property Development	100%	Establishment
南寧金碧恒大置業有限公司	Nanjing City	Property Development	100%	Establishment
江西星宇置業發展有限公司	Jiangxi City	Property Development	100%	Acquisition
合肥粵恒置業有限公司	Hefei City	Property Development	100%	Establishment
山西嘉盛房地產開發有限公司	Taiyuan City	Property Development	100%	Acquisition
廣州市恒大裝修設計院有限公司	Guangzhou City	Advertisement Design	100%	Establishment
恒大地產集團粵東有限公司Hengda Real Estate Group Yuet Tung Co., Ltd.	Zhuhai City	Property Development	100%	Establishment
恒大地產集團珠三角房地產開發有限公司	Guangzhou City	Property Development	100%	Establishment
太原恒澤房地產開發有限公司	Taiyuan City	Property Development	100%	Establishment
天基控股有限公司Tianji Holding Limited	Hong Kong	Property Development	100%	Establishment
天鼎控股有限公司Tianding Holding Limited	Hong Kong	Property Development	100%	Establishment
恒大大方扶貧管理有限公司	Guizhou City	Property Development	100%	Establishment
山西蘭花康宇房地產開發有限公司	Taiyuan City	Property Development	100%	Acquisition
太原恒隆房地產開發有限公司	Taiyuan City	Property Development	100%	Acquisition

– 29 –

– II-174 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

6. SUBSIDIARIES (CONTINUED)

(2) Key subsidiaries deconsolidated in 2016

	Reason for
Name of Key Subsidiaries	Deconsolidation
Evergrande Culture Industry Group Co., Ltd. and its subsidiaries (“Evergrande Culture”)	Disposal
Evergrande Tourism Group Ltd. and its subsidiaries (“Evergrande Tourism”)	Disposal
儋州恒大香檳島投資開發有限公司and its subsidiaries (“恒大香檳島”)	Disposal
Hengda Real Estate Group Nanchang Co., Ltd. (“Hengda Nanchang”)	Disposal

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT

(1) Cash and bank balances

Treasury cash Bank deposits Other cash and bank balances Less: Restricted cash and bank balances Cash and cash equivalents	31 December 2016 50 171,135 104,006 275,191 (104,006) 171,185	31 December 2015 45 91,256 59,766
		151,067 (56,766)
		91,301

(2) Financial assets at fair value through profit or loss

	31	December	2016	31	December	2015
Investment in equity instruments held for trading			3,076			–

As at 31 December 2016, the financial assets at fair value through profit or loss are the investment in equity instruments in the market of China’s A share with publicly available quotations in the active market.

As at 31 December 2015, the Group did not have any financial assets at fair value through profit or loss.

The fair value of the equity instruments held for trading is recognised based on the last trading day of Shanghai Stock Exchange in 2016.

– 30 –

– II-175 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(3) Notes receivable

31 Decem	31	December 2015 35 10
		45
Increase n the Year (6)	ease Year 7	31 December 2016 197 8,267
		8,464 (17)
		8,447

Within one year Over one year but within two years Over two years	31	December 201	6 Allowance or bad debt – – (17) (17)	31	December 201	5
	Amount 6,929 938 597 8,464	Total percentage f 81.87% 11.08% 7.05% 100.00%		Amount 3,402 179 149 3,730	Total percentage f 91.21% 4.80% 3.99% 100.00%	Allowance or bad debt – – (18)
						(18)

As at 31 December 2016 and 31 December 2015, the Group has no trade receivables that were past due.

– 31 –

– II-176 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(4) Trade and other receivables (Continued)

(b) Long-term receivables

Loan instalment receivables Financial lease receivables Less: Non-current assets due within one year	31 December 2016 15,358 407 15,765 (7,019) 8,746	31 December 2015 15,608 –
		15,608 (5,303)
		10,305

As at 31 December 2016, long-term receivables of RMB601,000,000 (31 December 2015: RMB663,000,000) became past due but no impairment was recognised since the Group considered the amount to be recoverable based on the analysis on defaulter’s financial position and its credit report, and no impairment was individually accrued.

31 Decem	31	December 2015 580 83 –
		663
Increase n the Year (95)	ease Year 3	31 December 2016 2,619 7,981 4,235 6,776 7,191
		28,802 (175)
		28,627

– 32 –

– II-177 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(4) Trade and other receivables (Continued)

(c) Other receivables (Continued)

An analysis of other receivables and allowance for bad debt is as follows:

Within one year Over one year but within two years Over two years	31	December 201	6 Allowance or bad debt (115) (17) (43) (175)	31	December 201	5
	Amount 23,270 2,392 3,140 28,802	Total percentage f 80.79% 8.30% 10.91% 100.00%		Amount 31,245 1,776 2,151 35,172	Total percentage f 88.83% 5.05% 6.12% 100.00%	Allowance or bad debt – – (83)
						(83)

As at 31 December 2016 and 31 December 2015, there were no other receivables that were past due but not impaired.

(5) Prepayments

Within one year Over one year but within two years Over two years	31 Decem	ber 2016 Total percentage 80.11% 7.84% 12.05% 100.00%	31 Decem	ber 2015
	Amount 41,787 4,088 6,284 52,159		Amount 20,521 5,446 6,197 32,164	Total percentage 63.80% 16.93% 19.27%
				100.00%

Prepayments mainly represent the prepaid land premium pending the land use right. Prepayments due more than one year with significant amounts mainly represent the prepaid amount for land clearance or the land certificate in portions.

– 33 –

– II-178 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(6) Inventories

Properties under development Completed properties Others Less: Provision for inventory impairment An analysis of provision for inventory impairment is as follows: 31 December 2015 Pro in the Inventories (562)	31 December 2016 567,171 80,597 157 647,925 (828) 647,097 vision Year Resa in the Ye (283) 1	31 December 2015 326,390 52,935 95
		379,420 (562)
		378,858
		le ar 31 December 2016 7 (828)

In 2016, the capitalising amount for the borrowing fees credited to the properties under development was RMB30,747,000,000 (2015: RMB21,048,000,000) and the capitalising rate for the recognition of the borrowing fees was 9.39% per annum (2015: 10.41%).

Details of the Group’s inventory pledged for the bank borrowings as at 31 December 2016 and 31 December 2015 are set out in note 7(15)(a) and note 7(23)(a).

(7) Other current assets

Prepaid business tax Prepaid income tax Prepaid land appreciation tax Available-for-sale financial assets Prepaid value-added tax Prepaid construction tax Prepaid education surcharge Input tax to be deducted Others	31 December 2016 2,855 3,097 4,438 1,672 1,561 348 253 218 24 14,466	31 December 2015 3,293 2,113 1,973 – 17 75 59 – 4
		7,534

– 34 –

– II-179 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(8) Available-for-sale financial assets

	31 December 2016	31 December 2015
Measured at fair value
－Available-for-sale equity instruments	34,840	787

As at 31 December 2016 and 31 December 2015, the Group’s available-for-sale financial assets were denominated in RMB and no impairment allowance was made for the available-for-sale financial assets.

Available-for-sale financial assets s mainly include the investment in equity instruments in the market of China’s A share with publicly available quotations in the active market.

The fair value of the available-for-sale financial assets is recognised based on the closing price on the last trading day of Shanghai Stock Exchange and Shenzhen Stock Exchange during the relevant period.

(9) Long-term investments

Joint ventures (a) Associates (b)	31 December 2016 566 161 727	31 December 2015 8,396 153
		8,549

The Group accounted for the above equity investments by equity method. The Group has not been imposed any material restrictions on realising the long-term investments and the above investment interests do not have any contingent liabilities or promises.

(a) Joint ventures

Place of
Incorporation
Business
Nature
Registered
Capital
北京北恒中慧教育科技有限公司
Beijing Beiheng Zhonghui Education Technology
Co., Ltd.
PRC
Cultural
Education
RMB10,000,000
王府井恒大商業控股有限公司
Wangfujing Evergrande Commercial Holdings
Company Limited
PRC
Business
Management
RMB1,000,000,000
內蒙古魯橋置業有限公司
Inner Mongolia Luqiao Property Co., Ltd.
PRC
Property
Development
RMB200,000,000
廣州恒大淘寳足球俱樂部有限公司
Guangzhou Evergrande Taobao Football Club Co., Ltd.
PRC
Cultural
Entertainment
RMB375,000,000
恒大人壽保險有限公司
Evergrande Life Insurance Co., Ltd.
PRC
Insurance
RMB1,000,000,000
杭州晶立置業有限公司
Hangzhou Jingli Property Co., Ltd.
PRC
Property
Development
USD370,000,000
濟南恒大城西置業有限公司
Jinan Evergrande Chengxi Property Co., Ltd.
PRC
Property
Development
RMB10,000,000

Shareholding
and voting right

2016
2015
55%
55%
51%
51%
50%
50%
60%
60%
N.A.
50%
N.A.
49%
49%
N.A.

– 35 –

– II-180 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(9) Long-term investments (Continued)

(a) Joint ventures (Continued)

The investments in joint ventures are set out as follows:

					Other	Other
					consolidated	capital
					income	reserve	Net profit or
					adjusted by	adjusted by	loss adjusted
	31	December	Increase in	Decrease in	equity	equity	by equity	31 December
		2015	investment	investment	method	method	method	2016
Joint ventures		8,396	6,044	(13,046)	(197)	14	(645)	566

The Group has no joint venture that is individually significant.

(b) Associates

Place of
Incorporation
Business
Nature
Registered
Capital
重慶同景文浩置業有限公司
Chongqing Verakin Wenhao Real Estate Company
Limited
PRC
Property
Development
RMB100,000,000
濟南西創置業有限公司
Jinan Xichuang Property Co., Ltd.
PRC
Property
Development
RMB18,000,000
濟南西實置業有限公司
Jinan Xishi Property Co., Ltd.
PRC
Property
Development
RMB18,000,000
湖南淺水灣湘雅溫泉花園有限公司
Hunan Repulse Bay Xiangya Hot Spring Garden Co.,
Ltd.
PRC
Property
Development
RMB30,000,000
濟南西業置業有限公司
Jinan Xiye Property Co., Ltd.
PRC
Property
Development
RMB18,000,000
濟南西開置業有限公司
Jinan Xikai Property Co., Ltd.
PRC
Property
Development
RMB18,000,000
上海申城影視傳媒有限公司
Shanghai Shencheng Culture Investment Co., Ltd.
PRC
Culture
and Art
RMB40,000,000
前海開源資產管理（深圳）有限公司
Qianhai Kaiyuan Asset Management (Shenzhen) Co.,
Ltd.
PRC
Assets
Management
RMB100,000,000
東營御景置業有限公司
Dongying Yujing Property Co., Ltd.
PRC
Property
Development
RMB100,000,000

Shareholding
and votingright

2016
2015
49%
49%
30%
30%
30%
30%
18%
18%
N.A.
30%
N.A.
30%
N.A.
25%
N.A.
16%
N.A.
20%

The investments in associates are set out as follows:

					Other
					capital	Net income
					reserves	or loss
					adjusted by	adjusted by
	31	December	Increase in	Decrease in	equity	equity	31 December
		2015	investment	investment	method	method	2016
Associates		153	53	(47)	4	(2)	161

The Group has no associates that is individually significant.

– 36 –

– II-181 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(9) Long-term investments (Continued)

(c) Summary of minor joint ventures and associates

	2016	2015
Joint ventures:
Total carrying amount for investment	1,639	9,046
Total amount of the followings calculated by shareholding percentage
Net loss (i)	(645)	(595)
Other consolidated income (i)	(197)	–
Total consolidated income	(842)	(595)
Associates:
Total carrying amount for investment	177	134
Total amount of the followings calculated by shareholding percentage
Net (loss)/gain (i)	(2)	174
Other consolidated incomes (i)	–	–
Total consolidated income	(2)	174

(i) Net profit and other consolidated incomes have taken the fair value of the identifiable assets and liabilities when the investment was secured and the adjustment effect of the standard accounting policy into account.

(10) Investment properties

	Housing and buildings
31 December 2015	96,382
Increase in the Year	14,810
Business combinations by entities not under common control (note 9(2))	16,734
Fixed assets transferred in	(1,310)
Change in fair value	4,925
Exchange differences arising from translation of financial statements	847
Disposal of subsidiaries in the Year	(185)
Decrease in the Year	(2,007)
31 December 2016	130,196

In 2016, the capitalising amount for the borrowing fees credited to the investment properties was RMB2,366,000,000 (2015: RMB1,710,000,000) and the capitalising rate for the recognition of the borrowing fees was 9.39% per annum (2015: 10.41%).

In 2016, the effect of the change in the fair value for the investment properties on the Group’s profit or loss was RMB4,925,000,000 (2015: RMB12,746,000,000).

– 37 –

– II-182 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(10) Investment properties (Continued)

In 2016, the Group’s disposal income of investment properties was RMB94,000,000 (2015: RMB185,000,000).

Details of the Group’s investment properties pledged for bank borrowings as at 31 December 2016 and 31 December 2015 are set out in note 7(15)(a) and 7(23)(a).

(11) Fixed assets

Original price 31 December 2015 Construction in process transferred in investment properties transferred in business combinations by entities not under common control (note 9(2)) Purchase in the Year Decrease in the Year 31 December 2016 Accumulated depreciation 31 December 2015 Provision for the Year Decrease in the Year 31 December 2016 Net value 31 December 2016 31 December 2015	Housing and buildings 7,625 1,299 1,310 1,443 799 (683) 11,793 (1,284) (671) 201 (1,754) 10,039 6,341	Machinery and Equipment 288 22 – 26 205 (362) 179 (82) (49) 67 (64) 115 206	Vehicles 500 – – 24 92 (46) 570 (362) (81) 40 (403) 167 138	Office Equipment 4,067 374 – 80 479 (98) 4,902 (1,575) (509) (69) (2,015) 2,887 2,492	Total 12,480 1,695 1,310 1,573 1,575 (1,189)
					17,444
					(3,303) (1,310) 377
					(4,236)
					13,208
					9,177

Depreciation costs credited to operation costs, management fees and sales costs in 2016 and 2015 are as follows:

Operation costs Management fees Sales costs	2016 402 617 291 1,310	2015 463 476 151
		1,090

Details of the Group’s fixed assets for the pledging for bank borrowings as at 31 December 2016 and 31 December 2015 are set out in note 7(15)(a) and 7(23)(a).

– 38 –

– II-183 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(12) Construction in process

			Transferred
	31 December	Increase	to fixed assets	31 December
Name of construction	2015	in the Year	in the Year	2016
Hotel construction	3,575	2,598	(1,695)	4,478
Including: Capitalising amount for borrowing fees	526	442	(249)	719

In, 2016, the capitalising rate for the recognition of the borrowing fees was 9.39% per annum (2015: 10.41%).

(13) Intangible assets

Original price 31 December 2015 Increase in the Year Business combinations by entities not under common control (note 9(2)) Decrease in the Year 31 December 2016 Accumulated depreciation 31 December 2015 Amortisation for the Year Decrease in the Year 31 December 2016 Net value 31 December 2016 31 December 2015 Long-term fee to be amortised Renovation fees Other	Land use right 3,326 1,896 59 (43) 5,238 (180) (119) 5 (294) 4,944 3,146 31 De	Land use right 3,326 1,896 59 (43) 5,238 (180) (119) 5 (294) 4,944 3,146 31 De	Other 142 46 102 (64) 226 (46) (18) 32 (32) 194 96 cember 2016 3 143 61 204	Other 142 46 102 (64) 226 (46) (18) 32 (32) 194 96 cember 2016 3 143 61 204	Total 3,468 1,942 161 (107)
					5,464
					(226) (137) 37
					(326)
			19		5,138
			9		3,242
			cember 2016 143 61 204		1 December 2015 88 56
					144

(14) Long-term fee to be amortised

– 39 –

– II-184 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(15) SHORT-TERM BORROWINGS

Secured borrowings Secured (a) Pledged (b) Guaranteed (c) Unsecured borrowings	31 December 2016 24,793 33,901 26,271 3,741 88,706	31 December 2015 5,370 7,805 5,083 19,699
		37,957

(a) As at 31 December 2016, the secured borrowings of RMB24,793,000,000 were secured by the fixed assets with a carrying amount of RMB1,517,000,000, the investment properties with a carrying amount of RMB10,598,000,000 and the inventory with a carrying amount of RMB33,991,000,000 (2015: the secured borrowings of RMB5,370,000,000 were secured by the fixed assets with a carrying amount of RMB217,000,000, the investment properties with a carrying amount of RMB733,000,000, the intangible asset, land use right, with a carrying amount of RMB21,000,000 and the inventory with a carrying amount of RMB4,342,000,000).
(b) As at 31 December 2016, the pledged borrowings of RMB33,901,000,000 were pledged by the time deposit of RMB15,415,000,000 and the equity of the subsidiaries of RMB15,856,000,000 (2015: the pledged borrowings of RMB7,805,000,000 were pledged by the RMB time deposit of RMB2,901,000,000 and the equity of the subsidiaries of RMB5,749,000,000).
(c) As at 31 December 2016, the guaranteed borrowings of RMB278,000,000 (2015: RMB5,083,000,000) were guaranteed by China Evergrande Group while RMB25,993,000,000 (2015: nil) were guaranteed by the Company and its subsidiaries.

As at 31 December 2016, short-term borrowings include the borrowing of RMB2,700,000,000 provided by the joint venture of the Company’s ultimate holding company to the Group and the borrowing of RMB799,000,000 provided by the joint venture of the Company’s ultimate holding company to the Group.

As at 31 December 2016, the rate of short-term borrowings ranges between 1.32% and 10.50% (2015: 1.09% and 13.00%).

(16) Notes payable

Commercial promissory notes Bank promissory notes	31 December 2016 43,058 617 43,675	31 December 2015 39,156 2,913
		42,069

– 40 –

– II-185 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(17) Receipts in advance

Receipts in property presales Others	31 December 2016 181,775 1,629 183,404	31 December 2015 79,517 2,093
		81,610

As at 31 December 2016 and 31 December 2015, the Group’s receipts in advance mainly represent the receipt of housing price, which is not yet settled.

(18) Remuneration payables

Short-term wages payables (a) Defined contribution scheme (b) Short-term wages Salaries, bonuses, allowances and subsidies Employee benefit expenses Social insurance fees	31 December 2015 999 19 16	31 Decem	ber 2016 31 D 1,355 56 1,411 Decrease in the Year (9,755) (507) (453)	ecember 2015 1,079 29 1,108 31 December 2016 1,229 35 28

		Increase n the Year 9,985 523 465
Including: Medical insurance fees Work injuries insurance fees Maternity insurance fees	13 2 1	401 30 34	(390) (30) (33)	24 2 2
Housing provident fund Operation fees and employee education fees	15 30 1,079	378 78 11,429	(372) (66) (11,153)	21 42 1,355

– 41 –

– II-186 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(18) Remuneration payables (Continued)

(b) Defined contribution scheme

6	at the eriod 54 2 56 31 De	201	201	5
Balance end of the P		Amount payable 667 62 729 cember 2016 3 19,071 15,039 297 105 87 82 76 54 43 3 97 34,954 cember 2016 3 29,017 35,537 18,766 13,000 4,239 3,513 – 10,638 114,710		Balance at the end of the Period 28 1
		72		29
		cember 2016 19,071 15,039 297 105 87 82 76 54 43 3 97 34,954 cember 2016 29,017 35,537 18,766 13,000 4,239 3,513 – 10,638 114,710		1 December 2015 13,510 9,349 33 86 76 1,082 148 92 68 – 122
				24,566
	31 De		3	1 December 2015 34,587 13,638 16,267 – 4,180 4,317 2,157 7,747
				82,893

– 42 –

– II-187 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(21) Non-current liabilities due within one year

Long-term borrowings due within one year (note 7(23)) Bond payables due within one year (note 7(24)) Long-term payables due within one year (note 7(22)) (22) Long-term payables Payable for acquisition of subsidiaries Combined structural shares (a) Amounts due to minority shareholders (b) Others Less: Long-term payables due within one year	31 December 2016 67,312 6,756 6,686 80,754 31 December 2016 9,925 5,093 33,011 2 48,031 (6,686) 41,345	31 December 2015 82,902 – 506
		83,408
		31 December 2015 – 1,760 1,099 6
		2,865
		(506)
		2,359

(a) As at 31 December 2016, the amount includes the cash advances from certain investment entity holders of approximately RMB5,093,000,000, of which cash advances of RMB1,760,000,000 bear an average interest rate of 9.60% per annum and shall be repaid according to the related loan agreement; cash advances of RMB3,333,000,000 bear an average interest rate of 6.65% per annum and have to be repaid according to the related loan agreement. As at 31 December 2015, the amount includes the cash advances from certain investment entity holders of approximately RMB1,760,000,000, bearing an average interest rate of 9.60% and subject to the related loan agreement.

(b) As at 31 December 2016, the amount includes cash advances from certain minority shareholders of approximately RMB339,000,000 (2015: RMB527,000,000), bearing an average interest rate of 12% (2015: 12%) and subject to the related loan agreement.

– 43 –

– II-188 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(23) Long-term borrowings

Secured borrowings (a) Pledged borrowings (b) Guaranteed borrowings (c) Unsecured borrowings Less: Long-term borrowings due within one year Secured borrowings (a) Pledged borrowings (b) Guaranteed borrowings (c) Unsecured borrowings	31 December 2016 194,919 128,983 58,307 17,240 399,449 (37,931) (15,522) (10,882) (2,977) (67,312) 332,137	31 December 2015 143,271 56,596 26,130 262
		226,259
		(43,630) (25,626) (13,610) (36)
		(82,902)
		143,357

(a) As at 31 December 2016, the secured borrowings of RMB194,919,000,000 were secured by the fixed assets with a carrying amount of RMB5,868,000,000, the investment properties with a carrying amount of RMB464,000,000, the inventory with a carrying amount of RMB215,739,000,000 and the intangible asset, land use right, with a carrying amount of RMB681,000,000 (2015: the secured borrowings of RMB143,271,000,000 were secured by the fixed assets with a carrying amount of RMB5,327,000,000, the investment properties with a carrying amount of RMB3,978,000,000, the inventory with a carrying amount of RMB125,302,000,000 and the intangible asset, land use right, with a carrying amount of RMB1,883,000,000).

(b) As at 31 December 2016, the pledged borrowings of RMB128,983,000,000 were pledged by the time deposit of RMB3,111,000,000 and the equity of the subsidiaries of RMB70,739,000,000 (2015: the pledged borrowings of RMB56,596,000,000 were pledged by the RMB time deposit of RMB6,671,000,000 and the equity of the subsidiaries of RMB41,661,000,000).
(c) As at 31 December 2016, the guaranteed borrowings of RMB2,042,000,000 (2015: RMB26,130,000,000) were guaranteed by China Evergrande Group while RMB56,265,000,000 (2015: nil) were guaranteed by the Company and its subsidiaries.

As at 31 December 2016, long-term borrowings include the borrowing of RMB2,816,000,000 provided by the joint venture of the Company’s ultimate holding company to the Group.

As at 31 December 2016, the rate of short-term borrowings ranges between 2.14% and 14.00% (31 December 2015: 2.08% and 14.00%).

– 44 –

– II-189 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(24) Bond payables

Public issuance of corporate bonds Non-public issuance of corporate bonds Less: Bond payables due within one year Balance of bond payables	31 December 2016 19,853 33,908 53,761 (6,756) 47,005	31 December 2015 19,817 19,732
		39,549 –
		39,549

On 19 June 2015, the Company publicly issued a 5-year corporate bond, with a total amount of RMB5 billion and simple interest rate fixed at 5.38% calculated and paid once every year.

On 7 July 2015, the Company publicly issued a 4-year corporate bond, with a total amount of RMB6.8 billion and simple interest rate fixed at 5.30% calculated and paid once every year.

On 7 July 2015, the Company publicly issued a 7-year corporate bond, with a total amount of RMB8.2 billion and simple interest rate fixed at 6.98% calculated and paid once every year.

On 16 October 2015, the Company non-publicly issued a 5-year corporate bond, with a total amount of RMB17.5 billion and simple interest rate fixed at 7.38% calculated and paid once every year.

On 16 October 2015, the Company non-publicly issued a 5-year corporate bond, with a total amount of RMB2.5 billion and simple interest rate fixed at 7.88% calculated and paid once every year.

On 11 January 2016, the Company non-publicly issued a 4-year corporate bond, with a total amount of RMB10 billion and simple interest rate fixed at 6.98% calculated and paid once every year.

On 29 July 2016, the Company non-publicly issued a 3-year corporate bond, with a total amount of RMB4.2 billion and simple interest rate fixed at 6.80% calculated and paid once every year.

– 45 –

– II-190 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(25) Deferred income tax assets and liabilities

Deferred income tax assets and deferred income tax liabilities which are not yet offset are set out below:

(a) Deferred income tax assets

ber 2	016 Deductible temporary difference 2,348 6,724 2,300 5,008 236 1,020 17,636 31 Decem	31 Decem	31 Decem	ber 2015
		Deferred income tax assets 535 924 403 – 45 164 2,071 ber 2016 31 3,374 1,035 4,409 ts is set out as fo ber 2016 31 4,512		Deductible temporary difference 2,140 3,696 1,612 – 180 656
				8,284
d inc		ber 2016 3,374 1,035 4,409 ts is set ou ber 2016 4,512		December 2015 1,238 833
				2,071
	ome tax asse 31 Decem		t as fo 31	llows: December 2015 4,698

– 46 –

– II-191 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(25) Deferred income tax assets and liabilities (Continued)

(c) An ageing analysis of the deductible loss of the Group’s unrecognised deferred income tax assets is set out as follows:

2016 2017 2018 2019 2020 2021	31 December 2016 – 883 926 1,073 214 1,416 4,512	31 December 2015 600 974 1,089 1,589 446 –
		4,698

(d) Deferred income tax liabilities

31 Decem	ber 2016 Temporary difference of tax payables 37,274 50,060 891 88,225 31 De ed income tax liab 31 De	ber 2016 Temporary difference of tax payables 37,274 50,060 891 88,225 31 De ed income tax liab 31 De	31 Decem	ber 2015
Deferred income tax liabilities 9,305 12,515 223 22,043 year, inclusive ar sets and the deferr			Deferred income tax liabilities Temporary difference of tax payables 8,519 34,076 2,245 8,980 19 76 10,783 43,132 cember 2016 31 December 2015 2,233 806 19,810 9,977 22,043 10,783 ilities after offsetting are set out as cember 2016 31 December 2015 3,809 1,633 21,443 10,345	Temporary difference of tax payables 34,076 8,980 76
				43,132
	ed income			1 December 2015 806 9,977
				10,783
		tax liab 31 De

– 47 –

– II-192 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(26) Other non-current liabilities

Deferred income tax liabilities Change in the fair value of investment properties Valuation of business inventory acquired falling above its tax basis	31 December 2016 5,615 10,433 16,048	31 December 2015 4,880 1,170
		6,050

Other non-current liabilities are the change in the fair value of the Group’s investment properties and the deferred land value-added tax for the valuation of business inventory acquired.

(27) Surplus reserve

In accordance with the PRC Company Law and the Article of the Company, the Company withdraws 10% of the net profit for statutory surplus reserve, which can be waived once the statutory surplus reserve reaches 50% of the registered capital or above. The statutory surplus reserve can offset loss or increase net capital upon approval. With the resolution by the Board, the Company withdrew RMB42,000,000 of the statutory surplus reserve in 2016 (2015: RMB409,000,000).

(28) Unallocated profit

As stated in note 2, the Group merged certain subsidiaries controlled by China Evergrande Group during 2016. Before the date of merger, the subsidiaries decided to allocate the profit as of 30 June 2016 for the original shareholders amounting RMB3,570,000,000.

(29) Operation income and operation costs

Income from principal business Income from other business Costs of principal business Costs of other businesses	2016 202,269 2,828 205,097 2016 139,495 1,256 140,751	2015 129,715 971
		130,686
		2015 86,409 397
		86,806

– 48 –

– II-193 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(29) Operation income and operation costs (Continued)

(a) Income from principal business and costs of principal business

201 Income from principal business Sale of flats 195,744 Construction 2,189 Income from property management 1,973 Income from hotels 811 Rental income 641 Other 911 202,269	201	6 201 Costs of principal business Income from principal business 134,535 125,510 2,026 1,286 1,579 1,355 565 562 – 241 790 761 139,495 129,715	201	5
				Costs of principal business 83,048 1,272 1,005 397 – 687
				86,409

(b) Other business incomes and other business costs

Disposal of investment properties Service fees and others	201	6 Other business costs 1,015 241 1,256	201	5
	Other business incomes 2,101 727 2,828		Other business incomes 780 191 971	Other business costs 254 143
				397

(30) Tax and surcharges

Land Appreciation Tax Business Tax City Construction Tax Educational Surcharge Other	2016 8,400 5,693 737 605 389 15,824	2015 5,867 6,606 472 337 44
		13,326

(31) Financial expenses – net Financial expenses Less: Interest income Service fees Loss on translation difference	2016 4,079 (3,370) 1,066 2,035 3,810	2015 895 (1,474) 593 1,230
		1,244

– 49 –

– II-194 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(32) Fees by nature

Operation costs, sales fees and management fees in the profit statement are set out below by nature:

Costs of property sales Employee remuneration expenses Advertising and marketing expenses Costs of construction Disposal of investment properties Depreciation and amortisation Others (33) Impairment loss of assets Loss on bad debt Loss on inventory impairment (34) Gain from changes in fair value Investment properties measured at fair value Profit or loss on transfer out change of fair value upon disposal of investment properties Financial assets at fair value through profit or loss	2016 134,535 8,120 7,568 2,026 1,015 1,622 5,688 160,574 2016 91 283 374 2016 4,925 (992) (80) 3,853	2015 83,048 5,795 5,524 1,272 254 1,263 4,008
		101,164
		2015 (110) 106
		(4)
		2015 12,747 (341) (3,758)
		8,648

– 50 –

– II-195 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(35) Investment income

Investment income from financial assets held at fair value through profit or loss Loss on long-term equity investment by equity method Gain on disposal of subsidiaries Gain on disposal of joint ventures and associates Gain on disposal of available-for-sale financial assets Investment gain on held available-for-sale financial assets Others	2016 – (647) 220 300 26 107 – 6	2015 6,238 (421) – – 323 24 (32)
		6,132

(36) Non-operating income and non-operating expenses (a) Non-operating income Income from seizure of deposit Income from default Income from disposal of fixed assets and intangible assets Government grant Others (b) Non-operating expenses Donation expenses Penalty expenses Overdue fines Defaults on delivery of flats Loss on disposal of fixed assets and intangible assets Others	2016 153 154 53 32 250 642 2016 1,469 273 268 171 10 315 2,506	2015 80 87 – 3 120
		290
		2015 114 158 219 109 3 139
		742

– 51 –

– II-196 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(37) Income tax expenses

Current income tax Deferred income tax Gross profit Income tax calculated by applicable tax rate (25%) Non-taxable income Non-deductible costs, fees and losses Deductible loss on unrecognised deferred income tax assets Income tax fees	2016 10,017 (1,208) 8,809 2016 26,510 6,628 (22) 1,849 354 8,809	2015 5,566 2,234
		7,800
		2015 29,284
		7,321 (473) 836 116
		7,800

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APPENDIX II

			Other comprehensive incomes in the statement of income 2016	Vested in minority	Pre-tax amount Less: Income tax Vested in parent shareholders	for the Year expenses company after tax after tax					(263) 66 (197) –		(4,193) 1,048 (3,145) –	769 – 769 –	(3,887) 1,114 (2,573) –	Other comprehensive incomes in the statement of income 2015	Vested in minority	Pre-tax amount Less: Income tax Vested in parent shareholders	for the Year expenses company after tax after tax				75 (19) 56 –
(Expressed in millions of RMB, unless otherwise indicated)	7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)	(38) Other comprehensive incomes	Other comprehensive incomes in the balance sheet		31 December Vested in parent 31 December	2015 company after tax 2015	Other comprehensive incomes to be reclassified	as profit or loss	Other comprehensive incomes to be reclassified as	profit or loss attributable to the investee entities	under equity method – – –	Profit or loss on change in fair value of	available-for-sale financial assets 56 (3,145) (3,089)	Translation difference on foreign currencies – 769 769	56 (2,376) (2,320)	Other comprehensive incomes in the balance sheet		31 December Vested in parent 31 December	2014 company after tax 2015	Other comprehensive incomes to be reclassified	as profit or loss	Profit or loss on change in fair value of	available-for-sale financial assets – 56 56	–53–

– II-198 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(39) Notes to the statement of cash flows

(a) Reconciliation of net profit to cash flows from operating activities

Net profit Add: Depreciation of fixed assets Amortisation of fees Amortisation of intangible assets Gain on disposal of fixed assets, intangible assets and investment properties Provision for/(reversal of) asset impairments Gain on change in fair value Financial expenses Investment (gain)/loss Increase in deferred income tax assets (Increase)/decrease in deferred income tax liabilities Increase in inventory (Increase)/decrease in operating receivables Increase in restricted operating capital Increase in operating payables Employee share option scheme and other Net cash flow generated from operating activities	2016 17,701 1,310 175 137 (1,129) 374 (3,853) 3,694 (6) (1,446) (56) (99,683) (38,457) (28,927) 134,247 85 (15,834)	2015 21,484 1,090 85 88 (523) (4) (8,648) 546 (6,132) (133) 4,140 (76,030) 6,243 (8,531) 66,201 143
		19

– 54 –

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APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(39) Notes to the statement of cash flows (Continued)

(b) Investments and fund-raising activities not involving cash in/out

In 2016 and 2015, the Group has no material investments and fund-raising activities which do not involve cash in/out.

Balance of cash and cash equivalents at the end of the Year Less: Opening cash and cash equivalents at the beginning of the Year Increase in cash and cash equivalents (d) Cash and cash equivalents Cash and bank balances (note 7(1)) Less: Restricted cash and bank balances Balance of cash and cash equivalents at the end of the Year	2016 171,185 (91,301) 79,884 31 December 2016 275,191 (104,006) 171,185	2015 91,301 (28,624)
		62,677
		31 December 2015 151,067 (59,766)
		91,301

(e) Net cash received upon disposal of subsidiaries

(i) Cash received upon disposal of subsidiaries

In 2016, the Company transferred all the shareholdings in Evergrande Culture, Evergrande Tourism, 恒大香檳島and Evergrande Nanchang to Hengda Group Limited, controlled by the same ultimate holding company China Evergrande Group, at nil consideration. Net asset value of the companies transferred out was RMB28,179,000,000, the loss of which equals the allocation to the owners minus capital reserve, surplus reserve and unallocated profit.

Information on the disposal date is set out below:

Price of disposal of subsidiaries Cash and cash equivalents received on disposal Less: Disposal of cash and cash equivalents held by subsidiaries Net cash outflow on disposal	Amount – – (9,633)
	(9,633)

The difference between the cash received in the above price and the cash and cash equivalents held by the disposing subsidiaries is negative and will be reflected in the item of “cash paid for other investing activities”.

– 55 –

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(39) Notes to the statement of cash flows (Continued)

(e) Net cash received upon disposal of subsidiaries (Continued)

In 2016, the Company transferred all the shareholdings in Qingdao Calxon Real Estate Development Company Limited (青島嘉凱城房地產開發有限公司), Guangjuyuan (Chengdu) Investment Company Limited (成都廣聚源投資有限公司) and 51% of the shareholdings in Jinan Evergrande Chengxi Property Co., Ltd. (濟南恒大城西置業有限公司) to third parties.

Information on the disposal date is set out below:

Price of disposal of subsidiaries Cash and cash equivalents received on disposal Less: Disposal of cash and cash equivalents held by subsidiaries Net cash outflow on disposal	Amount 4,111 1,933 (34)
	(1,899)

(ii) Net assets of subsidiaries disposed

Current assets Non-current assets Current liabilities Non-current liabilities Total	Date of disposal 34,400 24,760 (17,287) (9,784) 32,089	31 December 2015 38,570 16,079 (18,284) (5,120)
		31,245

(iii) Income, fees and profits of the disposed subsidiaries from 1 January 2016 to the date of disposal:

Income Less: Costs and fees Total loss Less: Income tax fee Net loss	Amount 535 (1,997)
	(1,462) 294
	(1,168)

– 56 –

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

7. NOTES TO CONSOLIDATED FINANCIAL STATEMENT (CONTINUED)

(39) Notes to the statement of cash flows (Continued)

(f) Cash paid for other operating activities

Cash paid for other operating activities under the statement of cash flows mainly includes:

Advertising and marketing expenses Sales commissions paid Office and travel expenses paid Professional services paid Donation expenses Bank fees Business-related assurance paid Others	2016 8,325 1,764 970 351 1,469 1,066 4,185 2,672 20,802	2015 6,026 721 860 210 114 593 2,576 970
		12,070

8 SEGMENT INFORMATION

The Group has four reporting segments, namely:

Property development
Property investment
Property management
Other business

Transfer prices between segments were determined with reference to that to third parties.

– 57 –

– II-202 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

8 SEGMENT INFORMATION (CONTINUED)

(a) Segment information for 2016 is set out as follows:

Property development Transaction income 195,744 Inter-segment transaction income – Transactions with outside parties 195,744 Loss on investment in associates (2) Loss on investment in joint ventures (39) Segment results 25,294 Profit or loss on change of fair value of financial assets at fair value through profit or loss Other investment gains Financial fees Gross profit Income tax expenses Net profit Of which, segment results include: Depreciation and amortisation fees 1,003 Segment assets 1,026,236 Unallocated amount Total assets Segment liabilities 506,901 Unallocated amount Total liabilities Increase in other non-current assets (fixed assets, intangible assets, construction in process and capital expenditure of investment properties) 3,314	Property investment Property management 2,848 3,698 (105) (1,725) 2,742 1,973 – – – – 4,922 368 – 6 130,196 2,303 10,720 2,006 31,544 16	Other segments Inter-segment offsetting 18,488 (15,681) (13,850) 15,681 4,638 – – – (606) – (837) – 613 – 25,212 – 11,322 – 2,769 –	Total 205,097 –
			205,097
			(2) (645) 29,747
			(80) 653 (3,810)
			26,510 (8,809)
			17,701
			1,622
			1,183,947 56,191
			1,240,138
			530,949 621,047
			1,151,996
			37,643

– 58 –

– II-203 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

8 SEGMENT INFORMATION (CONTINUED)

(b) Segment information for 2015 is set out as follows:

Property development Transaction income 125,510 Inter-segment transaction income – Transactions with outside parties 125,510 Loss on investment in associates 173 Loss on investment in joint ventures (16) Segment results 14,761 Profit or loss on change of fair value of financial assets at fair value through profit or loss Other investment gains Financial fees Gross profit Income tax expenses Net profit Of which, segment results include: Depreciation and amortisation fees 619 Segment assets 635,098 Unallocated amount Total assets Segment liabilities 293,513 Unallocated amount Total liabilities Increase in other non-current assets (fixed assets, intangible assets, construction in process and capital expenditure of investment properties) 1,752	Property investment Property management 1,135 3,256 (114) (1,901) 1,021 1,355 – – – – 13,399 60 – 8 96,382 1,186 5,858 969 23,063 8	Other segments Inter-segment offsetting 13,593 (12,808) (10,793) 12,808 2,800 – 1 – (579) – (487) – 636 – 4,968 – 4,970 – 1,461 –	Total 130,686 –
			130,686
			174 (595) 27,733
			(3,758) 6,553 (1,244) 29,284 (7,800)
			21,484
			1,263
			737,634 9,954
			747,588
			305,310 345,232
			650,542
			26,274

Asat 31 December 2016 and 31 December 2015, the Group’s non-current assets were mainly located in the People’s Republic of China.

Unallocated assets include the financial assets in fair value through profit or loss, other current assets, the available-for-sale financial assets and the deferred income tax assets.

Unallocated liabilities include short-term borrowings, tax payables, non-current liabilities due within one year, long-term borrowings, bond payables, deferred income tax liabilities and other non-current liabilities.

– 59 –

– II-204 –

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APPENDIX II

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016	(Expressed in millions of RMB, unless otherwise indicated)	INCREASE IN THE SCOPE OF CONSOLIDATION	Acquisition of Subsidiaries	In 2016, the Group acquired controlling interests of certain real estate development companies in the PRC. These companies only held parcels of land and did not conduct any substantial	operation before they were acquired by the Group. Thus, the management is of the view that the acquisitions do not constitute acquisition of businesses, and should be deemed as the	acquisition of land use rights. These acquisitions resulted in an increase in the minority interests of the Group in the amount of RMB1,172 million (2015: RMB1,649 million).	Business combinations by entities not under common control	The subsidiaries acquired from business combinations by entities not under common control:	Time at which the acquirer Equity ratio Acquisition The basis for	Acquiree obtains control Acquisition cost acquired method Acquisition date acquisition date	Subsidiaries of New World Development (China) Limited	– Hinto Developments Limited January 2016 3,635 60% Paid in cash January 2016 Obtaining effective control	– Superb Capital Enterprises Limited,	Dragon Fortune Limited and White Heron Limited January 2016 1,070 100% Paid in cash January 2016 Obtaining effective control	–佳裕投資有限公司 January 2016 8,205 100% Paid in cash January 2016 Obtaining effective control	–勝雄國際有限公司 February 2016 5,300 100% Paid in cash February 2016 Obtaining effective control	–振鷹環球有限公司 May 2016 2,000 60% Paid in cash May 2016 Obtaining effective control	Subsidiaries of Chow Tai Fook Enterprises Limited	–麗來富華集團有限公司 January 2016 7,000 100% Paid in cash January 2016 Obtaining effective control	– Qingdao Jinwan Property Company Limited January 2016 2,000 100% Paid in cash January 2016 Obtaining effective control	– Charisma City limited March 2016 1,800 90% Paid in cash March 2016 Obtaining effective control	– Ace Score Holding Limited March 2016 1,700 90% Paid in cash March 2016 Obtaining effective control
		9	(1)				(2)	(a)

– II-205 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

				The basis for	acquisition date	Obtaining effective control		Obtaining effective control	Obtaining effective control		Obtaining effective control	Obtaining effective control	Obtaining effective control	Obtaining effective control	Obtaining effective control	Obtaining effective control	Obtaining effective control	Obtaining effective control	Obtaining effective control	Obtaining effective control	Obtaining effective control	Obtaining effective control	Obtaining effective control	Obtaining effective control	Obtaining effective control	Obtaining effective control	Obtaining effective control	Obtaining effective control
					Acquisition date	January 2016		March 2016	February 2016		July 2016	January 2016	January 2016	February 2016	July 2016	February 2016	January 2016	August 2016	July 2016	March 2016	March 2016	March 2016	February 2016	April 2016	July 2016	June 2016	April 2016	March 2016
				Acquisition	method	Paid in cash		Paid in cash	Paid in cash		Paid in cash	Paid in cash	Paid in cash	Paid in cash	Paid in cash	Paid in cash	Paid in cash	Paid in cash	Paid in cash	Paid in cash	Paid in cash	Paid in cash	Paid in cash	Paid in cash	Paid in cash	Paid in cash	Paid in cash	Paid in cash
				Equity ratio	acquired	100%		100%	100%		100%	100%	100%	100%	100%	100%	100%	100%	73%	100%	100%	100%	100%	100%	65%	60%	100%	100%
(Expressed in millions of RMB, unless otherwise indicated)	INCREASE IN THE SCOPE OF CONSOLIDATION (CONTINUED)	Business combinations by entities not under common control (continued)	The subsidiaries acquired from business combinations by entities not under common control (continued):	Time at which the acquirer	Acquiree obtains control Acquisition cost	Pioneer Time Investment Limited January 2016 8,700	Full Jolly Investments Limited and	Win Harbor Investments Limited March 2016 1,559	杭州品立置業有限公司 February 2016 1,360	大連盛都怡和房地產開發有限公司,大連東方盛都買地	有限公司and大連東方亞都置業 July 2016 1,266	貴州集成房地產開發有限公司 January 2016 1,227	元基投資顧問有限公司 January 2016 899	深圳市心怡房地產有限公司 February 2016 850	Jinan Yuanhao Property Company Limited July 2016 810	Ever Shiny International Limited February 2016 770	佛山市南海區歐泰置業有限公司 January 2016 694	福建省磐石房地產開發有限公司 August 2016 663	湖南亦成投資有限公司 July 2016 576	哈爾濱盛和置業有限公司 March 2016 480	Harbin Gaodeng Property Company Limited March 2016 400	甘肅恒源房地產開發有限公司 March 2016 359	東營御景置業有限公司 February 2016 350	泉州市鑽石投資發展有限公司 April 2016 340	無錫雲廈置業有限公司 July 2016 314	梅州大百匯品牌產業園有限公司 June 2016 277	哈爾濱盛茂置業有限公司 April 2016 250	廣東江門船廠有限公司 March 2016 230
	9	(2)	(a)

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APPENDIX II

			The basis for	acquisition date	Obtaining effective control	Obtaining effective control	Obtaining effective control	Obtaining effective control	Obtaining effective control	Obtaining effective control	Obtaining effective control	Obtaining effective control	Obtaining effective control	Obtaining effective control	Obtaining effective control	Obtaining effective control	Obtaining effective control	Obtaining effective control	Obtaining effective control	Obtaining effective control		Obtaining effective control			Obtaining effective control	Obtaining effective control	Obtaining effective control
				Acquisition date	April 2016	August 2016	July 2016	September 2016	August 2016	July 2016	April 2016	June 2016	November 2016	November 2016	November 2016	November 2016	December 2016	December 2016	December 2016	December 2016		December 2016			December 2016	December 2016	December 2016
			Acquisition	method	Paid in cash	Paid in cash	Paid in cash	Paid in cash	Paid in cash	Paid in cash	Paid in cash	Paid in cash	Paid in cash	Paid in cash	Paid in cash	Paid in cash	Paid in cash	Paid in cash	Paid in cash	Paid in cash		Paid in cash			Paid in cash	Paid in cash	Paid in cash
			Equity ratio	acquired	100%	70%	60%	51%	70%	65%	100%	53%	100%	90%	100%	100%	100%	100%	100%	100%		100%			100%	65%	100%
INCREASE IN THE SCOPE OF CONSOLIDATION (CONTINUED)	Business combinations by entities not under common control (continued)	The subsidiaries acquired from business combinations by entities not under common control (continued):	Time at which the acquirer	Acquiree obtains control Acquisition cost	鄭州中楷置業有限公司 April 2016 185	Jinan Xikai Property Company Limited August 2016 167	哈爾濱眾誠置業房地產開發有限公司 July 2016 115	創見控股有限公司 September 2016 103	Jinan Xiye Property Company Limited August 2016 102	淶水利華房地產開發有限公司 July 2016 93	三亞哈達農副產品交易有限公司 April 2016 20	China Calxon Group Co., Ltd. June 2016 3,000	重慶和生裕房地產開發有限公司 November 2016 700	重慶愷成房地產開發有限公司 November 2016 26	漢斯（大連）公寓開發有限公司 November 2016 292	吉林省中報房地產開發有限公司 November 2016 53	Healthy Time International Limited December 2016 1,065	海南金萃房地產開發有限公司 December 2016 982	重慶貝蒙世暉置地有限公司 December 2016 73	Win Peak Group Limited December 2016 289	Billion Sino Investments Limited and	西安中渝置地有限公司 December 2016 153	重慶恒陽房地產開發有限公司,重慶開陽房地產開發	有限公司,重慶合陽房地產開發有限公司and重慶睿陽	房地產開發有限公司 December 2016 700	湖南大東皇置業有限公司 December 2016 113	浙江金湖置業有限公司 December 2016 114
9	(2)	(a)

– II-207 –

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APPENDIX II

Business combinations by entities not under common control (continued)	Details of the combination cost and goodwill recognized are as follows:	Combination Cost –	New World	Development Chow Tai Fook Pioneer Time	(China) Limited Enterprises Limited Investment Limited Others Total	Cash Consideration 20,210 12,500 8,700 21,212 62,622	Fair value of the equity interests originally held as at acquisition date – – – 817 817	Total combination costs 20,210 12,500 8,700 22,029 63,439	Less: Fair value of the identifiable net assets obtained (20,210) (12,500) (8,700) (21,026) (62,436)	Goodwill – – – 1,003 1,003	In 2016, the Group acquired 52.78% of equity interests in China Calxon Group Co., Ltd., a listed company in Mainland China, at a cash consideration of RMB3,000 million, giving rise to	goodwill of RMB1,003 million.	The Group adopts valuation techniques to determine the fair values of the non-cash assets transferred and that of the liabilities incurred or undertaken.

– II-208 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

9 INCREASE IN THE SCOPE OF BUSINESS CONSOLIDATION (CONTINUED)

(2) Business combinations by entities not under common control (continued)

(c) Details of the assets, liabilities and acquisition-related cash flow of the acquiree as at the acquisition date are set out as follows:
(i) The subsidiaries of New World Development (China) Limited

Cash and bank balances Trade and other receivables Prepayments Inventories Investment properties Fixed assets Intangible assets Deferred income tax assets Less: Trade and other payables Receipts in advance Borrowings Deferred income tax liabilities Other non-current liabilities Net assets Less: Minority interests Net assets obtained	Fair value Acquisition date 1,117 2,120 683 30,767 1,731 1,049 24 6 (4,877) (3,605) (1,264) (3,630) (679) 23,442 (3,232) 20,210	Carrying	amounts
		Acquisition date 1,117 2,120 683 14,550 1,730 1,049 24 6 (4,877) (3,605) (1,264) (17) – 11,516 (848) 10,668	31 December 2015 1,117 2,120 683 14,550 1,730 1,049 24 6 (9,283) (3,605) (1,955) (17) –
			6,419 (848)
			5,571

– 64 –

– II-209 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

9 INCREASE IN THE SCOPE OF BUSINESS CONSOLIDATION (CONTINUED)

(2) Business combinations by entities not under common control (continued)

(c) Details of the assets, liabilities and acquisition-related cash flow of the acquiree as at the acquisition date are set out as follows:

(ii) The subsidiaries of Chow Tai Fook Enterprises Limited

Cash and bank balances Trade and other receivables Prepayments Inventories Fixed assets Deferred income tax assets Less: Trade and other payables Receipts in advance Deferred income tax liabilities Other non-current liabilities Net assets Less: Minority interests Net assets obtained	Fair value Acquisition date 517 1,533 88 19,758 3 19 (1,748) (883) (1,798) (4,843) 12,646 (146) 12,500	Carrying	amounts
		Acquisition date 517 1,533 88 7,925 3 19 (1,748) (883) – – 7,454 – 7,454	31 December 2015 517 1,533 88 7,925 3 19 (3,831) (883) – –
			5,371 –
			5,371

(c) Details of the assets, liabilities and acquisition-related cash flow of the acquiree as at the acquisition date are set out below:

(iii) Pioneer Time Investment Limited

Prepayments Investment properties Less: Trade and other payables Receipts in advance Deferred income tax liabilities Other current liabilities Net assets Less: Minority interests Net assets obtained	Fair value Acquisition date 5 9,651 (886) (54) (14) (2) 8,700 – 8,700	Carrying	amounts
		Acquisition date 5 9,184 (886) (54) (14) (2) 8,233 – 8,233	31 December 2015 2 9,184 (930) (8) (14) –
			8,234 –
			8,234

– 65 –

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

9 INCREASE IN THE SCOPE OF BUSINESS CONSOLIDATION (CONTINUED)

(2) Business combinations by entities not under common control (continued)

(c) Details of the assets, liabilities and acquisition-related cash flow of the acquiree as at the acquisition date are set out as follows:

(iv) Other merger parties in 2016

Other merger parties in 2016
Cash and bank balances Trade and other receivables Prepayments Inventories Investment properties Fixed assets Construction in progress Intangible assets Deferred income tax assets Other assets Less: Trade and other payables Advances Borrowings Tax payable Deferred income tax liabilities Other non-current liabilities Net assets Less: Minority interests Net assets obtained Cash consideration paid for the acquisition of subsid Cash consideration Less: Cash and cash equivalents of the subsidiaries acquired Acquisition consideration prepaid in the previous year Unpaid acquisition consideration Net cash paid for the acquisition of subsidiaries Payment of the previous year’s acquisition consideration in the year Cash outflow for the acquisition of subsidiaries	Fair value Acquisition date 3,397 7,031 1,382 94,514 5,352 521 – 137 10 811 (25,613) (18,527) (33,098) (1,526) (6,072) (3,964) 24,355 (3,329) 21,026 iaries 62,622 (5,031) (1,047) (20,879) 35,665 8,455 44,120	Carrying	amounts
		Acquisition date 3,397 7,031 1,382 70,795 3,650 360 – 67 51 919 (25,613) (18,527) (33,098) (1,526) – – 8,888 (1,205) 7,683	31 December 2015 4,517 23,804 4,092 78,980 517 511 3 150 51 1,807 (43,439) (27,948) (28,402) (1,609) – –
			13,034 (1,293)
			11,741

(v) Cash consideration paid for the acquisition of subsidiaries

– 66 –

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

9 INCREASE IN THE SCOPE OF BUSINESS CONSOLIDATION (CONTINUED)

(2) Business combinations by entities not under common control (continued)

(d) The revenue, net profit and cash flow of the acquiree from the acquisition date to the period ended 31 December 2016 are set out as follows:

Operating income 10,328 Net losses (735)

The Group adopts valuation techniques such as the market approach and the income approach to determine the fair value of the assets and liabilities of the acquiree as at the acquisition date.

(3) Business combinations by entities under common control

As described in Note 2, in 2016, the Group combined certain subsidiaries which are under the control of China Evergrande Group, thus constituting business combinations by entities under common control. The combination cost and the carrying amount of the net assets obtained are set out as follows:

Combination costCash paid 9,454 Less: Carrying amount of the net assets obtained (11,936) Adjustment to capital reserve (2,482)

– 67 –

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

9 INCREASE IN THE SCOPE OF BUSINESS CONSOLIDATION (CONTINUED)

(3) Business combinations by entities under common control (continued)

The carrying amounts of the assets and liabilities as at the combination date are set out as follows:

Cash and bank balances Notes receivable Trade receivables Prepayments Dividends receivable Other receivables Inventories Other current assets Available-for-sale financial assets Long-term equity investments Investment properties Fixed assets Construction in progress Intangible assets Deferred income tax assets Other non-current assets Less: Borrowings Notes payable Trade payables Receipts in advance Employee remuneration payable Tax payable Interests payable Dividends payable Other payables Deferred income tax liabilities Other non-current liabilities Other liabilities Net assets Less: Minority interests Net assets obtained	Carrying	amounts
	Combination date 19,472 61 1,522 12,920 26 143,345 133,457 2,808 519 1,801 18,756 4,765 1,555 2,945 273 159 (81,749) (7,196) (19,064) (27,239) (263) (6,489) (3,088) (5,011) (146,421) (9,080) (8,892) (9,347) 20,545 (8,609) 11,936	31 December 2015 26,655 10 969 15,296 447 71,661 58,803 433 784 – 14,552 2,556 1,089 1,445 76 94 (42,542) (5,998) (15,151) (9,840) (272) (6,255) (80) (1,918) (89,577) (1,187) (2,526) –
		19,524 (5,807)
		13,717

– 68 –

– II-213 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

9 INCREASE IN THE SCOPE OF BUSINESS CONSOLIDATION (CONTINUED)

(3) Business combinations by entities under common control (continued)

The revenue, net profit and cash flow for 2015 and from the period between 1 January 2016 and the combination date are set out as follows:

	The period between
	1 January 2016
	and the combination
	date	2015
Revenue	20,432	17,422
Net profit	1,512	1,673

10 RELATED PARTIES AND RELATED PARTY TRANSACTIONS

(1) Parent company and subsidiaries

The general information and other related information of the subsidiaries are set out in Note 6.

(a) General information of the parent company

Guangzhou Kailong Real Estate Company Limited (b) Registered capital and changes in registered capital of the parent company Guangzhou Kailong Real Estate Company Limited (c) The percentages of shareholding and voting rights in the Company held by Guangzhou Kailong Real Estate Company Limited	Place of registration China 31 Dec	Nature of business Real estate development
		ember 2016 and 2015 600,000,000
	the parent company: 31 Dec	ember 2016 and 2015
	Percentage of shareholding 100%	Percentage of voting rights 100%

– 69 –

– II-214 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

10 RELATED PARTIES AND RELATED PARTY TRANSACTIONS (CONTINUED)

(2) Natures of the principal related parties which do not have a controlling relationship with the Group

Name of the company China Evergrande Group 廣州市超豐置業有限公司 ANJI (BVI) Limited ShengJian (BVI) Limited Billion Mark Limited Able Key Development Limited Excel Come Limited 嘉建(BVI)有限公司恒大集團有限公司恒大旅遊集團有限公司儋州恒大香檳島投資開發有限公司儋州信恒房地產開發有限公司儋州中潤房地產開發有限公司儋州興合投資有限公司儋州祥雷投資有限公司儋州嘉元房地產開發有限公司儋州保軍投資有限公司儋州輝望投資有限公司儋州諾亞投資有限公司啟東寶豐置業有限公司啟東鑫華置業有限公司啟東衡美置業有限公司啟東譽豪置業有限公司啟東市立群健身俱樂部有限公司啟東市萬仁動感影視城有限公司啟東市金色海岸大酒店有限公司啟東市怡然康復保健有限公司啟東市惠口褔飲食廣場有限公司啟東市童心游樂有限公司啟東市欣晴娛樂有限公司啟東通譽健身俱樂部有限公司啟東寶豐康復保健有限公司啟東衡美影視城有限公司啟東歡樂大酒店有限公司啟東譽豪飲食廣場有限公司啟東勤盛游樂有限公司啟東恒大酒店有限公司恒大地產集團（南昌）有限公司恒大互聯網集團有限公司廣東乾永投資有限公司恒大金融資產管理（深圳）有限公司廣州市瑞愷投資有限公司深圳市恒大酒店管理有限公司恒大文化產業集團有限公司and its subsidiaries

Relationship with the Group Intermediate holding company of the Company Intermediate holding company of the Company Intermediate holding company of the Company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company Under the control of the same ultimate holding company

– 70 –

– II-215 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

10 RELATED PARTIES AND RELATED PARTY TRANSACTIONS (CONTINUED)

(2) Natures of the principal related parties which do not have a controlling relationship with the Group (continued)

Name of the company	Relationship with the Group
恒大長白山礦泉水股份有限公司Note	Under the control of the same ultimate holding company
恒大糧油集團有限公司Note	Under the control of the same ultimate holding company
安圖恒大長白山礦泉水有限公司Note	Under the control of the same ultimate holding company
恒大乳業有限公司Note	Under the control of the same ultimate holding company
深圳市恒大糧油銷售有限公司Note	Under the control of the same ultimate holding company
深圳市恒大飲品有限公司Note	Under the control of the same ultimate holding company
珠海泓粵日用品有限公司Note	Under the control of the same ultimate holding company
深圳恒大母嬰用品有限公司Note	Under the control of the same ultimate holding company
恒大糧油有限公司Note	Under the control of the same ultimate holding company
深圳市久初投資有限公司Note	Under the control of the same ultimate holding company
恒大飲品集團有限公司Note	Under the control of the same ultimate holding company
恒大畜牧業有限公司Note	Under the control of the same ultimate holding company
深圳市恒大健康產業有限公司Note	Under the control of the same ultimate holding company
恒大人參有限公司Note	Under the control of the same ultimate holding company
恒大長白山礦泉水有限公司Note	Under the control of the same ultimate holding company
綏化恒大非轉基恩壓榨大豆油有限公司Note	Under the control of the same ultimate holding company
長春恒大人參產業有限公司Note	Under the control of the same ultimate holding company
泰來恒大綠色米業有限公司Note	Under the control of the same ultimate holding company
興安恒大糧油有限公司Note	Under the control of the same ultimate holding company
內蒙古新谷園生態農業有限公司Note	Under the control of the same ultimate holding company
黑河孫吳恒大非轉基恩壓榨大豆油有限公司Note	Under the control of the same ultimate holding company
泰米恒大米業有限公司Note	Under the control of the same ultimate holding company
Evergrande Life Insurance Co., Ltd.	Joint venture of the Company’s ultimate holding company
Shengjing Bank Co., Ltd.	Associate of the Company’s ultimate holding company

Note: China Evergrande Group ceased to have control over these subsidiaries during the fourth quarter of 2016.

– 71 –

– II-216 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

10 RELATED PARTIES AND RELATED PARTY TRANSACTIONS (CONTINUED)

(3) Related party transactions

(a) Pricing policy

The prices of business transactions between the Group and related parties are determined through negotiations by both sides, with reference to the market prices.

(b) Sales of goods

Companies under the control of the same ultimate holding company Associates Joint ventures (c) Rendering of services Companies under the control of the same ultimate holding company Associates Joint ventures Joint venture of the Company’s ultimate holding company (d) Purchase of goods Companies under the control of the same ultimate holding company Joint ventures (e) Receiving of services Companies under the control of the same ultimate holding company Joint ventures	2016 307 101 39 447 2016 280 16 35 1 332 2016 293 10 303 2016 33 267 300	2015 284 77 –
		361
		2015 96 – 23 –
		119
		2015 273 77
		350
		2015 234 29
		263

– 72 –

– II-217 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

10 RELATED PARTIES AND RELATED PARTY TRANSACTIONS (CONTINUED)

(3) Related party transactions (continued)

(f) Leases

The Group as the lessor

Companies under the control of the same ultimate holding company Associates Joint ventures (g) Interest income from provision of finance leases Companies under the control of the same ultimate holding company (h) Interest cost from acceptance of borrowings Associate of the Company’s ultimate holding company Joint venture of the Company’s ultimate holding company (i) Lease payments Joint venture of the Company’s ultimate holding company	2016 11 1 5 17 2016 9 2016 222 10 232 2016 24	2015 – – 4
		4
		2015 –
		2015 – –
		–
		2015 –

(j) Providing and accepting funds

During 2016 and 2015, there were financial transactions between the Group and certain related parties, the transaction amounts of which are included in “cash received from other investing activities” and “cash paid for other investing activities” under investing activities, as well as “cash received from other financing activities” and “cash paid for other financing activities” under financing activities in the cash flow statement. The balance of financial transactions with related parties is set out in Note 10(4).

(k) Remuneration of key management

2016 2015 Remuneration of key management 184 225

– 73 –

– II-218 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

10 RELATED PARTIES AND RELATED PARTY TRANSACTIONS (CONTINUED)

(3) Related party transactions (continued)

(l) Establishment of joint ventures

In 2016, the Group and certain enterprises controlled by the joint venture of the ultimate holding company entered into certain cooperation agreements in relation to the establishment of joint ventures. These newly set-up companies became the subsidiaries of the Group on 31 December 2016, and the capital contribution of the enterprises controlled by the joint venture of the ultimate holding company was approximately RMB14,248 million in total.

(m) Others

The Group transferred the fixed assets held by the Group to the joint venture of the Company’s ultimate holding company at a consideration of RMB800 million.

(4) Balance receivable and payable by the principal related parties

(a) Trade receivables

Companies under the control of the same ultimate holding company (b) Trade payables Companies under the control of the same ultimate holding company (c) Other receivables Companies under the control of the same ultimate holding company Associates Joint ventures Joint venture of the Company’s ultimate holding company	31 December 2016 197 31 December 2016 – 31 December2016 609 433 1,121 456 2,619	31 December 2015 90
		31 December 2015 339
		31 December 2015 24,178 575 1,235 –
		25,988

As at 31 December 2016 and 31 December 2015, the abovementioned other receivables were amounts with the related parties that were interest-free, unsecured, unguaranteed and had no fixed terms of repayment.

– 74 –

– II-219 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

10 RELATED PARTIES AND RELATED PARTY TRANSACTIONS (CONTINUED)

(4) Balance receivable and payable by the principal related parties (continued)

(d) Long-term receivables Companies under the control of the same ultimate holding company (e) Other payables Companies under the control of the same ultimate holding company Associates Joint ventures	31 December 2016 407 31 December 2016 28,242 450 325 29,017	31 December 2015 –
		31 December 2015 33,288 701 598
		34,587

As at 31 December 2016 and 31 December 2015, the abovementioned other payables were amounts with the related parties that were interest-free, unsecured, unguaranteed and had no fixed terms of repayment.

(f) Prepayments Joint venture of the Company’s ultimate holding company (g) Receipts in advance Joint venture of the Company’s ultimate holding company (h) Borrowings Joint venture of the Company’s ultimate holding company Associate of the Company’s ultimate holding company	31 December 2016 24 31 December 2016 84 31 December 2016 5,516 799 6,315	31 December 2015 –
		31 December 2015 –
		31 December 2015 – –
		–

The above borrowings were secured borrowings provided to the Group by the joint venture and associate of the Company’s ultimate holding company. The weighted average interest rates of these borrowings were 10.20% and 7.35% per annum respectively.

– 75 –

– II-220 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

10 RELATED PARTIES AND RELATED PARTY TRANSACTIONS (CONTINUED)

(4) Balance receivable and payable by the principal related parties (continued)

(i) Dividends payable Guangzhou Kailong Real Estate Company Limited Companies under the control of the same ultimate holding company (j) Interests payable Joint venture of the Company’s ultimate holding company	31 December 2016 – 4,049 4,049 31 December 2016 223	31 December 2015 1,076 1,294
		2,370
		31 December 2015 –

– 76 –

– II-221 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

11 SHARE-BASED PAYMENT

Share-based payment refers to the granting of share option scheme by China Evergrande to China Evergrande employees (including employees of the Group), which is settled in its own shares as issued by China Evergrande. The Group is an enterprise receiving service and has no settlement obligation. Such share-based payment transaction will be treated as an equity-settled share-based payment.

As at 14 October 2009, China Evergrande granted 146,000,000 share options to employees of the Group (“Pre-IPO share options”), the exercise price of which was HK$3.5 per share. All share options were exercisable within three years from the date of grant.

As at 18 May 2010, China Evergrande granted 490,000,000 share options to employees of the Group (“2010 share options”), the exercise price of which was HK$2.4 per share. All share options were exercisable within five years from the date of grant.

As at 9 October 2014, China Evergrande granted 387,000,000 share options to employees of the Group (“2014 share options”), the exercise price of which was HK$3.05 per share. All share options were exercisable within five years from the date of grant.

Movements in the share options are set out as follows:

1 January 2015 Exercised during the year Lapsed during the year 31 December 2015 1 January 2016 Exercised during the year Lapsed during the year 31 December 2016	Number of share options (’000) 670,312 (238,644) (56,430)
	375,238
	375,238 (16,923) (11,800)
	346,515

Details of the share options as at 31 December 2016 are set out as follows:

			Exercise price/	Number of share
Date of grant	Vesting period	Exercise period	(HK$ per share)	options/(’000)
2010 share options
		31 December 2010 to
18 May 2010	7 months-55 months	31 December 2019	2.40	41,760
2014 share options
		9 October 2015 to
9 October 2014	1 year-5 years	8 October 2024	3.05	304,755

The weighted average fair value of share options was determined by reference to the valuation prepared by an independent valuer, Real Actuarial Consulting Limited, using the Binomial Model. The significant inputs into the model were share price at the date of grant, annual risk-free rate, expected volatility, life of the option and expected dividend yield, which are based on the best estimate of China Evergrande’s directors. The value of an option varies with different variables of certain subjective assumption.

As of 2016, the Group has recognised a fee of approximately RMB55,000,000 (2015: RMB80,000,000) under the share option scheme.

– 77 –

– II-222 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

12 COMMITMENTS

(1) Operating lease commitments

The future minimum lease payments of the Group due under the signed irrevocable operating leases contracts are summarized as follows:

Within 1 year 1 to 2 years 2 to 3 years Over 3 years	31 December 2016 408 330 287 423 1,448	31 December 2015 96 238 79 39
		452

(2) Capital commitments

Capital expenditures contracted for by the Group at the balance sheet date but are not yet necessary to be stated in the balance sheet are as follows:

Construction and installation contracts contracted for which is or going to be performed Land contracts contracted for which is or going to be performed	31 December 2016 150,075 59,151 209,226	31 December 2015 78,771 20,897
		99,668

(3) External investment commitments

External investment contracted for by the Group at the balance sheet date but are not yet necessary to be stated in the balance sheet are as follows:

	31	December	2016	31	December 2015
Acquisition of subsidiaries			–		41,525

– 78 –

– II-223 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

13 CONTINGENCIES

Mortgage guarantee of property owners (a) Third party financing guarantee (b)	31 December 2016 247,721 23,349 271,070	31 December 2015 141,388 3,185
		144,573

(a) The Group provided guarantees in respect of the banking facilities of certain purchasers of the Group’s property units according to relevant regulations. Such guarantees terminate upon the earlier of (i) issuance of the real estate ownership certificate which will generally be available within an average period of two to three years upon the completion of guarantee registration; or (ii) the satisfaction of mortgaged loan by the purchasers of properties. Pursuant to the terms of the guarantees, in case of default in mortgage payments by these purchasers during the period of guarantee, the Group shall repay the outstanding mortgage principals together with accrued interest and penalty owed by the defaulted purchasers to the banks. After payment of the principals, interest and penalty, the Group is entitled to take over the legal title of the related mortgaged properties.

(b) The Group provided financing guarantees for certain cooperation parties (primarily sub-contractors) that are independent of the Group, based on their history of performance in contracts. The Group closely monitors the repayment of such financing guarantees. The management of the Group considers that the possibility of the Group’s exposure to compensation risk due to such guarantees is remote, therefore no provision has been made in the financial statements for guarantees.

14 EvENTS AFTER THE BALANCE SHEET DATE

On 31 March 2017, the Company lodged an application to increase its registered capital by RMB378,787,879 in accordance with the Company’s shareholder resolution and the amended Articles of Association. Such contributions were made by 中信聚恒（深圳）投資控股中心（有限合夥), 廣田投資有限公司, 深圳市華建控股有限公司, 深圳市美投步陽投資合夥企業（有限合夥), 深圳市中融鼎興投資合夥企業（有限合夥), 廣東唯美明珠投資有限公司, 蘇州工業園區睿燦投資企業（有限合夥), 山東高速投資控股有限公司 and 山東鐵路發展基金有限公司 (hereafter abbreviated as “nine additional investors”)in cash. The registered capital reached RMB2,878,787,879 after the injection. As of 31 March 2017, the Company has received the additional contribution paid by nine additional investors in the total amount of RMB30,000,000,000, among which RMB378,787,879 was registered and paid-up capital while RMB29,621,212,121 was capital reserves.

– 79 –

– II-224 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

15 FINANCIAL INSTRUMENT AND RISK

(1) Market risk

(a) Foreign exchange risk

The Group’s major operational activities are carried out in Mainland China and a majority of the businesses are settled in RMB. The Group is exposed to foreign exchange risk arising from the assets, liabilities and transactions denominated in foreign currencies, primarily with respect to HK dollars and US dollars. The Group’s finance department is responsible for monitoring the scale of the Company’s transactions and amount of the assets and liabilities denominated in foreign currencies to minimise the foreign exchange risk. During 2016 and 2015, the Group did not enter into any forward exchange contracts or currency swap contracts.

As at 31 December 2016 and 31 December 2015, the amounts in RMB equivalent of the Group’s financial assets and financial liabilities denominated in foreign currencies are set out below:

	31 Decem	ber 2016
USD 521 2 523 11,673 – – 11,673	HKD 418 4 422 330 7,943 3,131 11,404 31 Decem	Others – – – 5,103 – 1,001 6,104 ber 2015	Total 939 6
			945
			17,106 7,943 4,132
			29,181

USD 36 810 846 2,474 3,873 2,076 8,423	HKD 3,701 3,012 6,713 855 16,248 – 17,103	Others – – – – – – –	Total 3,737 3,822
			7,559
			3,329 20,121 2,076
			25,526

– 80 –

– II-225 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

15 FINANCIAL INSTRUMENT AND RISK (CONTINUED)

(1) Market risk (continued)

(a) Foreign exchange risk (continued)

As at 31 December 2016, if the RMB had strengthened/weakened by 5% against foreign currencies while other variables had been held constant, the Group’s net profit for the year would have been approximately RMB1,059,000,000 higher/lower (31 December 2015: approximately RMB674,000,000 higher/lower) for various financial assets denominated in foreign currencies and financial liabilities denominated in USD. The difference would have no effect on other comprehensive income.

(b) Interest rate risk

The Group’s interest rate risk mainly arises from long-term interest-bearing debts. Financial liabilities issued at floating rates expose the Group to cash flow interest rate risk. Financial liabilities issued at fixed rates expose the Group to fair value interest rate risk. The Group determines the relative proportions of its fixed rate and floating rate contracts depending on the prevailing market conditions. As at 31 December 2016 and 31 December 2015, the Group’s long-term interest-bearing debts are mainly floating rate bank borrowings denominated in RMB, amounting to RMB63,079,000,000 and RMB43,354,000,000 respectively.

The Group’s finance department at its headquarters continuously monitors the interest rate position of the Group. Increases in interest rates will increase the cost of new interest-bearing debts and the interest expenses with respect to the Group’s outstanding floating rate debts, and therefore could have a material adverse effect on the Group’s financial results. The management may make timely adjustments with reference to the latest market conditions, which could mean entering into interest rate swap arrangements to mitigate its exposure to interest rate risk. During 2016 and 2015, the Group had no interest rate swap arrangement.

As at 31 December 2016, if interest rates on the floating rate borrowings had strengthened/weakened by 100 basis points while other variables had been held constant, the Group’s net profit would have been approximately RMB473,000,000 (31 December 2015: RMB325,000,000) lower/higher.

(2) Credit risk

Credit risk is managed on the grouping basis. Credit risk mainly arises from cash at bank, trade receivables, other receivables and notes receivable, etc.

– 81 –

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

15 FINANCIAL INSTRUMENT AND RISK (CONTINUED)

(3) Liquidity risk

The financial liabilities of the Group at the balance sheet date are set out by their maturity date below at their undiscounted contractual cash flows:

	31	December 201	6
Within 1 year 92,181 43,675 132,457 114,710 9,758 4,189 84,974 29,208 3,313 – 514,465	1 to 2 years – – – – – – – 169,158 3,313 36,907 209,378 31	2 to 5 years – – – – – – – 137,476 53,819 4,167 195,462 December 201	Over 5 years – – – – – – – 102,859 – 730 103,589 5	Total 92,181 43,675 132,457 114,710 9,758 4,189 84,974 438,701 60,445 41,804
				1,022,894

Within 1 year 38,665 42,069 87,700 82,893 5,201 2,370 86,956 7,106 2,690 – 355,650	1 to 2 years – – – – – – – 58,875 2,690 439 62,004	2 to 5 years – – – – – – – 27,435 38,519 2,402 68,356	Over 5 years – – – – – – – 63,936 8,993 – 72,929	Total 38,665 42,069 87,700 82,893 5,201 2,370 86,956 157,352 52,892 2,841
				558,939

– 82 –

– II-227 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

15 FINANCIAL INSTRUMENT AND RISK (CONTINUED)

(3) Liquidity risk (continued)

16 FAIR vALUE ESTIMATES

Based on the lowest level input that is significant to the fair value measurement in its entirety, the fair value hierarchy has the following levels:

Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Unobservable inputs for the asset or liability.

(1) Assets continuously measured at fair value

As at 31 December 2016, the assets continuously measured at fair value by the above three levels are analysed as below:

Financial assets Financial assets at fair value through profit or loss – Investments in equity instrument held for trading Available-for-sale financial assets – Available-for-sale equity instruments Non-financial assets Investment properties Total assets	Level 1 3,076 34,538 – 37,614	Level 2 – 274 – 274	Level 3 – 28 130,196 130,224	Total 3,076 34,840
				130,196 168,112

– 83 –

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FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

16 FAIR vALUE ESTIMATES (CONTINUED)

(1) Assets continuously measured at fair value (continued)

As at 31 December 2015, the assets continuously measured at fair value by the above three levels are analysed as below:

Financial assets Available-for-sale financial assets – Available-for-sale equity instruments Non-financial assets Investment properties Total assets	Level 1 287 – 287	Level 2 305 – 305	Level 3 195 96,382 96,577	Total 787
				96,382
				97,169

The fair value of a financial instrument in an active market is determined at the quoted price in the active market.

– 84 –

– II-229 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

16 FAIR vALUE ESTIMATES (CONTINUED)

(1) Assets continuously measured at fair value (continued)

Information about fair value measurements in level 3 are as follows:

Investment properties Completed – Commercial building Parking space In progress – Commercial building Parking space	Fair value as at 31 December 2016 Valuation technique Inputs Name Range/weighted average Relationship to fair value Observable/ unobservable 106,296 61,631 Income approach Ultimate yield 4%-6.5% Negative Unobservable Capitalisation rate 4%-7% Negative Unobservable Expected vacancy rate 0%-15% Negative Unobservable Monthly rental (RMB/square meter) 21-660 Positive Unobservable Direct comparison Market price (RMB/square meter) 3,356-144,633 Positive Unobservable 44,665 Direct comparison Market price (RMB/per parking space) 65,000-530,000 Positive Unobservable 23,900 14,887 Residual method Market price (RMB/square meter) 5,500-40,500 Positive Unobservable Budgeted cost (RMB/square meter) 1,233-7,610 Negative Unobservable Developer’s profit 5%-25% Negative Unobservable 9,013 Residual method Market price (RMB/parking space) 99,000-363,100 Positive Unobservable Budgeted cost (RMB/square meter) 510-2,562 Negative Unobservable Developer’s profit 2%-15% Negative Unobservable 130,196	Inputs

– 85 –

– II-230 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

16 FAIR vALUE ESTIMATES (CONTINUED)

(1) Assets continuously measured at fair value (continued)

Investment properties Completed – Commercial building Parking space In progress – Commercial building Parking space	Fair value as at 31 December 2015 Valuation technique Inputs Name Range/weighted average Relationship to fair value Observable/ unobservable 63,635 32,104 Income approach Discount rate 4%-5.5% Negative Unobservable Capitalisation rate 4%-7% Negative Unobservable Expected vacancy rate 0%-10% Negative Unobservable Monthly rental (RMB/square meter) 42-660 Positive Unobservable Direct comparison Market price (RMB/square meter) 6,970- 77,500 Positive Unobservable 31,531 Direct comparison Market price (RMB/per parking space) 84,300- 391,000 Positive Unobservable 32,747 18,002 Residual method Market price (RMB/squre meter) 5,360- 26,532 Positive Unobservable Budgeted cost (RMB/square meter) 100-6,038 Negative Unobservable Developer’s profit 2%-30% Negative Unobservable 14,745 Residual method Market price (RMB/parking space) 91,230- 288,000 Positive Unobservable Budgeted cost (RMB/square meter) 100-2,754 Negative Unobservable Developer’s profit 2%-20% Negative Unobservable 96,382	Inputs

(2) Assets and liabilities not measured at fair value but disclosed at fair value The Group’s financial assets and liabilities measured at amortised cost mainly represent receivables, short-term borrowings, payables and long-term borrowings.

The carrying amounts of such financial assets and liabilities not measured at fair values approximate of their fair values since the impact of discount is insignificant or the long-term borrowings have a floating rate.

(3) The fair value of bonds payable in an active market is determined at the quoted price in the active market, which is subject to level 1. The fair value of long-term borrowings, long-term payables and bonds payable not quoted in an active market is the present value of the contractually determined stream of future cash flows discounted at the rate of interest applied at that time by the market to instruments of comparable credit status and providing substantially the same cash flows on the same terms, which is subject to level 3.

– 86 –

– II-231 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

17 CAPITAL MANAGEMENT

As at 31 December 2016 and 31 December 2015, the Group’s asset-to-liability ratio is set out as below:

31 December 2016 31 December 2015 Asset-to-liability ratio 93% 87%

18 SIGNIFICANT NOTES TO THE COMPANY’S FINANCIAL STATEMENTS

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(1) Trade receivables
31 December 2016 31 December 2015
Due from related parties 183 –
Due from third parties 2 3
185 3
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The aging of trade receivables and the corresponding provisions made for bad debts are analysed as below:

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31 December 2016 31 December 2015
Percentage of Provisions for Percentage of Provisions for
Amount total amount bad debts Amount total amount bad debts
Within 1 year 185 100% – 3 100% –
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As at 31 December 2016 and 31 December 2015, none of the trade receivables was overdue but unimpaired.

– 87 –

– II-232 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

18 SIGNIFICANT NOTES TO THE COMPANY’S FINANCIAL STATEMENTS (CONTINUED)

(2) Other receivables

Related parties Third parties Less: provisions for bad debts	31 December 2016 106,865 906 107,771 (28) 107,743	31 December 2015 75,797 1,685
		77,482 –
		77,482

The aging of other receivables and the corresponding provisions made for bad debts are analysed as below:

Within 1 year 1 to 2 years Over 2 years	3	1 December 2016	Provisions for bad debts – – (28) (28)	3	1 December 2015
	Amount 107,561 81 129 107,771	Percentage of total amount 99.81% 0.07% 0.12% 100.00%		Amount 77,316 50 116 77,482	Percentage of total amount 99.79% 0.06% 0.15% 100.00%	Provisions for bad debts – – –
						–

As at 31 December 2016 and 31 December 2015, none of the other receivables was overdue but unimpaired.

(3) Long-term equity investments

Subsidiaries Joint ventures (a) Associates (b)	31 December 2016 60,184 469 1 60,654	31 December 2015 54,306 976 151
		55,433

– 88 –

– II-233 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

18 SIGNIFICANT NOTES TO THE COMPANY’S FINANCIAL STATEMENTS (CONTINUED)

(3) Long-term equity investments (continued)

(a) Joint ventures

Place of registration Nature of business Registered capital(RMB) 北京北恒中慧教育科技有限公司 China Cultural education 10,000,000 王府井恒大商業控股有限公司 China Commercial management 1,000,000,000 Guangzhou Evergrande Taobao Football Club Corp., Ltd. China Cultural entertainment 375,000,000	Percentage of shareholding and voting rights
	2016 2015 55% 55% 51% 51% 60% 60%

Investments in joint ventures are set out below:

					Adjustment
					of net profit/
	31	December	Increase in	Decrease in	loss using the	Other changes	31 December
		2015	investment	investment	equity method	in equity	2016
Joint ventures		976	–	–	(521)	14	469

None of the joint ventures is material to the Company on its own.

(b) Associates

Place of
registration
Nature of business
Registered capital
(RMB)
北京觀止文化藝術有限公司
China
Culture and arts
1,000,000
北京潤業文化藝術有限公司
China
Culture and arts
1,000,000
前海開源資產管理（深圳）有限公司
China
Assets management
100,000,000
恒大地產集團（深圳）有限公司
China Real estate development
130,000,000
31 December
2015
Increase in
investment
Decrease in
investment
Adjustment
of net profit/
loss using the
equity method
O
Associates
151
–
(165)
15

Percentage of Shareholding
and voting rights

2016
2015
30%
30%
25%
25%
N/A
16%
N/A
32%
ther changes
in equity
31 December
2016
–
1

None of the associates is material to the Company on its own.

(4) Operating income and operating costs

Income from service fees and others	2016 Operating income Operating costs 2,371 155	2015
		Operating income Operating costs 1,280 105

– 89 –

– II-234 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR YEAR 2016

(Expressed in millions of RMB, unless otherwise indicated)

18 SIGNIFICANT NOTES TO THE COMPANY’S FINANCIAL STATEMENTS (CONTINUED)

(5) Investment income

Income from long-term equity investment accounted for using the cost method Losses from long-term equity investment accounted for using the equity method Income from disposal of associates	31 December 2016 23,922 (506) 7 23,423	31 December 2015 4,908 (373) –
		4,535

The Company was not subject to significant restrictions in remitting its investment income.

(6) Notes to the cash flow statement

Reconciliation from net profit to cash flows from operating activities:

Net profit Add: Provision for asset impairment Depreciation of fixed assets Amortisation of intangible assets Losses arising from changes in fair value Interest expenses Investment income Increase in deferred income tax net liabilities Decrease/(increase) in inventories Increase in operating receivables (Decrease)/increase in operating payables Net cash flows from operating activities	2016 20,277 28 95 7 623 1,344 (22,866) (167) 439 (113) (1,007) (1,340)	2015 3,567 – 71 7 142 566 (4,535) (302) (577) (623) 734
		(950)

– 90 –

– II-235 –

APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE

HENGDA REAL ESTATE GROUP COMPANY LIMITED

UNAUDITED CONSOLIDATED AND THE COMPANY BALANCE SHEET AS AT 30 JUNE 2017

(Expressed in millions of RMB, unless otherwise indicated)

Assets Notes Current assets Cash and bank balances 2 Financial assets at fair value through profit or loss Note receivables Trade receivables Prepayments Interest receivables Dividend receivables Other receivables 3 Inventories 4 Non-current assets due within one year Other current assets Total current assets Non-current assets Available-for-sale financial assets Long-term receivables Long-term equity investments Investment properties 5 Fixed assets 6 Construction in progress Intangible assets Goodwill Long-term deferred expenses Deferred income tax assets Other non-current assets Total non-current assets Total assets	Consolidated 30 June 2017 31 December 2016 230,687 275,191 2,840 3,076 21 68 17,487 8,447 77,245 52,159 142 281 – – 32,983 28,627 754,656 647,097 7,368 7,019 19,563 14,466 1,142,992 1,036,431 1,962 34,840 6,568 8,746 573 727 135,658 130,196 14,576 13,208 5,075 4,478 5,234 5,138 – 1,003 124 204 2,597 3,809 1,022 1,358 173,389 203,707 1,316,381 1,240,138	The Company
		30 June 2017 31 December 2016 65,022 76,962 – – – – 21 185 359 288 127 301 5,735 11,545 168,824 107,743 2,337 2,264 – – 2,024 24
		244,449 199,312
		943 1,781 – – 66,581 60,654 2,419 2,414 801 833 6 – 78 82 – – 13 2 123 – – –
		70,964 65,766
		315,413 265,078

– II-236 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

UNAUDITED CONSOLIDATED AND THE COMPANY BALANCE SHEET AS AT 30 JUNE 2017 (CONTINUED)

(Expressed in millions of RMB, unless otherwise indicated)

Liabilities and owners’ equity Notes Current liabilities Short-term borrowings 7 Notes payables Trade payables Receipts in advance Employee remuneration payables Tax payables Interest payables Dividend payables Other payables 8 Other current liabilities Non-current liabilities due within one year Total current liabilities Non-current liabilities Long-term borrowings 9 Bond payables 10 Long-term payables Deferred income tax liabilities Other non-current liabilities Total non-current liabilities Total liabilities Owners’ equity Paid-up capital Capital reserve Other comprehensive (loss)/income Surplus reserve Exchange reserve Retained profits Total equity attributable to owners of the parent company Minority interests Total owners’ equity Total liabilities and owners’ equity	Consolidated 30 June 2017 31 December 2016 139,188 88,706 19,652 43,675 154,362 132,457 178,887 183,404 1,249 1,411 49,572 34,954 3,615 9,758 2,662 4,189 93,412 114,710 4,169 – 130,417 80,754 777,185 694,018 262,183 332,137 38,887 47,005 12,002 41,345 23,954 21,443 19,396 16,048 356,422 457,978 1,133,607 1,151,996 3,384 2,500 58,036 14 (517) (3,089) 192 42 559 769 77,428 52,989 139,082 53,225 43,692 34,917 182,774 88,142 1,316,381 1,240,138	The Company
		30 June 2017 31 December 2016 900 1,100 2 54 309 429 448 356 39 74 353 46 2,566 1,711 – – 168,769 183,709 – – 14,929 7,106
		188,315 194,585

		13,495 19,715 38,887 47,005 – – – 100 – –
		52,382 66,820
		240,697 261,405

		3,384 2,500 69,130 14 (429) 199 192 42 – – 2,439 918
		74,716 3,673
		– – 74,716 3,673
		315,413 265,078

Person-in-charge of the Company: Zhao Changlong

Person-in-charge of Prepared by: accounting: Hu Lijie Pan Hanling

– II-237 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

UNAUDITED CONSOLIDATED AND THE COMPANY INCOME STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2017

(Expressed in millions of RMB, unless otherwise indicated)

Items Notes I. Operating income 11 Less: Operating costs 11 Operating taxes and surcharges Selling expenses 12 Administrative expenses 13 Financial expenses – net 14 Asset impairment loss/(reversal) Add: Gain/(loss) from changes in fair value Investment (loss)/income II. Operating profit Add: Non-operating income Less: Non-operating expenses III. Total profit Less: Income tax expenses IV. Net profit Net profit attributable to owners of the parent company Profit and loss attributable to minority interests V. Net amount of other comprehensive income after tax VI. Total comprehensive income Total comprehensive income attributable to owners of the parent company Total comprehensive income attributable to minority interests	Consolidated For the six months ended 30 June 2017 For the six months ended 30 June 2016 181,915 86,908 (116,309) (59,209) (13,153) (7,639) (7,178) (6,868) (3,199) (2,582) (2,585) 181 (202) (157) 5,680 2,757 (3,751) (95) 41,218 13,296 255 665 (1,972) (1,558) 39,501 12,403 (13,905) (3,658) 25,596 8,745 24,589 7,855 1,007 890 2,362 (253) 27,958 8,492 26,951 7,602 1,007 890	The Company For the six months ended 30 June 2017 For the six months ended 30 June 2016 895 855 (12) (69) (71) (3) (477) (327) (491) (653) (614) (2,330) – – 5 (47) 2,834 17,787 2,069 15,213 – 2 (74) (73) 1,995 15,142 (324) (107) 1,671 15,035 1,671 15,035 – – (628) – 1,043 15,035 1,043 15,035 – –

Person-in-charge of the Company: Person-in-charge of Prepared by: Zhao Changlong accounting: Hu Lijie Pan Hanling

– II-238 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

UNAUDITED CONSOLIDATED AND THE COMPANY CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2017

(Expressed in millions of RMB, unless otherwise indicated)

Items I. Cash flows generated from operating activities Cash received from the sale of goods and provision of labour services Cash received from other operating activities Sub-total of cash inflows from operating activities Cash paid for the purchase of goods and engagement of labour services Cash paid to/for employees Tax charges paid Cash paid for other operating activities Sub-total of cash outflows from operating activities Net cash flows generated from operating activities II. Cash flows generated from investing activities Cash received from disposals of investments Cash received from investment gains Cash received from disposal of fixed assets, investment properties and intangible assets Cash received from disposal of subsidiaries and other operational units Cash received from other investing activities Sub-total of cash inflows from investing activities Cash paid for investments Cash paid for acquisition of fixed assets, investment properties and intangible assets Net cash paid for acquisition of subsidiaries and other operational units Cash paid for other investing activities Sub-total of cash used in investing activities Net cash flows generated from investing activities III. Cash flows generated from financing activities Cash received from investors Cash received from borrowings Cash received from bond issuance Cash received from other financing activities Sub-total of cash inflows from financing activities Cash paid for repayment of debts Cash paid for distribution of dividends, profits or repayment of interests Cash paid for other financing activities Sub-total of cash outflows from financing activities Net cash flows generated from financing activities IV. Effects of changes in foreign exchange rate on cash and cash equivalents V. Net change in cash and cash equivalents Add: Balance of cash and cash equivalents at the beginning of the period VI. Balance of cash and cash equivalents at the end of the period	Consolidated For the six months ended 30 June 2017 For the six months ended 30 June 2016 185,066 110,529 7,245 1,276 192,311 111,805 (206,081) (75,989) (6,668) (5,430) (17,995) (12,449) (14,131) (16,758) (244,875) (110,626) (52,564) 1,179 29,189 184 14 40 808 1,542 4,005 – 1,115 – 35,131 1,766 (2,223) (24,707) (8,104) (13,883) (21,627) (25,992) (4,621) (11,621) (36,575) (76,203) (1,444) (74,437) 57,805 967 200,353 174,039 – 9,940 8,340 43,350 266,498 228,296 (179,416) (98,423) (28,892) (13,202) (44,373) (26,430) (252,681) (138,055) 13,817 90,241 (110) 81 (40,301) 17,064 171,185 91,301 130,884 108,365	The Company
		For the six months ended 30 June 2017 For the six months ended 30 June 2016 1,152 1,043 1,084 780
		2,236 1,823
		(276) (52) (360) (415) (101) (99) (5,913) (1,573)
		(6,650) (2,139)
		(4,414) (316)
		15 – 5,810 7,235 10 – 6,581 – – 20,223
		12,416 27,458
		(2,000) (28,874) (43) (82) (125) – (63,909) –
		(66,077) (28,956)
		(53,661) (1,498)
		57,000 – – 10,000 – 9,940 – –
		57,000 19,940
		(6,769) – (1,733) (1,991) (12,400) (3,842)
		(20,902) (5,833)
		36,098 14,107
		– –
		(21,977) 12,293
		46,003 7,141 24,026 19,434

Person-in-charge of the Company: Zhao Changlong

Person-in-charge of Prepared by: accounting: Pan Hanling Hu Lijie

– II-239 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN OWNERS’ EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2017

(Expressed in millions of RMB, unless otherwise indicated)

Equity attributable to the owners of the parent company Paid-up capital Capital reserve Other comprehensive (loss)/ income Surplus reserve Exchange reserve Retained profits 2,500 14 (3,089) 42 769 52,989 – – – – – 24,589 – – 2,572 – (210) – – – 2,572 – (210) 24,589 884 69,116 – – – – – 29 – – – – – – – – – – – – – – – – – – – – – – – (11,123) – – – – – – – 150 – (150) – – – – – – 3,384 58,036 (517) 192 559 77,428 2,500 5,872 56 1,250 – 71,904 – – – – – 7,855 – – (253) – – – – – (253) – – 7,855 – – – – – – – 38 – – – – – – – – – – – – – – – – – (306) – – – – – (503) – – – – – (691) – – – – – – – – – – 2,500 4,410 (197) 1,250 – 79,759	Equity attributable to the owners of the parent company Paid-up capital Capital reserve Other comprehensive (loss)/ income Surplus reserve Exchange reserve Retained profits 2,500 14 (3,089) 42 769 52,989 – – – – – 24,589 – – 2,572 – (210) – – – 2,572 – (210) 24,589 884 69,116 – – – – – 29 – – – – – – – – – – – – – – – – – – – – – – – (11,123) – – – – – – – 150 – (150) – – – – – – 3,384 58,036 (517) 192 559 77,428 2,500 5,872 56 1,250 – 71,904 – – – – – 7,855 – – (253) – – – – – (253) – – 7,855 – – – – – – – 38 – – – – – – – – – – – – – – – – – (306) – – – – – (503) – – – – – (691) – – – – – – – – – – 2,500 4,410 (197) 1,250 – 79,759	Equity attributable to the owners of the parent company Paid-up capital Capital reserve Other comprehensive (loss)/ income Surplus reserve Exchange reserve Retained profits 2,500 14 (3,089) 42 769 52,989 – – – – – 24,589 – – 2,572 – (210) – – – 2,572 – (210) 24,589 884 69,116 – – – – – 29 – – – – – – – – – – – – – – – – – – – – – – – (11,123) – – – – – – – 150 – (150) – – – – – – 3,384 58,036 (517) 192 559 77,428 2,500 5,872 56 1,250 – 71,904 – – – – – 7,855 – – (253) – – – – – (253) – – 7,855 – – – – – – – 38 – – – – – – – – – – – – – – – – – (306) – – – – – (503) – – – – – (691) – – – – – – – – – – 2,500 4,410 (197) 1,250 – 79,759	Equity attributable to the owners of the parent company Paid-up capital Capital reserve Other comprehensive (loss)/ income Surplus reserve Exchange reserve Retained profits 2,500 14 (3,089) 42 769 52,989 – – – – – 24,589 – – 2,572 – (210) – – – 2,572 – (210) 24,589 884 69,116 – – – – – 29 – – – – – – – – – – – – – – – – – – – – – – – (11,123) – – – – – – – 150 – (150) – – – – – – 3,384 58,036 (517) 192 559 77,428 2,500 5,872 56 1,250 – 71,904 – – – – – 7,855 – – (253) – – – – – (253) – – 7,855 – – – – – – – 38 – – – – – – – – – – – – – – – – – (306) – – – – – (503) – – – – – (691) – – – – – – – – – – 2,500 4,410 (197) 1,250 – 79,759	Total owners’ equity
Paid-up capital 2,500 – – – 884 – – – – – – – 3,384 2,500 – – – – – – – – – – – 2,500	Capital reserve 14 – – – 69,116 29 – – – (11,123) – – 58,036 5,872 – – – – 38 – – (306) (503) (691) – 4,410	Other comprehensive (loss)/ income (3,089) – 2,572 2,572 – – – – – – – – (517) 56 – (253) (253) – – – – – – – – (197)	Surplus reserve Exchange reserve 42 769 – – – (210) – (210) – – – – – – – – – – – – 150 – – – 192 559 1,250 – – – – – – – – – – – – – – – – – – – – – – – 1,250 –	88,142 25,596 2,362
				27,958 81,622 29 202 591 (2,261) (13,373) – (136)
				182,774

				97,046 8,745 (253)
				8,492 967 38 125 3,378 (403) (2,230) (691) (442)
				106,280

Person-in-charge of the Company: Zhao Changlong

Person-in-charge of Prepared by: accounting: Pan Hanling Hu Lijie

– II-240 –

APPENDIX II FINANCIAL INFORMATION OF HENGDA REAL ESTATE

HENGDA REAL ESTATE GROUP COMPANY LIMITED

UNAUDITED COMPANY STATEMENT OF CHANGES IN OWNERS’ EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2017

(Expressed in millions of RMB, unless otherwise indicated)

					Other
				comprehensive				Total
	Paid-up		Capital		(loss)/	Surplus	Retained	owners’
Items	capital		reserve	income		reserve	profits	equity
Opening balance at 1 January
2017	2,500		14		199	42	918	3,673
Changes for the six months
ended 30 June 2017
Total comprehensive income
Net profit		–	–		–	–	1,671	1,671
Other comprehensive income		–	–		(628)	–	–	(628)
Total comprehensive income		–	–		(628)	–	1,671	1,043
Capital contributed and
withdrawn by owners
Capital contributed by owners		884	69,116		–	–	–	70,000
Profit distribution
Appropriation to surplus
reserves		–	–		–	150	(150)	–
Closing balance at 30 June 2017	3,384		69,130		(429)	192	2,439	74,716
Opening balance at 1 January
2016	2,500		518		–	1,250	5,382	9,650
Changes for the six months
ended 30 June 2016
Net profit		–	–		–	–	15,035	15,035
Capital contributed and
withdrawn by owners
Disposal of subsidiaries		–	(45)		–	–	–	(45)
Business combinations under
common control		–	339		–	–	–	339
Closing balance at 30 June 2016	2,500		812		–	1,250	20,417	24,979
Person-in-charge of the Company:		Person-in-charge of				Prepared	by:
Zhao Changlong		accounting:		Pan Hanling		Hu Lijie

– II-241 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

HENGDA REAL ESTATE GROUP COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2017

(Expressed in millions of RMB, unless otherwise indicated)

1 BASIS OF PREPARATION FOR THE FINANCIAL STATEMENTS

The financial statements are prepared on a going concern basis.

2 CASH AND CASH BALANCES

Cash on hand Cash at bank Other cash and cash balances Restricted cash and cash balances Cash and cash equivalents	30 June 2017 29 130,855 99,803 230,687 (99,803) 130,884	31 December 2016 50 171,135 104,006
		275,191
		(104,006)
		171,185

3 OTHER RECEIVABLES

Deposits receivable Amounts due from related parties Amounts due from minority shareholders Amounts due from disposal of subsidiaries Others Less: Allowance for bad debt	31 December 2016 7,981 2,619 4,235 6,776 7,191 28,802 (175) 28,627	Increase during the period (30)	30 June 2017 15,031 2,443 7,918 468 7,328
			33,188
			(205)
			32,983

An analysis of other receivables and allowance for bad debt is as follows:

Within one year Over one year but within two years Over two years	30 June 2017 Amount Total percentage Allowance for bad debt 27,935 84.17% (138) 2,377 7.16% (20) 2,876 8.67% (47) 33,188 100.00% (205)	31 December 2016 Amount Total percentage Allowance for bad debt 23,270 80.79% (115) 2,392 8.30% (17) 3,140 10.91% (43)
		28,802 100.00% (175)

As at 30 June 2017 and 31 December 2016, there were no other receivables that were past due but not impaired.

– II-242 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

4 INVENTORIES

Properties under development Completed properties held for sale Others	30 June 2017 665,079 89,540 37 754,656	31 December 2016 566,502 80,438 157
		647,097

5 INVESTMENT PROPERTIES

31 December 2016 Increase during the period Decrease during the period Changes in fair value Exchange differences arising from translation of financial statements of foreign currency 30 June 2017	Housing and buildings 130,196 6,142 (6,444) 5,974 (210)
	135,658

6 FIXED ASSETS

Housing and buildings Machinery and equipment 11,793 179 2,087 124 (666) (33)	Vehicles Office equipment Total 570 4,902 17,444 52 515 2,778 (30) (64) (793)	Vehicles Office equipment Total 570 4,902 17,444 52 515 2,778 (30) (64) (793)
13,214 270	592 5,353 19,429
(1,754) (64) (435) (27) 54 12	(403) (2,015) (4,236) (41) (215) (718) 17 18 101
(2,135) (79)	(427) (2,212) (4,853)
11,079 191	165 3,141 14,576

10,039 115	167 2,887 13,208

	30 June 2017 24,956 87,327 25,949 956 139,188	31 December 2016 24,793 33,901 26,271 3,741
		88,706

7 SHORT-TERM BORROWINGS

– II-243 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

8 OTHER PAYABLES

Amounts due to related parties Land premium payables Amounts payable for acquisition of subsidiaries Deposits and receipts under custody payables Amounts due to minority shareholders Provisional collection of investor contributions Others	30 June 2017 849 48,919 13,951 5,245 14,194 – 10,254 93,412	31 December 2016 29,017 35,537 18,766 3,513 4,239 13,000 10,638
		114,710

9 LONG-TERM BORROWINGS

Secured borrowings Pledged borrowings Guaranteed borrowings Unsecured borrowings Less: Long-term borrowings due within one year Secured borrowings Pledged borrowings Guaranteed borrowings Unsecured borrowings BOND PAYABLES Public issuance of corporate bonds Non-public issuance of corporate bonds Less: Bond payables due within one year Balance of bond payables	30 June 2017 201,167 103,939 58,338 2,592 366,036 (53,756) (34,344) (15,203) (550) (103,853) 262,183 30 June 2017 19,870 33,947 53,816 (14,929) 38,887	31 December 2016 194,919 128,983 58,307 17,240
		399,449
		(37,931) (15,522) (10,882) (2,977)
		(67,312)
		332,137

		31 December 2016 19,853 33,908
		53,761 (6,756)
		47,005

10 BOND PAYABLES

– II-244 –

FINANCIAL INFORMATION OF HENGDA REAL ESTATE

APPENDIX II

11 OPERATING INCOME AND OPERATING COSTS

Sale of properties Others	For the six months ended 30 June 2017 Operating income Operating costs 178,281 113,536 3,634 2,773 181,915 116,309	For the six months ended 30 June 2016 Operating income Operating costs 83,090 55,715 3,818 3,494 86,908 59,209	For the six months ended 30 June 2016 Operating income Operating costs 83,090 55,715 3,818 3,494 86,908 59,209
			59,209

12 SELLING EXPENSES

Advertising and marketing expenses Employee remuneration expenses Depreciation and amortisation expenses Others 13 ADMINISTRATIVE EXPENSES Employee remuneration expenses Depreciation and amortisation expenses Others 14 FINANCIAL EXPENSES/(INCOME) – NET Interest paid Less: Interest income Fees Exchange losses	For the six months ended 30 June 2017 4,530 1,352 187 1,109 7,178 For the six months ended 30 June 2017 1,616 460 1,123 3,199 For the six months ended 30 June 2017 2,791 (1,680) 360 1,114 2,585	For the six months ended 30 June 2016 4,333 1,117 330 1,088
		6,868

		For the six months ended 30 June 2016 1,181 471 930
		2,582

		For the six months ended 30 June 2016 202 (1,662) 478 801
		(181)

– II-245 –

UNAUDITED PRO FORMA FINANCIAL INFORMATION OF THE GROUP FOLLOWING THE CAPITAL CONTRIBUTION

APPENDIX III

A. UNAUDITED PRO FORMA FINANCIAL INFORMATION OF THE GROUP FOLLOWING THE CAPITAL CONTRIBUTION

1. Introduction

The following is the unaudited pro forma consolidated statement of assets and liabilities of the Group as at 31 December 2016 (the “Unaudited Pro Forma Financial Information”), as if the Capital Contribution had been completed on 31 December 2016. Details of the Capital Contribution are set out in the section headed “Letter from the Board” contained in this circular.

The Unaudited Pro Forma Financial Information of the Group has been prepared by the directors of the Company in accordance with paragraph 4.29 of the Listing Rules for the purpose of illustrating the effect of the Capital Contribution pursuant to the terms of the Investment Agreement. Because of its hypothetical nature, the Unaudited Pro Forma Financial Information may not give a true picture of the financial position of the Group had the Capital Contribution been completed as of 31 December 2016 or any future date.

The Unaudited Pro Forma Financial Information is based upon the consolidated statement of financial position of the Group as at 31 December 2016, which have been extracted from the Company’s 2016 annual report, and adjusted on a pro forma basis to reflect the effect of the Capital Contribution.

The Unaudited Pro Forma Financial Information of the Group should be read in conjunction with the historical financial information of the Group as set out in the published annual report of the Company for the year ended 31 December 2016 and other financial information included elsewhere in this circular.

– III-1 –

APPENDIX III

UNAUDITED PRO FORMA FINANCIAL INFORMATION OF THE GROUP FOLLOWING THE CAPITAL CONTRIBUTION

2. Unaudited pro forma consolidated statement of assets and liabilities of the Group

Non-current assets Property, plant and equipment Prepaid land lease payments Goodwill Investment properties Interests in associates Interests in joint ventures Other financial assets Other long term assets Deferred tax assets Total non-current assets Current assets Trading biological assets Completed properties held for sale Properties under development Inventories Trade receivables Prepayments, deposits and other receivables Equity investments at fair value through profit or loss Restricted cash Cash and cash equivalents Total current assets Current liabilities Interest-bearing bank and other borrowings Trade payables Other payables and accruals Due to the immediate holding company Due to the ultimate holding company Tax payable Total current liabilities Net current assets Total assets less current liabilities Total non-current liabilities Interest-bearing bank and other borrowings Deferred income Due to the immediate holding company Deferred tax liabilities Total non-current liabilities	The Group as at 31 December 2016 HKD’000 Note(i) 3,844,311 36,083 322,240 22,807,211 3,994,821 3,300,931 112,985 3,188,483 1,954,441 39,561,506 - - - - - - - - - - - 8,136 7,514,657 35,292,229 93,354 322,506 1,684,928 4,566 2,204,157 9,859,526 56,984,059 - - - - - - - - - - - 5,288,454 1,116,432 17,023,915 1,270,755 2,850,880 8,755,178 36,305,614 - - - - - - - - - - - 20,678,445 - - - - - - - - - - - 60,239,951 - - - - - - - - - - - 14,468,791 27,375 752,362 8,770,489 24,019,017 - - - - - - - - - - -	Pro forma adjustments HKD’000 Note(ii) – – – – – – 6,337,100 – – 6,337,100 - - - - - - - - - - - – – – – – – – – (6,337,100) (6,337,100) - - - - - - - - - - - – – – – – – – - - - - - - - - - - - (6,337,100) - - - - - - - - - - - – - - - - - - - - - - - – – – – – - - - - - - - - - - -	Unaudited pro forma consolidated statement of assets and liabilities of the Group HKD’000 3,844,311 36,083 322,240 22,807,211 3,994,821 3,300,931 6,450,085 3,188,483 1,954,441
			45,898,606 - - - - - - - - - - - 8,136 7,514,657 35,292,229 93,354 322,506 1,684,928 4,566 2,204,157 3,522,426
			50,646,959 - - - - - - - - - - - 5,288,454 1,116,432 17,023,915 1,270,755 2,850,880 8,755,178
			36,305,614 - - - - - - - - - - - 14,341,345 - - - - - - - - - - - 60,239,951 - - - - - - - - - - - 14,468,791 27,375 752,362 8,770,489
			24,019,017 - - - - - - - - - - -

– III-2 –

APPENDIX III

UNAUDITED PRO FORMA FINANCIAL INFORMATION OF THE GROUP FOLLOWING THE CAPITAL CONTRIBUTION

			Unaudited
			pro forma
			consolidated
	The Group		statement of
	as at		assets and
	31 December	Pro forma	liabilities of
	2016	adjustments	the Group
	HKD’000	HKD’000	HKD’000
	Note(i)	Note(ii)
NET ASSETS	36,220,934	–	36,220,934

3. Notes to the Unaudited Pro Forma Financial Information of the Group

(i) The amounts are extracted from the consolidated statement of financial position of the Group for the year ended 31 December 2016, as set out in the published 2016 annual report of the Company.
(ii) On 31 May 2017, 28 June 2017 and 6 November 2017, the Subsidiary entered into Investment Agreement with Kailong Real Estate, Hengda Real Estate (both are subsidiaries of China Evergrande), and Mr. Hui, pursuant to which the Subsidiary has agreed to contribute an amount of RMB5.5 billion (equivalent to HK$6,337,100,000) to the capital of Hengda Real Estate in return for approximately 2.0522% of the enlarged equity interest of Hengda Real Estate (which will subsequently be diluted to approximately 1.7626% of the enlarged equity interest of Hengda Real Estate after the capital contributions to Hengda Real Estate pursuant to the Third Round Investment Agreements are made). The payment of the consideration for the Capital Contribution is to be satisfied in cash.

Hengda Real Estate is undergoing a Proposed Reorganisation such that Kailong Real Estate will become the controlling shareholder of Shenzhen Real Estate after the Proposed Reorganisation. If the Proposed Reorganisation as contemplated under the Reorganisation Agreement is not completed by 31 January 2020 and the failure to complete is not caused by reasons attributable to the Subsidiary, the Subsidiary may within two months of the expiry of such deadline to demand Kailong Real Estate to either:

(a) buy back the entire equity interest in Hengda Real Estate held by the Subsidiary at the original amount of capital contributed by it, provided that Kailong Real Estate may choose not to buy back such equity interest from the Subsidiary, in which case, the Subsidiary will have the right to request Mr. Hui to buy back the entire equity interest held by the Subsidiary at the original amount of capital contributed by it; or
(b) transfer additional shares, which are equivalent to 50% of the equity interest held by the Subsidiary in Hengda Real Estate on the signing of the compensation agreement (excluding any additional equity interest acquired by the Subsidiary after the date of the Principal Investment Agreements), to the Subsidiary at nil consideration.

In addition, under the terms of the Investment Agreement, Kailong Real Estate and Hengda Real Estate have undertaken to the Subsidiary that the Performance Undertaking Amounts of Hengda Real Estate for the financial years of 2017, 2018 and 2019 will not be less than RMB24.3 billion, RMB50 billion and RMB55 billion, respectively. The Performance Undertaking Amounts of Hengda Real Estate for the financial years ending 31 December 2018 and 2019, however, are to be finally determined with reference to the valuation report issued by a valuer with securities and futures industry qualifications and approved by the relevant authorized State-owned assets supervision and administration commission, in relation to the valuation of the equity interests of all shareholders of Hengda Real Estate as at 30 June 2017 but in any event will not be less than RMB30.8 billion and RMB33.7 billion, respectively. As at the Latest Practicable Date, such valuation report has been issued, and the Performance Undertaking Amounts of Hengda Real Estate for the financial years ending 31 December 2018 and 2019 were finally determined to be RMB50 billion and RMB55 billion respectively. Hengda Real Estate will distribute at least 68% of its net profit for each of the financial years under the Performance Undertaking Period to its shareholders in accordance with their respective percentage of equity interest in it as cash dividends. If the net profit of Hengda Real Estate for any financial year in the Performance Undertaking Period (as

– III-3 –

APPENDIX III

UNAUDITED PRO FORMA FINANCIAL INFORMATION OF THE GROUP FOLLOWING THE CAPITAL CONTRIBUTION

audited and confirmed by auditors with relevant securities and futures industry qualifications to be employed by Hengda Real Estate) is less than the Performance Undertaking Amount for that financial year, the proportional dividend to be paid by Hengda Real Estate to the Subsidiary will be adjusted upward in accordance with the formulae specified in the Investment Agreement.

The financial assets arising from the Investment Agreement are recognised as “other financial assets” in the Group’s unaudited pro forma consolidated statement of assets and liabilities.

(iii) No adjustment has been made to the Unaudited Pro Forma Financial Information for acquisition-related costs (including fees to legal advisers, financial adviser, reporting accountants, valuer, printer and other expenses) as the directors determined that such costs are insignificant.
(iv) No adjustment has been made to the Unaudited Pro Forma Financial Information to reflect any trading results or other transactions of the Group entered into subsequent to 31 December 2016.

– III-4 –

APPENDIX III

UNAUDITED PRO FORMA FINANCIAL INFORMATION OF THE GROUP FOLLOWING THE CAPITAL CONTRIBUTION

The following is the text of a report dated 24 November 2017 received from the reporting accountants, KPMG, Certified Public Accountants, Hong Kong, in respect of the Group’s pro forma financial information for the purpose in this circular.

==> picture [77 x 32] intentionally omitted <==

B. INDEPENDENT REPORTING ACCOUNTANTS’ ASSURANCE REPORT ON THE COMPILATION OF PRO FORMA FINANCIAL INFORMATION

To the Directors of Shenzhen Investment Limited

We have completed our assurance engagement to report on the compilation of pro forma financial information of Shenzhen Investment Limited (the “Company”) and its subsidiaries (collectively the “Group”) by the directors of the Company (the “Directors”) for illustrative purposes only. The pro forma financial information consists of the unaudited pro forma consolidated statement of assets and liabilities as at 31 December 2016 and related notes as set out in Part A of Appendix III to the circular dated 24 November 2017 (the “Circular”) issued by the Company. The applicable criteria on the basis of which the Directors have compiled the pro forma financial information are described in Part A of Appendix III to the Circular.

The pro forma financial information has been compiled by the Directors to illustrate the impact of the capital contribution to Hengda Real Estate Group Company Limited (the “Transaction”) on the Group’s financial position as at 31 December 2016 as if the Transaction had taken place at 31 December 2016. As part of this process, information about the Group’s financial position as at 31 December 2016 has been extracted by the Directors from the consolidated financial statements of the Company for the year then ended, on which an audit report has been published.

Directors’ Responsibilities for the Pro Forma Financial Information

The Directors are responsible for compiling the pro forma financial information in accordance with paragraph 4.29 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”) and with reference to Accounting Guideline 7 “Preparation of Pro Forma Financial Information for Inclusion in Investment Circulars” (“AG 7”) issued by the Hong Kong Institute of Certified Public Accountants (“HKICPA”).

Our Independence and Quality Control

We have complied with the independence and other ethical requirements of the Code of Ethics for Professional Accountants issued by the HKICPA, which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behavior.

– III-5 –

APPENDIX III

UNAUDITED PRO FORMA FINANCIAL INFORMATION OF THE GROUP FOLLOWING THE CAPITAL CONTRIBUTION

The firm applies Hong Kong Standard on Quality Control 1 “Quality Control for Firms That Perform Audits and Reviews of Financial Statements, and Other Assurance and Related Services Engagements” issued by the HKICPA and accordingly maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

Reporting Accountants’ Responsibilities

Our responsibility is to express an opinion, as required by paragraph 4.29(7) of the Listing Rules, on the pro forma financial information and to report our opinion to you. We do not accept any responsibility for any reports previously given by us on any financial information used in the compilation of the pro forma financial information beyond that owed to those to whom those reports were addressed by us at the dates of their issue.

We conducted our engagement in accordance with Hong Kong Standard on Assurance Engagements (“HKSAE”) 3420 “Assurance Engagements to Report on the Compilation of Pro Forma Financial Information Included in a Prospectus” issued by the HKICPA. This standard requires that the reporting accountants plan and perform procedures to obtain reasonable assurance about whether the Directors have compiled the pro forma financial information in accordance with paragraph 4.29 of the Listing Rules, and with reference to AG 7 issued by the HKICPA.

For purpose of this engagement, we are not responsible for updating or reissuing any reports or opinions on any historical financial information used in compiling the pro forma financial information, nor have we, in the course of this engagement, performed an audit or review of the financial information used in compiling the pro forma financial information.

The purpose of pro forma financial information included in an investment circular is solely to illustrate the impact of a significant event or transaction on the unadjusted financial information of the Group as if the event had occurred or the transaction had been undertaken at an earlier date selected for purposes of the illustration. Accordingly, we do not provide any assurance that the actual outcome of the events or transactions at 31 December 2016 would have been as presented.

A reasonable assurance engagement to report on whether the pro forma financial information has been properly compiled on the basis of the applicable criteria involves performing procedures to assess whether the applicable criteria used by the Directors in the compilation of the pro forma financial information provide a reasonable basis for presenting the significant effects directly attributable to the event or transaction, and to obtain sufficient appropriate evidence about whether:

the related pro forma adjustments give appropriate effect to those criteria; and

– III-6 –

APPENDIX III

UNAUDITED PRO FORMA FINANCIAL INFORMATION OF THE GROUP FOLLOWING THE CAPITAL CONTRIBUTION

the pro forma financial information reflects the proper application of those adjustments to the unadjusted financial information.

The procedures selected depend on the reporting accountants’ judgement, having regard to the reporting accountants’ understanding of the nature of the Group, the event or transaction in respect of which the pro forma financial information has been compiled, and other relevant engagement circumstances.

The engagement also involves evaluating the overall presentation of the pro forma financial information.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Opinion

In our opinion:

(a) the pro forma financial information has been properly compiled on the basis stated;
(b) such basis is consistent with the accounting policies of the Group, and
(c) the adjustments are appropriate for the purposes of the pro forma financial information as disclosed pursuant to paragraph 4.29(1) of the Listing Rules.

KPMG

Certified Public Accountants

Hong Kong

24 November 2017

– III-7 –

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

APPENDIX IV

The following is a reproduction of the text of a letter dated 12 June 2017 enclosing a summary of market values of certain properties in which the Hengda Real Estate Group had interests in in the PRC and Hong Kong as of 31 March 2017 (the “Property Valuation Report”) which was prepared by CBRE on commission by China Evergrande for the sole purpose of incorporation in the circular of China Evergrande dated 13 June 2017 (the “China Evergrande Circular”). The Property Valuation Report was set out in Appendix II to the China Evergrande Circular.

For the avoidance of doubt, references in the Property Valuation Report in this Appendix IV (i) to “the Company” are to China Evergrande and not to the Company; and (ii) to “the Group” are to China Evergrande and its subsidiaries and not to the Company and its subsidiaries.

The Property Valuation Report is reproduced in this circular independent of and unrelated to the China Evergrande Circular for the Shareholders’ reference only but not for any other purposes. The Property Valuation Report shall be used only in its entirety and no part shall be used without making reference to the whole report. Possession of the Property Valuation Report or any copy thereof does not carry with it the right of copying. Neither the whole nor any part of the Property Valuation Report nor any reference to CBRE, its valuation and its report may be included in any document, circular or statement nor published without the prior written consent of CBRE in the form and context in which they may appear.

To the maximum extent permitted by law, none of CBRE or any of its parent or associated company or affiliates, or any of its directors, officers, employees or agent is responsible for any claim, loss, damage, liability, cost or expense suffered or incurred by any person (including but not limited to the Company or Shareholders) arising from or in connection with any such person’s use or reliance of the Property Valuation Report or any information therein.

The contents of the Property Valuation Report had also not been independently verified by the Group or any of its affiliates, advisers, agents, directors, employees, officers or representatives. Neither the Group nor any of its affiliates, advisers, agents, directors, employees, officers or representatives make any representation as to the accuracy, completeness or fairness of the contents of the Property Valuation Report, nor shall take or assume any responsibility for the contents of the Property Valuation Report.

– IV-1 –

~~VALUATION REPORT OF HENGDA REAL ESTATE GROUP~~

~~APPENDIX IV~~

The following is the text of a letter with the summary of values received from CBRE Limited, prepared for the purpose of incorporation in the circular, in connection with their valuation as of 31 March 2017 of certain properties of the Group.

Suites 1204–06, 12/F, 3/F & 4/F Three Exchange Square 8 Connaught Place Central, Hong Kong T 852 2820 2800 F 852 2810 0830 香港中環康樂廣場八號交易廣場第三期十二樓1204–06室，三樓及四樓電話 852 2820 2800 傳真 852 2810 0830

www.cbre.com.hk 地產代理（公司）牌照號碼 Estate Agent’s Licence No: C-004065

12 June 2017

China Evergrande Group

Suite 1501–1507, One Pacific Place, 88 Queensway, Hong Kong

Dear Sirs,

In accordance with instructions from China Evergrande Group (the ‘‘Company) to value the certain properties in which Hengda Real Estate Group and its subsidiaries (collectively referred to as ‘‘the Group’’) have interests in the People’s Republic of China (the ‘‘PRC’’) and Hong Kong, we confirm that we have carried out inspections, made relevant enquiries, and obtained such further information as we consider necessary for the purpose of providing you with our opinion of the market value of such properties as of 31 March 2017 (the ‘‘Valuation Date’’).

Valuation Basis, Assumptions and Methodology

Our valuation is prepared in accordance with ‘‘The HKIS Valuation Standards (2012 Edition)’’ (‘‘the Standards’’) published by The Hong Kong Institute of Surveyors (‘‘the HKIS’’), the RICS Valuation — Professional Standards of Royal Institution of Chartered Surveyors and is complied with International Valuation Standards (IVS).

– IV-2 –

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

APPENDIX IV

Our valuation is made on the basis of market value which is defined by the International Valuation Standards and followed by the HKIS as ‘‘the estimated amount for which an asset or liability should exchange on the Valuation Date between a willing buyer and a willing seller in an arm’s-length transaction after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.’’

We have also complied with all the requirements contained in the Companies Ordinance, Chapter 5, Practice Note 12 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the ‘‘Listing Rules’’).

Our valuation has been made on the assumption that the owner sells the property on the open market without the benefit or burden of a deferred term contract, leaseback, joint venture, management agreement or any similar arrangement, which would serve to affect the values of the properties.

No allowance has been made in our valuation for any charges, mortgages or amounts owing neither on the property nor for any expenses or taxation which may be incurred in effecting sale. Unless otherwise stated, it is assumed that the properties were free from encumbrances, restrictions and outgoings of an onerous nature which could affect their values.

We have valued the properties in Group I which are held by the Group for sale, properties in Group II which are held by the Group for owner occupation, and properties in Group V which are held by the Group for future development by the Direct Comparison Approach on the assumption that each property can be sold in their existing state. Comparison is based on prices realized on actual transactions and/or asking prices of comparable properties. Comparable properties with similar sizes, characteristics and locations are analyzed, and carefully weighed against all respective advantages and disadvantages of each property in order to arrive at a fair comparison of value.

We have valued portions of the properties in Group II which are held and operated by the Group as hotel, by Discounted Cash Flow Approach and analysed the long term return that is likely to be derived from a property with a combination of both income and capital growth over an assumed investment horizon. In undertaking this analysis, a wide range of assumptions are made including a target or pre-selected internal rate of return, net property income, income growth, potential capital expenditure, costs associated with the initial purchase of the property and also its disposal at the end of the investment period.

For the completed properties in Group III and Group VII which are held by the Group for investment, all the properties are valued by Direct Comparison Approach assuming sale of each of these properties in its existing state by making references to comparable sale transactions and/or asking prices of comparable properties in the relevant markets. Where appropriate, we have also valued the properties using the Income Capitalization Approach by capitalization of the net rental income derived from the existing tenancies with due allowance for the reversionary income potential of the property.

– IV-3 –

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

APPENDIX IV

In valuing the portion of the properties in Group III and properties in Group IV which are under development, we have assumed that they will be developed and completed in accordance with the latest development proposal provided to us by the Group. In arriving at our opinion of value, we have adopted the comparison approach by making reference to comparable sales evidence as available in the relevant market and have also taken into account the accrued construction cost and professional fees relevant to the stage of construction as at the valuation date and the remainder of the cost and fees that are expected to be incurred for completing the development. We have relied on the accrued construction cost and professional fees information provided by the Group according to the different stages of construction of the subject properties as at the valuation date and we did not find any material inconsistency from those of other similar developments.

For the properties in Group VI which are contracted to be held by the Group, as for which the Group has entered into agreements with relevant owner of the property or government authority or entered into share transfer agreements, but for which the Group has not yet obtained the Stateowned Land Use Rights Certificates and/or the payment of the land premium has not yet been fully settled as of the Valuation Date, we have attributed no commercial value to such properties.

Source of Information

We have relied on information provided by the Group, in particular, but not limited to the sales records, planning approvals, statutory notices, easements, development scheme, construction costs, development time schedules, site area and floor area, tenancy schedules, interests attributable to the Group and other relevant information. No on-site measurement has been taken. Dimensions, measurements and areas included in the property summaries are only approximations. We have taken every reasonable care both during reviewing the information provided to us and in making relevant enquiries. We have no reason to doubt the truth and accuracy of the information provided to us by the Group, which is material to the valuation. We were also advised by the Group that no material facts have been omitted from the information provided to us.

In the course of our valuation for the properties in the PRC, we have relied on the legal opinion provided by the Group’s PRC legal advisor, King & Wood Mallesons (the ‘‘PRC Legal Opinion’’). We have been provided with extracts from title documents relating to such properties. We have not, however, inspected the original documents to verify ownership or any amendment which did not appear on the copies handed to us. All documents have been used for reference only. Unless otherwise stated, in valuing the Properties, we have prepared our valuation on the basis that the owners have proper title to the properties and have free and uninterrupted rights to use, occupy or assign the properties for the whole of the unexpired terms as granted.

We have had no reason to doubt the truth and accuracy of the information provided to us by the Group. We have also sought confirmation from the Group that no material factors have been omitted from the information supplied. We consider that we have been provided with sufficient information to arrive an informed view, and we have no reason to suspect that any material information has been withheld.

– IV-4 –

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

APPENDIX IV

Property Inspection

We made inspection of the properties for this valuation. In the course of our inspection, we did not notice any serious defects. However, we have not carried out any structural survey nor any tests were made on the building services. Therefore, we are not able to report whether the properties are free of rot, infestation, or any other structural defects. During our inspection, we have not carried our investigations on the site to determine the suitability of the ground conditions and the services for any future development.

We have not carried out site measurements to verify the correctness of the areas of the properties. We have assumed that the areas shown on the documents and official site plan are correct. Our valuation is on the basis that these aspects are satisfactory. All documents and contracts have been used as reference only and all dimensions, measurements and areas are approximations.

Inspection of the properties was carried out in the period between July 2016 and June 2017 2016 by our technical staff including Ms. Jennifer Ip, Mr. Edmond Wong, Ms. Joey Gong, Mr. Kaiser Lo, Mr. Bill Zhang, Mr. Denis Fung, Mr. Timothy Yim, Ms. Coco Zhu, Ms. Clara Shi, Mr. Jimmy Wu, Ms. Jessica Chen, Ms. Mao Yan, etc. They are Chartered Surveyors/China Real Estate Appraisers and/or have more than 2 to 5 years’ experience in the valuation of properties in the PRC and possess academic background in subjects relating to real estate valuation.

Currency

Unless otherwise stated, all monetary figures stated in this report are in Renminbi (RMB) or in Hong Kong Dollars (HKD), the official currency of the PRC and Hong Kong in relation to the properties in the PRC and Hong Kong respectively.

Summary Disclosure

In accordance with the requirements in rule 5.02B of Chapter 5 of the Rules Governing the Listing of Securities issued by The Stock Exchange of Hong Kong Limited, as the values of the property interests as at the valuation date are less than 5% of the total property interests, we present the property information and valuation in the format of summary disclosure.

– IV-5 –

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

APPENDIX IV

We enclose herewith our summary of values.

Yours faithfully, For and on behalf of CBRE Limited Daniel Mohr

MRICS

Executive Director Valuation & Advisory Services

Note: Mr. Daniel Mohr is a member of Royal Institution of Chartered Surveyors. He has over 15 years of valuation experience in the PRC and Hong Kong, as well as relevant experience in the Asia-Pacific region.

– IV-6 –

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

APPENDIX IV

Property Group (Group I – Group V) Group I — Properties held by the Group for Sale in the PRC Group II — Properties held by the Group for Occupation/ Operation in the PRC Group III-A — Properties held by the Group for Investment in the PRC (Completed) Group III-B — Properties held by the Group for Investment in the PRC (Under Development) Group IV — Properties held by the Group Under Development in the PRC Group V — Properties held by the Group for Future Development in the PRC Sub-Total Property Group (Group VI) Group VI — Properties contracted to be acquired by the Group in the PRC Property Group (Group VII) Group VII — Properties held by the Group for Investments in Hong Kong	No. of Properties 340 101 308 89 583 113 1,534 No. of Properties 35 No. of Properties 2	Market Value in existing state As at Valuation Date Market Value Attributable to the Group as at Valuation Date (RMB million) (RMB million) 102,400.30 96,519.14 12,000.40 11,776.16 97,545.70 93,747.05 19,020.30 17,266.95 550,076.20 495,351.86 73,645.40 59,752.56 854,688.30 774,413.72 Market Value Attributable to the Group as at Valuation Date (RMB million) No Commercial Value Market Value in existing state As at Valuation Date Market Value Attributable to the Group as at Valuation Date (HKD million) (HKD million) 11,009.80 11,009.80

– IV-7 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

as at	Valuation	Date	(RMB million)	385.80			131.60			67.90			350.90			8.80			160.50			5.20			1.89			11.13			59.30
Interest	Attributable	to the Group	(%)	100.0%			100.0%			100.0%			100.0%			100.0%			100.0%			100.0%			65.0%			70.0%			100.0%
Market	Value(2) in	Existing State	(RMB million)	385.80			131.60			67.90			350.90			8.80			160.50			5.20			2.90			15.90			59.30
	Pre-Sale	Consideration	(RMB million)	377.48			117.43			67.86			317.25			2.56			160.51			2.87			2.87			15.91			34.94
	Pre-Sale	CPS		—			—			—			—			—			—			—			—			—			806
	Pre-Sale(1)	GFA	(sq.m.)	64,137			21,555			13,737			70,469			587			33,825			540			616			2,118			—
	Completion	Date		2016			2016			2016			2016			2016			2016			2016			2016			2016			2016
	Number	of CPS		—			—			—			—			—			—			—			—			—			806
Total	GFA(1)	(Excl. CPS)	(sq.m.)	65,417			23,676			13,737			77,077			1,471			33,825			931			616			2,118			2,256
		Type of Property		Residential			Residential,	Commercial		Residential			Residential,	Commercial		Residential			Residential,	Commercial		Residential			Residential			Residential			Residential, Carpark
	Land Use Rights	Expiry Date		30 May 2053 to	30 Nov 2083		27 Dec 2054 to	27 Dec 2084		29 Jun 2052 to	29 Jun 2082		14 Sep 2051 to	14 Sep 2081		29 Sep 2050 to	29 Sep 2080		14 Sep 2083 to	14 Sep 2083		20 May 2083			20 Aug 2055 to	20 Aug 2085		12 Jan 2056 to	12 Jan 2086		16 Aug 2074
		Land Use		Residential,	Commercial		Residential			Residential,	Commercial		Residential,	Commercial		Residential, Public	Facility		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial		Residential
		City		Anqing			Bengbu			Bengbu			Bozhou			Chaohu			Chuzhou			Chuzhou			Feidong			Fuyang			Hefei
		Holding Entity		Anqing Hengyuan	Property Company	Limited	Bengbu Hengyuan	Property Company	Limited	Bengbu Hengtong	Property Company	Limited	Bozhou Hengda	Property Company	Limited	Anhui Lilong	Property Company	Limited	Chuzhou Yuetong	Property Company	Limited	Chuzhou Hengda	Property Company	Limited	Yueheng (Hefei)	Property Company	Limited	Fuyang Yuetong	Property Company	Limited	Anhui Sanlin	Property Company	Limited
		Property Name		Portion of Evergrande Oasis	Anqing		Portion of Evergrande	Emerald Court Bengbu		Portion of Evergrande Royal	Scenic Bay Bengbu		Portion of Evergrande City	Bozhou		Portion of Evergrande Royal	View Garden Chaohu		Portion of Evergrande Oasis	Chuzhou		Portion of Evergrande	Metropolis Chuzhou		Portion of Evergrande Oasis	Feidong		Portion of Evergrande Oasis	Fuyang		Portion of Evergrande City	Hefei
	Property	No.		I-1			I-2			I-3			I-4			I-5			I-6			I-7			I-8			I-9			I-10

– IV-8 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

as at	Valuation	Date	(RMB million)	33.90			13.40			2.50			437.00			152.60			148.90			112.50			89.70			59.88			329.90			303.60			170.11
Interest	Attributable	to the Group	(%)	100.0%			100.0%			100.0%			100.0%			100.0%			100.0%			60.0%			100.0%			60.0%			100.0%			100.0%			65.0%
Market	Value(2) in	Existing State	(RMB million)	33.90			13.40			2.50			437.00			152.60			148.90			187.50			89.70			99.80			329.90			303.60			261.70
	Pre-Sale	Consideration	(RMB million)	26.08			—			0.81			246.46			152.65			148.87			5.11			89.65			99.81			170.32			246.17			213.30
	Pre-Sale	CPS		—			—			—			—			—			—			—			—			—			—			—			—
	Pre-Sale(1)	GFA	(sq.m.)	4,555			—			137			22,368			30,827			39,568			955			20,928			21,895			38,287			34,715			40,953
	Completion	Date		2016			2011			2016			2016			2016			2016			2016			2016			2016			2016			2016			2016
	Number	of CPS		—			—			—			—			—			—			—			—			—			—			—			—
Total	GFA(1)	(Excl. CPS)	(sq.m.)	5,424			609			252			33,914			30,827			39,568			26,145			20,928			21,895			62,472			40,364			50,627
		Type of Property		Residential			Residential			Residential			Residential			Residential			Residential			Residential			Residential			Residential			Residential			Residential			Residential
	Land Use Rights	Expiry Date		24 Aug 2051 to	24 Aug 2081		Jun 2079 to Jan	2080		15 Oct 2053 to	15 Oct 2083		10 Sep 2053 to	10 Sep 2083		08 Oct 2050 to	08 Oct 2080		21 Oct 2051 to	21 Oct 2081		02 May 2081 to	03 May 2081		28 Dec 2051 to	28 Dec 2081		11 Jun 2082			20 Dec 2050 to	20 Dec 2080		19 May 2081 to	20 May 2081		Jul 2054 to Jul	2084
		Land Use		Residential,	Commercial		Residential			Residential,	Commercial		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial		Residential			Residential,	Commercial		Residential			Residential,	Commercial		Residential			Residential,	Commercial
		City		Hefei			Hefei			Hefei			Hefei			Huaibei			Huaibei			Huainan			Lu’an			Ma’anshan			Tongling			Wuhu			Suzhou
		Holding Entity		Yuetong (Hefei)	Property Company	Limited	Qijia (Hefei)	Property Company	Limited	Yuetai (Hefei)	Property Company	Limited	Yuecheng (Hefei)	Property Company	Limited	Huaibei Yuetong	Property Company	Limited	Huaibei Hengtong	Property Company	Limited	Huainan Hengda	Tianheng Property	Company Limited	Lu’an Yue Tong	Property Company	Limited	Ma’anshan Hengda	Anliang Property	Company Limited	Tongling Hengda	Property Company	Limited	Wuhu Hengda	Property Company	Limited	Suzhou Heng Ding	Property Company	Limited
		Property Name		Portion of Evergrande Royal	View Garden Hefei		Portion of Evergrande Palace	Hefei		Portion of Evergrande	International Center Hefei		Portion of Evergrande Plaza	Hefei		Portion of Evergrande	Metropolis Huaibei		Portion of Evergrande	Atrium Huaibei		Portion of Evergrande Oasis	Huainan		Portion of Evergrande Royal	Scenic Bay Lu’an		Portion of Evergrande Royal	Scenic Bay Ma’anshan		Portion of Evergrande Oasis	Tongling		Portion of Evergrande Palace	Wuhu		Portion of Evergrande	Metropolis Suzhou
	Property	No.		I-11			I-12			I-13			I-14			I-15			I-16			I-17			I-18			I-19			I-20			I-21			I-22

– IV-9 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

as at	Valuation	Date	(RMB million)	218.60			561.80			299.20			5.00							2,393.10								5.20			270.41				75.96			530.10
Interest	Attributable	to the Group	(%)	100.0%			100.0%			100.0%			100.0%							100.0%								100.0%			70.0%				90.0%			100.0%
Market	Value(2) in	Existing State	(RMB million)	218.60			561.80			299.20			5.00							2,393.10								5.20			386.30				84.40			530.10
	Pre-Sale	Consideration	(RMB million)	163.74			153.98			299.17			4.98							1,992.47								3.93			23.10				82.26			214.36
	Pre-Sale	CPS		—			—			—			—							760								—			—				—			—
	Pre-Sale(1)	GFA	(sq.m.)	27,618			21,271			69,174			365							56,906								613			3,894				10,343			28,042
	Completion	Date		2016			2016			2016			2016							2017								2015			2016				2016			2016
	Number	of CPS		—			—			—			—							760								—			—				—			—
Total	GFA(1)	(Excl. CPS)	(sq.m.)	37,770			81,250			69,174			365							75,118								777			62,102				10,582			65,188
		Type of Property		Residential			Residential			Residential			Other							Residential,	Commercial, Other,	Carpark						Residential			Residential				Residential,	Commercial		Residential
	Land Use Rights	Expiry Date		Nov 2053 to Oct	2085		21 May 2048 to	27 Sep 2078		27 Feb 2051 to	28 Feb 2081		23 Jul 2053 to	23 Jul 2083						29 Sep 2053 to	28 Sep 2083							03 Sep 2052 to	03 Sep 2082		15 May 2053 to	29 Sep 2084			14 Mar 2051 to	14 Mar 2081		15 Jul 2083
		Land Use		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial,	Underground	Carpark,	Composite,	Underground	Storage	Residential,	Commercial,	Office,	Underground	Carpark,	Composite,	Underground	Storage	Residential,	Commercial		Residential,	Commercial			Residential, Office			Residential
		City		Suzhou			Baotou			Baotou			Beijing							Beijing								Cangzhou			Hengshui				Handan			Hohhot
		Holding Entity		Suzhou Hengda	Property Company	Limited	Hengda (Baotou)	Real Estate Group	Company Limited	Hengda (Baotou)	Real Estate Group	Company Limited	Shahe Hengda	(Beijing) Property	Company Limited					Hengda (Beijing)	Real Estate Group	Company Limited						Hebei Longwei Real	Estate Development	Company Limited	Hengshui Shengyu	Real Estate	Development	Company Limited	Handan Daye Real	Estate Development	Company Limited	Hengda (Huhehaote)	Real Estate Group	Company Limited
		Property Name		Portion of Evergrande Royal	Scenic Bay Suzhou		Portion of Evergrande Palace	Baotou		Portion of Evergrande	Metropolis Baotou		Portion of Evergrande City	Beijing						Portion of Evergrande Royal	Scenic Bay Beijing							Portion of Evergrande City	Cangzhou		Portion of Evergrande City	Hengshui			Portion of Evergrande	Metropolis Handan		Portion of Evergrande Palace	Hohhot
	Property	No.		I-23			I-24			I-25			I-26							I-27								I-28			I-29				I-30			I-31

– IV-10 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

as at	Valuation	Date	(RMB million)	48.40			295.48				175.60				58.30				28.20			647.60					28.40				6.66			3.80				454.16
Interest	Attributable	to the Group	(%)	100.0%			74.0%				100.0%				100.0%				100.0%			100.0%					100.0%				90.0%			100.0%				70.0%
Market	Value(2) in	Existing State	(RMB million)	48.40			399.30				175.60				58.30				28.20			647.60					28.40				7.40			3.80				648.80
	Pre-Sale	Consideration	(RMB million)	18.49			157.30				37.74				33.37				28.20			261.37					28.41				7.40			3.79				648.76
	Pre-Sale	CPS		—			—				—				174				—			—					419				65			—				256
	Pre-Sale(1)	GFA	(sq.m.)	2,504			31,329				4,974				1,467				2,661			47,940					1,233				—			1,324				75,316
	Completion	Date		2016			2016				2016				2016				2013			2016					2012				2014			2015				2015
	Number	of CPS		—			—				—				174				—			—					419				65			—				256
Total	GFA(1)	(Excl. CPS)	(sq.m.)	6,043			64,976				19,610				4,927				2,661			104,733					1,233				—			1,324				75,316
		Type of Property		Residential			Residential				Residential,	Commercial			Residential,	Commercial,	Carpark		Residential			Residential,	Commercial				Commercial,	Carpark			Carpark			Other				Residential,	Commercial,	Carpark
	Land Use Rights	Expiry Date		24 Jul 2083			15 Mar 2051 to	15 Mar 2081			12 Oct 2053 to	12 Oct 2083			07 Oct 2053 to	07 Oct 2083			01 Jun 2051 to	01 Jun 2081		26 Nov 2050 to	14 Aug 2085				19 Mar 2079				24 Nov 2051 to	24 Nov 2081		19 May 2081				05 Sep 2052 to	16 Aug 2085
		Land Use		Residential			Residential,	Commercial,	Office		Residential,	Commercial			Residential,	Commercial			Residential,	Accommodation	and Catering	Residential,	Commercial				Residential				Residential,	Commercial		Residential				Residential,	Commercial,	Office
		City		Hohhot			Hohhot				Langfang				Langfang				Luquan			Qinhuangdao					Shijiazhuang				Shijiazhuang			Shijiazhuang				Shijiazhuang
		Holding Entity		Hengda (Huhehaote)	Real Estate Group	Company Limited	Inner Mongolia	Changshengtai Real	Estate Company	Limited	Langfang Feicui	Huating Real Estate	Development	Company Limited	Hengda Langfang	Real Estate	Development	Company Limited	Hengda (Luquan)	Real Estate Group	Company Limited	Hengda Real Estate	Group Qinhuangdao	Hengda Cheng Real	Estate Development	Company Limited	Shijiazhuang	Shengyu Real Estate	Development	Company Limited	Hebei Longhai Real	Estate Development	Company Limited	Hebei Gaojie Shi	Real Estate	Development	Company Limited	Shijiazhuang Diyijia	Real Estate	Development	Company Limited
		Property Name		Portion of Evergrande	Metropolis Hohhot		Portion of Evergrande	Atrium Hohhot			Portion of Evergrande	Emerald Court Langfang			Portion of Evergrande	Metropolis Langfang			Portion of Evergrande	Splendor Luquan		Portion of Evergrande City	Qinhuangdao				Portion of Evergrande Oasis	Shijiazhuang			Portion of Evergrande	Metropolis Shijiazhuang		Portion of Evergrande	Atrium Shijiazhuang			Portion of Evergrande Royal	Scenic Peninsula	Shijiazhuang
	Property	No.		I-32			I-33				I-34				I-35				I-36			I-37					I-38				I-39			I-40				I-41

– IV-11 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

as at	Valuation	Date	(RMB million)	156.54			3.00				58.80			5.90				1,249.70			602.30			278.10			66.30			515.23				27.36
Interest	Attributable	to the Group	(%)	60.0%			100.0%				100.0%			100.0%				100.0%			100.0%			100.0%			100.0%			72.0%				72.0%
Market	Value(2) in	Existing State	(RMB million)	260.90			3.00				58.80			5.90				1,249.70			602.30			278.10			66.30			715.60				38.00
	Pre-Sale	Consideration	(RMB million)	89.84			3.02				53.67			5.87				210.07			602.34			124.41			66.27			165.48				3.16
	Pre-Sale	CPS		—			—				—			32				—			—			—			—			290				—
	Pre-Sale(1)	GFA	(sq.m.)	13,741			436				6,446			—				17,336			101,592			14,295			18,477			19,977				497
	Completion	Date		2016			2013				2016			2016				2016			2015			2016			2016			2016				2016
	Number	of CPS		—			—				—			32				—			—			—			—			290				—
Total	GFA(1)	(Excl. CPS)	(sq.m.)	37,701			436				6,834			—				75,094			101,592			29,289			18,477			96,203				6,114
		Type of Property		Residential,	Commercial		Residential				Residential			Carpark				Residential			Residential			Residential			Residential			Residential,	Commercial,	Carpark		Residential
	Land Use Rights	Expiry Date		25 Mar 2053 to	22 Oct 2083		12 Feb 2077 to	23 Sep 2079			23 Mar 2050 to	07 Jun 2080		23 Mar 2050 to	07 Jun 2080			28 Nov 2077			09 May 2081			07 Jun 2081 to	10 Jun 2081		13 Jun 2082			16 Oct 2052 to	16 Oct 2082			16 Oct 2052 to	16 Oct 2082
		Land Use		Residential,	Commercial		Residential,	Commercial			Residential,	Commercial		Residential,	Commercial			Residential			Residential			Residential			Residential			Residential,	Commercial			Residential,	Commercial
		City		Tangshan			Tianjin				Tianjin			Tianjin				Tianjin			Tianjin			Tianjin			Wuhai			Xingtai				Xingtai
		Holding Entity		Tangshan Zhaorui	Investment	Company Limited	Hengda (Tianjin	Jixian) Real Estate	Group Company	Limited	Tianjin Jin Li Hu	Investment	Company Limited	Tianjin Yilian	Chuangzhan	Property Company	Limited	Tianjin Binqiao	Investment	Company Limited	Tianjin Shanshui	Cheng Investment	Company Limited	Tianjin Yujing	Bandao Investment	Company Limited	Wuhai Junjing Real	Estate Development	Company Limited	Xingtai Shuangda	Real Estate	Development	Company Limited	Xingtai Chengjia	Real Estate	Development	Company Limited
		Property Name		Portion of Evergrande Palace	Tangshan		Portion of Evergrande	Splendor Tianjin			Portion of Evergrande Oasis	Tianjin		Portion of Evergrande Oasis	Tianjin			Portion of Evergrande	Metropolis Tianjin		Portion of Evergrande Scenic	Garden Tianjin		Portion of Evergrande Royal	Scenic Peninsula Tianjin		Portion of Evergrande Oasis	Wuhai		Portion of Evergrande City	Xingtai			Portion of Evergrande Royal	View Garden Xingtai
	Property	No.		I-42			I-43				I-44			I-45				I-46			I-47			I-48			I-49			I-50				I-51

– IV-12 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

as at	Valuation	Date	(RMB million)	30.40				151.98			141.40			74.20			248.70			115.30				77.60				5.80				12.60			296.10			38.60
Interest	Attributable	to the Group	(%)	100.0%				51.0%			100.0%			100.0%			100.0%			100.0%				100.0%				100.0%				100.0%			100.0%			100.0%
Market	Value(2) in	Existing State	(RMB million)	30.40				298.00			141.40			74.20			248.70			115.30				77.60				5.80				12.60			296.10			38.60
	Pre-Sale	Consideration	(RMB million)	0.88				292.64			—			74.16			121.21			115.35				40.02				5.79				—			81.20			38.57
	Pre-Sale	CPS		—				—			—			—			—			—				—				—				—			—			—
	Pre-Sale(1)	GFA	(sq.m.)	161				19,648			—			7,538			24,700			7,669				5,666				780				—			26,819			9,942
	Completion	Date		2016				2017			2015			2017			2016			2016				2016				2015				2016			2015			2016
	Number	of CPS		—				—			—			—			—			—				—				—				—			—			—
Total	GFA(1)	(Excl. CPS)	(sq.m.)	5,256				20,076			17,669			7,538			40,641			7,669				10,142				780				1,821			69,963			9,942
		Type of Property		Residential				Residential			Residential			Residential			Residential			Residential				Residential				Residential				Residential			Residential			Residential
	Land Use Rights	Expiry Date		20 Jul 2082				08 Sep 2055 to	07 Sep 2085		19 Jan 2054 to	19 Jan 2084		08 Mar 2055 to	08 Mar 2085		16 Feb 2054 to	16 Feb 2084		24 Sep 2054 to	24 Sep 2084			13 Feb 2051 to	13 Feb 2081			02 Jul 2046 to	02 Jul 2076			29 Dec 2080			27 Sep 2050 to	27 Sep 2080		14 Aug 2079
		Land Use		Residential				Residential,	Commercial		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial			Residential,	Commercial			Residential,	Commercial			Residential,	Commercial		Residential,	Commercial		Residential
		City		Xingtai				Putian			Quanzhou			Quanzhou			Shishi			Zhangzhou				Lanzhou				Lanzhou				Lanzhou			Shizuishan			Wuzhong
		Holding Entity		Xingtai Xiangheng	Real Estate	Development	Company Limited	Putian Jinbi	Property Company	Limited	Quanzhou Ansheng	Property Company	Limited	Jinjiang Jinbi	Property Company	Limited	Shishi Jinbi	Property Company	Limited	Zhangzhou	Xincheng Real	Estate Development	Company Limited	Hengda Real Estate	Group Lanzhou	Property Company	Limited	Gansu Yusheng	Real Estate	Development	Company Limited	Lanzhou Shenjun	Property Company	Limited	Hengda (Shizuishan)	Real Estate Group	Company Limited	Ningxia Jinhai	Property Company	Limited
		Property Name		Portion of Evergrande	Metropolis Xingtai			Portion of Evergrande Royal	Scenic Peninsula Putien		Portion of Evergrande	Emerald Court Quanzhou		Portion of Evergrande Royal	Scenic Bay Quanzhou		Portion of Evergrande	Metropolis Shishi		Portion of Evergrande Royal	Scenic Peninsula Zhangzhou			Portion of Evergrande Oasis	Lanzhou			Portion of Evergrande	Metropolis Lanzhou			Portion of Evergrande Scenic	Garden Lanzhou		Portion of Evergrande Oasis	Shizuishan		Portion of Evergrande	Metropolis Wuzhong
	Property	No.		I-52				I-53			I-54			I-55			I-56			I-57				I-58				I-59				I-60			I-61			I-62

– IV-13 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

as at	Valuation	Date	(RMB million)	230.10			109.80			151.10			145.60				506.30			136.91				182.60			45.60			215.70				142.65			3,824.10
Interest	Attributable	to the Group	(%)	100.0%			100.0%			100.0%			100.0%				100.0%			57.0%				100.0%			100.0%			100.0%				90.0%			100.0%
Market	Value(2) in	Existing State	(RMB million)	230.10			109.80			151.10			145.60				506.30			240.20				182.60			45.60			215.70				158.50			3,824.10
	Pre-Sale	Consideration	(RMB million)	90.79			109.85			42.14			31.05				218.55			67.45				—			29.94			188.03				133.31			1,823.24
	Pre-Sale	CPS		—			—			—			—				—			—				—			—			—				—			—
	Pre-Sale(1)	GFA	(sq.m.)	16,785			18,686			7,716			5,425				33,045			10,136				—			4,920			37,310				21,050			104,019
	Completion	Date		2016			2017			2016			2016				2015			2016				2000			2016			2016				2016			2015
	Number	of CPS		—			—			—			—				—			—				—			—			—				—			—
Total	GFA(1)	(Excl. CPS)	(sq.m.)	41,219			18,686			27,171			22,775				74,152			35,173				9,169			6,033			42,853				24,088			183,417
		Type of Property		Residential			Residential			Residential			Residential				Residential,	Commercial,	Composite	Residential				Residential,	Commercial		Residential,	Commercial		Residential				Residential			Residential
	Land Use Rights	Expiry Date		25 Jul 2082			24 Mar 2051 to	24 Mar 2081		07 Apr 2081 to	01 Sep 2081		29 Nov 2053 to	29 Nov 2083			11 Aug 2082			10 Jan 2055 to	11 Jan 2085			22 Jul 2037 to	20 Apr 2049		21 Sep 2081			13 Mar 2052 to	13 Mar 2082			17 May 2052 to	17 May 2082		31 Jul 2062 to	11 Aug 2064
		Land Use		Residential			Residential,	Commercial		Residential			Residential				Residential, Public	Facility, Green	Space	Residential,	Commercial,	Accommodation	and Catering	Commercial,	Public Facility		Residential			Residential,	Commercial,	Accommodation	and Catering	Residential,	Commercial		Residential
		City		Wuwei			Xining			Yinchuan			Yinchuan				Chaozhou			Chaozhou				Guangzhou			Dongguan			Enping				Foshan			Foshan
		Holding Entity		Wuwei Hengda Real	Estate Development	Company Limited	Xining Hengda Real	Estate Development	Company Limited	Hengda (Yinchuan)	Real Estate Group	Company Limited	Ningxia Haotian	Real Estate	Development	Company Limited	Chaozhou Hengda	Property Company	Limited	Chaozhou Hengxin	Real Estate	Development	Company Limited	Hengda Real Estate	Group Company	Limited	Dongguan Shenjian	Real Estate	Company Limited	Hengda (Enping)	Real Estate Group	Company Limited		Foshan Nanhai	Outai Property	Company Limited	Foshan Nanhai	Juncheng Real	Estate Development	Limited
		Property Name		Portion of Evergrande Oasis	Wuwei		Portion of Evergrande	Metropolis Xining		Portion of Evergrande	Metropolis Yinchuan		Portion of Evergrande Royal	Scenic Yinchuan			Portion of Evergrande City	Chaozhou		Portion of Evergrande Scenic	Garden Chaozhou			Portion of The First Jinbi	Garden Guangzhou		Portion of Evergrande Royal	View Garden Dongguan		Portion of Evergrande Spring	City Enping			Portion of Evergrande	Emerald Court Foshan		Portion of Evergrande Cruise	City Foshan
	Property	No.		I-63			I-64			I-65			I-66				I-67			I-68				I-69			I-70			I-71				I-72			I-73

– IV-14 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

as at	Valuation	Date	(RMB million)	84.00				33.10				397.80			638.90			8.20				294.00			4,526.10			939.20				263.40			610.00
Interest	Attributable	to the Group	(%)	100.0%				100.0%				100.0%			100.0%			100.0%				100.0%			100.0%			100.0%				100.0%			100.0%
Market	Value(2) in	Existing State	(RMB million)	84.00				33.10				397.80			638.90			8.20				294.00			4,526.10			939.20				263.40			610.00
	Pre-Sale	Consideration	(RMB million)	83.96				2.97				371.57			580.60			—				—			197.24			395.26				—			170.39
	Pre-Sale	CPS		—				1				—			—			—				—			—			—				—			—
	Pre-Sale(1)	GFA	(sq.m.)	10,197				209				8,234			101,329			—				—			50,247			63,588				—			12,058
	Completion	Date		2016				2012				2016			2016							2008			2016			2016				2016
	Number	of CPS		—				1				—			—			—				1,081			—			—				—			—
Total	GFA(1)	(Excl. CPS)	(sq.m.)	10,197				1,271				8,739			111,920			601				2,191			815,375			137,088				44,651			37,176
		Type of Property		Residential				Residential, Carpark				Residential			Residential			Office				Commercial,	Composite, Carpark		Residential			Residential				Residential			Residential
	Land Use Rights	Expiry Date		22 Aug 2053 to	22 Aug 2083			12 Sep 2058				17 Dec 2083			01 Jul 2053 to	01 Jul 2083		10 Jan 2056				06 May 2053			08 Jan 2057 to	24 Feb 2081		17 Sep 2080 to	18 Oct 2080			16 Jul 2054 to	15 Sep 2086		19 Feb 2053 to	11 Jan 2075
		Land Use		Residential, Office				Residential,	Commercial,	Public Facility,	Carpark	Residential			Residential,	Commercial		Commercial,	Carpark			Commercial,	Composite,	Carpark	Residential, Office			Residential				Residential,	Commercial		Residential,	Commercial
		City		Foshan				Guangzhou				Guangzhou			Heyuan			Guangzhou				Guangzhou			Qingyuan			Qingyuan				Shaoguan			Foshan
		Holding Entity		Foshan Changxin	Honglong Real	Estate Company	Limited	Hengda Real Estate	Group Company	Limited		Guangzhou	Xincheng Property	Company Limited	Hengda (Heyuan)	Real Estate Group	Company Limited	Guangzhou Junhong	Real Estate	Development	Company Limited	Hengda Real Estate	Group Company	Limited	Hengda Shengyu	(Qingxin) Property	Company Limited	Qingyuan	Yinhucheng	Investment	Company Limited	Hengda (Shaoguan)	Real Estate Group	Company Limited	Foshan Shunde	District Shunya	Fangzhou Real	Estate Company	Limited
		Property Name		Portion of Evergrande Royal	Scenic Foshan			Portion of Evergrande Oasis	Guangzhou			Portion of Evergrande Royal	Palace Guangzhou		Portion of Evergrande	Metropolis Heyuan		Portion of Jinbi Junhong	Garden Guangzhou			Portion of Jinbi New City	Guangzhou		Portion of Evergrande	Splendor Qingyuan		Portion of Evergrande	Silverlake City Qingyuan			Portion of Evergrande City	Shaoguan		Portion of Evergrande Royal	View Garden Shunde
	Property	No.		I-74				I-75				I-76			I-77			I-78				I-79			I-80			I-81				I-82			I-83

– IV-15 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

as at	Valuation	Date	(RMB million)	593.00				572.90			132.55			14.70				217.30				289.40			155.80				136.90			726.90					357.30
Interest	Attributable	to the Group	(%)	100.0%				100.0%			51.0%			100.0%				100.0%				100.0%			100.0%				100.0%			100.0%					100.0%
Market	Value(2) in	Existing State	(RMB million)	593.00				572.90			259.90			14.70				217.30				289.40			155.80				136.90			726.90					357.30
	Pre-Sale	Consideration	(RMB million)	393.75				70.15			62.14			—				81.01				0.67			155.80				102.73			363.26					149.55
	Pre-Sale	CPS		—				—			—			—				—				—			—				—			—					—
	Pre-Sale(1)	GFA	(sq.m.)	65,702				10,691			15,059			—				16,121				109			20,246				22,233			68,476					33,768
	Completion	Date		2016				2017			2016			2004				2016				2016			2016				2016			2016					2016
	Number	of CPS		—				—			—			—				—				—			—				—			—					—
Total	GFA(1)	(Excl. CPS)	(sq.m.)	91,925				79,022			52,377			916				35,598				24,517			20,246				27,737			115,090					67,828
		Type of Property		Residential				Residential			Residential			Residential				Residential				Residential			Residential				Residential			Residential					Residential
	Land Use Rights	Expiry Date		12 Jan 2044 to	17 Aug 2083			04 Feb 2055 to	04 Feb 2085		28 Dec 2052 to	28 Dec 2082		08 Jun 2066				16 Jul 2053 to	16 Jul 2083			19 Dec 2063 to	19 Dec 2066		21 Oct 2083				06 Jun 2053 to	06 Jun 2083		01 Jan 2046 to	20 Dec 2084				01 Aug 2082
		Land Use		Residential,	Accommodation	and Catering,	Cultural and Sport	Residential,	Commercial		Residential,	Commercial		Residential				Residential,	Commercial			Residential			Residential				Residential,	Commercial		Residential,	Commercial,	Accommodation	and Catering, Park	and Green Space	Residential
		City		Yangjiang				Yangjiang			Yunfu			Guangzhou				Zhanjiang				Zhongshan			Zhongshan				Beihai			Beihai					Fangchenggang
		Holding Entity		Yangjiang Yifeng	Property Company	Limited		Hengda (Yangjiang)	Real Estate Group	Company Limited	Hengda (Yunfu)	Real Estate Group	Company Limited	Guangzhou Hengda	(Zengcheng) Real	Estate Development	Company Limited	Hengda Real Estate	Group Zhanjiang	Yujing Property	Company Limited	Hengda (Zhongshan)	Real Estate Group	Company Limited	Zhongshan	Changxin Hongzhan	Real Estate	Company Limited	Beihai Jiajing Real	Estate Development	Company Limited	Beihai Nanguo	Tiantang Real Estate	Development	Company Limited		Hengda	(Fangchenggang)	Real Estate Group	Company Limited
		Property Name		Portion of Evergrande	Hawaii on the sea Yangjiang			Portion of Evergrande	Metropolis Yangjiang		Portion of Evergrande City	Yunfu		Portion of Evergrande Scenic	Garden Guangzhou	Zengcheng		Portion of Evergrande Oasis	Zhanjiang			Portion of Evergrande Oasis	Zhongshan		Portion of Evergrande	Metropolis Zhongshan			Portion of Evergrande	Metropolis Beihai		Portion of Evergrande Royal	Scenic Peninsula Beihai				Portion of Evergrande Royal	Scenic Bay Fangchenggang
	Property	No.		I-84				I-85			I-86			I-87				I-88				I-89			I-90				I-91			I-92					I-93

– IV-16 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

as at	Valuation	Date	(RMB million)	171.87			438.00				26.00			227.46			150.20			368.80				402.00				100.80				501.90				51.60
Interest	Attributable	to the Group	(%)	51.0%			100.0%				100.0%			51.0%			100.0%			100.0%				100.0%				100.0%				100.0%				100.0%
Market	Value(2) in	Existing State	(RMB million)	337.00			438.00				26.00			446.00			150.20			368.80				402.00				100.80				501.90				51.60
	Pre-Sale	Consideration	(RMB million)	233.48			213.23				13.55			65.86			57.09			194.42				105.72				24.96				501.88				36.80
	Pre-Sale	CPS		—			—				—			—			—			—				—				—				—				—
	Pre-Sale(1)	GFA	(sq.m.)	68,709			29,956				1,802			5,864			6,647			25,652				12,081				2,652				61,321				7,712
	Completion	Date		2016			2016				2016			2016			2016			2016				2016				2016				2017				2015
	Number	of CPS		—			—				—			—			—			—				—				—				—				—
Total	GFA(1)	(Excl. CPS)	(sq.m.)	84,095			63,011				2,942			44,090			18,742			50,212				45,494				11,275				61,321				10,858
		Type of Property		Residential			Residential				Residential			Residential			Residential			Residential				Residential				Residential				Residential				Residential
	Land Use Rights	Expiry Date		28 Sep 2048 to	29 Nov 2049		03 Apr 2055 to	03 Apr 2085			15 Jan 2054 to	15 Jan 2084		22 Jan 2054 to	25 Sep 2085		19 May 2055 to	19 May 2085		29 Apr 2054 to	29 Apr 2084			14 Oct 2047 to	14 Oct 2077			29 Jun 2055 to	29 Jun 2085			15 Apr 2056 to	15 Apr 2086			09 Feb 2050 to	09 Feb 2080
		Land Use		Commercial,	Composite		Residential,	Commercial			Residential,	Commercial		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial			Residential,	Commercial			Residential,	Commercial			Residential,	Commercial			Residential,	Commercial
		City		Guilin			Liuzhou				Liuzhou			Liuzhou			Nanning			Nanning				Nanning				Nanning				Nanning				Qinzhou
		Holding Entity		Guilin Guijia Real	Estate Company	Limited	Liuzhou Hengda	Real Estate	Development	Company Limited	Liuzhou Hengda	Jinbi Property	Company Limited	Liuzhou Zhaofu	Property Company	Limited	Nanning Jinbi	Hengda Property	Company Limited	Guangxi Honghao	Huihuang Real	Estate Development	Company Limited	Nanning Yinxiang	Real Estate	Development	Company Limited	Nanning Shengshi	Hengda Real Estate	Development	Company Limited	Nanning Jinhua	Yufu Real Estate	Development	Company Limited	Qinzhou Qinlian	Hengda Property	Investment	Company Limited
		Property Name		Portion of Evergrande Plaza	Guilin		Portion of Evergrande City	Liuzhou			Portion of Evergrande	Emerald Court Liuzhou		Portion of Evergrande Palace	Liuzhou		Portion of Evergrande City	Nanning		Portion of Evergrande Royal	View Garden Nanning			Portion of Evergrande Oasis	Nanning			Portion of Evergrande	Metropolis Nanning			Portion of Evergrande Scenic	View Garden Nanning			Portion of Evergrande Oasis	Qinzhou
	Property	No.		I-94			I-95				I-96			I-97			I-98			I-99				I-100				I-101				I-102				I-103

– IV-17 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

as at	Valuation	Date	(RMB million)	275.16				265.00				514.30			450.30			175.20			1,011.20				356.60				71.60			124.30			153.10
Interest	Attributable	to the Group	(%)	60.0%				100.0%				100.0%			100.0%			100.0%			100.0%				100.0%				100.0%			100.0%			100.0%
Market	Value(2) in	Existing State	(RMB million)	458.60				265.00				514.30			450.30			175.20			1,011.20				356.60				71.60			124.30			153.10
	Pre-Sale	Consideration	(RMB million)	170.68				136.69				384.10			443.12			103.30			614.09				239.78				22.91			124.34			149.86
	Pre-Sale	CPS		—				—				—			—			—			—				95				—			—			41
	Pre-Sale(1)	GFA	(sq.m.)	27,631				19,476				32,732			84,034			15,459			71,686				60,479				3,842			15,402			31,454
	Completion	Date		2016				2016				2016			2015			2016			2016				2016				2016			2017			2016
	Number	of CPS		—				—				—			—			—			—				184				—			—			65
Total	GFA(1)	(Excl. CPS)	(sq.m.)	76,417				33,905				42,029			85,217			20,447			110,545				78,772				9,777			15,402			31,454
		Type of Property		Residential				Residential				Residential			Residential			Residential			Residential				Residential,	Commercial,	Carpark		Residential			Residential,	Commercial		Residential, Carpark
	Land Use Rights	Expiry Date		09 Dec 2053 to	09 Dec 2083			22 Jul 2053 to	15 Aug 2053			27 Jun 2048 to	27 Jun 2078		30 Dec 2068			27 Jun 2053 to	27 Jun 2083		09 Nov 2063				16 May 2051 to	15 May 2082			02 Aug 2053 to	02 Aug 2083		09 Jul 2055 to	09 Jul 2085		26 Feb 2052 to	26 Feb 2083
		Land Use		Residential,	Commercial			Residential,	Office,	Accommodation	and Catering	Residential,	Accommodation	and Catering	Residential			Residential,	Commercial		Commercial				Residential,	Commercial			Residential,	Commercial,	Public Facility	Residential,	Commercial,	Public Facility	Residential,	Commercial
		City		Wuzhou				Changjiang				Haikou			Chengmai			Haikou			Haikou				Harbin				Harbin			Harbin			Harbin
		Holding Entity		Guangxi Wuzhou	Wanguo Real Estate	Development	Company Limited	Changjiang Guangyi	Real Estate	Development	Company Limited	Haikou Waitan	Cheng Real Estate	Company Limited	Hainan Minghao	Property Company	Limited	Hengda (Hainan)	Real Estate Group	Company Limited	Hainan	Dongfangmingzhu	Real Estate	Company Limited	Harbin Hengda	Xingye Real Estate	Development	Company Limited	Harbin Mingye Real	Estate Development	Company Limited	Harbin Chiye Real	Estate Development	Company Limited	Harbin Hengda	Weiye Real Estate	Development	Company Limited
		Property Name		Portion of Evergrande Scenic	Garden Wuzhou			Portion of Evergrande Qizi	Bay Changjiang Gulf Pearl			Portion of Evergrande Bund	Haikou		Portion of Evergrande Royal	Scenic Bay Hainan		Portion of Evergrande Bay	Haikou		Portion of Evergrande	Culture Tourist City Haikou			Portion of Evergrande City	Harbin			Portion of Evergrande Royal	View Garden Harbin		Portion of Evergrande	Emerald Court Harbin		Portion of Evergrande Oasis	Harbin
	Property	No.		I-104				I-105				I-106			I-107			I-108			I-109				I-110				I-111			I-112			I-113

– IV-18 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

as at	Valuation	Date	(RMB million)	536.20				84.20				74.80				103.60				97.60				83.20				144.83					348.80			144.80
Interest	Attributable	to the Group	(%)	100.0%				100.0%				100.0%				100.0%				100.0%				100.0%				67.1%					100.0%			100.0%
Market	Value(2) in	Existing State	(RMB million)	536.20				84.20				74.80				103.60				97.60				83.20				215.90					348.80			144.80
	Pre-Sale	Consideration	(RMB million)	332.46				79.16				61.91				93.96				79.77				83.21				81.16					268.06			12.39
	Pre-Sale	CPS		73				—				89				54				—				20				—					—			—
	Pre-Sale(1)	GFA	(sq.m.)	69,600				12,826				17,635				23,360				14,041				14,973				17,186					70,635			2,166
	Completion	Date		2015				2013				2016				2016				2017				2016				2016					2016			2016
	Number	of CPS		531				—				165				134				—				20				—					—			—
Total	GFA(1)	(Excl. CPS)	(sq.m.)	85,548				13,432				17,635				23,360				16,621				14,973				32,131					85,317			17,333
		Type of Property		Residential,	Commercial,	Carpark		Residential,	Commercial			Residential, Carpark				Residential, Carpark				Residential				Residential, Carpark				Residential					Residential			Residential
	Land Use Rights	Expiry Date		28 May 2052 to	27 May 2083			01 May 2053 to	01 May 2083			09 May 2052 to	09 May 2082			18 Jul 2052 to	08 Oct 2082			28 Jun 2052 to	28 Jun 2082			28 Jun 2052 to	29 Jul 2082			24 Mar 2050 to	26 Dec 2081				20 Mar 2047 to	29 Aug 2080		28 Apr 2047 to	29 Apr 2077
		Land Use		Residential,	Commercial,	Public Facility		Residential				Residential,	Commercial			Residential,	Commercial			Residential,	Commercial,	Office		Residential, Office				Residential,	Commercial				Residential, Office			Residential,	Commercial
		City		Harbin				Harbin				Mudanjiang				Mudanjiang				Qiqihar				Qiqihar				Ezhou					Ezhou			Wuhan
		Holding Entity		Harbin Hengda	Weiye Real Estate	Development	Company Limited	Harbin Chengye	Real Estate	Development	Company Limited	Mudanjiang Hengda	Changjian Real	Estate Development	Company Limited	Mudanjiang Hengda	Yongtai Real Estate	Development	Company Limited	Hengda Yongxing	(Qiqihaer) Real	Estate Company	Limited	Hengda Yongxing	(Qiqihaer) Real	Estate Company	Limited	Hubei Sanjiang	Hangtian	Commercial	Management	Company Limited	Ezhou Hengda Real	Estate Development	Company Limited	Hubei Yiqing Yazhu	Real Estate	Development	Company Limited
		Property Name		Portion of Evergrande	Metropolis Harbin			Portion of Evergrande Royal	Scenic Bay Harbin			Portion of Evergrande	Emerald Court Mudanjiang			Portion of Evergrande Oasis	Mudanjiang			Portion of Evergrande	Emerald Court Tsitsihar			Portion of Evergrande	Metropolis Tsitsihar			Portion of Evergrande Sky	Capital Ezhou				Portion of Evergrande	Splendor Ezhou		Portion of Evergrande City	Wuhan
	Property	No.		I-114				I-115				I-116				I-117				I-118				I-119				I-120					I-121			I-122

– IV-19 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

as at	Valuation	Date	(RMB million)	782.02					497.06					315.54				255.70				78.50			41.06				59.64				18.42				65.90
Interest	Attributable	to the Group	(%)	67.1%					67.1%					67.1%				100.0%				100.0%			66.8%				60.0%				60.0%				100.0%
Market	Value(2) in	Existing State	(RMB million)	1,165.80					741.00					470.40				255.70				78.50			61.50				99.40				30.70				65.90
	Pre-Sale	Consideration	(RMB million)	—					441.96					—				—				—			—				83.89				20.02				21.78
	Pre-Sale	CPS		—					—					—				—				—			—				—				—				—
	Pre-Sale(1)	GFA	(sq.m.)	—					60,138					—				—				—			—				7,136				2,081				3,566
	Completion	Date		2014					2016					2016				2016				2016			2011				2016				2016				2016
	Number	of CPS		—					—					—				—				—			—				—				—				—
Total	GFA(1)	(Excl. CPS)	(sq.m.)	133,996					95,315					28,171				29,911				9,679			4,186				8,365				3,061				9,966
		Type of Property		Residential					Residential					Residential				Residential				Residential			Commercial				Residential				Residential				Residential
	Land Use Rights	Expiry Date		26 Dec 2046 to	26 Dec 2076				29 Oct 2047 to	29 Oct 2077				09 Aug 2050 to	09 Aug 2080			30 May 2047 to	26 Jan 2078			30 Apr 2077 to	12 May 2080		15 Nov 2047 to	15 Nov 2077			19 Oct 2065 to	19 Oct 2085			27 Mar 2054 to	24 Sep 2084			23 Mar 2051 to	23 Mar 2081
		Land Use		Residential,	Commercial				Residential,	Commercial				Residential,	Commercial			Residential,	Commercial			Residential			Residential,	Commercial,	Education		Residential, Park	and Green Space			Residential,	Commercial			Residential,	Accommodation	and Catering,	Education
		City		Wuhan					Wuhan					Wuhan				Wuhan				Wuhan			Wuhan				Wuhan				Wuhan				Xiangyang
		Holding Entity		Wuhan Sanjiang	Hangtian Jiayuan	Real Estate	Development	Company Limited	Wuhan Sanjiang	Hangtian	Panlongcheng Real	Estate Development	Company Limited	Wuhan Sanjiang	Hangtian Investment	Development	Company Limited	Wuhan Jinbi	Luzhou Real Estate	Development	Company Limited	Wuhan Huali	Property Company	Limited	Wuhan Sanjiang	Dongli Investment	Development	Company Limited	Wuhan Hengda	Dushi Real Estate	Development	Company Limited	Wuhan Hengda	Chutian Real Estate	Development	Company Limited	Xiangyang Hengda	Real Estate	Development	Company Limited
		Property Name		Portion of Evergrande	Rainbow Town Wuhan				Portion of Evergrande	Dragon City Wuhan				Portion of Evergrande	Capital Wuhan			Portion of Evergrande Oasis	Wuhan			Portion of Evergrande	Metropolis Wuhan		Portion of Evergrande	Shuang City Wuhan			Portion of Evergrande Royal	Palace Wuhan			Portion of Evergrande Royal	Scenic Bay Wuhan			Portion of Evergrande	Metropolis Xiangyang
	Property	No.		I-123					I-124					I-125				I-126				I-127			I-128				I-129				I-130				I-131

– IV-20 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

as at	Valuation	Date	(RMB million)	54.72				311.40				412.86			21.06				27.90			110.85			62.82			467.60			113.22			399.90			332.93
Interest	Attributable	to the Group	(%)	60.0%				100.0%				60.0%			65.0%				100.0%			69.5%			60.0%			100.0%			60.0%			100.0%			64.0%
Market	Value(2) in	Existing State	(RMB million)	91.20				311.40				688.10			32.40				27.90			159.50			104.70			467.60			188.70			399.90			520.20
	Pre-Sale	Consideration	(RMB million)	91.19				133.90				108.54			32.37				1.82			21.59			70.50			1.00			144.08			36.13			190.31
	Pre-Sale	CPS		—				—				—			—				—			—			—			—			—			—			—
	Pre-Sale(1)	GFA	(sq.m.)	13,770				23,665				15,598			6,036				321			3,986			15,135			217			26,962			6,849			27,859
	Completion	Date		2015				2015				2016			2016				2016			2016			2016			2013			2016			2016			2016
	Number	of CPS		—				—				—			—				—			—			—			—			—			—			—
Total	GFA(1)	(Excl. CPS)	(sq.m.)	13,770				54,260				102,105			6,036				4,825			30,311			21,470			91,715			31,422			71,805			68,888
		Type of Property		Residential				Residential				Residential			Residential				Residential			Residential			Residential			Residential			Residential,	Commercial		Residential			Residential,	Commercial
	Land Use Rights	Expiry Date		30 Jun 2054 to	30 Jun 2084			28 Dec 2048 to	28 Dec 2078			03 Aug 2053 to	03 Aug 2083		24 Feb 2053 to	24 Feb 2083			25 Oct 2050 to	16 Oct 2081		31 Dec 2051 to	31 Dec 2081		25 Jan 2050 to	25 Jan 2080		04 Aug 2050 to	11 Jun 2081		31 Dec 2054 to	31 Dec 2085		31 Mar 2053 to	31 Mar 2083		30 Dec 2057 to	30 Dec 2087
		Land Use		Residential,	Commercial			Residential,	Commercial,	Accommodation	and Catering	Residential,	Commercial		Residential,	Commercial			Residential,	Commercial		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial
		City		Yichang				Yichang				Changde			Chenzhou				Chenzhou			Hengyang			Huaihua			Liuyang			Xiangtan			Yiyang			Yueyang
		Holding Entity		Yichang Chutian	Hengda Real Estate	Development	Company Limited	Yichang Meiziya	Market Construction	Kaifa Company	Limited	Changde Xinze	Property Company	Limited	Chenzhou City	Wanxiangyuan Real	Estate Development	Company Limited	Chenzhou Jinbi	Property Company	Limited	Hengyang Baorui	Property Company	Limited	Huaihua Junda Real	Estate Development	Company Limited	Liuyang Jinbi	Property Company	Limited	Hunan Zongheng	Property Company	Limited	Yiyang Hengrui	Property Company	Limited	Yueyang Jinrui	Property Company	Limited
		Property Name		Portion of Evergrande Royal	View Garden Yichang			Portion of Evergrande Oasis	Yichang			Portion of Evergrande Palace	Changde		Portion of Evergrande Royal	View Garden Chenzhou			Portion of Evergrande Palace	Chenzhou		Portion of Evergrande Oasis	Hengyang		Portion of Evergrande Royal	View Garden Huaihua		Portion of Evergrande Palace	Liuyang		Portion of Evergrande	Emerald Court Xiangtan		Portion of Evergrande Oasis	Yiyang		Portion of Evergrande Nanhu	Peninsula Yueyang
	Property	No.		I-132				I-133				I-134			I-135				I-136			I-137			I-138			I-139			I-140			I-141			I-142

– IV-21 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

as at	Valuation	Date	(RMB million)	23.40			60.60			0.40			279.00			4.44				252.00			256.80				826.20				15.70			5.70			55.84
Interest	Attributable	to the Group	(%)	100.0%			100.0%			100.0%			100.0%			60.0%				100.0%			100.0%				100.0%				100.0%			100.0%			94.0%
Market	Value(2) in	Existing State	(RMB million)	23.40			60.60			0.40			279.00			7.40				252.00			256.80				826.20				15.70			5.70			59.40
	Pre-Sale	Consideration	(RMB million)	2.32			45.19			—			279.00			—				8.57			256.79				449.16				1.19			1.39			51.32
	Pre-Sale	CPS		—			—			—			—			—				—			1,675				—				—			—			—
	Pre-Sale(1)	GFA	(sq.m.)	428			8,662			—			47,709			0				1,391			7,125				54,278				139			254			13,797
	Completion	Date		2013			2015			2016			2016			2016				2013			2016				2016				2015			2015			2016
	Number	of CPS		—			—			—			—			—				—			1,675				—				—			—			—
Total	GFA(1)	(Excl. CPS)	(sq.m.)	3,403			10,837			43			47,709			808				30,033			7,125				87,060				1,779			949			14,710
		Type of Property		Residential			Residential			Residential			Residential			Residential				Residential			Residential,	Commercial,	Composite, Carpark		Residential				Residential			Residential			Residential
	Land Use Rights	Expiry Date		04 Oct 2074 to	30 Oct 2076		06 Feb 2052 to	06 Feb 2082		31 Aug 2044 to	31 Aug 2074		16 Apr 2053 to	16 Apr 2083		25 May 2052 to	25 May 2082			29 Jan 2047 to	29 Jan 2077		24 Mar 2045 to	24 Mar 2075			03 Sep 2050 to	03 Sep 2080			26 Jul 2052 to	26 Jul 2082		01 Apr 2051 to	01 Apr 2081		30 Dec 2050 to	30 Dec 2080
		Land Use		Residential,	Education		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial			Residential,	Commercial		Residential,	Commercial			Residential,	Commercial			Residential,	Commercial		Residential,	Commercial		Residential,	Commercial
		City		Changsha			Changsha			Changsha			Changsha			Changsha				Changsha			Changsha				Changsha				Changsha			Zhuzhou			Changzhou
		Holding Entity		Changsha Xinlin	Property Company	Limited	Changsha Hengxi	Property Company	Limited	Hunan Xiongzhen	Investment	Company Limited	Zhangsha Xinfu	Property Company	Limited	Hunan Xiangtian	Real Estate	Development	Company Limited	Changsha Tianxi	Property Company	Limited	Changsha Baorui	Real Estate	Development	Company Limited	Changsha Jinxia	Development	Construction	Company Limited	Changsha Ruixi	Property Company	Limited	Zhuzhou Jinbi	Property Company	Limited	Changzhou Hanjia	Property Company	Limited
		Property Name		Portion of Evergrande City	Changsha		Portion of Evergrande	Emerald Court Changsha		Portion of Evergrande Palace	Changsha		Portion of Evergrande Bay	Changsha		Portion of Evergrande	Centuried Financial Square			Portion of Evergrande Oasis	Changsha		Portion of Evergrande	Atrium Changsha			Portion of Evergrande Royal	Scenic Peninsula Changsha			Portion of Evergrande Royal	Scenic Bay Changsha		Portion of Evergrande	Metropolis Zhuzhou		Portion of Evergrande	Emerald Court Changzhou
	Property	No.		I-143			I-144			I-145			I-146			I-147				I-148			I-149				I-150				I-151			I-152			I-153

– IV-22 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

as at	Valuation	Date	(RMB million)	389.50				707.90			1,398.40			37.60			18.80			460.20				5.40			181.92			38.00				86.10			887.50
Interest	Attributable	to the Group	(%)	100.0%				100.0%			100.0%			100.0%			100.0%			100.0%				100.0%			51.0%			100.0%				100.0%			100.0%
Market	Value(2) in	Existing State	(RMB million)	389.50				707.90			1,398.40			37.60			18.80			460.20				5.40			356.70			38.00				86.10			887.50
	Pre-Sale	Consideration	(RMB million)	140.80				388.33			1,286.53			37.57			17.72			405.42				5.38			106.56			17.09				18.29			608.73
	Pre-Sale	CPS		—				—			—			—			—			—				—			—			—				—			—
	Pre-Sale(1)	GFA	(sq.m.)	40,084				77,016			72,824			6,398			753			79,632				1,112			13,733			3,877				1,008			69,946
	Completion	Date		2015				2016			2016			2016			2016			2016				2015			2016			2016				2016			2016
	Number	of CPS		—				—			—			—			—			—				—			—			—				—			—
Total	GFA(1)	(Excl. CPS)	(sq.m.)	85,305				121,406			78,475			6,398			803			87,814				1,112			33,539			6,257				3,014			109,775
		Type of Property		Residential				Residential			Residential			Residential			Residential			Residential				Residential			Residential			Residential				Residential			Residential
	Land Use Rights	Expiry Date		12 Nov 2052 to	12 Nov 2082			01 Apr 2081 to	25 Sep 2081		14 Feb 2084			14 Feb 2053 to	14 Feb 2083		17 Nov 2054 to	17 Nov 2084		20 Jul 2080 to	14 Aug 2084			01 Feb 2052 to	01 Feb 2082		22 Aug 2053 to	22 Aug 2083		26 Oct 2051 to	26 Oct 2081			05 May 2085			30 May 2047 to	30 May 2077
		Land Use		Residential,	Commercial			Residential			Residential			Residential,	Commercial		Residential,	Commercial,	Education	Residential				Residential,	Commercial		Residential,	Commercial		Residential,	Commercial			Residential			Residential,	Accommodation	and Catering
		City		Danyang				Danyang			Hangzhou			Pinghu			Hangzhou			Huaian				Jiaxing			Jiangyin			Lianyungang				Nanjing			Nanjing
		Holding Entity		Danyang Mingyuan	Real Estate	Development	Company Limited	Danyang Hengda	Property Company	Limited	Hangzhou Suihua	Property Company	Limited	Pinghu Hengda	Mingdu Property	Company Limited	Hangzhou Jingli	Property Company	Limited	Huai’an Hengda	Fufeng Real Estate	Development	Company Limited	Jiaxing Hengda	Property Company	Limited	Jiangyin Shengjian	Property Company	Limited	Lianyungang	Hengda Mingdu	Property Company	Limited	Nanjing Xutai Real	Estate Company	Limited	Nanjing Hengda	Fufeng Property	Company Limited
		Property Name		Portion of Evergrande City	Danyang			Portion of Evergrande	Metropolis Danyang		Portion of Evergrande Royal	View Garden Hangzhou		Portion of Evergrande	Metropolis Pinghu		Portion of Evergrande	Crystal International Plaza	Hangzhou	Portion of Evergrande	Metropolis Huai’an			Portion of Evergrande Oasis	Jiaxing		Portion of Evergrande Royal	Scenic Jiangyin		Portion of Evergrande	Metropolis Lianyungang			Portion of Evergrande Palace	Nanjing		Portion of Evergrande	Splendor Nanjing
	Property	No.		I-154				I-155			I-156			I-157			I-158			I-159				I-160			I-161			I-162				I-163			I-164

– IV-23 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

as at	Valuation	Date	(RMB million)	251.70			423.40			523.80			906.70			84.80			861.40			70.50			364.00			151.70			236.30			644.20
Interest	Attributable	to the Group	(%)	100.0%			100.0%			100.0%			100.0%			100.0%			100.0%			100.0%			100.0%			100.0%			100.0%			100.0%
Market	Value(2) in	Existing State	(RMB million)	251.70			423.40			523.80			906.70			84.80			861.40			70.50			364.00			151.70			236.30			644.20
	Pre-Sale	Consideration	(RMB million)	25.63			394.69			97.60			80.78			84.84			362.22			25.81			58.27			151.68			225.28			293.08
	Pre-Sale	CPS		54			—			—			—			—			—			—			—			—			—			—
	Pre-Sale(1)	GFA	(sq.m.)	1,335			35,087			7,282			11,959			10,307			11,724			1,204			1,782			6,375			34,736			26,760
	Completion	Date		2016			2016			2016			2016			2016			2016			2016			2016			2016			2016			2016
	Number	of CPS		54			—			—			—			—			—			—			—			—			—			—
Total	GFA(1)	(Excl. CPS)	(sq.m.)	9,791			38,551			36,673			113,931			10,307			24,235			2,347			10,518			6,375			35,752			51,836
		Type of Property		Residential, Carpark			Residential			Residential			Residential			Residential			Residential			Residential			Residential			Residential			Residential			Residential,	Commercial
	Land Use Rights	Expiry Date		20 Dec 2076 to	22 Jan 2078		05 Mar 2050 to	06 Feb 2083		23 Dec 2050 to	23 Dec 2080		15 Oct 2052 to	02 Apr 2084		09 Sep 2053 to	09 Sep 2053		17 Jan 2084			24 Feb 2084 to	24 Feb 2084		17 Jan 2084			24 May 2084			05 Oct 2052 to	05 Mar 2083		10 Mar 2051 to	10 Mar 2081
		Land Use		Residential			Residential,	Commercial		Residential,	Office, Cultural	and Entertainment	Residential,	Commercial		Residential,	Commercial		Residential			Residential			Residential			Residential			Residential,	Commercial		Residential,	Commercial,	Office, Education
		City		Nanjing			Nanjing			Ningbo			Ningbo			Quzhou			Shanghai			Shanghai			Shanghai			Shanghai			Wuxi			Wuxi
		Holding Entity		Nanjin Handian	Real Estate	Company Limited	Jurong Tiangong	Property Company	Limited	Chengbo (Ningbo)	Property Company	Limited	Ningbo Yucheng	Property Company	Limited	Quzhou Hengda	Shengjian Property	Company Limited	Shanghai Songyu	Property Company	Limited	Shanghai Yue’an	Property Company	Limited	Shanghai Rongshan	Property Company	Limited	Shanghai Jinbi	Property Company	Limited	Wuxi Hengda Real	Estate Development	Company Limited	Wuxi Shengdong	Real Estate	Development	Company Limited
		Property Name		Portion of Evergrande Oasis	Nanjing		Portion of Evergrande	Atrium Nanjing Jurong		Portion of Evergrande City	Lights Ningbo		Portion of Evergrande Scenic	Garden Ningbo		Portion of Evergrande Royal	Scenic Peninsula Quzhou		Portion of Evergrande Royal	View Garden Shanghai		Portion of Evergrande	Metropolis Shanghai		Portion of Evergrande First	Palace Sheshan Shanghai		Portion of Evergrande Royal	Scenic Bay Shanghai		Portion of Evergrande City	Wuxi		Portion of Evergrande Oasis	Wuxi
	Property	No.		I-165			I-166			I-167			I-168			I-169			I-170			I-171			I-172			I-173			I-174			I-175

– IV-24 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

as at	Valuation	Date	(RMB million)	808.80			2.60				580.70			100.00				285.03			106.10				0.40			162.00				224.90				301.70
Interest	Attributable	to the Group	(%)	100.0%			100.0%				100.0%			100.0%				90.0%			100.0%				100.0%			100.0%				100.0%				100.0%
Market	Value(2) in	Existing State	(RMB million)	808.80			2.60				580.70			100.00				316.70			106.10				0.40			162.00				224.90				301.70
	Pre-Sale	Consideration	(RMB million)	808.81			2.64				163.60			99.46				112.76			—				0.37			146.27				59.83				173.31
	Pre-Sale	CPS		—			—				—			66				—			—				—			—				—				—
	Pre-Sale(1)	GFA	(sq.m.)	184,753			872				33,099			15,072				13,907			—				91			47,751				15,246				29,885
	Completion	Date		2016			2016				2016			2016				2001			2015				2016			2016				2016				2016
	Number	of CPS		—			—				—			66				—			—				—			—				—				—
Total	GFA(1)	(Excl. CPS)	(sq.m.)	184,753			872				85,237			15,143				39,087			16,056				92			50,656				42,218				47,712
		Type of Property		Residential,	Commercial		Residential				Residential			Residential, Carpark				Residential			Residential				Residential			Residential				Residential				Residential
	Land Use Rights	Expiry Date		20 Jun 2081			26 Jun 2081				30 May 2052 to	30 May 2082		10 Jul 2052 to	10 Jul 2082			24 Sep 2055 to	07 Sep 2086		21 Dec 2051 to	21 Dec 2081			27 Jan 2051 to	27 Jan 2081		25 Oct 2052 to	28 Jan 2084			11 Nov 2050 to	11 Nov 2080			02 Nov 2050 to	02 Nov 2080
		Land Use		Residential			Residential				Residential,	Commercial		Residential, Office				Residential,	Commercial		Residential,	Commercial,	Office, Public	Facility	Residential,	Commercial		Residential,	Commercial			Residential,	Commercial			Residential,	Commercial
		City		Suqian			Suqian				Yancheng			Yangzhou				Zhangjiagang			Zhenjiang				Changchun			Songyuan				Jilin				Changchun
		Holding Entity		Suqian Hengda	Huafu Property	Company Limited	Suqian Hengda	Lvzhou Real Estate	Development	Company Limited	Hengda Real Estate	Group Yancheng	Company Limited	Yangzhou Honglitai	Real Estate	Development	Company Limited	Zhangjiagang	Shengjian Property	Company Limited	Zhenjiang Jia Qi	Property Company	Limited		Jilin Wancheng Real	Estate Development	Company Limited	Songyuan Hengda	Yusheng Real Estate	Development	Company Limited	Jilin Hengda	Yongsheng Real	Estate Development	Company Limited	Shengji	(Changchun) Real	Estate Company	Limited
		Property Name		Portion of Evergrande Palace	Suqian		Portion of Evergrande Oasis	Suqian			Portion of Evergrande	Metropolis Yancheng		Portion of Evergrande Royal	Scenic Yangzhou			Portion of Evergrande	Greenview Villa	Zhangjiagang	Portion of Evergrande Oasis	Zhengjiang			Portion of Evergrande	Emerald Court Changchun		Portion of Evergrande Royal	Scenic Bay Songyuan			Portion of Evergrande Palace	Jilin			Portion of Evergrande City	Changchun
	Property	No.		I-176			I-177				I-178			I-179				I-180			I-181				I-182			I-183				I-184				I-185

– IV-25 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

as at	Valuation	Date	(RMB million)	526.90			12.50			385.60			344.80			102.60				192.80			186.30			132.10			28.76				303.30			100.00
Interest	Attributable	to the Group	(%)	100.0%			100.0%			100.0%			100.0%			100.0%				100.0%			100.0%			100.0%			51.0%				100.0%			100.0%
Market	Value(2) in	Existing State	(RMB million)	526.90			12.50			385.60			344.80			102.60				192.80			186.30			132.10			56.40				303.30			100.00
	Pre-Sale	Consideration	(RMB million)	148.70			1.62			29.31			132.43			51.05				178.00			46.88			—			—				—			28.98
	Pre-Sale	CPS		—			—			—			—			—				—			—			—			—				—			—
	Pre-Sale(1)	GFA	(sq.m.)	22,769			224			4,548			26,301			9,260				30,772			6,672			—			—				—			4,850
	Completion	Date		2016			2016			2017			2016			2016				2016			2016			2016			2016				2016			2016
	Number	of CPS		—			—			—			—			—				—			—			—			—				—			—
Total	GFA(1)	(Excl. CPS)	(sq.m.)	67,796			1,455			52,691			55,392			15,704				32,560			22,168			13,765			7,319				46,655			17,767
		Type of Property		Residential			Residential			Residential			Residential			Residential				Residential			Residential			Residential			Residential				Residential			Residential
	Land Use Rights	Expiry Date		12 Jun 2054 to	12 Jun 2084		13 Mar 2053 to	13 Mar 2083		12 Feb 2055 to	12 Feb 2085		12 May 2051 to	12 May 2081		07 Dec 2051 to	07 Dec 2081			11 Dec 2053 to	11 Dec 2083		13 Jan 2051 to	13 Jan 2081		07 Jun 2055 to	07 Jun 2085		22 May 2048 to	22 May 2078			27 Jun 2083			20 Oct 2055 to	20 Oct 2085
		Land Use		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial			Residential,	Commercial		Residential,	Commercial		Residential			Residential,	Commercial			Residential			Residential, Office
		City		Changchun			Changchun			Changchun			Changchun			Changchun				Changchun			Changchun			Ganzhou			Ganzhou				Jian			Jingdezhen
		Holding Entity		Zetao (Changchun)	Real Estate	Company Limited	Yongji (Changchun)	Real Estate	Company Limited	Jitao (Changchun)	Real Estate	Company Limited	Xinji (Changchun)	Real Estate	Company Limited	Jinggao	(Changchun) Real	Estate Company	Limited	Taiji (Changchun)	Real Estate	Company Limited	Taiji (Changchun)	Real Estate	Company Limited	Ganzhou Hengda	Real Estate	Company Limited	Jiangxi Xingyu	Property	Development	Company Limited	Hengda (Ji’an) Real	Estate Group	Company Limited	Hengda	(Jingdezhen) Real	Estate Group	Company Limited
		Property Name		Portion of Evergrande Royal	View Garden Changchun		Portion of Evergrande City	Plaza Changchun		Portion of Evergrande Bay	Changchun		Portion of Evergrande	Metropolis Changchun		Portion of Evergrande	Atrium Changchun			Portion of Evergrande Royal	Summit Changchun		Portion of Evergrande Scenic	View Garden Changchun		Portion of Evergrande	Emerald Court Ganzhou		Portion of Evergrande	Metropolis Ganzhou			Portion of Evergrande Royal	View Garden Ji’an		Portion of Evergrande Royal	Scenic Jingdezhen
	Property	No.		I-186			I-187			I-188			I-189			I-190				I-191			I-192			I-193			I-194				I-195			I-196

– IV-26 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

as at	Valuation	Date	(RMB million)	191.10				8.10			244.75			164.20			572.10				652.40				936.80				194.40				429.10				468.00
Interest	Attributable	to the Group	(%)	100.0%				100.0%			89.0%			100.0%			100.0%				100.0%				100.0%				100.0%				100.0%				100.0%
Market	Value(2) in	Existing State	(RMB million)	191.10				8.10			275.00			164.20			572.10				652.40				936.80				194.40				429.10				468.00
	Pre-Sale	Consideration	(RMB million)	181.95				—			1.89			57.89			156.22				457.73				26.56				—				2.38				8.52
	Pre-Sale	CPS		—				—			—			—			—				—				—				—				—				—
	Pre-Sale(1)	GFA	(sq.m.)	41,542				—			246			6,613			10,858				40,495				4,352				—				597				1,603
	Completion	Date		2016				2016			2016			2016			2016				2017				2016				2016				2016				2015
	Number	of CPS		—				—			—			—			—				—				—				—				—				—
Total	GFA(1)	(Excl. CPS)	(sq.m.)	43,205				1,074			37,661			15,449			59,797				56,707				155,383				38,880				84,260				95,378
		Type of Property		Residential				Residential			Residential			Residential			Residential,	Commercial, Office			Residential,	Commercial			Residential				Residential				Residential				Residential
	Land Use Rights	Expiry Date		27 Jun 2050 to	02 Mar 2081			05 Mar 2053 to	05 Mar 2083		01 Jun 2051 to	01 Jun 2081		24 Nov 2047 to	24 Nov 2077		29 Dec 2050 to	29 Dec 2080			17 Mar 2084				12 May 2051 to	29 Nov 2082			28 Feb 2050 to	28 Feb 2080			13 Sep 2045 to	13 Sep 2075			27 Apr 2052 to	27 Apr 2082
		Land Use		Residential,	Commercial			Residential,	Commercial		Residential, Office			Residential,	Commercial, Sport	and Leisure	Residential,	Commercial			Residential				Residential,	Commercial			Residential,	Commercial			Residential, Office				Residential,	Commercial
		City		Jingdezhen				Jiujiang			Nanchang			Nanchang			Nanchang				Nanchang				Wujiaqu				Xinyu				Xinyu				Yining
		Holding Entity		Hengda	(Jingdezhen) Real	Estate Group	Company Limited	Hengda (Jiujiang)	Real Estate Group	Company Limited	Jiangxi Hongji	Investment	Company Limited	Jiangxi Cuilin	Shanzhuang	Company Limited	Nanchang	Zhongdiantou	Gaoxin Property	Company Limited	Nanchang	Zhongdiantou	Gaoxin Property	Company Limited	Wujiaqu Zhuoyue	Real Estate	Development	Company Limited	Xinyu Xingwang	Real Estate	Development	Company Limited	Xinyu Zhongchen	Property	Development	Company Limited	Yining Hengda	Yayuan Real Estate	Development	Company Limited
		Property Name		Portion of Evergrande	Metropolis Jingdezhen			Portion of Evergrande Royal	Scenic Jiujiang		Portion of Evergrande City	Nanchang		Portion of Evergrande Oasis	Nanchang		Portion of Evergrande Royal	View Garden Nanchang			Portion of Evergrande	Yujingxiaoqu Nanchang			Portion of Evergrande	Splendor Urumchi			Portion of Evergrande City	Xinyu			Portion of Evergrande	Atrium Xinyu			Portion of Evergrande	Atrium Yining
	Property	No.		I-197				I-198			I-199			I-200			I-201				I-202				I-203				I-204				I-205				I-206

– IV-27 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

as at	Valuation	Date	(RMB million)	242.40			84.80				285.10			289.80			69.90			194.20			170.30		334.20			474.80			36.60			35.34			345.20
Interest	Attributable	to the Group	(%)	100.0%			100.0%				100.0%			100.0%			100.0%			100.0%			100.0%		100.0%			100.0%			100.0%			60.0%			100.0%
Market	Value(2) in	Existing State	(RMB million)	242.40			84.80				285.10			289.80			69.90			194.20			170.30		334.20			474.80			36.60			58.90			345.20
	Pre-Sale	Consideration	(RMB million)	90.20			30.85				28.32			56.48			69.92			194.24			160.99		322.01			109.79			33.76			53.42			188.12
	Pre-Sale	CPS		—			—				—			—			—			—			—		—			—			—			—			—
	Pre-Sale(1)	GFA	(sq.m.)	21,578			4,285				4,359			9,568			27,324			55,335			48,642		26,184			13,360			4,156			5,801			47,053
	Completion	Date		2016			2016				2016			2016			2016			2016			2016		2016			2017			2016			2016			2016
	Number	of CPS		—			—				—			—			—			—			—		—			—			—			—			—
Total	GFA(1)	(Excl. CPS)	(sq.m.)	49,762			12,580				51,049			51,195			27,324			55,335			50,306		26,994			51,777			4,396			6,201			76,686
		Type of Property		Residential			Residential				Residential,	Commercial		Residential			Residential			Residential			Residential		Residential			Residential			Residential			Residential			Residential
	Land Use Rights	Expiry Date		27 Apr 2052 to	27 Apr 2082		16 Jan 2077				28 Jan 2051 to	28 Jan 2081		28 Jan 2085 to	29 Jan 2085		09 Jul 2050 to	28 Feb 2083		31 Aug 2081			28 Sep 2051 to	28 Sep 2081	21 Apr 2054 to	21 Apr 2084		31 May 2085			30 Jan 2082			30 Aug 2083			29 Aug 2051 to	29 Aug 2081
		Land Use		Residential,	Commercial		Residential				Residential,	Commercial,	Office	Residential			Residential,	Commercial		Residential			Residential,	Commercial	Residential,	Commercial		Residential			Residential,	Commercial		Residential			Residential,	Commercial
		City		Yining			Yichun				Yingtan			Yingtan			Anshan			Anshan			Benxi		Dalian			Dalian			Dalian			Dalian			Fushun
		Holding Entity		Yining Jinbi Real	Estate Development	Company Limited	Jiangxi Jimin Kexin	Real Estate	Development	Company Limited	Hengda Real Estate	Yingtan Company	Limited	Hengda Real Estate	Yingtan Company	Limited	Anshan Jiarui	Property Company	Limited	Anshan Jiayu	Property Company	Limited	Benxi Jiaxi Property	Company Limited	Dalian Hengcheng	Real Estate	Company Limited	Dalian Hengke Real	Estate Company	Limited	Dalian Xicheng	Real Estate	Company Limited	Dalian Shicheng	Real Estate	Company Limited	Fushun Jiaxin	Property Company	Limited
		Property Name		Portion of Evergrande Oasis	Yining		Portion of Evergrande Oasis	Yichun			Portion of Evergrande Oasis	Yingtan		Portion of Evergrande Royal	Scenic Yingtan		Portion of Evergrande Oasis	Anshan		Portion of Evergrande	Metropolis Anshan		Portion of Evergrande Oasis	Benxi	Portion of Evergrande Royal	View Garden Dalian		Portion of Evergrande	Harbor City Dalian		Portion of Evergrande	Tanxijun Dalian		Portion of Evergrande Royal	Scenic Bay Dalian		Portion of Evergrande Palace	Fushun
	Property	No.		I-207			I-208				I-209			I-210			I-211			I-212			I-213		I-214			I-215			I-216			I-217			I-218

– IV-28 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

as at	Valuation	Date	(RMB million)	228.70			319.40			344.60			14.60			105.50			128.20			208.60			445.10			219.90			227.80			252.50			163.60
Interest	Attributable	to the Group	(%)	100.0%			100.0%			100.0%			100.0%			100.0%			100.0%			100.0%			100.0%			100.0%			100.0%			100.0%			100.0%
Market	Value(2) in	Existing State	(RMB million)	228.70			319.40			344.60			14.60			105.50			128.20			208.60			445.10			219.90			227.80			252.50			163.60
	Pre-Sale	Consideration	(RMB million)	178.02			178.40			103.57			13.70			105.52			77.75			163.10			394.02			38.02			209.07			127.75			74.31
	Pre-Sale	CPS		—			—			—			—			—			—			—			—			—			—			—			—
	Pre-Sale(1)	GFA	(sq.m.)	54,693			49,822			20,529			2,950			17,506			15,542			38,847			65,510			7,772			48,439			22,428			26,683
	Completion	Date		2016			2016			2015			2016			2016			2015			2016			2016			2016			2016			2016			2015
	Number	of CPS		—			—			—			—			—			—			—			—			—			—			—			—
Total	GFA(1)	(Excl. CPS)	(sq.m.)	64,086			76,896			62,083			3,087			17,506			21,219			46,071			73,020			38,594			51,261			39,523			44,534
		Type of Property		Residential			Residential			Residential			Residential			Residential			Residential			Residential			Residential			Residential			Residential			Residential			Residential
	Land Use Rights	Expiry Date		08 Jun 2051 to	29 May 2084		20 Jun 2050 to	20 Jun 2080		28 Jan 2051 to	29 Mar 2081		07 Jun 2057 to	31 Mar 2061		29 May 2053 to	19 Jun 2083		24 May 2060			27 May 2060			31 Dec 2056 to	31 Oct 2064		19 Oct 2050 to	19 Oct 2080		03 Apr 2052 to	20 Apr 2082		29 Nov 2053 to	29 Nov 2083		17 Jul 2051 to	17 Jul 2081
		Land Use		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial		Residential			Residential,	Commercial		Residential			Residential			Residential			Residential,	Commercial		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial
		City		Huludao			Liaoyang			Panjin			Shenyang			Shenyang			Shenyang			Shenyang			Shenyang			Shenyang			Shenyang			Shenyang			Yingkou
		Holding Entity		Huludao Jia Shan	Property Company	Limited	Liaoyang	Hengsheng Property	Company Limited	Panjin Jiading	Property Company	Limited	Hengda Xinyuan	(Shenyang) Property	Company Limited	Shenyang Jiahui	Property Company	Limited	Shenyang Jiaqi	Property Company	Limited	Shenyang Jiakai	Property Company	Limited	Hengda Changji	(Shenyang) Property	Company Limited	Shenyang Yue Tong	Properties Company	Limited	Shenyang Jiajun	Property Company	Limited	Shenyang Jiaze	Property Company	Limited	Yingkou Jialong	Real Estate	Company Limited
		Property Name		Portion of Evergrande Royal	Scenic Bay Huludao		Portion of Evergrande Oasis	Liaoyang		Portion of Evergrande Palace	Panjin		Portion of Evergrande City	Shenyang		Portion of Evergrande	Emerald Court Shenyang		Portion of Evergrande Palace	Shenyang		Portion of Evergrande Bay	Shenyang		Portion of Evergrande Oasis	Shenyang		Portion of Evergrande	Metropolis Shenyang		Portion of Evergrande	Atrium Shenyang		Portion of Evergrande Royal	Scenic Bay Shenyang		Portion of Evergrande City	Yingkou
	Property	No.		I-219			I-220			I-221			I-222			I-223			I-224			I-225			I-226			I-227			I-228			I-229			I-230

– IV-29 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

as at	Valuation	Date	(RMB million)	88.50			660.20				309.70			93.80			492.70				634.80			95.50			121.20			852.40			980.40			19.40
Interest	Attributable	to the Group	(%)	100.0%			100.0%				100.0%			100.0%			100.0%				100.0%			100.0%			100.0%			100.0%			100.0%			100.0%
Market	Value(2) in	Existing State	(RMB million)	88.50			660.20				309.70			93.80			492.70				634.80			95.50			121.20			852.40			980.40			19.40
	Pre-Sale	Consideration	(RMB million)	88.49			529.73				258.42			9.31			383.02				95.76			65.91			—			292.86			698.83			2.08
	Pre-Sale	CPS		—			—				—			—			—				—			—			—			—			—			—
	Pre-Sale(1)	GFA	(sq.m.)	24,568			124,443				51,769			1,054			72,575				9,596			8,447			—			17,212			115,198			444
	Completion	Date		2015			2015				2016			2016			2016				2016			2016			2017			2016			2016			2013
	Number	of CPS		—			—				—			—			—				—			—			—			—			—			—
Total	GFA(1)	(Excl. CPS)	(sq.m.)	24,568			146,183				59,192			7,871			86,179				38,731			11,567			12,760			39,592			156,603			2,413
		Type of Property		Residential			Residential				Residential			Residential			Residential				Residential			Residential			Residential			Residential			Residential,	Commercial		Residential
	Land Use Rights	Expiry Date		29 Jul 2054 to	29 Jul 2084		25 Jan 2051 to	25 Jan 2081			12 Sep 2052 to	12 Sep 2082		07 Jul 2085			13 Apr 2051 to	13 Jun 2084			19 Oct 2052 to	19 Oct 2082		19 Oct 2052 to	19 Oct 2082		10 Nov 2053 to	30 Apr 2084		30 Dec 2084			05 Apr 2080 to	07 Sep 2080		28 Apr 2080
		Land Use		Residential,	Commercial		Residential,	Commercial,	Accommodation	and Catering	Residential,	Accommodation	and Catering	Residential			Residential, Office				Residential, Office			Residential, Office			Residential,	Commercial		Residential			Residential			Residential
		City		Yingkou			Dongying				Dongying			Jinan			Jinan				Jinan			Jinan			Jinan			Jinan			Jinan			Jinan
		Holding Entity		Yingkou Jialong	Real Estate	Company Limited	Dongying Hengda	Huafu Property	Company Limited		Dongying Yujing	Property Company	Limited	Jinan Dongjin	Fengshan Property	Company Limited	Jinan Hengda Jinbi	Real Estate	Development	Company Limited	Jinan Hengda Feicui	Huating Property	Company Limited	Jinan Huafu	Property Company	Limited	Jinan Xichuang	Property Company	Limited	Jinan Dongjin	Longding Property	Company Limited	Jinan Hengda	Lvzhou Property	Company Limited	Jinan Mingdu	Property Company	Limited
		Property Name		Portion of Evergrande Oasis	Yingkou		Portion of Evergrande Huang	He Sheng Tai Cheng	Dongying		Portion of Evergrande Palm	Islands Dongying		Portion of Evergrande	Longao East New Metropolis	Jinan	Portion of Evergrande City	Jinan			Portion of Evergrande Royal	View Garden Jinan		Portion of Evergrande	Emerald Court Jinan		Portion of Evergrande	Emerald Court Jinan		Portion of Evergrande	Longao Regency Jinan		Portion of Evergrande Oasis	Jinan		Portion of Evergrande	Metropolis Jinan
	Property	No.		I-231			I-232				I-233			I-234			I-235				I-236			I-237			I-238			I-239			I-240			I-241

– IV-30 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

as at	Valuation	Date	(RMB million)	1,098.70		35.34			258.66				326.30						45.34			232.40			144.89			146.32			473.60			169.00				460.60
Interest	Attributable	to the Group	(%)	100.0%		60.0%			60.0%				100.0%						51.0%			100.0%			51.0%			51.0%			100.0%			100.0%				100.0%
Market	Value(2) in	Existing State	(RMB million)	1,098.70		58.90			431.10				326.30						88.90			232.40			284.10			286.90			473.60			169.00				460.60
	Pre-Sale	Consideration	(RMB million)	1,098.66		9.44			431.12				153.37						78.28			232.37			66.71			36.40			101.00			168.97				460.56
	Pre-Sale	CPS		—		—			—				—						—			—			—			—			—			—				—
	Pre-Sale(1)	GFA	(sq.m.)	142,175		1,776			77,906				48,012						15,808			38,250			17,900			9,172			21,303			43,042				92,485
	Completion	Date		2017		2016			2016				2016						2016			2016			2016			2016			2016			2016				2016
	Number	of CPS		—		—			—				—						—			—			—			—			—			—				—
Total	GFA(1)	(Excl. CPS)	(sq.m.)	142,175		7,665			77,906				72,152						17,163			38,250			61,369			61,369			80,441			43,042				92,485
		Type of Property		Residential		Residential			Residential				Residential						Residential			Residential			Residential			Residential			Residential			Residential				Residential
	Land Use Rights	Expiry Date		30 Apr 2054 to	01 Apr 2084	21 Oct 2052 to	21 Oct 2082		19 Jan 2054 to	30 Jul 2084			19 Sep 2050 to	11 Sep 2083					09 Dec 2082			22 Sep 2051 to	22 Sep 2081		30 Dec 2051 to	30 Dec 2081		30 Dec 2051 to	30 Dec 2081		20 Aug 2080			15 Feb 2052 to	19 Mar 2083			03 Mar 2052 to	03 Mar 2082
		Land Use		Residential,	Commercial	Residential, Office			Residential, Office				Residential,	Commercial,	Accommodation	and Catering,	Cultural and	Entertainment	Residential			Residential, Office			Residential,	Commercial		Residential,	Commercial		Residential			Residential,	Commercial			Residential,	Commercial
		City		Jinan		Jinan			Jining				Laiwu						Liaocheng			Linyi			Linyi			Linyi			Taian			Weifang				Weifang
		Holding Entity		Jinan Xikai Property	Company Limited	Jinan Hengda Xiqu	Property Company	Limited	Jining Beihu	Hengda Mingdu	Property Company	Limited	Laiwu Hengda Jinbi	Tianxia Property	Company Limited				Liaocheng Nanjiao	Mingdu Property	Company Limited	Linyi Huafu	Property Company	Limited	Linyi Lvzhou	Property Company	Limited	Linyi Zhengsheng	Property Company	Limited	Tai’an Tianrun	Renhe Property	Company Limited	Shandong Puyun	Real Estate	Development	Company Limited	Weifang Jinbi	Property Company	Limited
		Property Name		Portion of Evergrande	Century Square Jinan	Portion of Evergrande	Atrium Jinan		Portion of Evergrande	Metropolis Jining			Portion of Evergrande	Splendor Laiwu					Portion of Evergrande	Metropolis Liaocheng		Portion of Evergrande Palace	Linyi		Portion of Evergrande Oasis	Linyi		Portion of Evergrande Oasis	Linyi		Portion of Evergrande City	Tai’an		Portion of Evergrande	Emerald Court Weifang			Portion of Evergrande	Metropolis Weifang
	Property	No.		I-242		I-243			I-244				I-245						I-246			I-247			I-248			I-249			I-250			I-251				I-252

– IV-31 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

as at	Valuation	Date	(RMB million)	36.80			167.80			313.03			419.80			267.10				2.80				651.80				59.80				3.40				148.30
Interest	Attributable	to the Group	(%)	100.0%			100.0%			95.0%			100.0%			100.0%				70.0%				65.6%				100.0%				100.0%				100.0%
Market	Value(2) in	Existing State	(RMB million)	36.80			167.80			329.50			419.80			267.10				4.00				993.90				59.80				3.40				148.30
	Pre-Sale	Consideration	(RMB million)	36.78			161.79			329.55			200.61			38.07				4.03				253.57				20.37				—				148.34
	Pre-Sale	CPS		—			—			881			—			—				—				279				89				—				—
	Pre-Sale(1)	GFA	(sq.m.)	6,155			40,365			43,812			52,559			2,931				392				35,847				941				—				28,986
	Completion	Date		2016			2015			2014			2016			2016				2016				2014–2016				2016				2016				2016
	Number	of CPS		—			—			881			—			—				—				279				89				—				—
Total	GFA(1)	(Excl. CPS)	(sq.m.)	6,155			41,464			43,812			93,921			22,342				392				100,227				4,864				379				28,986
		Type of Property		Residential			Residential			Residential,	Commercial,	Carpark	Residential			Residential				Residential				Residential, Carpark				Residential,	Commercial,	Carpark		Residential				Residential
	Land Use Rights	Expiry Date		18 Apr 2053 to	10 Apr 2054		04 Jan 2052 to	04 Jan 2082		21 Aug 2078 to	28 Mar 2080		09 Jun 2051 to	09 Jun 2081		22 Apr 2055 to	22 Apr 2085			24 Mar 2055 to	24 Mar 2085			06 Jul 2050 to	06 Jul 2060			14 Nov 2047 to	14 Nov 2057			18 May 2049 to	18 May 2059			18 May 2051 to	18 May 2061
		Land Use		Commercial			Residential,	Commercial		Residential			Residential,	Commercial		Residential,	Commercial			Residential,	Commercial			Residential, Office				Residential,	Commercial,	Office, Education/	Public Facility	Residential,	Office, Education			Residential,	Office, Education
		City		Zibo			Datong			Linfen			Lvliang			Taiyuan				Taiyuan				Taiyuan				Taiyuan				Taiyuan				Taiyuan
		Holding Entity		Zibo Hengda	Fanhua Property	Company Limited	Datong Junjing Real	Estate Development	Company Limited	Linfen Zijing Real	Estate Development	Company Limited	Lvliang Junhui Real	Estate Development	Company Limited	Taiyuan Jinshiheng	Real Estate	Development	Company Limited	Taiyuan Shengshi	Juntai Real Estate	Development	Company Limited	Taiyuan Junjing	Real Estate	Development	Company Limited	Hengda (Taiyuan)	Real Estate Group	Company Limited		Taiyuan Mingdu	Real Estate	Development	Company Limited	Taiyuan Deyi Real	Estate Development	Company Limited
		Property Name		Portion of Evergrande Royal	View Garden Zibo		Portion of Evergrande Oasis	Datong		Portion of Evergrande Palace	Linfen		Portion of Evergrande Royal	Scenic Lvliang		Portion of Evergrande Left	Bank Riverfront Taiyuan			Portion of Evergrande	Emerald Court Taiyuan			Portion of Evergrande Royal	Palace Taiyuan			Portion of Evergrande Oasis	Taiyuan			Portion of Evergrande	Metropolis Taiyuan			Portion of Evergrande Scenic	Garden Taiyuan
	Property	No.		I-253			I-254			I-255			I-256			I-257				I-258				I-259				I-260				I-261				I-262

– IV-32 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

as at	Valuation	Date	(RMB million)	247.10				59.80				13.50				24.70				234.30				26.77					123.60			72.81			946.09				33.90
Interest	Attributable	to the Group	(%)	100.0%				100.0%				64.0%				100.0%				100.0%				71.0%					100.0%			98.0%			98.0%				100.0%
Market	Value(2) in	Existing State	(RMB million)	247.10				59.80				21.10				24.70				234.30				37.70					123.60			74.30			965.40				33.90
	Pre-Sale	Consideration	(RMB million)	17.46				59.82				21.15				18.51				152.38				37.68					123.55			74.26			3.15				33.87
	Pre-Sale	CPS		—				—				—				—				—				—					—			—			—				—
	Pre-Sale(1)	GFA	(sq.m.)	1,840				7,491				4,092				3,908				34,698				9,059					4,732			2,035			87				11,496
	Completion	Date		2016				2016				2016				2016				2016				2016					2016			2015			2015				2015
	Number	of CPS		—				—				—				—				—				—					—			—			—				—
Total	GFA(1)	(Excl. CPS)	(sq.m.)	26,013				7,491				4,092				4,946				49,878				9,059					4,732			2,035			21,375				11,496
		Type of Property		Residential				Residential				Residential				Residential,	Commercial			Residential				Residential					Residential,	Commercial		Residential			Residential				Residential
	Land Use Rights	Expiry Date		29 Jul 2055 to	29 Jul 2085			17 Feb 2054 to	17 Feb 2084			09 Dec 2078				30 Sep 2080				13 May 2078				09 Mar 2049 to	09 Mar 2079				21 Aug 2054 to	21 Aug 2084		23 Aug 2082			23 Aug 2082				26 Jun 2053 to	22 Dec 2083
		Land Use		Residential,	Commercial			Residential,	Commercial,	Education		Residential				Residential				Residential				Residential,	Commercial				Residential, Office			Residential,	Commercial		Residential				Residential,	Commercial
		City		Taiyuan				Taiyuan				Yangquan				Yuncheng				Yuncheng				Yuncheng					Dongguan			Shenzhen			Shenzhen				Chengdu
		Holding Entity		Taiyuan Wanheng	Real Estate	Development	Company Limited	Taiyuan Junheng	Real Estate	Development	Company Limited	Yangquan Shi	Liaoyuan Real	Estate Development	Company Limited	Yuncheng Jinheng	Real Estate	Development	Company Limited	Yuncheng	Xinwanrui Real	Estate Development	Company Limited	Yuncheng Economic	Development Zone	Yijiayi Real Estate	Development	Company Limited	Zehe (Dongguan)	Property Company	Limited	Shenzhen Jisha Real	Estate Development	Company Limited	Shenzhen Shacun	Real Estate	Development	Company Limited	Hengda (Dayi) Real	Estate Group	Company Limited
		Property Name		Portion of Evergrande	Atrium Taiyuan			Portion of Evergrande Royal	Scenic Bay Taiyuan			Portion of Evergrande Royal	View Garden Yangquan			Portion of Evergrande Oasis	Yuncheng			Portion of Evergrande Oasis	Yuncheng			Portion of Evergrande	Metropolis Yuncheng				Portion of Evergrande Oasis	Dongguan		Portion of Evergrande	Gentleman Hill Emerald	Court Shenzhen	Portion of Evergrande	Gentleman Hill Garden	Shenzhen		Portion of Evergrande Royal	Scenic Garden Chengdu
	Property	No.		I-263				I-264				I-265				I-266				I-267				I-268					I-269			I-270			I-271				I-272

– IV-33 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

as at	Valuation	Date	(RMB million)	227.60				422.00				77.50			281.10				437.28			9.50			117.30				312.00			658.20				260.60
Interest	Attributable	to the Group	(%)	100.0%				100.0%				100.0%			100.0%				80.0%			100.0%			100.0%				100.0%			100.0%				100.0%
Market	Value(2) in	Existing State	(RMB million)	227.60				422.00				77.50			281.10				546.60			9.50			117.30				312.00			658.20				260.60
	Pre-Sale	Consideration	(RMB million)	227.59				258.20				10.76			26.29				180.69			3.52			104.28				297.68			280.24				71.10
	Pre-Sale	CPS		—				—				—			—				—			—			—				—			—				—
	Pre-Sale(1)	GFA	(sq.m.)	30,669				21,775				2,157			1,698				28,278			1,003			42,383				73,139			45,024				18,200
	Completion	Date		2016				2016				2011			2016				2012			2014			2015				2014			2015				2014
	Number	of CPS		—				—				31			—				—			—			—				—			—				—
Total	GFA(1)	(Excl. CPS)	(sq.m.)	30,669				32,352				7,590			19,897				65,986			2,210			44,882				75,334			109,081				60,305
		Type of Property		Residential				Residential				Residential,	Commercial,	Carpark	Residential				Residential			Residential			Residential				Residential			Residential				Residential
	Land Use Rights	Expiry Date		20 Mar 2053 to	20 Mar 2083			26 Feb 2055 to	26 Feb 2085			16 Dec 2048 to	16 Dec 2078		31 Jul 2054 to	31 Jul 2084			26 Jan 2046 to	26 Jan 2076		21 Oct 2050 to	21 Oct 2080		15 Aug 2083 to	02 Aug 2086			18 Jun 2047 to	06 Sep 2086		19 Nov 2050 to	30 Dec 2083			29 Jul 2077 to	31 Oct 2080
		Land Use		Residential,	Commercial			Residential,	Commercial,	Public Facility		Residential,	Commercial		Residential,	Commercial			Residential,	Commercial		Residential,	Commercial,	Education	Residential,	Commercial			Residential,	Commercial		Residential,	Commercial			Residential
		City		Chengdu				Chengdu				Chengdu			Chengdu				Chengdu			Nanchong			Panzhihua				Meishan			Anyang				Hanzhong
		Holding Entity		Renji Hengye	(Sichuan)	Investment	Company Limited	Chengdu Hengda	Xindongcheng	Property Company	Limited	Senxin (Sichuan)	Property Company	Limited	Chengdu Hengda	Xinbeicheng	Property Company	Limited	Chengdu Xinyi Real	Estate Development	Company Limited	Hengda (Nanchong)	Real Estate Group	Company Limited	Panzhihua Hengda	Real Estate	Development	Company Limited	Hengda Xinfeng	(Pengshan) Property	Company Limited	Anyang Tongruida	Real Estate	Development	Company Limited	Hanzhong Hualian	Property Company	Limited
		Property Name		Portion of Evergrande New	City Chengdu			Portion of Evergrande	Central Square Chengdu			Portion of Chengdu	Dujiangyijia		Portion of Evergrande	Caojiaxiang Plaza Chengdu			Portion of Evergrande	Paradise Peninsula Chengdu		Portion of Evergrande Oasis	Nanchong		Portion of Evergrande City	Panzhihua			Portion of Evergrande	Splendor Pengshan		Portion of Evergrande Oasis	Anyang			Portion of Evergrande City	Hanzhong
	Property	No.		I-273				I-274				I-275			I-276				I-277			I-278			I-279				I-280			I-281				I-282

– IV-34 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

as at	Valuation	Date	(RMB million)	471.70			457.50			262.80			324.80				141.90				125.40			22.90			42.50			371.80			168.90			229.60
Interest	Attributable	to the Group	(%)	100.0%			100.0%			100.0%			100.0%				100.0%				57.0%			100.0%			100.0%			100.0%			100.0%			100.0%
Market	Value(2) in	Existing State	(RMB million)	471.70			457.50			262.80			324.80				141.90				220.00			22.90			42.50			371.80			168.90			229.60
	Pre-Sale	Consideration	(RMB million)	471.67			457.47			262.84			144.10				56.21				33.28			18.73			—			151.19			166.92			22.19
	Pre-Sale	CPS		285			695			263			—				—				—			—			—			—			—			132
	Pre-Sale(1)	GFA	(sq.m.)	52,250			51,754			35,910			28,047				9,805				5,323			5,238			—			21,107			21,572			—
	Completion	Date		2016			2016			2016			2016				2016				2016			2013			2016			2016			2016			2015
	Number	of CPS		285			695			263			—				—				—			—			14			—			—			263
Total	GFA(1)	(Excl. CPS)	(sq.m.)	52,250			51,754			35,910			61,501				24,573				34,966			5,728			4,057			43,398			21,842			26,762
		Type of Property		Residential,	Commercial,	Carpark	Residential,	Commercial,	Carpark	Residential,	Commercial,	Carpark	Residential				Residential				Residential			Residential,	Commercial		Commercial, Other,	Carpark		Residential,	Commercial		Residential			Residential, Carpark
	Land Use Rights	Expiry Date		15 Oct 2053 to	22 Feb 2084		15 Oct 2053 to	22 Feb 2084		06 Jan 2048 to	06 Jan 2078		18 Jun 2053 to	18 Jun 2083			18 Jun 2053 to	18 Jun 2083			13 Aug 2053 to	13 Aug 2083		10 Dec 2050 to	15 Oct 2052		30 Mar 2076			27 Oct 2055 to	27 Oct 2085		14 Apr 2055 to	14 Dec 2085		25 Aug 2074 to	26 Aug 2074
		Land Use		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial			Residential,	Commercial			Residential,	Commercial		Residential,	Composite		Residential			Residential,	Commercial		Residential,	Commercial		Residential
		City		Xi’an			Xi’an			Luoyang			Luohe				Luohe				Pingdingshan			Wugang			Xi’an			Xi’an			Xi’an			Xi’an
		Holding Entity		Xi’an Jiazhi	Property Company	Limited	Xi’an Yingyu	Property Company	Limited	Hengda (Luoyang)	Real Estate Group	Company Limited	Luohe Yusheng	Real Estate	Development	Company Limited	Luohe Yusheng	Real Estate	Development	Company Limited	Pingdingshan	Hengrong Property	Company Limited	Wugang Hengda	Property Company	Limited	Shaanxi Jinhong	Investment	Company Limited	Shaanxi Shuohua	Property Company	Limited	Xi’an Hengying	Property Company	Limited	Xi’an Qujiang	Investment	Construction	Company Limited
		Property Name		Portion of Evergrande Royal	View Garden Xi’an		Portion of Evergrande Royal	View Garden Xi’an		Portion of Evergrande Oasis	Luoyang		Portion of Evergrande	Metropolis Luohe			Portion of Evergrande Royal	Scenic Luohe			Portion of Evergrande	Metropolis Pingdingshan		Portion of Evergrande Palace	Wugang		Portion of Evergrande City	Xi’an		Portion of Evergrande	Emerald Court Xi’an		Portion of Evergrande Bay	Xi’an		Portion of Evergrande Oasis	Xi’an
	Property	No.		I-283			I-284			I-285			I-286				I-287				I-288			I-289			I-290			I-291			I-292			I-293

– IV-35 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

as at	Valuation	Date	(RMB million)	35.70			280.70			6.70			302.50			267.80			145.53			3.00			2.70			342.50				148.90			287.20
Interest	Attributable	to the Group	(%)	100.0%			100.0%			100.0%			100.0%			100.0%			55.0%			100.0%			100.0%			100.0%				100.0%			100.0%
Market	Value(2) in	Existing State	(RMB million)	35.70			280.70			6.70			302.50			267.80			264.60			3.00			2.70			342.50				148.90			287.20
	Pre-Sale	Consideration	(RMB million)	—			272.05			0.85			222.29			—			73.29			1.38			—			15.60				46.49			190.90
	Pre-Sale	CPS		—			428			—			—			—			—			—			—			—				—			—
	Pre-Sale(1)	GFA	(sq.m.)	—			39,876			167			32,261			—			11,985			297			—			3,385				3,742			17,330
	Completion	Date		2016			2016			2016			2016			2017			2016			2016			2015			2016				2016			2016
	Number	of CPS		—			428			—			—			—			—			—			—			—				—			—
Total	GFA(1)	(Excl. CPS)	(sq.m.)	4,959			41,016			1,395			43,158			38,808			49,501			597			528			76,032				11,679			26,469
		Type of Property		Residential,	Commercial		Residential, Carpark			Residential			Residential			Residential			Residential			Residential			Residential			Residential				Residential			Residential
	Land Use Rights	Expiry Date		17 Aug 2076			14 Jan 2052 to	14 Jan 2082		16 Jan 2051 to	16 Jan 2081		14 May 2053 to	14 May 2083		29 Jun 2055 to	29 Jun 2085		13 Feb 2055 to	13 Feb 2085		31 Aug 2046 to	31 Aug 2076		29 Mar 2052 to	29 Mar 2083		30 Jul 2081				02 May 2085			19 Jul 2052 to	29 Jun 2086
		Land Use		Residential			Residential,	Commercial,	Education	Residential,	Commercial		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial,	Office	Residential,	Commercial		Residential, Office			Residential				Residential			Residential,	Commercial,	Accommodation	and Catering
		City		Xi’an			Xi’an			Xinxiang			Xinxiang			Xinxiang			Xinyang			Xinyang			Xuchang			Yangling				Zhengzhou			Zhengzhou
		Holding Entity		Xi’an Qiyun	Property Company	Limited	Xi’an Jintu Property	Company Limited		Xinxiang Mingdu	Property Company	Limited	Xinxiang Sanlian	Property Company	Limited	Xinxiang Yujing	Property Company	Limited	Xinyang Junjing	Real Estate	Company Limited	Henan Dayou Real	Estate Development	Company Limited	Xuchang Dijing	Property Company	Limited	Shaanxi Yaoze Sihai	Real Estate	Development	Company Limited	Zhengzhou Heguang	Property Company	Limited	Xinxiang Yujing	Property Company	Limited
		Property Name		Portion of Evergrande	Metropolis Xi’an		Portion of Evergrande Royal	Scenic Xi’an		Portion of Evergrande	Atrium Xinxiang		Portion of Evergrande Royal	Scenic Bay Xinxiang		Portion of Evergrande Royal	Scenic Bay Xinxiang		Portion of Evergrande	Emerald Court Xinyang		Portion of Evergrande	Metropolis Xinyang		Portion of Evergrande Oasis	Xuchang		Portion of Evergrande City	Yangling			Portion of Evergrande	Emerald Court Zhengzhou		Portion of Evergrande	Splendor Zhengzhou
	Property	No.		I-294			I-295			I-296			I-297			I-298			I-299			I-300			I-301			I-302				I-303			I-304

– IV-36 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

as at	Valuation	Date	(RMB million)	35.80			344.04			374.40				226.80				348.50				288.00				439.70				3.10				8.79					262.50
Interest	Attributable	to the Group	(%)	100.0%			50.2%			100.0%				100.0%				100.0%				100.0%				100.0%				100.0%				98.8%					60.0%
Market	Value(2) in	Existing State	(RMB million)	35.80			685.20			374.40				226.80				348.50				288.00				439.70				3.10				8.90					437.50
	Pre-Sale	Consideration	(RMB million)	35.84			203.37			240.27				3.79				6.53				288.04				439.75				3.06				4.75					275.98
	Pre-Sale	CPS		—			—			—				—				—				—				—				—				—					—
	Pre-Sale(1)	GFA	(sq.m.)	3,124			24,753			39,402				820				1,356				50,700				39,045				591				1,010					51,064
	Completion	Date		2016			2016			2016				2016				2016				2016				2016				2016				2016					2016
	Number	of CPS		—			—			—				—				—				—				—				—				—					—
Total	GFA(1)	(Excl. CPS)	(sq.m.)	3,124			70,722			61,752				48,278				54,794				50,700				39,045				591				1,718					77,978
		Type of Property		Residential			Residential			Residential				Residential				Residential				Residential				Residential				Residential				Residential					Residential
	Land Use Rights	Expiry Date		22 May 2053 to	22 May 2083		03 Mar 2079 to	26 Jul 2085		Jun 2055 to Nov	2086			12 Nov 2050 to	12 Nov 2060			11 Jun 2079				15 Feb 2054 to	15 Oct 2083			19 Jul 2053 to	19 Jul 2083			15 Nov 2046 to	05 Jan 2077			26 Oct 2060					27 Apr 2053 to	17 May 2085
		Land Use		Residential, Office			Residential			Residential,	Commercial			Residential,	Commercial			Residential,	Commercial			Residential,	Commercial			Residential,	Commercial			Residential,	Commercial			Residential,	Commercial				Residential,	Commercial
		City		Zhengzhou			Zhengzhou			Zhumadian				Chongqing				Guiyang				Guiyang				Guiyang				Guiyang				Guiyang					Guiyang
		Holding Entity		Zhengzhou Yubang	Property Company	Limited	Zhengzhou Henglin	Property Company	Limited	Zhumadian Kaifaqu	Yucheng Real	Estate Development	Company Limited	Chongqing Hengda	Fucheng Real Estate	Development	Company Limited	Guizhou	Guangjuyuan Real	Estate Development	Company Limited	Guizhou Jicheng	Real Estate	Development	Company Limited	Guizhou Hengda	Changji Real Estate	Development	Company Limited	Hengda Real Estate	Group Guiyang	Property Company	Limited	Guiyang Haiming	Investment	Construction	Development	Company Limited	Guiyang Jiude Real	Estate Development	Company Limited
		Property Name		Portion of Evergrande Oasis	Zhengzhou		Portion of Evergrande Scenic	Garden Zhengzhou		Portion of Evergrande	Metropolis Zhumadian			Portion of Evergrande Scenic	Garden Fuling			Portion of Evergrande City	Guiyang			Portion of Evergrande Royal	Garden Guiyang			Portion of Evergrande	Emerald Court Guiyang			Portion of Evergrande Oasis	Guiyang			Portion of Evergrande	Metropolis Guiyang				Portion of Evergrande	Atrium Guiyang
	Property	No.		I-305			I-306			I-307				I-308				I-309				I-310				I-311				I-312				I-313					I-314

– IV-37 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

as at	Valuation	Date	(RMB million)	14.00			16.70			889.40			811.50				357.30			589.90				270.00			720.50			233.80				688.50			95.50
Interest	Attributable	to the Group	(%)	100.0%			100.0%			100.0%			100.0%				100.0%			100.0%				100.0%			100.0%			100.0%				100.0%			100.0%
Market	Value(2) in	Existing State	(RMB million)	14.00			16.70			889.40			811.50				357.30			589.90				270.00			720.50			233.80				688.50			95.50
	Pre-Sale	Consideration	(RMB million)	5.24			16.74			295.09			504.74				121.33			589.90				56.43			265.94			—				370.73			95.50
	Pre-Sale	CPS		—			—			—			—				—			381				—			—			—				—			710
	Pre-Sale(1)	GFA	(sq.m.)	1,186			3,184			34,283			107,148				26,366			53,456				12,235			74,422			—				38,740			3,018
	Completion	Date		2014			2016			2016			2016				2016			2016				2016			2014							2016			2016
	Number	of CPS		—			—			—			—				—			381				—			—			—				—			710
Total	GFA(1)	(Excl. CPS)	(sq.m.)	2,807			3,184			87,193			154,343				57,415			53,456				53,303			158,604			43,295				71,496			3,018
		Type of Property		Residential			Residential			Residential			Residential				Residential			Residential,	Commercial,	Carpark		Residential			Residential			Residential				Residential			Residential, Carpark
	Land Use Rights	Expiry Date		10 Jul 2047 to	10 Jul 2057		31 Mar 2051 to	31 Mar 2061		30 Aug 2053 to	30 Aug 2063		Nov 2050 to Nov	2060			24 Dec 2053 to	24 Dec 2063		22 Apr 2051 to	22 Apr 2081			27 Jan 2054 to	27 Jul 2081		26 Dec 2047 to	08 Oct 2081		26 Dec 2047 to	08 Oct 2081			09 Jun 2055 to	03 Jun 2085		24 Apr 2078 to	17 Sep 2079
		Land Use		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial			Residential,	Commercial		Residential,	Commercial			Residential,	Commercial		Residential,	Commercial,	Office	Residential,	Commercial,	Office		Residential,	Commercial		Residential
		City		Chongqing			Chongqing			Chongqing			Chongqing				Chongqing			Guiyang				Kaili			Kunming			Kunming				Kunming			Kunming
		Holding Entity		Chongqing Hengda	Jiyu Property	Company Limited	Hengda (Chongqing)	Real Estate Group	Company Limited	Chongqing Hengda	Xinquan Property	Company Limited	Chongqing Hengda	Jun Xin Real Estate	Development	Company Limited	Chongqing Hengda	Xinding Property	Company Limited	Guiyang Zhongyu	Zhidi Real Estate	Development	Company Limited	Guizhou Kaidi	Property Company	Limited	Hengda Xinyuan	(Kunming) Property	Company Limited	Kunming Qiheng	Real Estate	Development	Company Limited	Kunming Heng	Chang Property	Company Limited	Yunnan Heding	Real Estate	Development	Company Limited
		Property Name		Portion of Evergrande City	Chongqing		Portion of Evergrande Royal	View Garden Chongqing		Portion of Evergrande Scenic	Garden Chongqing		Portion of Evergrande	Atrium Chongqing			Portion of Evergrande Royal	Scenic Bay Chongqing		Portion of Evergrande	Central Park Guiyang			Portion of Evergrande City	Kali		Portion of Evergrande	Splendor Kunming		Portion of Evergrande	Splendor Kunming (Phase	III)		Portion of Evergrande	Metropolis Kunming		Portion of Evergrande	Atrium Kunming
	Property	No.		I-315			I-316			I-317			I-318				I-319			I-320				I-321			I-322			I-323				I-324			I-325

– IV-38 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

as at	Valuation	Date	(RMB million)	629.80					152.80			6.30				49.90			7.90			224.30						11.40				2.90			170.65			579.80
Interest	Attributable	to the Group	(%)	100.0%					100.0%			100.0%				100.0%			100.0%			100.0%						100.0%				100.0%			51.0%			100.0%
Market	Value(2) in	Existing State	(RMB million)	629.80					152.80			6.30				49.90			7.90			224.30						11.40				2.90			334.60			579.80
	Pre-Sale	Consideration	(RMB million)	513.26					152.77			0.46				46.81			7.89			224.27						1.60				—			257.01			118.57
	Pre-Sale	CPS		—					—			—				—			—			—						—				—			—			—
	Pre-Sale(1)	GFA	(sq.m.)	64,863					33,188			82				7,005			1,483			44,257						332				—			25,295			11,204
	Completion	Date		2016					2016			2016				2016			2011			2016						2012				2014			2016			2016
	Number	of CPS		—					—			—				—			—			—						—				—			—			—
Total	GFA(1)	(Excl. CPS)	(sq.m.)	75,458					33,188			1,096				7,291			1,483			44,257						1,447				299			32,620			45,557
		Type of Property		Residential,	Commercial				Residential			Residential				Residential			Commercial			Residential						Residential				Residential			Residential			Residential
	Land Use Rights	Expiry Date		28 May 2055 to	28 May 2085				11 Nov 2050 to	27 Jul 2084		30 Jun 2061				30 Aug 2053 to	30 Aug 2063		14 Feb 2047 to	14 Feb 2057		28 Dec 2046 to	18 Sep 2066					17 Oct 2047 to	17 Oct 2057			16 Oct 2047 to	17 Oct 2057		30 Dec 2054 to	30 Dec 2064		30 Aug 2053 to	30 Aug 2063
		Land Use		Residential,	Commercial,	Cultural and	Entertainment,	Education	Residential,	Commercial,	Office	Residential				Residential,	Commercial		Residential,	Commercial,	Clubhouse	Residential,	Commercial,	Accommodation	and Catering,	Cultural and	Entertainment	Residential,	Commercial,	Education,	Carpark	Residential,	Commercial,	Education	Residential,	Commercial		Residential,	Commercial
		City		Kunming					Qujing			Chongqing				Chongqing			Chongqing			Chongqing						Chongqing				Chongqing			Chongqing			Chongqing
		Holding Entity		Yunnan Hengyun	Property Company	Limited			Qujing Zhongxi	Property Company	Limited	Chongqing Hengda	Yongjun Real Estate	Development	Company Limited	Chongqing Hengda	Xinquan Property	Company Limited	Hengda (Chongqing)	Real Estate Group	Company Limited	Hengda (Jiangjin)	Real Estate Group	Company Limited				Hengda (Chongqing)	Real Estate Group	Company Limited		Hengda (Chongqing)	Real Estate Group	Company Limited	Chongqing Yongli	Property Company	Limited	Chongqing Hengda	Xinquan Property	Company Limited
		Property Name		Portion of Evergrande	Yunbao Palace Kunming				Portion of Evergrande	Metropolis Qujing		Portion of Evergrande	Emerald Court Yongchuan			Portion of Evergrande	Emerald Court Chongqing		Portion of Evergrande Palace	Chongqing		Portion of Evergrande	Splendor Chongqing					Portion of Evergrande Oasis	Chongqing			Portion of Evergrande	Metropolis Chongqing		Portion of Evergrande	Century City Chongqing		Portion of Evergrande Royal	Scenic Peninsula Chongqing
	Property	No.		I-326					I-327			I-328				I-329			I-330			I-331						I-332				I-333			I-334			I-335

– IV-39 –

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

APPENDIX IV

as at	Valuation	Date	(RMB million)	1,117.10			481.14			713.70			167.50			2.96
Interest	Attributable	to the Group	(%)	100.0%			76.4%			100.0%			100.0%			51.0%
Market	Value(2) in	Existing State	(RMB million)	1,117.10			630.10			713.70			167.50			5.80
	Pre-Sale	Consideration	(RMB million)	804.81			470.99			461.12			61.73			—
	Pre-Sale	CPS		—			—			—			—			—
	Pre-Sale(1)	GFA	(sq.m.)	91,595			44,885			89,223			13,463			—
	Completion	Date		2016			2016			2016			2016			2016
	Number	of CPS		—			—			—			—			—
Total	GFA(1)	(Excl. CPS)	(sq.m.)	118,056			57,883			130,690			32,672			1,065
		Type of Property		Residential			Residential			Residential			Residential			Residential
	Land Use Rights	Expiry Date		30 Nov 2055 to	30 Nov 2065		02 Feb 2048 to	02 Feb 2058		20 Apr 2051 to	10 Dec 2083		28 Nov 2052 to	18 Jun 2083		01 Jan 2080
		Land Use		Residential,	Commercial		Residential,	Commercial,	Education	Residential,	Commercial		Residential,	Commercial		Residential
	Property	No. Property Name Holding Entity City		I-336 Portion of Evergrande Chongqing Hengda Chongqing	Central Plaza Chongqing Xingai Property	Company Limited	I-337 Portion of Evergrande The Chongqing Jianzhi Chongqing	Coronation Chongqing Real Estate	Company Limited	I-338 Portion of Evergrande Oasis Hengda (Zigong) Zigong	Zigong Real Estate Group	Company Limited	I-339 Portion of Evergrande Zigong Xinmao Zigong	Metropolis Zigong Property Company	Limited	I-340 Portion of Evergrande City Zunyi Xinguang Zunyi	Zunyi Real Estate	Development	Company Limited	Notes:	1 All areas are stated in approximations.	2 All values are stated in approximations.

– IV-40 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

Attributable to	the Group as at	Valuation Date	(RMB million)	37.50	108.40		29.10		26.70		47.90		427.00		185.00		41.10		1,398.50		72.30		34.70		80.00		230.00		100.00		59.10		3,308.30
Interest	Attributable to	the Group	%	100.0%	100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%
	Market Value(2)	in Existing State	(RMB million)	37.50	108.40		29.10		26.70		47.90		427.00		185.00		41.10		1,398.50		72.30		34.70		80.00		230.00		100.00		59.10		3,308.30
	Completion	Date		2013	2013		2016		2016		2016				2013 to 2015		2015		2015		2014		2016		2015		2008		2011		2016		2010
	Number of	Rooms													293				494								140
		GFA(1)	(sq.m.)	5,255	7,230		18,502		5,152		4,693		15,574		—		5,078		115,248		4,698		3,245		5,755		—		5,448		4,922		91,180
		Type of Property		Composite	Composite		Commercial,	Composite	Composite		Commercial		Composite		Hotel		Composite		Commercial, Hotel		Commercial		Commercial		Commercial		Hotel		Composite		Commercial		Commercial, Office,	Carpark
Land Use	Rights Expiry	Date		16 Aug 2074	Jun 2079 to Jan	2080	08 Oct 2050 to	08 Oct 2080	21 Oct 2051 to	21 Oct 2081	20 Dec 2050 to	20 Dec 2080	31 Dec 2035 to	31 Dec 2065	12 Feb 2077 to	23 Sep 2079	23 Mar 2050 to	07 Jun 2080	23 Mar 2050 to	07 Jun 2080	02 Jul 2046 to	02 Jul 2076	25 Jul 2082		11 Aug 2082		11 Aug 2064		12 Sep 2058		01 Jul 2053 to	01 Jul 2083	25 Jun 2056
		Land Use		Residential	Residential		Residential, Commercial		Residential, Commercial		Residential, Commercial		Residential, Commercial,	Office, Underground Storage	Residential, Commercial		Residential, Commercial		Residential, Commercial		Residential, Commercial		Residential		Residential, Public Facility,	Green Space	Residential, Commercial,	Education	Residential, Commercial,	Public Facility, Carpark	Residential, Commercial		Commercial, Office, Carpark
		City		Hefei	Hefei		Huaibei		Huaibei		Tongling		Beijing		Tianjin		Tianjin		Tianjin		Lanzhou		Wuwei		Chaozhou		Foshan		Guangzhou		Heyuan		Guangzhou
		Holding Entity		Anhui Sanlin Property Company Limited	Qijia (Hefei) Property Company Limited		Huaibei Yuetong Property Company Limited		Huaibei Hengtong Property Company Limited		Tongling Hengda Property Company Limited		Beijing Lilai Real Estate Development	Company Limited	Hengda (Tianjin Jixian) Real Estate Group	Company Limited	Tianjin Jin Li Hu Investment Company	Limited	Tianjin Yilian Chuangzhan Property Company	Limited	Gansu Yusheng Real Estate Development	Company Limited	Wuwei Hengda Real Estate Development	Company Limited	Chaozhou Hengda Property Company Limited		Foshan Nanhai Xinzhongjian Real Estate	Development Company Limited	Hengda Real Estate Group Company Limited		Hengda (Heyuan) Real Estate Group	Company Limited	Guangzhou City Jiasui Property Company	Limited
		Property Name		Portion of Evergrande City Hefei	Portion of Evergrande Palace Hefei		Portion of Evergrande Metropolis	Huaibei	Portion of Evergrande Atrium Huaibei		Portion of Evergrande Oasis Tongling		Portion of Evergrande Elite Shadow	Creek Beijing	Portion of Evergrande Splendor Tianjin		Portion of Evergrande Oasis Tianjin		Portion of Evergrande Oasis Tianjin		Portion of Evergrande Metropolis	Lanzhou	Portion of Evergrande Oasis Wuwei		Portion of Evergrande City Chaozhou		Portion of Evergrande Royal Scenic	Peninsula Foshan	Portion of Evergrande Oasis Guangzhou		Portion of Evergrande Metropolis	Heyuan	Portion of Evergrande Center
		Property No.		II-1	II-2		II-3		II-4		II-5		II-6		II-7		II-8		II-9		II-10		II-11		II-12		II-13		II-14		II-15		II-16

– IV-41 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

Attributable to	the Group as at	Valuation Date	(RMB million)	218.90		49.10		17.75		75.50		24.90		36.40		35.20		52.50		39.00		36.00		7.10		39.30		177.00		77.20		42.60		29.60		10.15
Interest	Attributable to	the Group	%	100.0%		100.0%		51.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		66.8%
	Market Value(2)	in Existing State	(RMB million)	218.90		49.10		34.80		75.50		24.90		36.40		35.20		52.50		39.00		36.00		7.10		39.30		177.00		77.20		42.60		29.60		15.20
	Completion	Date		2016		2016		2016		2012		2014		2015		2012		2014		2014		2015		2013		2016		2015 to 2016		2009		2009		2013		2010
	Number of	Rooms		293						228																		310
		GFA(1)	(sq.m.)	12,977		4,465		3,555		—		3,137		3,753		3,483		4,563		4,997		5,799		1,752		4,222		1,360		9,173		7,275		5,164		3,580
		Type of Property		Commercial,	Composite, Hotel	Commercial		Commercial		Hotel		Commercial		Commercial		Commercial		Commercial		Commercial		Commercial		Commercial		Commercial		Composite, Hotel		Composite, Other		Composite		Composite		Composite, Other
Land Use	Rights Expiry	Date		08 Jan 2057 to	24 Feb 2081	04 Feb 2055 to	04 Feb 2085	28 Dec 2052 to	28 Dec 2082	08 Jun 2066		19 Dec 2063 to	19 Dec 2066	09 Feb 2050 to	09 Feb 2080	23 Jul 2080		21 Jul 2052 to	21 Jul 2082	16 May 2051 to	15 May 2082	26 Feb 2052 to	26 Feb 2083	08 Nov 2049 to	08 Nov 2079	28 Jun 2052 to	28 Jun 2082	20 Mar 2047 to	29 Aug 2080	29 Dec 2046 to	29 Dec 2076	30 May 2047 to	26 Jan 2078	30 Apr 2077 to	12 May 2080	15 Nov 2047 to	15 Nov 2077
		Land Use		Residential, Office		Residential, Commercial		Residential, Commercial		Residential		Residential		Residential, Commercial		Residential		Residential, Commercial		Residential, Commercial		Residential, Commercial		Residential		Residential, Commercial,	Office	Residential, Office		Residential, Commercial,	Office	Residential, Commercial		Residential		Residential, Commercial,	Education
		City		Qingyuan		Yangjiang		Yunfu		Guangzhou		Zhongshan		Qinzhou		Danzhou		Daqing		Harbin		Harbin		Harbin		Qiqihar		Ezhou		Wuhan		Wuhan		Wuhan		Wuhan
		Holding Entity		Hengda Shengyu (Qingxin) Property	Company Limited	Hengda (Yangjiang) Real Estate Group	Company Limited	Hengda (Yunfu) Real Estate Group Company	Limited	Guangzhou Hengda (Zengcheng) Real Estate	Development Company Limited	Hengda (Zhongshan) Real Estate Group	Company Limited	Qinzhou Qinlian Hengda Property Investment	Company Limited	Danzhou Hengda Binhai Investment Company	Limited	Daqing Hengda Yongsheng Real Estate	Development Company Limited	Harbin Hengda Xingye Real Estate	Development Company Limited	Harbin Hengda Weiye Real Estate	Development Company Limited	Harbin Shenghe Property Company Limited		Hengda Yongxing (Qiqihaer) Real Estate	Company Limited	Ezhou Hengda Real Estate Development	Company Limited	Wuhan Donghu Hengda Real Estate	Development Company Limited	Wuhan Jinbi Luzhou Real Estate	Development Company Limited	Wuhan Huali Property Company Limited		Wuhan Sanjiang Dongli Investment	Development Company Limited
		Property Name		Portion of Evergrande Splendor	Qingyuan	Portion of Evergrande Metropolis	Yangjiang	Portion of Evergrande City Yunfu		Portion of Evergrande Scenic Garden	Guangzhou Zengcheng	Portion of Evergrande Oasis Zhongshan		Portion of Evergrande Oasis Qinzhou		Portion of Evergrande Metropolis	Danzhou	Portion of Evergrande Oasis Daqing		Portion of Evergrande City Harbin		Portion of Evergrande Oasis Harbin		Portion of Evergrande Harmonious	World Harbin	Portion of Evergrande Emerald Court	Tsitsihar	Portion of Evergrande Splendor Ezhou		Portion of Evergrande Palace Wuhan		Portion of Evergrande Oasis Wuhan		Portion of Evergrande Metropolis	Wuhan	Portion of Evergrande Shuang City	Wuhan
		Property No.		II-17		II-18		II-19		II-20		II-21		II-22		II-23		II-24		II-25		II-26		II-27		II-28		II-29		II-30		II-31		II-32		II-33

– IV-42 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

Attributable to	the Group as at	Valuation Date	(RMB million)	22.50		28.86		29.50		27.24		31.50		25.40		27.10		29.70		26.90		48.70		39.90		45.50		172.10	32.90		33.40			67.90		43.60
Interest	Attributable to	the Group	%	60.0%		60.0%		100.0%		69.5%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%	100.0%		100.0%			100.0%		100.0%
	Market Value(2)	in Existing State	(RMB million)	37.50		48.10		29.50		39.20		31.50		25.40		27.10		29.70		26.90		48.70		39.90		45.50		172.10	32.90		33.40			67.90		43.60
	Completion	Date		2014		2016		2013		2015		2013		2013		2015		2013		2015		2009		2012		2009		2011	2014		2013 to 2015			2010		2014
	Number of	Rooms
		GFA(1)	(sq.m.)	5,151		4,671		3,468		5,266		3,536		5,215		5,022		5,213		5,140		7,111		5,240		11,902		13,624	5,482		65,887			6,378		4,357
		Type of Property		Composite		Commercial		Commercial		Composite		Commercial		Composite		Composite		Composite		Composite		Composite		Composite		Composite, Other		Residential	Composite		Commercial,	Composite, Hotel,	Other	Composite		Commercial
Land Use	Rights Expiry	Date		30 Jun 2054 to	30 Jun 2084	03 Aug 2053 to	03 Aug 2083	25 Oct 2050 to	16 Oct 2081	31 Dec 2051 to	31 Dec 2081	04 Aug 2050 to	11 Jun 2081	31 Mar 2053 to	31 Mar 2083	15 Jul 2051 to	26 Jul 2081	04 Oct 2074 to	30 Oct 2076	06 Feb 2052 to	06 Feb 2082	31 Aug 2044 to	31 Aug 2074	29 Jan 2047 to	29 Jan 2077	21 Sep 2078		19 Aug 2077	01 Feb 2052 to	01 Feb 2082	30 May 2047 to	30 May 2077		20 Dec 2076 to	22 Jan 2078	05 Mar 2050 to	06 Feb 2083
		Land Use		Residential, Commercial		Residential, Commercial		Residential, Commercial		Residential, Commercial		Residential, Commercial		Residential, Commercial		Residential, Commercial		Residential, Education		Residential, Commercial		Residential, Commercial		Residential, Commercial		Residential		Residential	Residential, Commercial		Residential, Accommodation	and Catering		Residential		Residential, Commercial
		City		Yichang		Changde		Chenzhou		Hengyang		Liuyang		Yiyang		Yueyang		Changsha		Changsha		Changsha		Changsha		Changsha		Guangzhou	Jiaxing		Nanjing			Nanjing		Nanjing
		Holding Entity		Yichang Chutian Hengda Real Estate	Development Company Limited	Changde Xinze Property Company Limited		Chenzhou Jinbi Property Company Limited		Hengyang Baorui Property Company Limited		Liuyang Jinbi Property Company Limited		Yiyang Hengrui Property Company Limited		Yueyang Jinbi Property Company Limited		Changsha Xinlin Property Company Limited		Changsha Hengxi Property Company Limited		Hunan Xiongzhen Investment Company	Limited	Changsha Tianxi Property Company Limited		Hunan Shengji Property Company Limited		Hengda Real Estate Group Company Limited	Jiaxing Hengda Property Company Limited		Nanjing Hengda Fufeng Property Company	Limited		Nanjin Handian Real Estate Company	Limited	Jurong Tiangong Property Company Limited
		Property Name		Portion of Evergrande Royal View	Garden Yichang	Portion of Evergrande Palace Changde		Portion of Evergrande Palace Chenzhou		Portion of Evergrande Oasis Hengyang		Portion of Evergrande Palace Liuyang		Portion of Evergrande Oasis Yiyang		Portion of Evergrande Metropolis	Yueyang	Portion of Evergrande City Changsha		Portion of Evergrande Emerald Court	Changsha	Portion of Evergrande Palace Changsha		Portion of Evergrande Oasis Changsha		Portion of Evergrande Metropolis	Changsha	Portion of Nanguo Shangyuan	Portion of Evergrande Oasis Jiaxing		Portion of Evergrande Splendor Nanjing			Portion of Evergrande Oasis Nanjing		Portion of Evergrande Atrium Nanjing	Jurong
		Property No.		II-34		II-35		II-36		II-37		II-38		II-39		II-40		II-41		II-42		II-43		II-44		II-45		II-46	II-47		II-48			II-49		II-50

– IV-43 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

Attributable to	the Group as at	Valuation Date	(RMB million)	41.70		62.00		32.50		215.47		18.40		64.30		167.80		48.30		68.70		47.80		35.50		46.90		44.50		52.70			67.40		12.70		24.80
Interest	Attributable to	the Group	%	100.0%		100.0%		100.0%		89.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%			100.0%		51.0%		100.0%
	Market Value(2)	in Existing State	(RMB million)	41.70		62.00		32.50		242.10		18.40		64.30		167.80		48.30		68.70		47.80		35.50		46.90		44.50		52.70			67.40		24.90		24.80
	Completion	Date		2015		2017		2014		2015		2011		2015		2014		2014		2015		2016		2009		2013		2015		2014			2017		2017		2015
	Number of	Rooms
		GFA(1)	(sq.m.)	3,474		4,215		3,220		31,090		17,479		4,629		25,538		3,242		5,326		4,120		5,411		7,278		4,636		5,165			4,683		4,806		4,584
		Type of Property		Commercial		Commercial		Commercial		Commercial,	Composite	Commercial,	Composite, Hotel	Commercial		Commercial		Commercial		Commercial		Commercial		Composite		Composite		Commercial		Commercial, Hotel			Commercial		Commercial		Composite
Land Use	Rights Expiry	Date		30 May 2052 to	30 May 2082	13 Jan 2051 to	13 Jan 2081	27 Jun 2050 to	02 Mar 2081	01 Jun 2051 to	01 Jun 2081	24 Nov 2047 to	24 Nov 2077	29 Dec 2050 to	29 Dec 2080	28 Jan 2051 to	28 Jan 2081	21 Apr 2054 to	21 Apr 2084	31 May 2085		08 Jun 2051 to	29 May 2084	07 Jun 2057 to	31 Mar 2061	31 Dec 2056 to	31 Oct 2064	29 Jul 2054 to	29 Jul 2084	25 Jan 2051 to	25 Jan 2081		30 Apr 2054 to	01 Apr 2084	30 Dec 2051 to	30 Dec 2081	04 Jan 2052 to	04 Jan 2082
		Land Use		Residential, Commercial		Residential, Commercial		Residential, Commercial		Residential, Office		Residential, Commercial,	Sport and Leisure	Residential, Commercial		Residential, Commercial,	Office	Residential, Commercial		Residential		Residential, Commercial		Residential		Residential		Residential, Commercial		Residential, Commercial,	Accommodation and	Catering	Residential, Commercial		Residential, Commercial		Residential, Commercial
		City		Yancheng		Changchun		Jingdezhen		Nanchang		Nanchang		Nanchang		Yingtan		Dalian		Dalian		Huludao		Shenyang		Shenyang		Yingkou		Dongying			Jinan		Linyi		Datong
		Holding Entity		Hengda Real Estate Group Yancheng	Company Limited	Taiji (Changchun) Real Estate Company	Limited	Hengda (Jingdezhen) Real Estate Group	Company Limited	Jiangxi Hongji Investment Company Limited		Jiangxi Cuilin Shanzhuang Company Limited		Nanchang Zhongdiantou Gaoxin Property	Company Limited	Hengda Real Estate Yingtan Company	Limited	Dalian Hengcheng Real Estate Company	Limited	Dalian Hengke Real Estate Company Limited		Huludao Jia Shan Property Company Limited		Hengda Xinyuan (Shenyang) Property	Company Limited	Hengda Changji (Shenyang) Property	Company Limited	Yingkou Jialong Real Estate Company	Limited	Dongying Hengda Huafu Property Company	Limited		Jinan Xiye Property Company Limited		Linyi Zhengsheng Property Company Limited		Datong Junjing Real Estate Development	Company Limited
		Property Name		Portion of Evergrande Metropolis	Yancheng	Portion of Evergrande Scenic View	Garden Changchun	Portion of Evergrande Metropolis	Jingdezhen	Portion of Evergrande City Nanchang		Portion of Evergrande Oasis Nanchang		Portion of Evergrande Royal View	Garden Nanchang	Portion of Evergrande Oasis Yingtan		Portion of Evergrande Royal View	Garden Dalian	Portion of Evergrande Harbor City	Dalian	Portion of Evergrande Royal Scenic	Bay Huludao	Portion of Evergrande City Shenyang		Portion of Evergrande Oasis Shenyang		Portion of Evergrande Oasis Yingkou		Portion of Evergrande Huang He Sheng	Tai Cheng Dongying		Portion of Evergrande Jinbi New Town	Jinan	Portion of Evergrande Oasis Linyi		Portion of Evergrande Oasis Datong
		Property No.		II-51		II-52		II-53		II-54		II-55		II-56		II-57		II-58		II-59		II-60		II-61		II-62		II-63		II-64			II-65		II-66		II-67

– IV-44 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

Attributable to	the Group as at	Valuation Date	(RMB million)	29.45		49.50		168.60			19.52		30.40		99.20		48.60		495.00		27.20		17.60		25.90		32.80		7.10		19.10		26.50		27.50		32.60
Interest	Attributable to	the Group	%	95.0%		100.0%		100.0%			64.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%
	Market Value(2)	in Existing State	(RMB million)	31.00		49.50		168.60			30.50		30.40		99.20		48.60		495.00		27.20		17.60		25.90		32.80		7.10		19.10		26.50		27.50		32.60
	Completion	Date		2012		2014		2009 to 2015			2016		2011		2014		2011		2014		2013 to 2015		2016		2010 to 2015		2016		2017		2017		2010		2014		2012
	Number of	Rooms																	279
		GFA(1)	(sq.m.)	4,924		4,584		19,490			4,998		3,571		—		7,277		—		5,260		2,756		5,294		5,272		2,871		2,602		5,177		5,296		5,387
		Type of Property		Residential		Commercial		Commercial,	Composite		Residential		Commercial		Other		Composite		Hotel		Composite		Commercial		Composite		Commercial		Other		Composite		Composite		Composite		Composite
Land Use	Rights Expiry	Date		21 Aug 2078 to	28 Mar 2080	09 Jun 2051 to	09 Jun 2081	14 Nov 2047 to	14 Nov 2057		09 Dec 2078		13 May 2078		5 Oct 2043		31 Oct 2076		06 Mar 2047 to	06 Mar 2077	22 Mar 2048 to	08 Mar 2078	21 Oct 2050 to	21 Oct 2080	18 Jun 2047 to	06 Sep 2086	12 Dec 2050 to	12 Dec 2080	15 Oct 2053 to	22 Feb 2084	15 Oct 2053 to	22 Feb 2084	06 Jan 2048 to	06 Jan 2078	10 Dec 2050 to	15 Oct 2052	30 Mar 2076
		Land Use		Residential		Residential, Commercial		Residential, Commercial,	Office, Education/Public	Facility	Residential		Residential		Golf and Ancillary Facility		Residential, Commercial		Residential, Commercial		Residential, Commercial		Residential, Commercial,	Education	Residential, Commercial		Residential, Commercial		Residential, Commercial		Residential, Commercial		Residential, Commercial		Residential, Composite		Residential
		City		Linfen		Lvliang		Taiyuan			Yangquan		Yuncheng		Huizhou		Chengdu		Chengdu		Chengdu		Nanchong		Meishan		Ziyang		Xian		Xian		Luoyang		Wugang		Xian
		Holding Entity		Linfen Zijing Real Estate Development	Company Limited	Lvliang Junhui Real Estate Development	Company Limited	Hengda (Taiyuan) Real Estate Group	Company Limited		Yangquan Shi Liaoyuan Real Estate	Development Company Limited	Yuncheng Xinwanrui Real Estate	Development Company Limited	Guangsheng Huaqiao (Dayawan) Real Estate	Development Company Limited	Chengdu Wenjiang District Xinjinkang	Property Company Limited	Aimeigao (Chengdu) Property Company	Limited	Chengdu Tianfu Shuicheng Real Estate	Development Company Limited	Hengda (Nanchong) Real Estate Group	Company Limited	Hengda Xinfeng (Pengshan) Property	Company Limited	Ziyang Wancheng Property Company Limited		Xi’an Jiazhi Property Company Limited		Xi’an Yingyu Property Company Limited		Hengda (Luoyang) Real Estate Group	Company Limited	Wugang Hengda Property Company Limited		Shaanxi Jinhong Investment Company	Limited
		Property Name		Portion of Evergrande Palace Linfen		Portion of Evergrande Royal Scenic	Lvliang	Portion of Evergrande Oasis Taiyuan			Portion of Evergrande Royal View	Garden Yangquan	Portion of Evergrande Oasis Yuncheng		Portion of Evergrande Palm Island	Huizhou	Portion of Evergrande City Chengdu		Portion of Evergrande Huazhi Plaza	Chengdu	Portion of Evergrande Royal Scenic	Peninsula Chengdu	Portion of Evergrande Oasis Nanchong		Portion of Evergrande Splendor	Pengshan	Portion of Evergrande City Ziyang		Portion of Evergrande Royal View	Garden Xi’an	Portion of Evergrande Royal View	Garden Xi’an	Portion of Evergrande Oasis Luoyang		Portion of Evergrande Palace Wugang		Portion of Evergrande City Xi’an
		Property No.		II-68		II-69		II-70			II-71		II-72		II-73		II-74		II-75		II-76		II-77		II-78		II-79		II-80		II-81		II-82		II-83		II-84

– IV-45 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

Attributable to	the Group as at	Valuation Date	(RMB million)	44.10		46.30	3.60		21.40		267.10		40.30		165.50		39.50		182.00		28.50		75.50		395.20				57.30		54.00		92.32
Interest	Attributable to	the Group	%	100.0%		100.0%	60.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%				100.0%		100.0%		76.4%
	Market Value(2)	in Existing State	(RMB million)	44.10		46.30	6.00		21.40		267.10		40.30		165.50		39.50		182.00		28.50		75.50		395.20				57.30		54.00		120.90
	Completion	Date		2015		2009	2016		2016		2016		2010		2009		2016		2016		2016		2009 to 2014		2016				2014		2014		2016
	Number of	Rooms									306														293
		GFA(1)	(sq.m.)	7,000		7,095	1,146		5,493		14,087		7,295		26,006		5,601		24,528		5,307		8,475		59,569				8,239		7,160		13,309
		Type of Property		Composite		Composite	Composite		Composite		Commercial, Hotel,	Other	Composite		Commercial,	Composite, Other	Composite		Commercial,	Composite, Other	Composite		Composite, Other		Commercial,	Composite, Hotel,	Other		Composite, Other		Composite, Other		Composite, Other
Land Use	Rights Expiry	Date		25 Aug 2074 to	26 Aug 2074	17 Aug 2076	30 Aug 2084		30 Jul 2081		19 May 2046 to	19 May 2076	15 Nov 2046 to	05 Jan 2077	10 Jul 2047 to	10 Jul 2057	31 Mar 2051 to	31 Mar 2061	Nov 2050 to	Nov 2060	30 Jun 2061		14 Feb 2047 to	14 Feb 2057	28 Dec 2046 to	18 Sep 2066			17 Oct 2047 to	17 Oct 2057	16 Oct 2047 to	17 Oct 2057	02 Feb 2048 to	02 Feb 2058
		Land Use		Residential		Residential	Residential		Residential		Residential, Commercial,	Composite	Residential, Commercial		Residential, Commercial		Residential, Commercial		Residential, Commercial		Residential		Residential, Commercial,	Clubhouse	Residential, Commercial,	Accommodation and	Catering, Cultural and	Entertainment	Residential, Commercial,	Education, Carpark	Residential, Commercial,	Education	Residential, Commercial,	Education
		City		Xian		Xian	Xuchang		Yangling		Guiyang		Guiyang		Chongqing		Chongqing		Chongqing		Chongqing		Chongqing		Chongqing				Chongqing		Chongqing		Chongqing
		Holding Entity		Xi’an Qujiang Investment Construction	Company Limited	Xi’an Qiyun Property Company Limited	Xuchang Pingshan Property Company Limited		Shaanxi Yaoze Sihai Real Estate	Development Company Limited	Guiyang New World Real Estate Company	Limited	Hengda Real Estate Group Guiyang Property	Company Limited	Chongqing Hengda Jiyu Property Company	Limited	Hengda (Chongqing) Real Estate Group	Company Limited	Chongqing Hengda Jun Xin Real Estate	Development Company Limited	Chongqing Hengda Yongjun Real Estate	Development Company Limited	Hengda (Chongqing) Real Estate Group	Company Limited	Hengda (Jiangjin) Real Estate Group	Company Limited			Hengda (Chongqing) Real Estate Group	Company Limited	Hengda (Chongqing) Real Estate Group	Company Limited	Chongqing Jianzhi Real Estate Company	Limited
		Property Name		Portion of Evergrande Oasis Xi’an		Portion of Evergrande Metropolis Xi’an	Portion of Evergrande Emerald Court	Xuchang	Portion of Evergrande City Yangling		Portion of Evergrande New World	Guiyang	Portion of Evergrande Oasis Guiyang		Portion of Evergrande City Chongqing		Portion of Evergrande Royal View	Garden Chongqing	Portion of Evergrande Atrium	Chongqing	Portion of Evergrande Emerald Court	Yongchuan	Portion of Evergrande Palace	Chongqing	Portion of Evergrande Splendor	Chongqing			Portion of Evergrande Oasis Chongqing		Portion of Evergrande Metropolis	Chongqing	Portion of Evergrande The Coronation	Chongqing
		Property No.		II-85		II-86	II-87		II-88		II-89		II-90		II-91		II-92		II-93		II-94		II-95		II-96				II-97		II-98		II-99

– IV-46 –

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

APPENDIX IV

– IV-47 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

to the Group	as at	Valuation	Date	(RMB million)	571.40		30.70		260.40		491.40		29.50		184.30		174.90		55.25		210.10		1,155.40		211.70		1,197.00		27.60		473.80
	Interest	Attributable	to the Group	(%)	100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		65.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%
Market	Value(2)	in Existing	State	(RMB million)	571.40		30.70		260.40		491.40		29.50		184.30		174.90		85.00		210.10		1,155.40		211.70		1,197.00		27.60		473.80
	Existing	Monthly	Rental	(RMB)	116,272		—		97,578		145,020		—		—		40,342		—		—		33,351		—		—		—		—
Occupancy	as at	Valuation	Date	(%)	55%		—		9%		31%		—		—		20%		—		—		4%		—		—		—		—
		Completion	Date		2016		2015		2014 to	2016	2014 to	2016	2016		2015 to	2016	2016 to	2017	2017		2013 to	2014	2014 to	2016	2010		2016		2016		2014 to	2016
		Number	of CPS		3,923		—		—		2,520		—		1,424		1,145		—		1,604		5,886		1,567		—		—		3,170
		Total GFA(1)	(Excl. CPS)	(sq.m.)	8,930		2,461		22,322		15,715		2,799		2,821		5,754		7,930		—		15,935		—		98,463		1,403		8,153
		Type of	Property		Commercial,	Carpark	Commercial		Commercial		Commercial,	Carpark	Commercial		Commercial,	Carpark	Commercial,	Carpark	Commercial		Carpark		Commercial,	Carpark	Carpark		Commercial		Commercial		Commercial,	Carpark
	Land Use	Rights Expiry	Date		30 May 2053 to	30 Nov 2083	27 Dec 2054 to	27 Dec 2084	29 Jun 2052 to	29 Jun 2082	14 Sep 2051 to	14 Sep 2081	29 Sep 2050 to	29 Sep 2080	14 Sep 2083		20 May 2083		20 Aug 2055 to	20 Aug 2085	16 Aug 2074		24 Aug 2051 to	24 Aug 2081	Jun 2079 to Jan	2080	15 Oct 2053 to	15 Oct 2083	10 Sep 2053 to	10 Sep 2083	08 Oct 2050 to	08 Oct 2080
			Land Use		Residential,	Commercial	Residential		Residential,	Commercial	Residential,	Commercial	Residential, Public	Facility	Residential,	Commercial	Residential,	Commercial	Residential,	Commercial	Residential		Residential,	Commercial	Residential		Residential,	Commercial	Residential,	Commercial	Residential,	Commercial
			City		Anqing		Bengbu		Bengbu		Bozhou		Chaohu		Chuzhou		Chuzhou		Feidong		Hefei		Hefei		Hefei		Hefei		Hefei		Huaibei
			Holding Entity		Anqing Hengyuan Property	Company Limited	Bengbu Hengyuan Property	Company Limited	Bengbu Hengtong Property	Company Limited	Bozhou Hengda Property	Company Limited	Anhui Lilong Property	Company Limited	Chuzhou Yuetong Property	Company Limited	Chuzhou Hengda Property	Company Limited	Yueheng (Hefei) Property	Company Limited	Anhui Sanlin Property	Company Limited	Yuetong (Hefei) Property	Company Limited	Qijia (Hefei) Property	Company Limited	Yuetai (Hefei) Property	Company Limited	Yuecheng (Hefei) Property	Company Limited	Huaibei Yuetong Property	Company Limited
			Property Name		Portion of Evergrande Oasis	Anqing	Portion of Evergrande	Emerald Court Bengbu	Portion of Evergrande Royal	Scenic Bay Bengbu	Portion of Evergrande City	Bozhou	Portion of Evergrande Royal	View Garden Chaohu	Portion of Evergrande Oasis	Chuzhou	Portion of Evergrande	Metropolis Chuzhou	Portion of Evergrande Oasis	Feidong	Portion of Evergrande City	Hefei	Portion of Evergrande Royal	View Garden Hefei	Portion of Evergrande Palace	Hefei	Portion of Evergrande	International Center Hefei	Portion of Evergrande Plaza	Hefei	Portion of Evergrande	Metropolis Huaibei
		Property	No.		III-1		III-2		III-3		III-4		III-5		III-6		III-7		III-8		III-9		III-10		III-11		III-12		III-13		III-14

– IV-48 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

to the Group	as at	Valuation	Date	(RMB million)	287.20		138.60		406.50		94.26		741.60		460.10		38.87		171.00		253.80		164.80		154.90						312.00
	Interest	Attributable	to the Group	(%)	100.0%		60.0%		100.0%		60.0%		100.0%		100.0%		65.0%		100.0%		100.0%		100.0%		100.0%						100.0%
Market	Value(2)	in Existing	State	(RMB million)	287.20		231.00		406.50		157.10		741.60		460.10		59.80		171.00		253.80		164.80		154.90						312.00
	Existing	Monthly	Rental	(RMB)	—		61,606		71,189		22,498		72,936		59,997		—		—		—		—		16,001						—
Occupancy	as at	Valuation	Date	(%)	—		29%		14%		5%		11%		17%		—		—		—		—		5%						—
		Completion	Date		2015 to	2016	2014 to	2016	2015 to	2016	2014 to	2016	2015 to	2017	2014 to	2016	2016		2014		2013 to	2014	2012 to	2014	2016						2016
		Number	of CPS		288		1,642		2,291		493		3,921		2,574		—		1,390		1,349		1,024		—						—
		Total GFA(1)	(Excl. CPS)	(sq.m.)	18,924		7,530		16,721		9,745		21,715		12,760		5,666		—		—		1,028		6,456						10,641
		Type of	Property		Commercial,	Carpark	Commercial,	Carpark	Commercial,	Carpark	Commercial,	Carpark	Commercial,	Carpark	Commercial,	Carpark	Commercial		Carpark		Carpark		Commercial,	Carpark	Commercial						Commercial
	Land Use	Rights Expiry	Date		21 Oct 2051 to	21 Oct 2081	02 May 2081 to	03 May 2081	28 Dec 2051 to	28 Dec 2081	11 Jun 2082		20 Dec 2050 to	20 Dec 2080	19 May 2081 to	20 May 2081	Jul 2054 to	Jul 2084	Nov 2053 to	Oct 2085	21 May 2048 to	27 Sep 2078	27 Feb 2051 to	28 Feb 2081	23 Jul 2053 to	23 Jul 2083					29 Sep 2053 to	28 Sep 2083
			Land Use		Residential,	Commercial	Residential		Residential,	Commercial	Residential		Residential,	Commercial	Residential		Residential,	Commercial	Residential,	Commercial	Residential,	Commercial	Residential,	Commercial	Residential,	Commercial,	Underground	Carpark, Composite,	Underground	Storage	Residential,	Commercial, Office,	Underground	Carpark, Composite,	Underground	Storage
			City		Huaibei		Huainan		Lu’an		Ma’anshan		Tongling		Wuhu		Suzhou		Suzhou		Baotou		Baotou		Beijing						Beijing
			Holding Entity		Huaibei Hengtong Property	Company Limited	Huainan Hengda Tianheng	Property Company Limited	Lu’an Yue Tong Property	Company Limited	Ma’anshan Hengda Anliang	Property Company Limited	Tongling Hengda Property	Company Limited	Wuhu Hengda Property	Company Limited	Suzhou Heng Ding Property	Company Limited	Suzhou Hengda Property	Company Limited	Hengda (Baotou) Real Estate	Group Company Limited	Hengda (Baotou) Real Estate	Group Company Limited	Shahe Hengda (Beijing)	Property Company Limited					Hengda (Beijing) Real Estate	Group Company Limited
			Property Name		Portion of Evergrande Atrium	Huaibei	Portion of Evergrande Oasis	Huainan	Portion of Evergrande Royal	Scenic Bay Lu’an	Portion of Evergrande Royal	Scenic Bay Ma’anshan	Portion of Evergrande Oasis	Tongling	Portion of Evergrande Palace	Wuhu	Portion of Evergrande	Metropolis Suzhou	Portion of Evergrande Royal	Scenic Bay Suzhou	Portion of Evergrande Palace	Baotou	Portion of Evergrande	Metropolis Baotou	Portion of Evergrande City	Beijing					Portion of Evergrande Royal	Scenic Bay Beijing
		Property	No.		III-15		III-16		III-17		III-18		III-19		III-20		III-21		III-22		III-23		III-24		III-25						III-26

– IV-49 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

to the Group	as at	Valuation	Date	(RMB million)	251.90			157.57			267.90			411.81		98.80			96.80			63.40				58.00			101.10			29.52			406.60
	Interest	Attributable	to the Group	(%)	100.0%			70.0%			100.0%			74.0%		100.0%			100.0%			100.0%				100.0%			100.0%			90.0%			100.0%
Market	Value(2)	in Existing	State	(RMB million)	251.90			225.10			267.90			556.50		98.80			96.80			63.40				58.00			101.10			32.80			406.60
	Existing	Monthly	Rental	(RMB)	—			52,427			—			—		32,990			—			—				—			10,240			—			30,048
Occupancy	as at	Valuation	Date	(%)	—			13%			—			—		12%			—			—				—			3%			—			9%
		Completion	Date		2016			2016 to	2017		2013			2014 to	2016	2016 to	2017		2016			2016				2012			2012 to	2014		2014			2013 to	2014
		Number	of CPS		353			—			1,810			2,065		—			—			—				249			—			184			1,406
		Total GFA(1)	(Excl. CPS)	(sq.m.)	18,434			18,608			—			21,931		10,423			6,659			6,067				—			10,224			—			15,943
		Type of	Property		Commercial,	Carpark		Commercial			Carpark			Commercial,	Carpark	Commercial			Commercial			Commercial				Carpark			Commercial			Carpark			Commercial,	Carpark
	Land Use	Rights Expiry	Date		03 Sep 2052 to	03 Sep 2082		15 May 2053 to	29 Sep 2084		24 Jul 2083			15 Mar 2051 to	15 Mar 2081	07 Oct 2053 to	07 Oct 2083		01 Jun 2051 to	01 Jun 2081		26 Nov 2050 to	14 Aug 2085			18 Aug 2049 to	18 Aug 2079		19 Mar 2079			24 Nov 2051 to	24 Nov 2081		19 May 2081
			Land Use		Residential,	Commercial		Residential,	Commercial		Residential			Residential,	Commercial, Office	Residential,	Commercial		Residential,	Accommodation and	Catering	Residential,	Commercial			Residential,	Commercial, Office		Residential			Residential,	Commercial		Residential
			City		Cangzhou			Hengshui			Hohhot			Hohhot		Langfang			Luquan			Qinhuangdao				Shijiazhuang			Shijiazhuang			Shijiazhuang			Shijiazhuang
			Holding Entity		Hebei Longwei Real Estate	Development Company	Limited	Hengshui Shengyu Real Estate	Development Company	Limited	Hengda (Huhehaote) Real	Estate Group Company	Limited	Inner Mongolia Changshengtai	Real Estate Company Limited	Hengda Langfang Real Estate	Development Company	Limited	Hengda (Luquan) Real Estate	Group Company Limited		Hengda Real Estate Group	Qinhuangdao Hengda Cheng	Real Estate Development	Company Limited	Hengda (Shijiazhuang) Real	Estate Group Company	Limited	Shijiazhuang Shengyu Real	Estate Development Company	Limited	Hebei Longhai Real Estate	Development Company	Limited	Hebei Gaojie Shi Real Estate	Development Company	Limited
			Property Name		Portion of Evergrande City	Cangzhou		Portion of Evergrande City	Hengshui		Portion of Evergrande	Metropolis Hohhot		Portion of Evergrande Atrium	Hohhot	Portion of Evergrande	Metropolis Langfang		Portion of Evergrande	Splendor Luquan		Portion of Evergrande City	Qinhuangdao			Portion of Evergrande City	Shijiazhuang		Portion of Evergrande Oasis	Shijiazhuang		Portion of Evergrande	Metropolis Shijiazhuang		Portion of Evergrande Atrium	Shijiazhuang
		Property	No.		III-27			III-28			III-29			III-30		III-31			III-32			III-33				III-34			III-35			III-36			III-37

– IV-50 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

to the Group	as at	Valuation	Date	(RMB million)	193.41			38.70		43.70			433.40		308.30		248.80		415.80		153.30		100.40			269.70			90.30			127.40		127.61			455.50
	Interest	Attributable	to the Group	(%)	70.0%			60.0%		100.0%			100.0%		100.0%		100.0%		100.0%		100.0%		100.0%			100.0%			100.0%			100.0%		70.0%			100.0%
Market	Value(2)	in Existing	State	(RMB million)	276.30			64.50		43.70			433.40		308.30		248.80		415.80		153.30		100.40			269.70			90.30			127.40		182.30			455.50
	Existing	Monthly	Rental	(RMB)	—			—		—			—		121,999		46,626		56,734		47,340		—			23,015			—			7,703		—			—
Occupancy	as at	Valuation	Date	(%)	—			—		—			—		67%		14%		16%		10%		—			7%			—			1%		—			—
		Completion	Date		2016 to	2017		2016		2013 to	2016		2016		2015 to	2016	2016		2011 to	2016	2014 to	2015	2016			2016			2016			2016		2016			2017
		Number	of CPS		—			411		45			2,580		1,515		936		2,345		—		348			781			—			—		659			3,120
		Total GFA(1)	(Excl. CPS)	(sq.m.)	24,451			—		3,022			—		3,771		7,128		11,293		12,723		8,723			13,760			7,148			11,465		7,490			—
		Type of	Property		Commercial			Carpark		Commercial,	Carpark		Carpark		Commercial,	Carpark	Commercial,	Carpark	Commercial,	Carpark	Commercial		Commercial,	Carpark		Commercial,	Carpark		Commercial			Commercial		Commercial,	Carpark		Carpark
	Land Use	Rights Expiry	Date		05 Sep 2052 to	16 Aug 2085		25 Mar 2053 to	22 Oct 2083	12 Feb 2077 to	23 Sep 2079		23 Mar 2050 to	07 Jun 2080	23 Mar 2050 to	07 Jun 2080	28 Nov 2077		09 May 2081		07 Jun 2081 to	10 Jun 2081	13 Jun 2082			20 Jul 2082			09 Oct 2053 to	09 Oct 2083		16 Feb 2054 to	16 Feb 2084	30 Aug 2054			13 Feb 2051 to	13 Feb 2081
			Land Use		Residential,	Commercial, Office		Residential,	Commercial	Residential,	Commercial		Residential,	Commercial	Residential,	Commercial	Residential		Residential		Residential		Residential			Residential			Residential,	Commercial		Residential,	Commercial	Residential			Residential,	Commercial
			City		Shijiazhuang			Tangshan		Tianjin			Tianjin		Tianjin		Tianjin		Tianjin		Tianjin		Wuhai			Xingtai			Quanzhou			Shishi		Lanzhou			Lanzhou
			Holding Entity		Shijiazhuang Diyijia Real	Estate Development Company	Limited	Tangshan Zhaorui Investment	Company Limited	Hengda (Tianjin Jixian) Real	Estate Group Company	Limited	Tianjin Jin Li Hu Investment	Company Limited	Tianjin Yilian Chuangzhan	Property Company Limited	Tianjin Binqiao Investment	Company Limited	Tianjin Shanshui Cheng	Investment Company Limited	Tianjin Yujing Bandao	Investment Company Limited	Wuhai Junjing Real Estate	Development Company	Limited	Xingtai Xiangheng Real	Estate Development Company	Limited	Quanzhou Ansheng Property	Company Limited		Shishi Jinbi Property	Company Limited	Gansu Shengda Real Estate	Development Company	Limited	Hengda Real Estate Group	Lanzhou Property Company	Limited
			Property Name		Portion of Evergrande Royal	Scenic Peninsula Shijiazhuang		Portion of Evergrande Palace	Tangshan	Portion of Evergrande	Splendor Tianjin		Portion of Evergrande Oasis	Tianjin	Portion of Evergrande Oasis	Tianjin	Portion of Evergrande	Metropolis Tianjin	Portion of Evergrande Scenic	Garden Tianjin	Portion of Evergrande Royal	Scenic Peninsula Tianjin	Portion of Evergrande Oasis	Wuhai		Portion of Evergrande	Metropolis Xingtai		Portion of Evergrande	Emerald Dragon Court	Quanzhou	Portion of Evergrande	Metropolis Shishi	Portion of Evergrande City	Plaza Lanzhou		Portion of Evergrande Oasis	Lanzhou
		Property	No.		III-38			III-39		III-40			III-41		III-42		III-43		III-44		III-45		III-46			III-47			III-48			III-49		III-50			III-51

– IV-51 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

to the Group	as at	Valuation	Date	(RMB million)	242.10			62.40		56.50			349.60		123.50			109.50			370.10			296.40			839.00			36.94				66.60		63.00
	Interest	Attributable	to the Group	(%)	100.0%			100.0%		100.0%			100.0%		100.0%			100.0%			100.0%			100.0%			100.0%			57.0%				100.0%		100.0%
Market	Value(2)	in Existing	State	(RMB million)	242.10			62.40		56.50			349.60		123.50			109.50			370.10			296.40			839.00			64.80				66.60		63.00
	Existing	Monthly	Rental	(RMB)	29,588			—		—			22,038		24,453			—			89,217			—			—			—				—		—
Occupancy	as at	Valuation	Date	(%)	17%			—		—			8%		9%			—			20%			—			—			—				—		—
		Completion	Date		2013 to	2014		2015		2016			2015 to	2016	2015			2013 to	2016		2015			2015			2016			2016				2002		2004
		Number	of CPS		777			—		577			1,537		—			422			1,654			2,000			4,994			—				88		105
		Total GFA(1)	(Excl. CPS)	(sq.m.)	6,937			3,710		—			15,278		11,824			3,075			12,309			—			—			3,533				901		614
		Type of	Property		Commercial,	Carpark		Commercial		Carpark			Commercial,	Carpark	Commercial			Commercial,	Carpark		Commercial,	Carpark		Carpark			Carpark			Commercial				Commercial,	Carpark	Commercial,	Carpark
	Land Use	Rights Expiry	Date		02 Jul 2046 to	02 Jul 2076		29 Dec 2080		27 Sep 2050 to	27 Sep 2080		14 Aug 2079		25 Jul 2082			24 Mar 2051 to	24 Mar 2081		07 Apr 2081 to	01 Sep 2081		29 Nov 2053 to	29 Nov 2083		11 Aug 2082			10 Jan 2055 to	11 Jan 2085			14 Jul 2038 to	19 Aug 2042	03 Mar 2043 to	03 Mar 2053
			Land Use		Residential,	Commercial		Residential,	Commercial	Residential,	Commercial		Residential		Residential			Residential,	Commercial		Residential			Residential			Residential, Public	Facility, Green	Space	Residential,	Commercial,	Accommodation and	Catering	Commercial, Public	Facility	Commercial, Public	Facility
			City		Lanzhou			Lanzhou		Shizuishan			Wuzhong		Wuwei			Xining			Yinchuan			Yinchuan			Chaozhou			Chaozhou				Guangzhou		Guangzhou
			Holding Entity		Gansu Yusheng Real Estate	Development Company	Limited	Lanzhou Shenjun Property	Company Limited	Hengda (Shizuishan) Real	Estate Group Company	Limited	Ningxia Jinhai Property	Company Limited	Wuwei Hengda Real Estate	Development Company	Limited	Xining Hengda Real Estate	Development Company	Limited	Hengda (Yinchuan) Real	Estate Group Company	Limited	Ningxia Haotian Real Estate	Development Company	Limited	Chaozhou Hengda Property	Company Limited		Chaozhou Hengxin Real	Estate Development Company	Limited		Hengda Real Estate Group	Company Limited	Hengda Real Estate Group	Company Limited
			Property Name		Portion of Evergrande	Metropolis Lanzhou		Portion of Evergrande Scenic	Garden Lanzhou	Portion of Evergrande Oasis	Shizuishan		Portion of Evergrande	Metropolis Wuzhong	Portion of Evergrande Oasis	Wuwei		Portion of Evergrande	Metropolis Xining		Portion of Evergrande	Metropolis Yinchuan		Portion of Evergrande Royal	Scenic Yinchuan		Portion of Evergrande City	Chaozhou		Portion of Evergrande Scenic	Garden Chaozhou			Portion of The Second Jinbi	Garden Guangzhou	Portion of The Third Jinbi	Garden Guangzhou
		Property	No.		III-52			III-53		III-54			III-55		III-56			III-57			III-58			III-59			III-60			III-61				III-62		III-63

– IV-52 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

to the Group	as at	Valuation	Date	(RMB million)	383.80		280.70		272.10			9.10		216.40		85.30				212.30		1,977.50			616.20			383.00			217.30		167.30		620.00		247.90
	Interest	Attributable	to the Group	(%)	100.0%		100.0%		100.0%			100.0%		100.0%		100.0%				100.0%		100.0%			100.0%			100.0%			100.0%		100.0%		100.0%		100.0%
Market	Value(2)	in Existing	State	(RMB million)	383.80		280.70		272.10			9.10		216.40		85.30				212.30		1,977.50			616.20			383.00			217.30		167.30		620.00		247.90
	Existing	Monthly	Rental	(RMB)	—		105,914		—			—		—		—				16,569		—			—			—			—		939		1,556,281		—
Occupancy	as at	Valuation	Date	(%)	—		23%		—			—		—		—				3%		—			—			—			—		0%		23%		—
		Completion	Date		2000 to	2006	2015 to	2016	2016			2015		2015		2012 to	2017			2016		2009 to	2015		2016			2010 to	2013		2016		2015 to	2016	2010		2006
		Number	of CPS		565		509		1,495			—		1,433		580				—		6,338			1,828			1,023			—		—		348		100
		Total GFA(1)	(Excl. CPS)	(sq.m.)	6,527		11,305		—			445		—		3,125				12,420		—			2,335			1,058			3,785		13,920		7,639		7,698
		Type of	Property		Commercial,	Carpark	Commercial,	Carpark	Carpark			Commercial		Carpark		Commercial,	Carpark			Commercial		Carpark			Commercial,	Carpark		Commercial,	Carpark		Commercial		Commercial		Commercial,	Office, Carpark	Commercial,	Office, Carpark
	Land Use	Rights Expiry	Date		22 Jul 2037 to	20 Apr 2049	21 Sep 2081		16 Apr 2078			19 May 2074		19 May 2074		13 Mar 2052 to	13 Mar 2082			22 Aug 2053 to	22 Aug 2083	11 Aug 2064			30 Dec 2050 to	30 Dec 2080		12 Sep 2058			17 Dec 2083		01 Jul 2053 to	01 Jul 2083	25 Jun 2056		03 Jul 2040 to	03 Jul 2050
			Land Use		Commercial, Public	Facility	Residential		Residential			Residential		Residential		Residential,	Commercial,	Accommodation and	Catering	Residential, Office		Residential,	Commercial,	Education	Residential,	Commercial		Residential,	Commercial, Public	Facility, Carpark	Residential		Residential,	Commercial	Commercial, Office,	Carpark	Commercial, Office,	Public Facility,	Carpark
			City		Guangzhou		Dongguan		Dongguan			Dongguan		Dongguan		Enping				Foshan		Foshan			Foshan			Guangzhou			Guangzhou		Heyuan		Guangzhou		Guangzhou
			Holding Entity		Hengda Real Estate Group	Company Limited	Dongguan Shenjian Real	Estate Company Limited	Dongguan Chengbang Real	Estate Development Company	Limited	Dongguan Hongjing Real	Estate Company Limited	Dongguan Shenjian Real	Estate Company Limited	Hengda (Enping) Real Estate	Group Company Limited			Foshan Changxin Honglong	Real Estate Company Limited	Foshan Nanhai Xinzhongjian	Real Estate Development	Company Limited	Foshan Nanhai Yingyu Real	Estate Development Company	Limited	Hengda Real Estate Group	Company Limited		Guangzhou Xincheng Property	Company Limited	Hengda (Heyuan) Real Estate	Group Company Limited	Guangzhou City Jiasui	Property Company Limited	Guangzhou Tongruida Real	Estate Property Company	Limited
			Property Name		Portion of The First Jinbi	Garden Guangzhou	Portion of Evergrande Royal	View Garden Dongguan	Portion of Evergrande Palace	Dongguan		Portion of Evergrande Atrium	Dongguan	Portion of Evergrande Atrium	Dongguan (Phase III)	Portion of Evergrande Spring	City Enping			Portion of Evergrande Royal	Scenic Foshan	Portion of Evergrande Royal	Scenic Peninsula Foshan		Portion of Evergrande Royal	Scenic Bay Foshan		Portion of Evergrande Oasis	Guangzhou		Portion of Evergrande Royal	Palace Guangzhou	Portion of Evergrande	Metropolis Heyuan	Portion of Evergrande Center		Portion of Evergrande	Emerald Court Guangzhou	Jinbi
		Property	No.		III-64		III-65		III-66			III-67		III-68		III-69				III-70		III-71			III-72			III-73			III-74		III-75		III-76		III-77

– IV-53 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

to the Group	as at	Valuation	Date	(RMB million)	41.70		383.00			278.90			3.20		227.60		145.80			201.90		13.60		265.20			263.20				75.00			316.66
	Interest	Attributable	to the Group	(%)	100.0%		100.0%			100.0%			100.0%		100.0%		100.0%			100.0%		100.0%		100.0%			100.0%				100.0%			51.0%
Market	Value(2)	in Existing	State	(RMB million)	41.70		383.00			278.90			3.20		227.60		145.80			201.90		13.60		265.20			263.20				75.00			620.90
	Existing	Monthly	Rental	(RMB)	—		—			—			—		—		—			—		—		—			—				—			19,254
Occupancy	as at	Valuation	Date	(%)	—		—			—			—		—		—			—		—		—			—				—			9%
		Completion	Date		2002		2007 to	2010		2004			2007		2007		2005			2016		2015		2014 to	2016		2014 to	2016			2017			2015 to	2017
		Number	of CPS		90		605			973			9		843		583			1,232		109		1,309			640				—			3,438
		Total GFA(1)	(Excl. CPS)	(sq.m.)	75		12,208			425			—		671		—			3,809		—		6,834			16,526				7,851			8,757
		Type of	Property		Commercial,	Carpark	Commercial,	Carpark		Commercial,	Carpark		Carpark		Commercial,	Carpark	Carpark			Commercial,	Carpark	Carpark		Commercial,	Carpark		Commercial,	Carpark			Commercial			Commercial,	Carpark
	Land Use	Rights Expiry	Date		21 Jan 2041		10 Jan 2056			15 Feb 2043			24 May 2060		06 May 2053		03 Jul 2040 to	21 Jul 2054		08 Jan 2057 to	24 Feb 2081	17 Sep 2080 to	18 Oct 2080	16 Jul 2054 to	15 Sep 2086		12 Jan 2044 to	17 Aug 2083			04 Feb 2055 to	04 Feb 2085		28 Dec 2052 to	28 Dec 2082
			Land Use		Commercial,	Carpark	Commercial,	Carpark		Commercial,	Carpark		Residential, Carpark		Commercial,	Composite, Carpark	Commercial, Office,	Composite, Carpark		Residential, Office		Residential		Residential,	Commercial		Residential,	Accommodation and	Catering, Cultural	and Sport	Residential,	Commercial		Residential,	Commercial
			City		Guangzhou		Guangzhou			Guangzhou			Guangzhou		Guangzhou		Guangzhou			Qingyuan		Qingyuan		Shaoguan			Yangjiang				Yangjiang			Yunfu
			Holding Entity		Hengda Real Estate Group	Company Limited	Guangzhou Junhong Real	Estate Development Company	Limited	Guangzhou Junhui Real Estate	Development Company	Limited	Hengda Real Estate Group	Company Limited	Hengda Real Estate Group	Company Limited	Guangzhou Tongruida Real	Estate Property Company	Limited	Hengda Shengyu (Qingxin)	Property Company Limited	Qingyuan Yinhucheng	Investment Company Limited	Hengda (Shaoguan) Real	Estate Group Company	Limited	Yangjiang Yifeng Property	Company Limited			Hengda (Yangjiang) Real	Estate Group Company	Limited	Hengda (Yunfu) Real Estate	Group Company Limited
			Property Name		Portion of Jinbi Palace	Guangzhou	Portion of Jinbi Junhong	Garden Guangzhou		Portion of Jinbi Century	Garden Guangzhou		Portion of Jinbi Bay	Guangzhou	Portion of Jinbi New City	Guangzhou	Portion of Evergrande Atrium	Guangzhou Jinbi		Portion of Evergrande	Splendor Qingyuan	Portion of Evergrande	Silverlake City Qingyuan	Portion of Evergrande City	Shaoguan		Portion of Evergrande Hawaii	on the sea Yangjiang			Portion of Evergrande	Metropolis Yangjiang		Portion of Evergrande City	Yunfu
		Property	No.		III-78		III-79			III-80			III-81		III-82		III-83			III-84		III-85		III-86			III-87				III-88			III-89

– IV-54 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

to the Group	as at	Valuation	Date	(RMB million)	462.60			242.20				275.10			1,059.70			16.50			58.90			138.80					27.20			202.32		282.40		126.10
	Interest	Attributable	to the Group	(%)	100.0%			100.0%				100.0%			100.0%			100.0%			100.0%			100.0%					100.0%			51.0%		100.0%		100.0%
Market	Value(2)	in Existing	State	(RMB million)	462.60			242.20				275.10			1,059.70			16.50			58.90			138.80					27.20			396.70		282.40		126.10
	Existing	Monthly	Rental	(RMB)	—			—				32,413			—			—			—			123,455					—			—		129,921		—
Occupancy	as at	Valuation	Date	(%)	—			—				6%			—			—			—			39%					—			—		22%		—
		Completion	Date		2013 to	2014		2010				2016 to	2017		2014 to	2016		2016			2016			2016					2015 to	2016		2016		2016		2017
		Number	of CPS		2,231			1,338				624			5,355			—			—			—					—			1,039		—		—
		Total GFA(1)	(Excl. CPS)	(sq.m.)	3,480			—				14,014			8,769			950			4,279			10,555					2,212			19,075		25,502		10,993
		Type of	Property		Commercial,	Carpark		Carpark				Commercial,	Carpark		Commercial,	Carpark		Commercial			Commercial			Commercial					Commercial			Commercial,	Carpark	Commercial		Commercial
	Land Use	Rights Expiry	Date		08 Jun 2066			08 Jun 2066				16 Jul 2053 to	16 Jul 2083		19 Dec 2063 to	19 Dec 2066		21 Oct 2083			06 Jun 2053 to	06 Jun 2083		01 Jan 2046 to	20 Dec 2084				01 Aug 2082			28 Sep 2048 to	29 Nov 2049	15 Jan 2054 to	15 Jan 2084	19 May 2055 to	19 May 2085
			Land Use		Residential, Carpark			Residential				Residential,	Commercial		Residential			Residential			Residential,	Commercial		Residential,	Commercial,	Accommodation and	Catering, Park and	Green Space	Residential			Commercial,	Composite	Residential,	Commercial	Residential,	Commercial
			City		Guangzhou			Guangzhou				Zhanjiang			Zhongshan			Zhongshan			Beihai			Beihai					Fangchenggang			Guilin		Liuzhou		Nanning
			Holding Entity		Hengda Real Estate Group	Company Limited		Guangzhou Hengda	(Zengcheng) Real Estate	Development Company	Limited	Hengda Real Estate Group	Zhanjiang Yujing Property	Company Limited	Hengda (Zhongshan) Real	Estate Group Company	Limited	Zhongshan Changxin	Hongzhan Real Estate	Company Limited	Beihai Jiajing Real Estate	Development Company	Limited	Beihai Nanguo Tiantang Real	Estate Development Company	Limited			Hengda (Fangchenggang) Real	Estate Group Company	Limited	Guilin Guijia Real Estate	Company Limited	Liuzhou Hengda Jinbi	Property Company Limited	Nanning Jinbi Hengda	Property Company Limited
			Property Name		Portion of Evergrande Scenic	Garden Guangzhou Zengcheng	(Phase 2 and 3)	Portion of Evergrande Scenic	Garden Guangzhou Zengcheng			Portion of Evergrande Oasis	Zhanjiang		Portion of Evergrande Oasis	Zhongshan		Portion of Evergrande	Metropolis Zhongshan		Portion of Evergrande	Metropolis Beihai		Portion of Evergrande Royal	Scenic Peninsula Beihai				Portion of Evergrande Royal	Scenic Bay Fangchenggang		Portion of Evergrande Plaza	Guilin	Portion of Evergrande	Emerald Court Liuzhou	Portion of Evergrande City	Nanning
		Property	No.		III-90			III-91				III-92			III-93			III-94			III-95			III-96					III-97			III-98		III-99		III-100

– IV-55 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

to the Group	as at	Valuation	Date	(RMB million)	20.70			307.70		104.50		78.00		130.00		393.10			340.50			314.80			44.70			505.70			225.70			224.30				51.90
	Interest	Attributable	to the Group	(%)	100.0%			100.0%		100.0%		100.0%		100.0%		100.0%			100.0%			100.0%			100.0%			100.0%			100.0%			100.0%				100.0%
Market	Value(2)	in Existing	State	(RMB million)	20.70			307.70		104.50		78.00		130.00		393.10			340.50			314.80			44.70			505.70			225.70			224.30				51.90
	Existing	Monthly	Rental	(RMB)	—			—		—		—		—		97,645			—			—			11,376			52,128			—			21,748				—
Occupancy	as at	Valuation	Date	(%)	—			—		—		—		—		12%			—			—			6%			9%			—			4%				—
		Completion	Date		2015			2016		2015		2016		2016		2014 to	2016		2014 to	2016		2016			2013			2014			2016			2016				2016
		Number	of CPS		—			1,628		757		473		855		1,397			1,817			1,852			—			—			—			—				245
		Total GFA(1)	(Excl. CPS)	(sq.m.)	2,108			3,053		—		—		—		25,395			11,984			—			4,790			45,210			21,777			19,020				2,009
		Type of	Property		Commercial			Commercial,	Carpark	Carpark		Carpark		Carpark		Commercial,	Carpark		Commercial,	Carpark		Carpark			Commercial			Commercial			Commercial			Commercial				Commercial,	Carpark
	Land Use	Rights Expiry	Date		22 Jul 2053 to	15 Aug 2053		30 Dec 2050 to	08 Sep 2085	30 Dec 2068		27 Jun 2053 to	27 Jun 2083	09 Nov 2063		21 Jul 2052 to	21 Jul 2082		16 May 2051 to	15 May 2082		02 Aug 2053 to	02 Aug 2083		26 Feb 2052 to	26 Feb 2083		28 May 2052 to	27 May 2083		01 May 2053 to	01 May 2083		09 May 2052 to	09 May 2082			18 Jul 2052 to	08 Oct 2082
			Land Use		Residential, Office,	Accommodation and	Catering	Residential,	Commercial	Residential		Residential,	Commercial	Commercial		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial, Public	Facility	Residential,	Commercial		Residential,	Commercial, Public	Facility	Residential			Residential,	Commercial			Residential,	Commercial
			City		Changjiang			Danzhou		Chengmai		Haikou		Haikou		Daqing			Harbin			Harbin			Harbin			Harbin			Harbin			Mudanjiang				Mudanjiang
			Holding Entity		Changjiang Guangyi Real	Estate Development Company	Limited	Danzhou Hengda Binhai	Investment Company Limited	Hainan Minghao Property	Company Limited	Hengda (Hainan) Real Estate	Group Company Limited	Hainan Dongfangmingzhu	Real Estate Company Limited	Daqing Hengda Yongsheng	Real Estate Development	Company Limited	Harbin Hengda Xingye Real	Estate Development Company	Limited	Harbin Mingye Real Estate	Development Company	Limited	Harbin Hengda Weiye Real	Estate Development Company	Limited	Harbin Hengda Weiye Real	Estate Development Company	Limited	Harbin Chengye Real Estate	Development Company	Limited	Mudanjiang Hengda	Changjian Real Estate	Development Company	Limited	Mudanjiang Hengda Yongtai	Real Estate Development	Company Limited
			Property Name		Portion of Evergrande Qizi	Bay Changjiang Gulf Pearl		Portion of Evergrande	Splendor Danzhou	Portion of Evergrande Royal	Scenic Bay Hainan	Portion of Evergrande Bay	Haikou	Portion of Evergrande Culture	Tourist City Haikou	Portion of Evergrande Oasis	Daqing		Portion of Evergrande City	Harbin		Portion of Evergrande Royal	View Garden Harbin		Portion of Evergrande Oasis	Harbin		Portion of Evergrande	Metropolis Harbin		Portion of Evergrande Royal	Scenic Bay Harbin		Portion of Evergrande	Emerald Court Mudanjiang			Portion of Evergrande Oasis	Mudanjiang
		Property	No.		III-101			III-102		III-103		III-104		III-105		III-106			III-107			III-108			III-109			III-110			III-111			III-112				III-113

– IV-56 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

to the Group	as at	Valuation	Date	(RMB million)	66.20		233.20		69.56			336.50			320.90			60.98				109.21				858.29			199.80			306.30			106.50
	Interest	Attributable	to the Group	(%)	100.0%		100.0%		67.1%			100.0%			100.0%			67.1%				67.1%				67.1%			100.0%			100.0%			100.0%
Market	Value(2)	in Existing	State	(RMB million)	66.20		233.20		103.70			336.50			320.90			90.90				162.80				1,279.50			199.80			306.30			106.50
	Existing	Monthly	Rental	(RMB)	—		284,144		—			—			—			—				—				—			75,473			65,016			71,707
Occupancy	as at	Valuation	Date	(%)	—		92%		—			—			—			—				—				—			90%			18%			53%
		Completion	Date		2016		2014		2015			2010 to	2016		2010 to	2016		2012 to	2016			2014 to	2016			2013 to	2016		2014 to	2016		2009 to	2016		2011 to	2016
		Number	of CPS		—		—		969			1,109			1,946			610				188				1,382			1,196			1,152			465
		Total GFA(1)	(Excl. CPS)	(sq.m.)	7,007		25,782		—			20,938			1,488			—				17,569				72,376			1,156			10,412			3,290
		Type of	Property		Commercial		Commercial		Carpark			Commercial,	Carpark		Commercial,	Carpark		Carpark				Commercial,	Carpark			Commercial,	Office, Carpark		Commercial,	Carpark		Commercial,	Carpark		Commercial,	Carpark
	Land Use	Rights Expiry	Date		28 Jun 2052 to	28 Jun 2082	28 Jun 2052 to	29 Jul 2082	24 Mar 2050 to	26 Dec 2081		20 Mar 2047 to	29 Aug 2080		28 Apr 2047 to	29 Apr 2077		26 Dec 2046 to	26 Dec 2076			29 Oct 2047 to	29 Oct 2077			09 Aug 2050 to	09 Aug 2080		29 Dec 2046 to	29 Dec 2076		30 May 2047 to	26 Jan 2078		30 Apr 2077 to	12 May 2080
			Land Use		Residential,	Commercial, Office	Residential, Office		Residential,	Commercial		Residential, Office			Residential,	Commercial		Residential,	Commercial			Residential,	Commercial			Residential,	Commercial		Residential,	Commercial, Office		Residential,	Commercial		Residential
			City		Qiqihar		Qiqihar		Ezhou			Ezhou			Wuhan			Wuhan				Wuhan				Wuhan			Wuhan			Wuhan			Wuhan
			Holding Entity		Hengda Yongxing (Qiqihaer)	Real Estate Company Limited	Hengda Yongxing (Qiqihaer)	Real Estate Company Limited	Hubei Sanjiang Hangtian	Commercial Management	Company Limited	Ezhou Hengda Real Estate	Development Company	Limited	Hubei Yiqing Yazhu Real	Estate Development Company	Limited	Wuhan Sanjiang Hangtian	Jiayuan Real Estate	Development Company	Limited	Wuhan Sanjiang Hangtian	Panlongcheng Real Estate	Development Company	Limited	Wuhan Sanjiang Hangtian	Investment Development	Company Limited	Wuhan Donghu Hengda Real	Estate Developmen Company	Limited	Wuhan Jinbi Luzhou Real	Estate Development Company	Limited	Wuhan Huali Property	Company Limited
			Property Name		Portion of Evergrande	Emerald Court Tsitshihar	Portion of Evergrande	Metropolis Tsitshihar	Portion of Evergrande Sky	Capital Ezhou		Portion of Evergrande	Splendor Ezhou		Portion of Evergrande City	Wuhan		Portion of Evergrande	Rainbow Town Wuhan			Portion of Evergrande Dragon	City Wuhan			Portion of Evergrande Capital	Wuhan		Portion of Evergrande Palace	Wuhan		Portion of Evergrande Oasis	Wuhan		Portion of Evergrande	Metropolis Wuhan
		Property	No.		III-114		III-115		III-116			III-117			III-118			III-119				III-120				III-121			III-122			III-123			III-124

– IV-57 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

to the Group	as at	Valuation	Date	(RMB million)	337.32			24.48			157.60			25.98			288.50				333.77			46.80		41.93			301.20		343.05		393.30		19.56
	Interest	Attributable	to the Group	(%)	66.8%			60.0%			100.0%			60.0%			100.0%				63.7%			60.0%		65.0%			100.0%		69.5%		100.0%		60.0%
Market	Value(2)	in Existing	State	(RMB million)	505.20			40.80			157.60			43.30			288.50				523.80			78.00		64.50			301.20		493.60		393.30		32.60
	Existing	Monthly	Rental	(RMB)	44,000			—			—			57,240			101,181				—			—		—			35,254		—		50,434		—
Occupancy	as at	Valuation	Date	(%)	2%			—			—			33%			20%				—			—		—			27%		—		14%		—
		Completion	Date		2011 to	2015		2015			2015			2016			2012 to	2015			2013			2015		2016			2015		2015 to	2016	2013 to	2016	2016
		Number	of CPS		412			—			1,370			—			1,078				—			—		—			2,294		3,185		2,087		—
		Total GFA(1)	(Excl. CPS)	(sq.m.)	34,536			3,000			—			4,631			16,993				61,523			7,362		5,648			3,119		12,688		14,575		3,555
		Type of	Property		Commercial,	Carpark		Commercial			Carpark			Commercial			Commercial,	Carpark			Commercial			Commercial		Commercial			Commercial,	Carpark	Commercial,	Carpark	Commercial,	Carpark	Commercial
	Land Use	Rights Expiry	Date		15 Nov 2047 to	15 Nov 2077		27 Mar 2054 to	24 Sep 2084		23 Mar 2051 to	23 Mar 2081		30 Jun 2054 to	30 Jun 2084		28 Dec 2048 to	28 Dec 2078			23 Mar 2044			03 Aug 2053 to	03 Aug 2083	24 Feb 2053 to	24 Feb 2083		25 Oct 2050 to	16 Oct 2081	31 Dec 2051 to	31 Dec 2081	04 Aug 2050 to	11 Jun 2081	31 Dec 2054 to	31 Dec 2085
			Land Use		Residential,	Commercial,	Education	Residential,	Commercial		Residential,	Accommodation and	Catering, Education	Residential,	Commercial		Residential,	Commercial,	Accommodation and	Catering	Commercial,	Education, Public	Facility	Residential,	Commercial	Residential,	Commercial		Residential,	Commercial	Residential,	Commercial	Residential,	Commercial	Residential,	Commercial
			City		Wuhan			Wuhan			Xiangyang			Yichang			Yichang				Yichang			Changde		Chenzhou			Chenzhou		Hengyang		Liuyang		Xiangtan
			Holding Entity		Wuhan Sanjiang Dongli	Investment Development	Company Limited	Wuhan Hengda Chutian Real	Estate Development Company	Limited	Xiangyang Hengda Real	Estate Development Company	Limited	Yichang Chutian Hengda Real	Estate Development Company	Limited	Yichang Meiziya Market	Construction Kaifa Company	Limited		Yichang Sanjiang Hangtian	Real Estate Development	Company Limited	Changde Xinze Property	Company Limited	Chenzhou City Wanxiangyuan	Real Estate Development	Company Limited	Chenzhou Jinbi Property	Company Limited	Hengyang Baorui Property	Company Limited	Liuyang Jinbi Property	Company Limited	Hunan Zongheng Property	Company Limited
			Property Name		Portion of Evergrande Shuang	City Wuhan		Portion of Evergrande Royal	Scenic Bay Wuhan		Portion of Evergrande	Metropolis Xiangyang		Portion of Evergrande Royal	View Garden Yichang		Portion of Evergrande Oasis	Yichang			Portion of Yichang	Commercial Buhang Street		Portion of Evergrande Palace	Changde	Portion of Evergrande Royal	View Garden Chenzhou		Portion of Evergrande Palace	Chenzhou	Portion of Evergrande Oasis	Hengyang	Portion of Evergrande Palace	Liuyang	Portion of Evergrande	Emerald Court Xiangtan
		Property	No.		III-125			III-126			III-127			III-128			III-129				III-130			III-131		III-132			III-133		III-134		III-135		III-136

– IV-58 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

to the Group	as at	Valuation	Date	(RMB million)	117.00		247.40		262.10		484.60		197.80		185.30		619.30		862.40			158.90			116.60		477.90		216.50		129.80		32.40
	Interest	Attributable	to the Group	(%)	100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%			100.0%			100.0%		94.0%		100.0%		100.0%		100.0%
Market	Value(2)	in Existing	State	(RMB million)	117.00		247.40		262.10		484.60		197.80		185.30		619.30		862.40			158.90			116.60		508.40		216.50		129.80		32.40
	Existing	Monthly	Rental	(RMB)	—		387,256		—		—		12,244		—		—		—			—			24,489		—		—		—		—
Occupancy	as at	Valuation	Date	(%)	—		59%		—		—		17%		—		—		—			—			6%		—		—		—		—
		Completion	Date		2015 to	2016	2013		2015		2014 to	2016	2011 to	2012	2012		2014		2016			2016			2014		2015 to	2016	2016		2015 to	2016	2015
		Number	of CPS		440		—		1,913		1,709		1,387		1,425		4,731		5,494			1,177			—		1,151		1,386		483		270
		Total GFA(1)	(Excl. CPS)	(sq.m.)	9,621		22,193		—		17,141		1,812		—		4,086		5,279			—			6,859		38,711		—		6,463		—
		Type of	Property		Commercial,	Carpark	Commercial		Carpark		Commercial,	Carpark	Commercial,	Carpark	Carpark		Commercial,	Carpark	Commercial,	Carpark		Carpark			Commercial		Commercial,	Office, Carpark	Carpark		Commercial,	Carpark	Carpark
	Land Use	Rights Expiry	Date		31 Mar 2053 to	31 Mar 2083	15 Jul 2051 to	26 Jul 2081	04 Oct 2074 to	30 Oct 2076	06 Feb 2052 to	06 Feb 2082	31 Aug 2044 to	31 Aug 2074	29 Jan 2047 to	29 Jan 2077	21 Sep 2078		24 Mar 2045 to	24 Mar 2075		03 Sep 2050 to	03 Sep 2080		26 Jul 2052 to	26 Jul 2082	30 Dec 2050 to	30 Dec 2080	01 Apr 2081 to	25 Sep 2081	14 Feb 2053 to	14 Feb 2083	10 Sep 2082 to	28 Feb 2083
			Land Use		Residential,	Commercial	Residential,	Commercial	Residential,	Education	Residential,	Commercial	Residential,	Commercial	Residential,	Commercial	Residential		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial	Residential,	Commercial	Residential		Residential,	Commercial	Residential
			City		Yiyang		Yueyang		Changsha		Changsha		Changsha		Changsha		Changsha		Changsha			Changsha			Changsha		Changzhou		Danyang		Pinghu		Haiyan
			Holding Entity		Yiyang Hengrui Property	Company Limited	Yueyang Jinbi Property	Company Limited	Changsha Xinlin Property	Company Limited	Changsha Hengxi Property	Company Limited	Hunan Xiongzhen Investment	Company Limited	Changsha Tianxi Property	Company Limited	Hunan Shengji Property	Company Limited	Changsha Baorui Real Estate	Development Company	Limited	Changsha Jinxia Development	Construction Company	Limited	Changsha Ruixi Property	Company Limited	Changzhou Hanjia Property	Company Limited	Danyang Hengda Property	Company Limited	Pinghu Hengda Mingdu	Property Company Limited	Haiyan Shengjian Property	Company Limited
			Property Name		Portion of Evergrande Oasis	Yiyang	Portion of Evergrande	Metropolis Yueyang	Portion of Evergrande City	Changsha	Portion of Evergrande	Emerald Court Changsha	Portion of Evergrande Palace	Changsha	Portion of Evergrande Oasis	Changsha	Portion of Evergrande	Metropolis Changsha	Portion of Evergrande Atrium	Changsha		Portion of Evergrande Royal	Scenic Peninsula Changsha		Portion of Evergrande Royal	Scenic Bay Changsha	Portion of Evergrande	Emerald Court Changzhou	Portion of Evergrande	Metropolis Danyang	Portion of Evergrande	Metropolis Pinghu	Portion of Evergrande Royal	Scenic Haiyan
		Property	No.		III-137		III-138		III-139		III-140		III-141		III-142		III-143		III-144			III-145			III-146		III-147		III-148		III-149		III-150

– IV-59 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

to the Group	as at	Valuation	Date	(RMB million)	252.70			445.30		46.77		373.30		25.90		404.00			417.90		689.90		135.50			69.50		224.00		43.70		75.70		66.40
	Interest	Attributable	to the Group	(%)	100.0%			100.0%		51.0%		100.0%		100.0%		100.0%			100.0%		100.0%		100.0%			100.0%		100.0%		100.0%		100.0%		100.0%
Market	Value(2)	in Existing	State	(RMB million)	252.70			445.30		91.70		373.30		25.90		404.00			417.90		689.90		135.50			69.50		224.00		43.70		75.70		66.40
	Existing	Monthly	Rental	(RMB)	69,252			250,197		70,628		6,069		—		89,350			134,245		—		—			25,001		—		—		—		—
Occupancy	as at	Valuation	Date	(%)	41%			61%		34%		1%		—		39%			75%		—		—			16%		—		—		—		—
		Completion	Date		2013 to	2015		2014 to	2016	2015		2015		2016		2012 to	2016		2011 to	2013	2014 to	2016	2017			2015		2016		2016		2015 to	2016	2016
		Number	of CPS		1,342			2,468		—		2,244		—		2,327			1,777		1,248		—			—		1,493		—		—		—
		Total GFA(1)	(Excl. CPS)	(sq.m.)	8,624			16,446		6,858		15,690		1,123		9,353			2,758		43,754		14,056			5,145		—		2,018		2,611		4,428
		Type of	Property		Commercial,	Carpark		Commercial,	Carpark	Commercial		Commercial,	Carpark	Commercial		Commercial,	Carpark		Commercial,	Carpark	Commercial,	Office, Carpark	Commercial			Commercial		Carpark		Commercial		Commercial		Commercial
	Land Use	Rights Expiry	Date		20 Jul 2080 to	14 Aug 2084		01 Feb 2052 to	01 Feb 2082	22 Aug 2053 to	22 Aug 2083	26 Oct 2051 to	26 Oct 2081	16 Apr 2054 to	16 Apr 2084	30 May 2047 to	30 May 2077		20 Dec 2076 to	22 Jan 2078	05 Mar 2050 to	06 Feb 2083	23 Dec 2050 to	23 Dec 2080		15 Oct 2052 to	02 Apr 2084	09 Sep 2053 to	09 Sep 2053	17 Jan 2084 to	17 Jan 2084	17 Jan 2084 to	17 Jan 2084	05 Oct 2052 to	05 Mar 2083
			Land Use		Residential			Residential,	Commercial	Residential,	Commercial	Residential,	Commercial	Residential,	Education	Residential,	Accommodation and	Catering	Residential		Residential,	Commercial	Residential, Office,	Cultural and	Entertainment	Residential,	Commercial	Residential,	Commercial	Residential		Residential		Residential,	Commercial
			City		Huaian			Jiaxing		Jiangyin		Lianyungang		Nanjing		Nanjing			Nanjing		Nanjing		Ningbo			Ningbo		Quzhou		Shanghai		Shanghai		Wuxi
			Holding Entity		Huai’an Hengda Fufeng Real	Estate Development Company	Limited	Jiaxing Hengda Property	Company Limited	Jiangyin Shengjian Property	Company Limited	Lianyungang Hengda Mingdu	Property Company Limited	Nanjing Meixu Real Estate	Company Limited	Nanjing Hengda Fufeng	Property Company Limited		Nanjin Handian Real Estate	Company Limited	Jurong Tiangong Property	Company Limited	Chengbo (Ningbo) Property	Company Limited		Ningbo Yucheng Property	Company Limited	Quzhou Hengda Shengjian	Property Company Limited	Shanghai Songyu Property	Company Limited	Shanghai Rongshan Property	Company Limited	Wuxi Hengda Real Estate	Development Company	Limited
			Property Name		Portion of Evergrande	Metropolis Huai’an		Portion of Evergrande Oasis	Jiaxing	Portion of Evergrande Royal	Scenic Jiangyin	Portion of Evergrande	Metropolis Lianyungang	Portion of Evergrande	Emerald Court Nanjing	Portion of Evergrande	Splendor Nanjing		Portion of Evergrande Oasis	Nanjing	Portion of Evergrande Atrium	Nanjing Jurong	Portion of Evergrande City	Lights Ningbo		Portion of Evergrande Scenic	Garden Ningbo	Portion of Evergrande Royal	Scenic Peninsula Quzhou	Portion of Evergrande Royal	View Garden Shanghai	Portion of Evergrande First	Palace Sheshan Shanghai	Portion of Evergrande City	Wuxi
		Property	No.		III-151			III-152		III-153		III-154		III-155		III-156			III-157		III-158		III-159			III-160		III-161		III-162		III-163		III-164

– IV-60 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

to the Group	as at	Valuation	Date	(RMB million)	413.40			107.70		131.60		132.70			99.00		84.90			48.70			62.80			305.60			71.70			31.60		98.60		1,091.70		384.20
	Interest	Attributable	to the Group	(%)	100.0%			100.0%		100.0%		100.0%			90.0%		100.0%			100.0%			100.0%			100.0%			100.0%			100.0%		100.0%		100.0%		100.0%
Market	Value(2)	in Existing	State	(RMB million)	413.40			107.70		131.60		132.70			110.00		84.90			48.70			62.80			305.60			71.70			31.60		98.60		1,091.70		384.20
	Existing	Monthly	Rental	(RMB)	—			55,434		87,544		—			—		15,384			22,461			2,378			2,046			—			—		—		86,935		84,001
Occupancy	as at	Valuation	Date	(%)	—			26%		25%		—			—		4%			8%			0%			0%			—			—		—		4%		7%
		Completion	Date		2013 to	2015		2016		2014 to	2016	2016			2017		2016			2016			2015 to	2016		2016			2015			2016		2016		2014		2014 to	2016
		Number	of CPS		2,017			67		—		—			—		—			—			61			1,438			—			—		580		—		—
		Total GFA(1)	(Excl. CPS)	(sq.m.)	9,238			11,385		11,618		15,879			9,162		9,512			4,199			9,907			12,250			11,395			2,520		—		98,095		31,778
		Type of	Property		Commercial,	Carpark		Commercial,	Carpark	Commercial		Commercial			Commercial		Commercial			Commercial			Commercial,	Carpark		Commercial,	Carpark		Commercial			Commercial		Carpark		Commercial		Commercial
	Land Use	Rights Expiry	Date		10 Mar 2051 to	10 Mar 2081		20 Jun 2081		30 May 2052 to	30 May 2082	10 Jul 2052 to	10 Jul 2082		24 Sep 2055 to	07 Sep 2086	21 Dec 2051 to	21 Dec 2081		27 Jan 2051 to	27 Jan 2081		25 Oct 2052 to	28 Jan 2084		11 Nov 2050 to	11 Nov 2080		15 Jun 2081 to	15 Jun 2081		02 Nov 2050 to	02 Nov 2080	13 Mar 2053 to	13 Mar 2083	24 May 2060		12 May 2051 to	12 May 2081
			Land Use		Residential,	Commercial, Office,	Education	Residential		Residential,	Commercial	Residential, Office			Residential,	Commercial	Residential,	Commercial, Office,	Public Facility	Residential,	Commercial		Residential,	Commercial		Residential,	Commercial		Residential			Residential,	Commercial	Residential,	Commercial	Residential,	Commercial	Residential,	Commercial
			City		Wuxi			Suqian		Yancheng		Yangzhou			Zhangjiagang		Zhenjiang			Changchun			Songyuan			Jilin			Ulanhot			Changchun		Changchun		Changchun		Changchun
			Holding Entity		Wuxi Shengdong Real Estate	Development Company	Limited	Suqian Hengda Huafu	Property Company Limited	Hengda Real Estate Group	Yancheng Company Limited	Yangzhou Honglitai Real	Estate Development Company	Limited	Zhangjiagang Shengjian	Property Company Limited	Zhenjiang Jia Qi Property	Company Limited		Jilin Wancheng Real Estate	Development Company	Limited	Songyuan Hengda Yusheng	Real Estate Development	Company Limited	Jilin Hengda Yongsheng Real	Estate Development Company	Limited	Wulanhaote Hengda Shengye	Real Estate Development	Company Limited	Shengji (Changchun) Real	Estate Company Limited	Yongji (Changchun) Real	Estate Company Limited	Longji (Changchun) Real	Estate Company Limited	Xinji (Changchun) Real Estate	Company Limited
			Property Name		Portion of Evergrande Oasis	Wuxi		Portion of Evergrande Palace	Suqian	Portion of Evergrande	Metropolis Yancheng	Portion of Evergrande Royal	Scenic Yangzhou		Portion of Evergrande	Greenview Villa Zhangjiagang	Portion of Evergrande Oasis	Zhengjiang		Portion of Evergrande	Emerald Court Changchun		Portion of Evergrande Royal	Scenic Bay Songyuan		Portion of Evergrande Palace	Jilin		Portion of Evergrande Oasis	Ulanhot		Portion of Evergrande City	Changchun	Portion of Evergrande City	Plaza Changchun	Portion of Evergrande Oasis	Changchun	Portion of Evergrande	Metropolis Changchun
		Property	No.		III-165			III-166		III-167		III-168			III-169		III-170			III-171			III-172			III-173			III-174			III-175		III-176		III-177		III-178

– IV-61 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

to the Group	as at	Valuation	Date	(RMB million)	205.60		28.70		298.20		349.20			766.38		279.20			1,074.60			84.80			243.80			304.30			41.30			118.50			427.00
	Interest	Attributable	to the Group	(%)	100.0%		100.0%		100.0%		100.0%			89.0%		100.0%			100.0%			100.0%			100.0%			100.0%			100.0%			100.0%			100.0%
Market	Value(2)	in Existing	State	(RMB million)	205.60		28.70		298.20		349.20			861.10		279.20			1,074.60			84.80			243.80			304.30			41.30			118.50			427.00
	Existing	Monthly	Rental	(RMB)	—		—		—		78,225			169,805		—			209,592			1,207			40,606			10,344			49,604			—			36,216
Occupancy	as at	Valuation	Date	(%)	—		—		—		19%			25%		—			12%			0%			13%			2%			94%			—			31%
		Completion	Date		2015 to	2016	2016 to	2017	2016 to	2017	2011 to	2016		2014 to	2016	2011 to	2016		2016			2014 to	2016		2013 to	2016		2013 to	2016		2016			2016			2013 to	2015
		Number	of CPS		1,285		—		—		2,042			5,690		2,327			3,424			—			1,370			1,175			227			751			3,097
		Total GFA(1)	(Excl. CPS)	(sq.m.)	—		1,782		33,143		13,338			14,421		—			76,943			7,264			8,679			18,251			1,632			5,206			3,394
		Type of	Property		Carpark		Commercial		Commercial		Commercial,	Carpark		Commercial,	Carpark	Carpark			Commercial,	Office, Carpark		Commercial			Commercial,	Carpark		Commercial,	Carpark		Commercial,	Carpark		Commercial,	Carpark		Commercial,	Carpark
	Land Use	Rights Expiry	Date		07 Dec 2051 to	07 Dec 2081	13 Jan 2051 to	13 Jan 2081	27 Jun 2083		27 Jun 2050 to	02 Mar 2081		01 Jun 2051 to	01 Jun 2081	24 Nov 2047 to	24 Nov 2077		29 Dec 2050 to	29 Dec 2080		12 May 2051 to	29 Nov 2082		28 Feb 2050 to	28 Feb 2080		13 Sep 2045 to	13 Sep 2075		27 Apr 2052 to	27 Apr 2082		27 Apr 2052 to	27 Apr 2082		28 Jan 2051 to	28 Jan 2081
			Land Use		Residential,	Commercial	Residential,	Commercial	Residential		Residential,	Commercial		Residential, Office		Residential,	Commercial, Sport	and Leisure	Residential,	Commercial		Residential,	Commercial		Residential,	Commercial		Residential, Office			Residential,	Commercial		Residential,	Commercial		Residential,	Commercial, Office
			City		Changchun		Changchun		Ji’an		Jingdezhen			Nanchang		Nanchang			Nanchang			Wujiaqu			Xinyu			Xinyu			Yining			Yining			Yingtan
			Holding Entity		Jinggao (Changchun) Real	Estate Company Limited	Taiji (Changchun) Real Estate	Company Limited	Hengda (Ji’an) Real Estate	Group Company Limited	Hengda (Jingdezhen) Real	Estate Group Company	Limited	Jiangxi Hongji Investment	Company Limited	Jiangxi Cuilin Shanzhuang	Company Limited		Nanchang Zhongdiantou	Gaoxin Property Company	Limited	Wujiaqu Zhuoyue Real Estate	Development Company	Limited	Xinyu Xingwang Real Estate	Development Company	Limited	Xinyu Zhongchen Property	Development Company	Limited	Yining Hengda Yayuan Real	Estate Development Company	Limited	Yining Jinbi Real Estate	Development Company	Limited	Hengda Real Estate Yingtan	Company Limited
			Property Name		Portion of Evergrande Atrium	Changchun	Portion of Evergrande Scenic	View Garden Changchun	Portion of Evergrande Royal	View Garden Ji‘an	Portion of Evergrande	Metropolis Jingdezhen		Portion of Evergrande City	Nanchang	Portion of Evergrande Oasis	Nanchang		Portion of Evergrande Royal	View Garden Nanchang		Portion of Evergrande	Splendor Urumchi		Portion of Evergrande City	Xinyu		Portion of Evergrande Atrium	Xinyu		Portion of Evergrande Atrium	Yining		Portion of Evergrande Oasis	Yining		Portion of Evergrande Oasis	Yingtan
		Property	No.		III-179		III-180		III-181		III-182			III-183		III-184			III-185			III-186			III-187			III-188			III-189			III-190			III-191

– IV-62 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

to the Group	as at	Valuation	Date	(RMB million)	17.40		482.20		106.10		304.20		158.70		119.70		4.70		1,563.10		558.80		337.60		278.30		234.90		1,104.60		274.90		412.50		648.30
	Interest	Attributable	to the Group	(%)	100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%
Market	Value(2)	in Existing	State	(RMB million)	17.40		482.20		106.10		304.20		158.70		119.70		4.70		1,563.10		558.80		337.60		278.30		234.90		1,104.60		274.90		412.50		648.30
	Existing	Monthly	Rental	(RMB)	—		114,307		47,053		4,411		—		—		—		—		56,420		—		3,303		88,336		29,343		—		48,593		89,495
Occupancy	as at	Valuation	Date	(%)	—		10%		8%		1%		—		—		—		—		2%		—		0%		8%		0%		—		11%		4%
		Completion	Date		2016		2012 to	2015	2016		2015		2016		2016		2015		2015 to	2017	2016 to	2017	2016		2012 to	2015	2014 to	2017	2012 to	2015	2014 to	2016	2011 to	2012	2013 to	2015
		Number	of CPS		—		—		—		—		—		—		—		1,021		632		712		—		—		50		821		407		2,033
		Total GFA(1)	(Excl. CPS)	(sq.m.)	2,023		60,672		15,116		28,697		3,778		10,710		570		183,232		61,725		18,131		31,449		32,877		93,444		14,272		29,188		40,670
		Type of	Property		Commercial		Commercial		Commercial		Commercial		Commercial		Commercial		Commercial		Commercial,	Office, Carpark	Commercial,	Carpark	Commercial,	Carpark	Commercial		Commercial		Commercial,	Carpark	Commercial,	Carpark	Commercial,	Carpark	Commercial,	Carpark
	Land Use	Rights Expiry	Date		28 Jan 2085 to	29 Jan 2085	09 Jul 2050 to	28 Feb 2083	31 Aug 2081		28 Sep 2051 to	28 Sep 2081	21 Apr 2054 to	21 Apr 2084	31 May 2085		30 Jan 2082		13 Jan 2051 to	13 Feb 2051	29 Aug 2051 to	29 Aug 2081	08 Jun 2051 to	29 May 2084	20 Jun 2050 to	20 Jun 2080	28 Jan 2051 to	29 Mar 2081	07 Jun 2057 to	31 Mar 2061	29 May 2053 to	19 Jun 2083	24 May 2060		27 May 2060
			Land Use		Residential		Residential,	Commercial	Residential		Residential,	Commercial	Residential,	Commercial	Residential		Residential,	Commercial	Commercial		Residential,	Commercial	Residential,	Commercial	Residential,	Commercial	Residential,	Commercial	Residential		Residential,	Commercial	Residential		Residential
			City		Yingtan		Anshan		Anshan		Benxi		Dalian		Dalian		Dalian		Fushun		Fushun		Huludao		Liaoyang		Panjin		Shenyang		Shenyang		Shenyang		Shenyang
			Holding Entity		Hengda Real Estate Yingtan	Company Limited	Anshan Jiarui Property	Company Limited	Anshan Jiayu Property	Company Limited	Benxi Jiaxi Property Company	Limited	Dalian Hengcheng Real Estate	Company Limited	Dalian Hengke Real Estate	Company Limited	Dalian Xicheng Real Estate	Company Limited	Fushun Jiashun Property	Company Limited	Fushun Jiaxin Property	Company Limited	Huludao Jia Shan Property	Company Limited	Liaoyang Hengsheng Property	Company Limited	Panjin Jiading Property	Company Limited	Hengda Xinyuan (Shenyang)	Property Company Limited	Shenyang Jiahui Property	Company Limited	Shenyang Jiaqi Property	Company Limited	Shenyang Jiakai Property	Company Limited
			Property Name		Portion of Evergrande Royal	Scenic Yingtan	Portion of Evergrande Oasis	Anshan	Portion of Evergrande	Metropolis Anshan	Portion of Evergrande Oasis	Benxi	Portion of Evergrande Royal	View Garden Dalian	Portion of Evergrande Harbor	City Dalian	Portion of Evergrande	Tanxijun Dalian	Portion of Evergrande Plaza	Fushun	Portion of Evergrande Palace	Fushun	Portion of Evergrande Royal	Scenic Bay Huludao	Portion of Evergrande Oasis	Liaoyang	Portion of Evergrande Palace	Panjin	Portion of Evergrande City	Shenyang	Portion of Evergrande	Emerald Court Shenyang	Portion of Evergrande Palace	Shenyang	Portion of Evergrande Bay	Shenyang
		Property	No.		III-192		III-193		III-194		III-195		III-196		III-197		III-198		III-199		III-200		III-201		III-202		III-203		III-204		III-205		III-206		III-207

– IV-63 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

to the Group	as at	Valuation	Date	(RMB million)	1,111.10		257.40		470.20		13.60		89.50		297.60		641.50				1,209.10			343.40		69.90		1,219.90		159.00		147.72		323.16
	Interest	Attributable	to the Group	(%)	100.0%		100.0%		100.0%		100.0%		100.0%		100.0%		100.0%				100.0%			100.0%		100.0%		100.0%		100.0%		60.0%		60.0%
Market	Value(2)	in Existing	State	(RMB million)	1,111.10		257.40		470.20		13.60		89.50		297.60		641.50				1,209.10			343.40		69.90		1,219.90		159.00		246.20		538.60
	Existing	Monthly	Rental	(RMB)	239,306		—		45,822		—		—		281,901		88,159				113,803			—		10,728		228,342		—		—		—
Occupancy	as at	Valuation	Date	(%)	9%		—		4%		—		—		31%		6%				4%			—		4%		24%		—		—		—
		Completion	Date		2010 to	2016	2011 to	2013	2014 to	2016	2014		2016		2013 to	2017	2014 to	2015			2013 to	2017		2015 to	2017	2015		2013 to	2016	2014		2016		2016
		Number	of CPS		383		1,272		1,631		—		668		86		1,189				3,605			—		—		6,346		1,060		1,894		2,980
		Total GFA(1)	(Excl. CPS)	(sq.m.)	82,762		6,799		22,404		1,289		—		33,123		55,442				41,154			17,696		4,163		32,802		—		—		14,220
		Type of	Property		Commercial,	Carpark	Commercial,	Carpark	Commercial,	Carpark	Commercial		Carpark		Commercial,	Carpark	Commercial,	Carpark			Commercial,	Carpark		Commercial		Commercial		Commercial,	Carpark	Carpark		Carpark		Commercial,	Carpark
	Land Use	Rights Expiry	Date		31 Dec 2056 to	31 Oct 2064	19 Oct 2050 to	19 Oct 2080	03 Apr 2052 to	20 Apr 2082	29 Nov 2053 to	29 Nov 2083	17 Jul 2051 to	17 Jul 2081	29 Jul 2054 to	29 Jul 2084	25 Jan 2051 to	25 Jan 2081			13 Apr 2051 to	13 Jun 2084		19 Oct 2052 to	19 Oct 2082	19 Oct 2052 to	19 Oct 2082	05 Apr 2080 to	07 Sep 2080	28 Apr 2080		21 Oct 2052 to	21 Oct 2082	19 Jan 2054 to	30 Jul 2084
			Land Use		Residential		Residential,	Commercial	Residential,	Commercial	Residential,	Commercial	Residential,	Commercial	Residential,	Commercial	Residential,	Commercial,	Accommodation and	Catering	Residential, Office			Residential, Office		Residential, Office		Residential		Residential		Residential, Office		Residential, Office
			City		Shenyang		Shenyang		Shenyang		Shenyang		Yingkou		Yingkou		Dongying				Jinan			Jinan		Jinan		Jinan		Jinan		Jinan		Jining
			Holding Entity		Hengda Changji (Shenyang)	Property Company Limited	Shenyang Yue Tong	Properties Company Limited	Shenyang Jiajun Property	Company Limited	Shenyang Jiaze Property	Company Limited	Yingkou Jialong Real Estate	Company Limited	Yingkou Jialong Real Estate	Company Limited	Dongying Hengda Huafu	Property Company Limited			Jinan Hengda Jinbi Real	Estate Development Company	Limited	Jinan Hengda Feicui Huating	Property Company Limited	Jinan Huafu Property	Company Limited	Jinan Hengda Lvzhou	Property Company Limited	Jinan Mingdu Property	Company Limited	Jinan Hengda Xiqu Property	Company Limited	Jining Beihu Hengda Mingdu	Property Company Limited
			Property Name		Portion of Evergrande Oasis	Shenyang	Portion of Evergrande	Metropolis Shenyang	Portion of Evergrande Atrium	Shenyang	Portion of Evergrande Royal	Scenic Bay Shenyang	Portion of Evergrande City	Yingkou	Portion of Evergrande Oasis	Yingkou	Portion of Evergrande Huang	He Sheng Tai Cheng	Dongying		Portion of Evergrande City	Jinan		Portion of Evergrande Royal	View Garden Jinan	Portion of Evergrande	Emerald Court Jinan	Portion of Evergrande Oasis	Jinan	Portion of Evergrande	Metropolis Jinan	Portion of Evergrande Atrium	Jinan	Portion of Evergrande	Metropolis Jining
		Property	No.		III-208		III-209		III-210		III-211		III-212		III-213		III-214				III-215			III-216		III-217		III-218		III-219		III-220		III-221

– IV-64 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

to the Group	as at	Valuation	Date	(RMB million)	34.60					79.92		9.50		218.40			192.10		96.60		74.00			286.14			425.70			134.18			276.60				249.20
	Interest	Attributable	to the Group	(%)	100.0%					51.0%		100.0%		100.0%			100.0%		100.0%		100.0%			95.0%			100.0%			65.6%			100.0%				100.0%
Market	Value(2)	in Existing	State	(RMB million)	34.60					156.70		9.50		218.40			192.10		96.60		74.00			301.20			425.70			204.60			276.60				249.20
	Existing	Monthly	Rental	(RMB)	—					56,414		—		—			7,782		—		36,040			22,010			—			—			379,162				—
Occupancy	as at	Valuation	Date	(%)	—					20%		—		—			1%		—		14%			2%			—			—			90%				—
		Completion	Date		2011					2014 to	2016	2016		2016			2016 to	2017	2016		2014 to	2016		2014 to	2016		2014			2014			2009 to	2016			2016
		Number	of CPS		—					—		—		343			—		740		—			—			—			930			1,761				1,570
		Total GFA(1)	(Excl. CPS)	(sq.m.)	3,835					18,816		912		21,099			29,582		—		10,091			20,587			39,358			—			568				3,215
		Type of	Property		Commercial					Commercial		Commercial		Commercial,	Carpark		Commercial		Carpark		Commercial			Commercial			Commercial			Carpark			Commercial,	Carpark			Commercial,	Carpark
	Land Use	Rights Expiry	Date		19 Sep 2050 to	11 Sep 2083				30 Dec 2051 to	30 Dec 2081	20 Aug 2080		15 Feb 2052 to	19 Mar 2083		03 Mar 2052 to	03 Mar 2082	18 Apr 2053 to	10 Apr 2054	04 Jan 2052 to	04 Jan 2082		21 Aug 2078 to	28 Mar 2080		09 Jun 2051 to	09 Jun 2081		06 Jul 2050 to	06 Jul 2060		14 Nov 2047 to	14 Nov 2057			18 May 2049 to	18 May 2059
			Land Use		Residential,	Commercial,	Accommodation and	Catering, Cultural	and Entertainment	Residential,	Commercial	Residential		Residential,	Commercial		Residential,	Commercial	Commercial		Residential,	Commercial		Residential			Residential,	Commercial		Residential, Office			Residential,	Commercial, Office,	Education/Public	Facility	Residential, Office,	Education
			City		Laiwu					Linyi		Taian		Weifang			Weifang		Zibo		Datong			Linfen			Lvliang			Taiyuan			Taiyuan				Taiyuan
			Holding Entity		Laiwu Hengda Jinbi Tianxia	Property Company Limited				Linyi Lvzhou Property	Company Limited	Tai’an Tianrun Renhe	Property Company Limited	Shandong Puyun Real Estate	Development Company	Limited	Weifang Jinbi Property	Company Limited	Zibo Hengda Fanhua Property	Company Limited	Datong Junjing Real Estate	Development Company	Limited	Linfen Zijing Real Estate	Development Company	Limited	Lvliang Junhui Real Estate	Development Company	Limited	Taiyuan Junjing Real Estate	Development Company	Limited	Hengda (Taiyuan) Real Estate	Group Company Limited			Taiyuan Mingdu Real Estate	Development Company	Limited
			Property Name		Portion of Evergrande	Splendor Laiwu				Portion of Evergrande Oasis	Linyi	Portion of Evergrande City	Tai’an	Portion of Evergrande	Emerald Court Weifang		Portion of Evergrande	Metropolis Weifang	Portion of Evergrande Royal	View Garden Zibo	Portion of Evergrande Oasis	Datong		Portion of Evergrande Palace	Linfen		Portion of Evergrande Royal	Scenic Lvliang		Portion of Evergrande Royal	Palace Taiyuan		Portion of Evergrande Oasis	Taiyuan			Portion of Evergrande	Metropolis Taiyuan
		Property	No.		III-222					III-223		III-224		III-225			III-226		III-227		III-228			III-229			III-230			III-231			III-232				III-233

– IV-65 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

to the Group	as at	Valuation	Date	(RMB million)	43.10			331.50			168.90			136.70			170.19				1,014.10(3)			360.05			186.70		875.00			465.60		236.90		16.70		2,855.90
	Interest	Attributable	to the Group	(%)	100.0%			100.0%			64.0%			100.0%			71.0%				100.0%			98.0%			100.0%		100.0%			100.0%		100.0%		100.0%		100.0%
Market	Value(2)	in Existing	State	(RMB million)	43.10			331.50			263.90			136.70			239.70				1,014.10			367.40			186.70		875.00			465.60		236.90		16.70		2,855.90
	Existing	Monthly	Rental	(RMB)	27,431			—			46,172			2,361			53,359				—			—			—		113,517			—		—		—		—
Occupancy	as at	Valuation	Date	(%)	21%			—			18%			0%			12%				—			—			—		8%			—		—		—		—
		Completion	Date		2016			2016			2016			2015 to	2016		2015 to	2016			1986 to	2005		2015			2016		2011 to	2016		2014		2012		2015		2015 to	2016
		Number	of CPS		—			2,210			1,340			—			1,038				—			1,670			—		3,154			2,828		950		152		1,247
		Total GFA(1)	(Excl. CPS)	(sq.m.)	4,306			—			11,975			15,652			17,121				62,472			—			6,712		51,242			12,603		1,689		—		131,286
		Type of	Property		Commercial			Carpark			Commercial,	Carpark		Commercial			Commercial,	Carpark			Commercial			Carpark			Commercial		Commercial,	Carpark		Commercial,	Carpark	Commercial,	Carpark	Carpark		Commercial,	Office, Carpark
	Land Use	Rights Expiry	Date		29 Jul 2055 to	29 Jul 2085		17 Feb 2054 to	17 Feb 2084		09 Dec 2078			13 May 2078			09 Mar 2049 to	09 Mar 2079			11 Oct 2033 to	17 Jul 2071		23 Aug 2082			12 Jun 2054 to	12 Jun 2084	31 Oct 2076			19 Dec 2050 to	19 Dec 2080	09 Nov 2046 to	09 Nov 2076	07 Jun 2050		06 Mar 2047 to	06 Mar 2077
			Land Use		Residential,	Commercial		Residential,	Commercial,	Education	Residential			Residential			Residential,	Commercial			Residential,	Commercial, Office,	Industrial	Residential			Residential,	Commercial	Residential,	Commercial		Residential,	Commercial	Residential,	Commercial	Commercial		Residential,	Commercial
			City		Taiyuan			Taiyuan			Yangquan			Yuncheng			Yuncheng				Shenzhen			Shenzhen			Chengdu		Chengdu			Chengdu		Chengdu		Qionglai		Chengdu
			Holding Entity		Taiyuan Wanheng Real Estate	Development Company	Limited	Taiyuan Junheng Real Estate	Development Company	Limited	Yangquan Shi Liaoyuan Real	Estate Development Company	Limited	Yuncheng Xinwanrui Real	Estate Development Company	Limited	Yuncheng Economic	Development Zone Yijiayi	Real Estate Development	Company Limited	Shenzhen Construction Group	Corporation Limited		Shenzhen Shacun Real Estate	Development Company	Limited	Chengdu Hengda Xinxicheng	Property Company Limited	Chengdu Wenjiang District	Xinjinkang Property Company	Limited	Chengdu Chenming Property	Company Limited	Aimeigao (Chengdu) Real	Estate Company Limited	Chengdu Qionglai Yiheng	Property Company Limited	Aimeigao (Chengdu) Property	Company Limited
			Property Name		Portion of Evergrande Atrium	Taiyuan		Portion of Evergrande Royal	Scenic Bay Taiyuan		Portion of Evergrande Royal	View Garden Yangquan		Portion of Evergrande Oasis	Yuncheng		Portion of Evergrande	Metropolis Yuncheng			Portion of Caiwuwei and	Miscellaneous Project	Shenzhen	Portion of Evergrande	Gentleman Hill Garden	Shenzhen	Portion of Evergrande	Emerald Court Chengdu	Portion of Evergrande City	Chengdu		Portion of Evergrande Royal	View Garden Chengdu	Portion of Evergrande	Metropolis Court Chengdu	Portion of Evergrande	Emerald Court Qionglai	Portion of Evergrande Huazhi	Plaza Chengdu
		Property	No.		III-234			III-235			III-236			III-237			III-238				III-239			III-240			III-241		III-242			III-243		III-244		III-245		III-246

– IV-66 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

to the Group	as at	Valuation	Date	(RMB million)	478.60			75.90		602.50		317.80		495.20			2,053.60		2.50		223.60			169.00			100.40			1,126.80		182.70		305.20			44.60
	Interest	Attributable	to the Group	(%)	100.0%			100.0%		100.0%		100.0%		100.0%			100.0%		100.0%		80.0%			100.0%			100.0%			100.0%		100.0%		100.0%			100.0%
Market	Value(2)	in Existing	State	(RMB million)	478.60			75.90		602.50		317.80		495.20			2,053.60		2.50		279.50			169.00			100.40			1,126.80		182.70		305.20			44.60
	Existing	Monthly	Rental	(RMB)	—			—		569,709		—		63,669			—		—		—			—			—			—		—		83,098			—
Occupancy	as at	Valuation	Date	(%)	—			—		42%		—		17%			—		—		—			—			—			—		—		25%			—
		Completion	Date		2010 to	2016		2016		2012		2016		2012 to	2016		2017		2016		2018			2014 to	2016		2016			2010 to	2016	2016		2016			2016
		Number	of CPS		1,619			—		2,009		1,106		1,833			1,556		—		2,070			1,536			—			6,667		1,632		1,727			398
		Total GFA(1)	(Excl. CPS)	(sq.m.)	21,900			4,239		24,676		15,294		20,031			60,147		194		—			—			9,879			39,040		1,444		11,729			—
		Type of	Property		Commercial,	Carpark		Commercial		Commercial,	Carpark	Commercial,	Carpark	Commercial,	Carpark		Commercial,	Carpark	Commercial		Carpark			Carpark			Commercial			Commercial,	Carpark	Commercial,	Carpark	Commercial,	Carpark		Carpark
	Land Use	Rights Expiry	Date		18 Dec 2046 to	20 Aug 2077		26 Jun 2053 to	22 Dec 2083	02 Nov 2046 to	02 Nov 2076	20 Mar 2053 to	20 Mar 2083	22 Mar 2048 to	08 Mar 2078		31 Jul 2054 to	31 Jul 2084	22 Jan 2048 to	08 Oct 2085	26 Jan 2046 to	26 Jan 2076		21 Oct 2050 to	21 Oct 2080		15 Aug 2083 to	02 Aug 2086		18 Jun 2047 to	06 Sep 2086	12 Dec 2050 to	12 Dec 2080	19 Nov 2050 to	30 Dec 2083		29 Jul 2077 to	31 Oct 2080
			Land Use		Residential,	Commercial, Office		Residential,	Commercial	Residential,	Commercial	Residential,	Commercial	Residential,	Commercial		Residential,	Commercial	Residential,	Commercial	Residential,	Commercial		Residential,	Commercial,	Education	Residential,	Commercial		Residential,	Commercial	Residential,	Commercial	Residential,	Commercial		Residential
			City		Chengdu			Chengdu		Chengdu		Chengdu		Chengdu			Chengdu		Chengdu		Chengdu			Nanchong			Panzhihua			Meishan		Ziyang		Anyang			Hanzhong
			Holding Entity		Chengdu Hengda Yinhe	Xincheng Property Company	Limited	Hengda (Dayi) Real Estate	Group Company Limited	Sichuan Aimeigao Real Estate	Company Limited	Renji Hengye (Sichuan)	Investment Company Limited	Chengdu Tianfu Shuicheng	Real Estate Development	Company Limited	Chengdu Hengda Xinbeicheng	Property Company Limited	Chengdu Anheng Property	Company Limited	Chengdu Xinyi Real Estate	Development Company	Limited	Hengda (Nanchong) Real	Estate Group Company	Limited	Panzhihua Hengda Real Estate	Development Company	Limited	Hengda Xinfeng (Pengshan)	Property Company Limited	Ziyang Wancheng Property	Company Limited	Anyang Tongruida Real Estate	Development Company	Limited	Hanzhong Hualian Property	Company Limited
			Property Name		Portion of Evergrande Oasis	Chengdu		Portion of Evergrande Royal	Scenic Garden Chengdu	Portion of Evergrande West	Jincheng Chengdu	Portion of Evergrande New	City Chengdu	Portion of Evergrande Royal	Scenic Peninsula Chengdu		Portion of Evergrande	Caojiaxiang Plaza Chengdu	Portion of Evergrande	Metropolis Chengdu	Portion of Evergrande	Paradise Peninsula Chengdu		Portion of Evergrande Oasis	Nanchong		Portion of Evergrande City	Panzhihua		Portion of Evergrande	Splendor Pengshan	Portion of Evergrande City	Ziyang	Portion of Evergrande Oasis	Anyang		Portion of Evergrande City	Hanzhong
		Property	No.		III-247			III-248		III-249		III-250		III-251			III-252		III-253		III-254			III-255			III-256			III-257		III-258		III-259			III-260

– IV-67 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

to the Group	as at	Valuation	Date	(RMB million)	643.60		21.40			33.00		16.90			381.60		50.90			196.10		649.80			199.20		66.50		8.25		444.50			16.80		466.60
	Interest	Attributable	to the Group	(%)	100.0%		100.0%			57.0%		100.0%			100.0%		100.0%			100.0%		100.0%			100.0%		100.0%		55.0%		100.0%			100.0%		100.0%
Market	Value(2)	in Existing	State	(RMB million)	643.60		21.40			57.90		16.90			381.60		50.90			196.10		649.80			199.20		66.50		15.00		444.50			16.80		466.60
	Existing	Monthly	Rental	(RMB)	374,166		—			10,000		52,500			128,325		—			—		—			14,065		37,501		54,502		—			—		—
Occupancy	as at	Valuation	Date	(%)	43%		—			7%		45%			45%		—			—		—			90%		18%		60%		—			—		—
		Completion	Date		2013 to	2016	2017			2016		2015			2012 to	2013	2011 to	2013		2010		2016			2015 to	2016	2017		2017		2014 to	2016		2017		2016
		Number	of CPS		4,487		—			—		—			1,555		335			1,154		2,549			1,788		—		—		82			—		3,016
		Total GFA(1)	(Excl. CPS)	(sq.m.)	15,422		2,452			4,594		2,161			8,776		—			519		14,657			234		7,387		1,966		59,328			1,577		8,640
		Type of	Property		Commercial,	Carpark	Commercial			Commercial		Commercial			Commercial,	Carpark	Carpark			Commercial,	Carpark	Commercial,	Carpark		Commercial,	Carpark	Commercial		Commercial		Commercial,	Carpark		Commercial		Commercial,	Carpark
	Land Use	Rights Expiry	Date		06 Jan 2048 to	06 Jan 2078	18 Jun 2053 to	18 Jun 2083		13 Aug 2053 to	13 Aug 2083	07 Jun 2054 to	07 Jun 2084		30 Mar 2076		25 Aug 2074 to	26 Aug 2074		17 Aug 2076		14 Jan 2052 to	14 Jan 2082		16 Jan 2051 to	16 Jan 2081	14 May 2053 to	14 May 2083	13 Feb 2055 to	13 Feb 2085	31 Aug 2046 to	31 Aug 2076		29 Mar 2052 to	29 Mar 2083	30 Jul 2081
			Land Use		Residential,	Commercial	Residential,	Commercial		Residential,	Commercial	Residential,	Commercial		Residential		Residential			Residential		Residential,	Commercial,	Education	Residential,	Commercial	Residential,	Commercial	Residential,	Commercial, Office	Residential,	Commercial		Residential, Office		Residential
			City		Luoyang		Luohe			Pingdingshan		Shangqiu			Xian		Xian			Xian		Xian			Xinxiang		Xinxiang		Xinyang		Xinyang			Xuchang		Yangling
			Holding Entity		Hengda (Luoyang) Real Estate	Group Company Limited	Luohe Yusheng Real Estate	Development Company	Limited	Pingdingshan Hengrong	Property Company Limited	Shangqiu Shilong Real Estate	Development Company	Limited	Shaanxi Jinhong Investment	Company Limited	Xi’an Qujiang Investment	Construction Company	Limited	Xi’an Qiyun Property	Company Limited	Xi’an Jintu Property Company	Limited		Xinxiang Mingdu Property	Company Limited	Xinxiang Sanlian Property	Company Limited	Xinyang Junjing Real Estate	Company Limited	Henan Dayou Real Estate	Development Company	Limited	Xuchang Dijing Property	Company Limited	Shaanxi Yaoze Sihai Real	Estate Development Company	Limited
			Property Name		Portion of Evergrande Oasis	Luoyang	Portion of Evergrande Royal	Scenic Luohe		Portion of Evergrande	Metropolis Pingdingshan	Portion of Evergrande	Metropolis Shangqiu		Portion of Evergrande City	Xi’an	Portion of Evergrande Oasis	Xi’an		Portion of Evergrande	Metropolis Xi’an	Portion of Evergrande Royal	Scenic Xi’an		Portion of Evergrande Atrium	Xinxiang	Portion of Evergrande Royal	Scenic Bay Xinxiang	Portion of Evergrande	Emerald Court Xinyang	Portion of Evergrande	Metropolis Xinyang		Portion of Evergrande Oasis	Xuchang	Portion of Evergrande City	Yangling
		Property	No.		III-261		III-262			III-263		III-264			III-265		III-266			III-267		III-268			III-269		III-270		III-271		III-272			III-273		III-274

– IV-68 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

to the Group	as at	Valuation	Date	(RMB million)	232.20				572.20		484.20		171.32		222.50			306.50			294.00			238.60			2,174.20			172.90			319.78			29.46			796.70
	Interest	Attributable	to the Group	(%)	100.0%				100.0%		100.0%		50.2%		100.0%			100.0%			100.0%			100.0%			100.0%			100.0%			98.8%			60.0%			100.0%
Market	Value(2)	in Existing	State	(RMB million)	232.20				572.20		484.20		341.20		222.50			306.50			294.00			238.60			2,174.20			172.90			323.70			49.10			796.70
	Existing	Monthly	Rental	(RMB)	212,952				—		97,147		2,136		28,486			35,132			—			—			1,272,152			—			3,538			—			33,412
Occupancy	as at	Valuation	Date	(%)	23%				—		8%		7%		6%			72%			—			—			38%			—			0%			—			84%
		Completion	Date		2014 to	2015			2016		2011 to	2013	2016		2016			2013 to	2016		2013 to	2016		2016 to	2017		2010 to	2016		2011 to	2014		2013 to	2016		2016			2010 to	2016
		Number	of CPS		1,345				2,239		417		2,265		—			2,417			2,260			1,097			6,491			1,491			315			—			5,982
		Total GFA(1)	(Excl. CPS)	(sq.m.)	10,723				12,528		8,857		3,865		22,066			1,601			1,300			11,387			67,757			—			19,337			3,809			1,159
		Type of	Property		Commercial,	Carpark			Commercial,	Carpark	Commercial,	Carpark	Commercial,	Carpark	Commercial			Commercial,	Carpark		Commercial,	Carpark		Commercial,	Office, Carpark		Commercial,	Carpark		Carpark			Commercial,	Carpark		Commercial			Commercial,	Carpark
	Land Use	Rights Expiry	Date		19 Jul 2052 to	29 Jun 2086			22 May 2053 to	22 May 2083	08 Dec 2049 to	08 Dec 2079	03 Mar 2079 to	26 Jul 2085	Jun 2055 to Nov	2086		12 Nov 2050 to	12 Nov 2060		11 Jun 2079			19 Jul 2053 to	19 Jul 2083		19 May 2046 to	19 May 2076		15 Nov 2046 to	05 Jan 2077		26 Oct 2060			27 Apr 2053 to	17 May 2085		10 Jul 2047 to	10 Jul 2057
			Land Use		Residential,	Commercial,	Accommodation and	Catering	Residential, Office		Residential,	Commercial	Residential		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial,	Composite	Residential,	Commercial		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial
			City		Zhengzhou				Zhengzhou		Zhengzhou		Zhengzhou		Zhumadian			Chongqing			Guiyang			Guiyang			Guiyang			Guiyang			Guiyang			Guiyang			Chongqing
			Holding Entity		Xinxiang Yujing Property	Company Limited			Zhengzhou Yubang Property	Company Limited	Henan Xingke Property	Company Limited	Zhengzhou Henglin Property	Company Limited	Zhumadian Kaifaqu Yucheng	Real Estate Development	Company Limited	Chongqing Hengda Fucheng	Real Estate Development	Company Limited	Guizhou Guangjuyuan Real	Estate Development Company	Limited	Guizhou Hengda Changji Real	Estate Development Company	Limited	Guiyang New World Real	Estate Company Limited		Hengda Real Estate Group	Guiyang Property Company	Limited	Guiyang Haiming Investment	Construction Development	Company Limited	Guiyang Jiude Real Estate	Development Company	Limited	Chongqing Hengda Jiyu	Property Company Limited
			Property Name		Portion of Evergrande	Splendor Zhengzhou			Portion of Evergrande Oasis	Zhengzhou	Portion of Evergrande	Metropolis Zhengzhou	Portion of Evergrande Scenic	Garden Zhengzhou	Portion of Evergrande	Metropolis Zhumadian		Portion of Evergrande Scenic	Garden Fuling		Portion of Evergrande City	Guiyang		Portion of Evergrande	Emerald Court Guiyang		Portion of Evergrande New	World Guiyang		Portion of Evergrande Oasis	Guiyang		Portion of Evergrande	Metropolis Guiyang		Portion of Evergrande Atrium	Guiyang		Portion of Evergrande City	Chongqing
		Property	No.		III-275				III-276		III-277		III-278		III-279			III-280			III-281			III-282			III-283			III-284			III-285			III-286			III-287

– IV-69 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

to the Group	as at	Valuation	Date	(RMB million)	283.00			484.30		845.50			105.40		232.62			262.20		372.90		62.90		7.40			21.90		611.60		209.80			912.80
	Interest	Attributable	to the Group	(%)	100.0%			100.0%		100.0%			100.0%		60.0%			100.0%		100.0%		100.0%		100.0%			100.0%		100.0%		100.0%			100.0%
Market	Value(2)	in Existing	State	(RMB million)	283.00			484.30		845.50			105.40		387.70			262.20		372.90		62.90		7.40			21.90		611.60		209.80			912.80
	Existing	Monthly	Rental	(RMB)	—			4,624		—			30,183		—			—		48,301		20,001		—			19,516		46,443		—			132,967
Occupancy	as at	Valuation	Date	(%)	—			0%		—			17%		—			—		62%		19%		—			53%		90%		—			39%
		Completion	Date		2013 to	2015		2016		2012 to	2017		2015 to	2016	2015			2016		2010 to	2016	2017		2015			2014		2015 to	2016	2010 to	2013		2011 to	2016
		Number	of CPS		1,523			—		3,904			—		2,020			1,230		2,867		—		—			—		2,300		1,036			6,472
		Total GFA(1)	(Excl. CPS)	(sq.m.)	4,371			24,578		27,790			7,530		2,100			16,994		4,315		6,387		514			2,062		19,445		3,979			15,428
		Type of	Property		Commercial,	Carpark		Commercial		Commercial,	Carpark		Commercial		Commercial,	Carpark		Commercial,	Carpark	Commercial,	Carpark	Commercial		Commercial			Commercial		Commercial,	Carpark	Commercial,	Carpark		Commercial,	Carpark
	Land Use	Rights Expiry	Date		31 Mar 2051 to	31 Mar 2061		30 Aug 2053 to	30 Aug 2063	Nov 2050 to Nov	2060		24 Dec 2053 to	24 Dec 2063	25 May 2063			27 Jan 2054 to	27 Jul 2081	26 Dec 2047 to	08 Oct 2081	09 Jun 2055 to	03 Jun 2085	24 Apr 2078 to	17 Sep 2079		11 Nov 2050 to	27 Jul 2084	30 Aug 2053 to	30 Aug 2063	14 Feb 2047 to	14 Feb 2057		28 Dec 2046 to	18 Sep 2066
			Land Use		Residential,	Commercial		Residential,	Commercial	Residential,	Commercial		Residential,	Commercial	Commercial			Residential,	Commercial	Residential,	Commercial, Office	Residential,	Commercial	Residential			Residential,	Commercial, Office	Residential,	Commercial	Residential,	Commercial,	Clubhouse	Residential,	Commercial,	Accommodation and	Catering, Cultural	and Entertainment
			City		Chongqing			Chongqing		Chongqing			Chongqing		Chongqing			Kaili		Kunming		Kunming		Kunming			Qujing		Chongqing		Chongqing			Chongqing
			Holding Entity		Hengda (Chongqing) Real	Estate Group Company	Limited	Chongqing Hengda Xinquan	Property Company Limited	Chongqing Hengda Jun Xin	Real Estate Development	Company Limited	Chongqing Hengda Xinding	Property Company Limited	Chongqing Zhongyu Property	Development Company	Limited	Guizhou Kaidi Property	Company Limited	Hengda Xinyuan (Kunming)	Property Company Limited	Kunming Heng Chang	Property Company Limited	Yunnan Heding Real Estate	Development Company	Limited	Qujing Zhongxi Property	Company Limited	Chongqing Hengda Xinquan	Property Company Limited	Hengda (Chongqing) Real	Estate Group Company	Limited	Hengda (Jiangjin) Real Estate	Group Company Limited
			Property Name		Portion of Evergrande Royal	View Garden Chongqing		Portion of Evergrande Scenic	Garden Chongqing	Portion of Evergrande Atrium	Chongqing		Portion of Evergrande Royal	Scenic Bay Chongqing	Portion of Evergrande C C	Land Plaza		Portion of Evergrande City	Kali	Portion of Evergrande	Splendor Kunming	Portion of Evergrande	Metropolis Kunming	Portion of Evergrande Atrium	Kunming		Portion of Evergrande	Metropolis Qujing	Portion of Evergrande	Emerald Court Chongqing	Portion of Evergrande Palace	Chongqing		Portion of Evergrande	Splendor Chongqing
		Property	No.		III-288			III-289		III-290			III-291		III-292			III-293		III-294		III-295		III-296			III-297		III-298		III-299			III-300

– IV-70 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

Market	Value(2)	Attributable	Occupancy Market to the Group	Land Use as at Existing Value(2) Interest as at	Property Rights Expiry Type of Total GFA(1) Number Completion Valuation Monthly in Existing Attributable Valuation	No. Property Name Holding Entity City Land Use Date Property (Excl. CPS) of CPS Date Date Rental State to the Group Date	(sq.m.) (%) (RMB) (RMB million) (%) (RMB million)	III-301 Portion of Evergrande Oasis Hengda (Chongqing) Real Chongqing Residential, 17 Oct 2047 to Commercial, 7,643 1,213 2010 to — — 313.70 100.0% 313.70	Chongqing Estate Group Company Commercial, 17 Oct 2057 Carpark 2014	Limited Education, Carpark	III-302 Portion of Evergrande Hengda (Chongqing) Real Chongqing Residential, 16 Oct 2047 to Commercial, 90,020 2,040 2012 to 3% 184,910 1,361.90 100.0% 1,361.90	Metropolis Chongqing Estate Group Company Commercial, 17 Oct 2057 Office, Carpark 2016	Limited Education	III-303 Portion of Evergrande Century Chongqing Yongli Property Chongqing Residential, 30 Dec 2054 to Commercial 689 — 2017 — — 9.40 51.0% 4.79	City Chongqing Company Limited Commercial 30 Dec 2064	III-304 Portion of Evergrande Royal Chongqing Hengda Xinquan Chongqing Residential, 30 Aug 2053 to Commercial 29,022 — 2016 — — 468.10 100.0% 468.10	Scenic Peninsula Chongqing Property Company Limited Commercial 30 Aug 2063	III-305 Portion of Evergrande The Chongqing Jianzhi Real Estate Chongqing Residential, 02 Feb 2048 to Carpark — 2,529 2015 to — — 404.60 76.4% 308.95	Coronation Chongqing Company Limited Commercial, 02 Feb 2058 2016	Education	III-306 Portion of Evergrande Oasis Hengda (Zigong) Real Estate Zigong Residential, 20 Apr 2051 to Commercial, 10,911 1,167 2014 86% 118,643 215.60 100.0% 215.60	Zigong Group Company Limited Commercial 10 Dec 2083 Carpark	III-307 Portion of Evergrande Zigong Xinmao Property Zigong Residential, 28 Nov 2052 to Commercial, 6,150 762 2014 to 49% 32,958 149.30 100.0% 149.30	Metropolis Zigong Company Limited Commercial 18 Jun 2083 Carpark 2016	III-308 Portion of Evergrande City Zunyi Xinguang Real Estate Zunyi Residential 01 Jan 2080 Commercial, 3,907 2,717 2016 — — 355.20 51.0% 181.15	Zunyi Development Company Carpark	Limited	Note:	1 All areas are stated in approximations.	2 All values are stated in approximations.	3 We have ascribed no commercial value to the part of the property without title documents nor without full payment of land premium. For Group’s management reference, had	the relevant title documents been obtained and the land premium been fully settled, the market value of such part of the property interests attributable to the Group would be	RMB 24,100,000.

– IV-71 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Attributable to	the Group as at	Valuation Date	(RMB million)	117.30		292.80		33.67		109.00		198.20		38.30		252.10		346.43		147.33		196.50			39.20		15.40			870.73				281.70
		Interest	Attributable to	the Group	(%)	100.0%		100.0%		70.0%		100.0%		100.0%		100.0%		100.0%		70.0%		90.0%		100.0%			100.0%		100.0%			70.0%				60.0%
			Market Value(2)	in Existing State	(RMB million)	117.30		292.80		48.10		109.00		198.20		38.30		252.10		494.90		163.70		196.50			39.20		15.40			1,243.90				469.50
Development	Value (2) as if	Completed as	at Valuation	Date	(RMB million)	235.40		485.00		64.40		141.90		261.00		50.30		297.80		659.70		231.00		254.60			54.20		21.70			1,604.90				571.70
	Development	Cost incurred	up to the	Valuation Date	(RMB million)	30.63		140.27		14.29		20.81		47.46		9.72		118.10		236.13		35.50		103.52			14.17		7.20			710.22				118.11
	Total	Estimated	Development	Cost	(RMB million)	87.94		220.64		17.09		26.01		49.96		10.23		123.82		262.79		51.47		115.03			16.68		8.47			816.68				131.23
		Estimated	Completion	Date		2017		2017		2017		2017		2017		2017		2017		2017		2017		2017			2017		2017			2017				2017
		Construction	Commencement	Date		2016		2014		2015		2014		2014		2016		2014		2014		2014		2014			2014		2014			2014				2014
			Number of	CPS		657		3,650		—		—		—		—		1,135		2,338		—		654			—		—			3,658				—
			Total GFA(1)	(Excl. CPS)	(sq.m.)	16,837		5,202		6,499		9,681		23,672		3,780		5,629		26,451		17,913		17,211			5,956		3,100			133,646				49,132
				Type of Property		Commercial,	Carpark	Commercial,	Carpark	Commercial		Commercial		Commercial		Commercial		Commercial,	Carpark	Commercial,	Carpark	Commercial		Commercial,	Carpark		Commercial		Commercial			Commercial,	Office, Carpark			Commercial
			Land Use Rights	Expiry Date		30 May 2053 to	30 Nov 2083	14 Sep 2051 to	14 Sep 2081	12 Jan 2056 to	12 Jan 2086	10 Sep 2053 to	10 Sep 2083	08 Oct 2050 to	08 Oct 2080	20 Dec 2050 to	20 Dec 2080	21 May 2048 to	27 Sep 2078	15 May 2053 to	29 Sep 2084	14 Mar 2051 to	14 Mar 2081	12 Oct 2053 to	12 Oct 2083		07 Oct 2053 to	07 Oct 2083	26 Nov 2050 to	14 Aug 2085		05 Sep 2052 to	16 Aug 2085			25 Mar 2053 to	22 Oct 2083
				Land Use		Residential,	Commercial	Residential,	Commercial	Residential,	Commercial	Residential,	Commercial	Residential,	Commercial	Residential,	Commercial	Residential,	Commercial	Residential,	Commercial	Residential, Office		Residential,	Commercial		Residential,	Commercial	Residential,	Commercial		Residential,	Commercial, Office			Residential,	Commercial
				City		Anqing		Bozhou		Fuyang		Hefei		Huaibei		Tongling		Baotou		Hengshui		Handan		Langfang			Langfang		Qinhuangdao			Shijiazhuang				Tangshan
				Holding Entity		Anqing Hengyuan Property Company	Limited	Bozhou Hengda Property Company Limited		Fuyang Yuetong Property Company Limited		Yuecheng (Hefei) Property Company	Limited	Huaibei Yuetong Property Company	Limited	Tongling Hengda Property Company	Limited	Hengda (Baotou) Real Estate Group	Company Limited	Hengshui Shengyu Real Estate Development	Company Limited	Handan Daye Real Estate Development	Company Limited	Langfang Feicui Huating Real Estate	Development Company Limited		Hengda Langfang Real Estate Development	Company Limited	Hengda Real Estate Group Qinhuangdao	Hengda Cheng Real Estate Development	Company Limited	Shijiazhuang Diyijia Real Estate	Development Company Limited			Tangshan Zhaorui Investment Company	Limited
				Property Name		Portion of Evergrande	Oasis Anqing	Portion of Evergrande	City Bozhou	Portion of Evergrande	Oasis Fuyang	Portion of Evergrande	Plaza Hefei	Portion of Evergrande	Metropolis Huaibei	Portion of Evergrande	Oasis Tongling	Portion of Evergrande	Palace Baotou	Portion of Evergrande	City Hengshui	Portion of Evergrande	Metropolis Handan	Portion of Evergrande	Emerald Court	Langfang	Portion of Evergrande	Metropolis Langfang	Portion of Evergrande	City Qinhuangdao		Portion of Evergrande	Royal Scenic	Peninsula	Shijiazhuang	Portion of Evergrande	Palace Tangshan
			Property	No.		III-309		III-310		III-311		III-312		III-313		III-314		III-315		III-316		III-317		III-318			III-319		III-320			III-321				III-322

– IV-72 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Attributable to	the Group as at	Valuation Date	(RMB million)	115.13		35.60			26.72			125.10		21.80		219.90			111.20		384.30			8.00				118.20			34.50		94.20				228.20		78.70
		Interest	Attributable to	the Group	(%)	72.0%		100.0%			51.0%			100.0%		100.0%		100.0%			100.0%		100.0%			100.0%				100.0%			100.0%		100.0%				100.0%		100.0%
			Market Value (2)	in Existing State	(RMB million)	159.90		35.60			52.40			125.10		21.80		219.90			111.20		384.30			8.00				118.20			34.50		94.20				228.20		78.70
Development	Value (2) as if	Completed as	at Valuation	Date	(RMB million)	230.30		44.10			62.90			153.10		43.70		263.50			153.60		485.50			10.00				147.40			48.80		188.20				352.70		111.40
	Development	Cost incurred	up to the	Valuation Date	(RMB million)	37.84		27.11			6.14			85.11		15.00		63.03			78.97		273.68			2.00				43.89			21.06		47.38				74.99		38.39
	Total	Estimated	Development	Cost	(RMB million)	58.71		30.12			6.82			94.57		29.99		65.43			92.91		304.09			2.10				51.64			26.33		120.14				135.26		47.75
		Estimated	Completion	Date		2017		2017			2017			2017		2017		2017			2017		2017			2017				2017			2017		2017				2017		2017
		Construction	Commencement	Date		2014		2015			2015			2016		2016		2016			2016		2015			2015				2014			2014		2014				2014		2016
			Number of	CPS		—		296			—			969		299		—			1,164		2,890			—				406			356		1,122				2,151		536
			Total GFA (1)	(Excl. CPS)	(sq.m.)	26,033		—			2,200			—		—		19,013			—		—			700				—			—		6,352				—		3,337
				Type of Property		Commercial		Carpark			Commercial			Carpark		Carpark		Commercial			Carpark		Carpark			Commercial				Carpark			Carpark		Commercial,	Carpark			Carpark		Commercial,	Carpark
			Land Use Rights	Expiry Date		16 Oct 2052 to	16 Oct 2082	19 Jan 2054 to	19 Jan 2084		04 Jun 2055 to	04 Jun 2085		16 Feb 2054 to	16 Feb 2084	13 Feb 2051 to	13 Feb 2081	29 Dec 2080			07 Apr 2081 to	01 Sep 2081	11 Aug 2082			13 Mar 2052 to	13 Mar 2082			17 Dec 2083			16 Jul 2054 to	15 Sep 2086	12 Jan 2044 to	17 Aug 2083			16 Jul 2053 to	16 Jul 2083	06 Jun 2053 to	06 Jun 2083
				Land Use		Residential,	Commercial	Residential,	Commercial		Residential,	Commercial		Residential,	Commercial	Residential,	Commercial	Residential,	Commercial		Residential		Residential, Public	Facility, Green	Space	Residential,	Commercial,	Accommodation	and Catering	Residential			Residential,	Commercial	Residential,	Accommodation	and Catering,	Cultural and Sport	Residential,	Commercial	Residential,	Commercial
				City		Xingtai		Quanzhou			Xiamen			Shishi		Lanzhou		Lanzhou			Yinchuan		Chaozhou			Enping				Guangzhou			Shaoguan		Yangjiang				Zhanjiang		Beihai
				Holding Entity		Xingtai Shuangda Real Estate Development	Company Limited	Quanzhou Ansheng Property Company	Limited		Xiamen Hengda Property Company Limited			Shishi Jinbi Property Company Limited		Hengda Real Estate Group Lanzhou	Property Company Limited	Lanzhou Shenjun Property Company	Limited		Hengda (Yinchuan) Real Estate Group	Company Limited	Chaozhou Hengda Property Company	Limited		Hengda (Enping) Real Estate Group	Company Limited			Guangzhou Xincheng Property Company	Limited		Hengda (Shaoguan) Real Estate Group	Company Limited	Yangjiang Yifeng Property Company	Limited			Hengda Real Estate Group Zhanjiang	Yujing Property Company Limited	Beihai Jiajing Real Estate Development	Company Limited
				Property Name		Portion of Evergrande	City Xingtai	Portion of Evergrande	Emerald Court	Quanzhou	Portion of Evergrande	Royal View Garden	Xiamen	Portion of Evergrande	Metropolis Shishi	Portion of Evergrande	Oasis Lanzhou	Portion of Evergrande	Scenic Garden	Lanzhou	Portion of Evergrande	Metropolis Yinchuan	Portion of Evergrande	City Chaozhou		Portion of Evergrande	Spring City Enping			Portion of Evergrande	Royal Palace	Guangzhou	Portion of Evergrande	City Shaoguan	Portion of Evergrande	Hawaii on the sea	Yangjiang		Portion of Evergrande	Oasis Zhanjiang	Portion of Evergrande	Metropolis Beihai
			Property	No.		III-323		III-324			III-325			III-326		III-327		III-328			III-329		III-330			III-331				III-332			III-333		III-334				III-335		III-336

– IV-73 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Attributable to	the Group as at	Valuation Date	(RMB million)	336.00					36.20			510.82		11.50			44.01		540.80		71.50		147.50		384.20			95.80			29.20		10.40		101.76		24.12
		Interest	Attributable to	the Group	(%)	100.0%					100.0%			51.0%		100.0%			51.0%		100.0%		100.0%		100.0%		100.0%			100.0%			100.0%		67.1%		67.1%		60.0%
			Market Value (2)	in Existing State	(RMB million)	336.00					36.20			1,001.60		11.50			86.30		540.80		71.50		147.50		384.20			95.80			29.20		15.50		151.70		40.20
Development	Value (2) as if	Completed as	at Valuation	Date	(RMB million)	406.00					51.40			1,206.30		15.70			108.60		717.30		85.60		185.30		486.70			115.10			52.80		20.30		182.20		48.50
	Development	Cost incurred	up to the	Valuation Date	(RMB million)	159.30					8.66			393.00		2.51			17.14		191.47		14.20		95.90		286.73			20.20			5.42		4.90		67.53		6.70
	Total	Estimated	Development	Cost	(RMB million)	167.69					10.98			413.69		3.14			18.35		257.33		14.95		100.95		318.59			21.26			18.06		5.77		74.40		7.45
		Estimated	Completion	Date		2017					2017			2017		2017			2017		2017		2017		2017		2017			2017			2017		2017		2017		2017
		Construction	Commencement	Date		2014					2015			2014		2015			2016		2014		2015		2015		2016			2014			2014		2015		2015		2015
			Number of	CPS		2,441					—			825		—			—		2,700		—		1,288		3,527			—			—		—		720		—
			Total GFA (1)	(Excl. CPS)	(sq.m.)	3,129					4,391			110,822		1,030			6,796		20,130		5,675		4,139		—			5,900			5,596		1,833		3,242		2,127
				Type of Property		Commercial,	Carpark				Commercial			Commercial,	Office, Carpark	Commercial			Commercial		Commercial,	Carpark	Commercial		Commercial,	Carpark	Carpark			Commercial			Commercial		Commercial		Office, Carpark		Commercial
			Land Use Rights	Expiry Date		01 Jan 2046 to	20 Dec 2084				01 Aug 2082			28 Sep 2048 to	29 Nov 2049	15 Jan 2054 to	15 Jan 2084		22 Jan 2054 to	25 Sep 2085	14 Oct 2047 to	14 Oct 2077	29 Jun 2055 to	29 Jun 2085	09 Feb 2050 to	09 Feb 2080	30 Dec 2068			09 Nov 2063			18 Jul 2052 to	08 Oct 2082	09 Aug 2050 to	09 Aug 2080	11 Oct 2053 to	11 Oct 2083	19 Oct 2065 to	19 Oct 2085
				Land Use		Residential,	Commercial,	Accommodation	and Catering, Park	and Green Space	Residential			Commercial,	Composite	Residential,	Commercial		Residential,	Commercial	Residential,	Commercial	Residential,	Commercial	Residential,	Commercial	Residential			Commercial			Residential,	Commercial	Residential,	Commercial	Residential,	Commercial	Residential, Park	and Green Space
				City		Beihai					Fangchenggang			Guilin		Liuzhou			Liuzhou		Nanning		Nanning		Qinzhou		Chengmai			Haikou			Mudanjiang		Wuhan		Wuhan		Wuhan
				Holding Entity		Beihai Nanguo Tiantang Real Estate	Development Company Limited				Hengda (Fangchenggang) Real Estate Group	Company Limited		Guilin Guijia Real Estate Company Limited		Liuzhou Hengda Jinbi Property Company	Limited		Liuzhou Zhaofu Property Company Limited		Nanning Yinxiang Real Estate Development	Company Limited	Nanning Shengshi Hengda Real Estate	Development Company Limited	Qinzhou Qinlian Hengda Property	Investment Company Limited	Hainan Minghao Property Company Limited			Hainan Dongfangmingzhu Real Estate	Company Limited		Mudanjiang Hengda Yongtai Real Estate	Development Company Limited	Wuhan Sanjiang Hangtian Investment	Development Company Limited	Wuhan Hengda Jinbi Real Estate	Development Company Limited	Wuhan Hengda Dushi Real Estate	Development Company Limited
				Property Name		Portion of Evergrande	Royal Scenic	Peninsula Beihai			Portion of Evergrande	Royal Scenic Bay	Fangchenggang	Portion of Evergrande	Plaza Guilin	Portion of Evergrande	Emerald Court	Liuzhou	Portion of Evergrande	Palace Liuzhou	Portion of Evergrande	Oasis Nanning	Portion of Evergrande	Metropolis Nanning	Portion of Evergrande	Oasis Qinzhou	Portion of Evergrande	Royal Scenic Bay	Hainan	Portion of Evergrande	Culture Tourist City	Haikou	Portion of Evergrande	Oasis Mudanjiang	Portion of Evergrande	Capital Wuhan	Portion of Evergrande	Royal Garden Wuhan	Portion of Evergrande	Royal Palace Wuhan
			Property	No.		III-337					III-338			III-339		III-340			III-341		III-342		III-343		III-344		III-345			III-346			III-347		III-348		III-349		III-350

– IV-74 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Attributable to	the Group as at	Valuation Date	(RMB million)	106.74			162.40				260.10		850.30			21.20			171.80			618.80		13.10			127.40		141.40		22.00			66.91		17.20		26.40
		Interest	Attributable to	the Group	(%)	60.0%			100.0%				100.0%		100.0%			100.0%			100.0%			100.0%		100.0%			100.0%		100.0%		100.0%			51.0%		100.0%		100.0%
			Market Value (2)	in Existing State	(RMB million)	177.90			162.40				260.10		850.30			21.20			171.80			618.80		13.10			127.40		141.40		22.00			131.20		17.20		26.40
Development	Value (2) as if	Completed as	at Valuation	Date	(RMB million)	245.10			208.20				318.60		1,042.40			28.10			207.20			764.30		16.10			157.60		169.20		30.40			164.40		20.60		32.40
	Development	Cost incurred	up to the	Valuation Date	(RMB million)	125.31			143.98				226.02		246.27			8.20			95.29			568.58		4.29			43.19		94.48		5.40			71.33		16.28		9.13
	Total	Estimated	Development	Cost	(RMB million)	156.64			151.56				237.91		273.63			9.65			100.30			599.48		4.77			48.07		100.06		7.71			73.15		17.13		10.14
		Estimated	Completion	Date		2017			2017				2017		2017			2017			2017			2017		2017			2017		2017		2017			2017		2017		2017
		Construction	Commencement	Date		2015			2016				2016		2015			2014			2014			2014		2014			2014		2016		2015			2015		2014		2014
			Number of	CPS		1,645			1,810				2,029		—			—			1,381			5,417		—			446		846		—			—		182		—
			Total GFA (1)	(Excl. CPS)	(sq.m.)	—			—				—		66,818			2,535			—			5,920		1,790			4,922		3,569		2,600			16,747		—		2,951
				Type of Property		Carpark			Carpark				Carpark		Commercial			Commercial			Carpark			Commercial,	Carpark	Commercial			Commercial,	Carpark	Commercial,	Carpark	Commercial			Commercial		Carpark		Commercial
			Land Use Rights	Expiry Date		27 Mar 2054 to	24 Sep 2084		23 Mar 2051 to	23 Mar 2081			12 Nov 2052 to	12 Nov 2082	05 Mar 2050 to	06 Feb 2083		23 Dec 2050 to	23 Dec 2080		09 Sep 2053			30 May 2052 to	30 May 2082	12 Jun 2054 to	12 Jun 2084		13 Mar 2053 to	13 Mar 2083	12 May 2051 to	12 May 2081	13 Jan 2051 to	13 Jan 2081		22 May 2048 to	22 May 2078	27 Jun 2050 to	02 Mar 2081	29 Dec 2050 to	29 Dec 2080
				Land Use		Residential,	Commercial		Residential,	Accommodation	and Catering,	Education	Residential,	Commercial	Residential,	Commercial		Residential, Office,	Cultural and	Entertainment	Residential,	Commercial		Residential,	Commercial	Residential,	Commercial		Residential,	Commercial	Residential,	Commercial	Residential,	Commercial		Residential,	Commercial	Residential,	Commercial	Residential,	Commercial
				City		Wuhan			Xiangyang				Danyang		Nanjing			Ningbo			Quzhou			Yancheng		Changchun			Changchun		Changchun		Changchun			Ganzhou		Jingdezhen		Nanchang
				Holding Entity		Wuhan Hengda Chutian Real Estate	Development Company Limited		Xiangyang Hengda Real Estate	Development Company Limited			Danyang Mingyuan Real Estate	Development Company Limited	Jurong Tiangong Property Company Limited			Chengbo (Ningbo) Property Company	Limited		Quzhou Hengda Shengjian Property	Company Limited		Hengda Real Estate Group Yancheng	Company Limited	Zetao (Changchun) Real Estate Company	Limited		Yongji (Changchun) Real Estate Company	Limited	Xinji (Changchun) Real Estate Company	Limited	Taiji (Changchun) Real Estate Company	Limited		Jiangxi Xingyu Property Development	Company Limited	Hengda (Jingdezhen) Real Estate Group	Company Limited	Nanchang Zhongdiantou Gaoxin Property	Company Limited
				Property Name		Portion of Evergrande	Royal Scenic Bay	Wuhan	Portion of Evergrande	Metropolis Xiangyang			Portion of Evergrande	City Danyang	Portion of Evergrande	Atrium Nanjing	Jurong	Portion of Evergrande	City Lights Ningbo		Portion of Evergrande	Royal Scenic	Peninsula Quzhou	Portion of Evergrande	Metropolis Yancheng	Portion of Evergrande	Royal View Garden	Changchun	Portion of Evergrande	City Plaza Changchun	Portion of Evergrande	Metropolis Changchun	Portion of Evergrande	Scenic View Garden	Changchun	Portion of Evergrande	Metropolis Ganzhou	Portion of Evergrande	Metropolis Jingdezhen	Portion of Evergrande	Royal View Garden	Nanchang
			Property	No.		III-351			III-352				III-353		III-354			III-355			III-356			III-357		III-358			III-359		III-360		III-361			III-362		III-363		III-364

– IV-75 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Attributable to	the Group as at	Valuation Date	(RMB million)	192.60		11.60		15.50		233.60		85.00		11.60			543.10		123.60		68.50			266.30		554.10		305.40			50.80			213.10		204.70
		Interest	Attributable to	the Group	(%)	100.0%		100.0%		100.0%		100.0%		100.0%		100.0%			100.0%		100.0%		100.0%			100.0%		100.0%		100.0%			100.0%			100.0%		100.0%
			Market Value (2)	in Existing State	(RMB million)	192.60		11.60		15.50		233.60		85.00		11.60			543.10		123.60		68.50			266.30		554.10		305.40			50.80			213.10		204.70
Development	Value (2) as if	Completed as	at Valuation	Date	(RMB million)	241.10		14.60		20.90		311.10		108.40		14.90			761.90		184.90		82.60			330.00		685.50		365.30			64.40			273.20		245.60
	Development	Cost incurred	up to the	Valuation Date	(RMB million)	64.41		2.74		5.80		144.22		40.69		2.42			408.51		59.08		18.15			56.19		216.51		83.01			21.42			171.05		105.40
	Total	Estimated	Development	Cost	(RMB million)	67.81		2.88		6.45		161.23		42.83		2.84			468.92		72.06		19.40			67.79		231.80		84.70			22.55			180.72		112.56
		Estimated	Completion	Date		2017		2017		2017		2017		2017		2017			2017		2017		2017			2017		2017		2017			2017			2017		2017
		Construction	Commencement	Date		2014		2014		2014		2015		2014		2015			2014		2015		2015			2015		2014		2014			2016			2014		2014
			Number of	CPS		—		—		—		2,169		—		—			—		—		—			—		2,922		—			—			2,298		1,049
			Total GFA (1)	(Excl. CPS)	(sq.m.)	21,788		1,191		2,342		3,693		11,541		829			138,530		23,576		7,262			26,628		29,352		26,470			7,531			2,397		9,851
				Type of Property		Commercial		Commercial		Commercial		Commercial,	Carpark	Commercial		Commercial			Office		Commercial		Commercial			Commercial		Commercial,	Carpark	Office			Commercial			Commercial,	Carpark	Commercial,	Carpark
			Land Use Rights	Expiry Date		12 May 2051 to	29 Nov 2082	28 Feb 2050 to	28 Feb 2080	27 Apr 2052 to	27 Apr 2082	28 Jan 2051 to	28 Jan 2081	28 Sep 2051 to	28 Sep 2081	21 Apr 2054 to	21 Apr 2084		13 Jan 2051 to	13 Feb 2051	28 Jan 2051 to	29 Mar 2081	29 May 2053 to	19 Jun 2083		31 Dec 2056 to	31 Oct 2064	29 Jul 2054 to	29 Jul 2084	19 Oct 2052 to	19 Oct 2082		15 Feb 2052 to	19 Mar 2083		09 Jun 2051 to	09 Jun 2081	20 Mar 2053 to	20 Mar 2083
				Land Use		Residential,	Commercial	Residential,	Commercial	Residential,	Commercial	Residential,	Commercial, Office	Residential,	Commercial	Residential,	Commercial		Commercial		Residential,	Commercial	Residential,	Commercial		Residential		Residential,	Commercial	Residential, Office			Residential,	Commercial		Residential,	Commercial	Residential,	Commercial
				City		Wujiaqu		Xinyu		Yining		Yingtan		Benxi		Dalian			Fushun		Panjin		Shenyang			Shenyang		Yingkou		Jinan			Weifang			Lvliang		Chengdu
				Holding Entity		Wujiaqu Zhuoyue Real Estate Development	Company Limited	Xinyu Xingwang Real Estate Development	Company Limited	Yining Jinbi Real Estate Development	Company Limited	Hengda Real Estate Yingtan Company	Limited	Benxi Jiaxi Property Company Limited		Dalian Hengcheng Real Estate Company	Limited		Fushun Jiashun Property Company Limited		Panjin Jiading Property Company Limited		Shenyang Jiahui Property Company Limited			Hengda Changji (Shenyang) Property	Company Limited	Yingkou Jialong Real Estate Company	Limited	Jinan Hengda Feicui Huating Property	Company Limited		Shandong Puyun Real Estate Development	Company Limited		Lvliang Junhui Real Estate Development	Company Limited	Renji Hengye (Sichuan) Investment	Company Limited
				Property Name		Portion of Evergrande	Splendor Urumchi	Portion of Evergrande	City Xinyu	Portion of Evergrande	Oasis Yining	Portion of Evergrande	Oasis Yingtan	Portion of Evergrande	Oasis Benxi	Portion of Evergrande	Royal View Garden	Dalian	Portion of Evergrande	Plaza Fushun	Portion of Evergrande	Palace Panjin	Portion of Evergrande	Emerald Court	Shenyang	Portion of Evergrande	Oasis Shenyang	Portion of Evergrande	Oasis Yingkou	Portion of Evergrande	Royal View Garden	Jinan	Portion of Evergrande	Emerald Court	Weifang	Portion of Evergrande	Royal Scenic Lvliang	Portion of Evergrande	New City Chengdu
			Property	No.		III-365		III-366		III-367		III-368		III-369		III-370			III-371		III-372		III-373			III-374		III-375		III-376			III-377			III-378		III-379

– IV-76 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Attributable to	the Group as at	Valuation Date	(RMB million)	851.40			1,306.10			443.60			266.24			373.70			131.30			51.70		9.35			30.50		116.10		585.50		81.04			3.60		45.84
		Interest	Attributable to	the Group	(%)	100.0%			100.0%			100.0%			80.0%			100.0%			100.0%			100.0%		57.0%			100.0%		100.0%		100.0%		50.2%			100.0%		60.0%
			Market Value (2)	in Existing State	(RMB million)	851.40			1,306.10			443.60			332.80			373.70			131.30			51.70		16.40			30.50		116.10		585.50		161.40			3.60		76.40
Development	Value (2) as if	Completed as	at Valuation	Date	(RMB million)	1,638.00			1,681.20			653.10			455.60			500.40			159.10			69.80		24.10			41.80		139.80		905.30		219.40			5.50		103.20
	Development	Cost incurred	up to the	Valuation Date	(RMB million)	273.23			263.49			69.30			218.84			114.26			26.90			11.07		3.78			13.24		35.84		296.38		131.02			1.50		25.03
	Total	Estimated	Development	Cost	(RMB million)	691.83			309.99			148.89			273.55			126.95			29.88			13.02		5.82			14.81		37.73		437.17		154.14			1.99		33.84
		Estimated	Completion	Date		2017			2017			2017			2017			2017			2017			2017		2017			2017		2017		2017		2017			2017		2017
		Construction	Commencement	Date		2014			2015			2014			2016			2015			2014			2015		2014			2015		2016		2015		2015			2015		2015
			Number of	CPS		2,596			—			—			3,375			—			—			—		—			—		—		2,011		1,430			—		—
			Total GFA (1)	(Excl. CPS)	(sq.m.)	145,248			96,873			51,343			—			40,953			9,045			5,519		1,910			5,906		11,790		53,482		3,053			701		5,117
				Type of Property		Commercial,	Carpark		Commercial			Commercial			Carpark			Commercial			Commercial			Commercial		Commercial			Commercial		Commercial		Office, Carpark		Commercial,	Carpark		Commercial		Commercial
			Land Use Rights	Expiry Date		22 Mar 2048 to	08 Mar 2078		26 Feb 2055 to	26 Feb 2085		31 Jul 2054 to	31 Jul 2084		26 Jan 2046 to	26 Jan 2076		29 Apr 2055 to	29 Apr 2085		15 Oct 2053 to	22 Feb 2084		06 Jan 2048 to	06 Jan 2078	13 Aug 2053 to	13 Aug 2083		07 Jun 2054 to	07 Jun 2084	14 Apr 2055 to	14 Dec 2085	22 May 2053 to	22 May 2083	03 Mar 2079 to	26 Jul 2085		Jun 2055 to	Nov 2086	25 May 2063
				Land Use		Residential,	Commercial		Residential,	Commercial, Public	Facility	Residential,	Commercial		Residential,	Commercial		Residential, Office			Residential,	Commercial		Residential,	Commercial	Residential,	Commercial		Residential,	Commercial	Residential,	Commercial	Residential, Office		Residential			Residential,	Commercial	Commercial
				City		Chengdu			Chengdu			Chengdu			Chengdu			Luzhou			Xi’an			Luoyang		Pingdingshan			Shangqiu		Xi’an		Zhengzhou		Zhengzhou			Zhumadian		Chongqing
				Holding Entity		Chengdu Tianfu Shuicheng Real Estate	Development Company Limited		Chengdu Hengda Xindongcheng Property	Company Limited		Chengdu Hengda Xinbeicheng Property	Company Limited		Chengdu Xinyi Real Estate Development	Company Limited		Hengda (Luzhou) South City Property	Company Limited		Xi’an Jiazhi Property Company Limited			Hengda (Luoyang) Real Estate Group	Company Limited	Pingdingshan Hengrong Property Company	Limited		Shangqiu Shilong Real Estate Development	Company Limited	Xi’an Hengying Property Company Limited		Zhengzhou Yubang Property Company	Limited	Zhengzhou Henglin Property Company	Limited		Zhumadian Kaifaqu Yucheng Real Estate	Development Company Limited	Chongqing Zhongyu Property Development	Company Limited
				Property Name		Portion of Evergrande	Royal Scenic	Peninsula Chengdu	Portion of Evergrande	Central Square	Chengdu	Portion of Evergrande	Caojiaxiang Plaza	Chengdu	Portion of Evergrande	Paradise Peninsula	Chengdu	Portion of Evergrande	Royal Scenic Bay	Luzhou	Portion of Evergrande	Royal View Garden	Xi’an	Portion of Evergrande	Oasis Luoyang	Portion of Evergrande	Metropolis	Pingdingshan	Portion of Evergrande	Metropolis Shangqiu	Portion of Evergrande	Bay Xi’an	Portion of Evergrande	Oasis Zhengzhou	Portion of Evergrande	Scenic Garden	Zhengzhou	Portion of Evergrande	Metropolis Zhumadian	Portion of Evergrande	C C Land Plaza
			Property	No.		III-380			III-381			III-382			III-383			III-384			III-385			III-386		III-387			III-388		III-389		III-390		III-391			III-392		III-393

– IV-77 –

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

APPENDIX IV

	Market Value (2)	Attributable to	the Group as at	Valuation Date	(RMB million)	88.80			321.30			59.71			131.90
		Interest	Attributable to	the Group	(%)	100.0%			100.0%			76.4%			100.0%
			Market Value (2)	in Existing State	(RMB million)	88.80			321.30			78.20			131.90
Development	Value (2) as if	Completed as	at Valuation	Date	(RMB million)	119.40			383.00			101.00			163.10
	Development	Cost incurred	up to the	Valuation Date	(RMB million)	15.77			278.70			96.03			140.57
	Total	Estimated	Development	Cost	(RMB million)	22.53			293.37			106.70			147.97
		Estimated	Completion	Date		2017			2017			2017			2017
		Construction	Commencement	Date		2016			2016			2015			2014
			Number of	CPS		—			2,394			631			1,523
			Total GFA (1)	(Excl. CPS)	(sq.m.)	8,229			—			—			—
				Type of Property		Commercial			Carpark			Carpark			Carpark
			Land Use Rights	Expiry Date		30 Aug 2053 to	30 Aug 2063		30 Nov 2055 to	30 Nov 2065		02 Feb 2048 to	02 Feb 2058		28 Nov 2052 to	18 Jun 2083
				Land Use		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial,	Education	Residential,	Commercial
			Property	No. Property Name Holding Entity City		III-394 Portion of Evergrande Chongqing Hengda Xinquan Property Chongqing	Emerald Court Company Limited	Chongqing	III-395 Portion of Evergrande Chongqing Hengda Xingai Property Chongqing	Central Plaza Company Limited	Chongqing	III-396 Portion of Evergrande Chongqing Jianzhi Real Estate Company Chongqing	The Coronation Limited	Chongqing	III-397 Portion of Evergrande Zigong Xinmao Property Company Limited Zigong	Metropolis Zigong	Notes:	1 All areas are stated in approximations.	2 All values are stated in approximations.

– IV-78 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	426.60				653.60				88.30				282.90			355.40				673.11				47.30		19.80		237.58			607.39				309.78				65.90
			Interest	Attributable		to the Group	(%)	100.0%				100.0%				100.0%				100.0%			100.0%				88.0%				100.0%		100.0%		65.0%			70.0%				60.0%				100.0%
		Market	Value (2)	in Existing		State	(RMB million)	426.60				653.60				88.30				282.90			355.40				764.90				47.30		19.80		365.50			867.70				516.30				65.90
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	889.80				1,590.60				291.40				805.90			781.40				1,572.80				76.90		28.90		580.50			2,140.80				2,099.70				299.90
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	157.70				126.67				24.86				114.52			120.43				113.82				19.72		19.50		167.53			126.43				25.48				6.01
		Total	Estimated	Development		Cost	(RMB million)	399.35				670.96				166.21				440.02			380.22				1,264.34				34.70		23.52		258.68			801.88				895.08				167.04
			Estimated	Completion		Date		2018				2018				2017				2018			2017				2018				2017		2017		2017			2019				2020				2017
			Construction	Commencement		Date		2012				2015				2013				2011			2013				2016				2013		2013		2015			2016				2017				2010
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	10,776 64.01				115,204 842.96				19,512 27.15				53,025 317.25			80,691 569.45				67,814 422.85				1,272 7.88		— —		34,577 278.45			140,635 1,226.90				— —				— —
				Total Planned	GFA (1)		(sq.m.)	131,535				267,922				72,240				140,886			143,908				359,067				10,981		5,838		103,954			301,218				313,897				70,809
					Site Area (1)		(sq.m.)	212,755				151,411				126,821				216,102			77,946				134,869				84,502		68,861		90,220			183,152				137,229				310,929
						Type of Property		Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Commercial,	Composite, Carpark	Commercial,	Composite, Carpark	Residential,	Commercial,	Composite, Carpark	Residential,	Commercial,	Composite, Office,	Other, Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Commercial, Other,	Carpark
			Land Use	Rights Expiry		Date		30 May 2053 to	30 Nov 2083			27 Dec 2054 to	27 Dec 2084			29 Jun 2052 to	29 Jun 2082			14 Sep 2051 to	14 Sep 2081		29 Sep 2050 to	29 Sep 2080			14 Jul 2083				14 Sep 2083		20 May 2083		20 Aug 2055 to	20 Aug 2085		12 Jan 2056 to	12 Jan 2086			14 Nov 2056 to	14 Nov 2086			16 Aug 2074
						Land Use		Residential,	Commercial			Residential				Residential,	Commercial			Residential,	Commercial		Residential, Public	Facility			Residential,	Commercial			Residential,	Commercial	Residential,	Commercial	Residential,	Commercial		Residential,	Commercial			Residential				Residential
						City		Anqing				Bengbu				Bengbu				Bozhou			Chaohu				Chuzhou				Chuzhou		Chuzhou		Feidong			Fuyang				Fuyang				Hefei
						Property Name Holding Entity		Portion of Evergrande Oasis Anqing Hengyuan Property	Anqing Company Limited			Portion of Evergrande Emerald Bengbu Hengyuan Property	Court Bengbu Company Limited			Portion of Evergrande Royal Bengbu Hengtong Property	Scenic Bay Bengbu Company Limited			Portion of Evergrande City Bozhou Hengda Property	Bozhou Company Limited		Portion of Evergrande Royal Anhui Lilong Property	View Garden Chaohu Company Limited			Evergrande Royal View Garden Chuzhou Hengtong Property	Chuzhou Company Limited			Portion of Evergrande Oasis Chuzhou Yuetong Property	Chuzhou Company Limited	Portion of Evergrande Metropolis Chuzhou Hengda Property	Chuzhou Company Limited	Portion of Evergrande Oasis Yueheng (Hefei) Property	Feidong Company Limited		Portion of Evergrande Oasis Fuyang Yuetong Property	Fuyang Company Limited			Evergrande Royal Scenic Fuyang Fuyang Yuetai Property	Company Limited			Portion of Evergrande City Hefei Anhui Sanlin Property	Company Limited
				Property		No.		IV-1				IV-2				IV-3				IV-4			IV-5				IV-6				IV-7		IV-8		IV-9			IV-10				IV-11				IV-12

– IV-79 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	339.70			24.90		826.31			526.63			1,013.40		680.80			167.90		2,987.30				2,783.20			1,354.60		91.20			352.40				151.98				1,927.00
			Interest	Attributable		to the Group	(%)	100.0%			100.0%		50.4%			50.4%			100.0%		100.0%			100.0%		100.0%				100.0%			100.0%		100.0%			100.0%				60.0%				100.0%
		Market	Value (2)	in Existing		State	(RMB million)	339.70			24.90		1,639.50			1,044.90			1,013.40		680.80			167.90		2,987.30				2,783.20			1,354.60		91.20			352.40				253.30				1,927.00
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	1,000.10			32.40		3,033.90			2,233.80			3,241.60		2,978.60			240.10		4,751.40				5,140.70			2,071.20		183.60			564.50				647.30				7,657.00
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	229.27			23.28		145.36			19.47			133.15		178.36			211.18		189.07				65.31			124.59		48.10			498.52				27.08				561.66
		Total	Estimated	Development		Cost	(RMB million)	621.49			24.50		592.67			464.95			1,264.42		1,516.13			222.30		1,119.27				998.24			327.12		101.51			590.43				283.82				3,674.66
			Estimated	Completion		Date		2019			2017		2019			2019			2021		2021			2017		2018				2018			2018		2017			2017				2017				2022
			Construction	Commencement		Date		2012			2009		2016			2016			2014		2014			2014		2014				2014			2014		2010			2011				2011				2012
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	— —			— —		84,783 1,460.25			— —			— —		— —			19,577 56.51		— —				— —			2,094 99.39		16,312 76.14			3,773 22.01				— —				37,139 259.11
				Total Planned	GFA (1)		(sq.m.)	142,876			10,733		210,344			153,751			479,153		442,066			61,874		445,564				396,586			129,342		36,091			257,865				114,650				1,357,998
					Site Area (1)		(sq.m.)	280,676			142,578		58,731			30,427			28,671		28,671			57,689		183,451				37,045			21,013		289,640			106,136				261,516				604,005
						Type of Property		Commercial, Hotel,	Office, Other,	Carpark	Other, Carpark		Residential,	Commercial, Office,	Other, Carpark	Commercial, Hotel,	Office, Carpark		Commercial, Office,	Carpark	Commercial, Hotel,	Office, Carpark		Commercial,	Carpark	Residential,	Commercial,	Composite, Office,	Other, Carpark	Commercial, Office,	Carpark		Commercial, Office,	Carpark	Residential,	Commercial,	Composite, Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Hotel,	Office, Other,	Carpark
			Land Use	Rights Expiry		Date		24 Aug 2051 to	24 Aug 2081		Jun 2079 to Jan	2080	18 May 2055 to	18 May 2085		18 May 2055 to	18 May 2085		15 Oct 2053 to	15 Oct 2083	15 Oct 2053 to	15 Oct 2083		15 Oct 2053 to	15 Oct 2083	10 Sep 2053 to	10 Sep 2083			10 Sep 2053 to	10 Sep 2083		10 Sep 2053 to	10 Sep 2083	08 Oct 2050 to	08 Oct 2080		21 Oct 2051 to	21 Oct 2081			02 May 2081 to	03 May 2081			28 Dec 2051 to	28 Dec 2081
						Land Use		Residential,	Commercial		Residential		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial	Residential,	Commercial		Residential,	Commercial	Residential,	Commercial			Residential,	Commercial		Residential,	Commercial	Residential,	Commercial		Residential,	Commercial			Residential				Residential,	Commercial
						City		Hefei			Hefei		Hefei			Hefei			Hefei		Hefei			Hefei		Hefei				Hefei			Hefei		Huaibei			Huaibei				Huainan				Lu’an
						Holding Entity		Yuetong (Hefei) Property	Company Limited		Qijia (Hefei) Property	Company Limited	Anhui Zhonghui Guoyin	Deyuan Property Company	Limited	Anhui Zhonghui Guoyin	Deyuan Property Company	Limited	Yuefeng (Hefei) Property	Company Limited	Yuetai (Hefei) Business	Operation Mangement	Company Limited	Yuetai (Hefei) Property	Company Limited	Yuecheng (Hefei) Property	Company Limited			Yueqi (Hefei) Business	Operation Mangement	Company Limited	Yueqi (Hefei) Property	Company Limited	Huaibei Yuetong Property	Company Limited		Huaibei Hengtong Property	Company Limited			Huainan Hengda Tianheng	Property Company Limited			Lu’an Yue Tong Property	Company Limited
						Property Name		Portion of Evergrande Royal	View Garden Hefei		Portion of Evergrande Palace	Hefei	Evergrande Crystal International	Square Hefei Plot A and C		Evergrande Crystal International	Square Hefei Plot B		Portion of Evergrande	International Center Hefei	Portion of Evergrande	International Center Hefei		Portion of Evergrande	International Center Hefei	Portion of Evergrande Plaza	Hefei			Portion of Evergrande Plaza	Hefei		Portion of Evergrande Plaza	Hefei	Portion of Evergrande Metropolis	Huaibei		Portion of Evergrande Atrium	Huaibei			Portion of Evergrande Oasis	Huainan			Portion of Evergrande Royal	Scenic Bay Lu’an
				Property		No.		IV-13			IV-14		IV-15			IV-16			IV-17		IV-18			IV-19		IV-20				IV-21			IV-22		IV-23			IV-24				IV-25				IV-26

– IV-80 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	438.90			117.42			745.80				233.20		429.98			395.40				86.65			760.80			392.60				740.21			2,421.60					2,360.50
			Interest	Attributable		to the Group	(%)	100.0%			60.0%			100.0%				100.0%		65.0%			100.0%				51.0%			100.0%			100.0%				51.0%			100.0%					100.0%
		Market	Value (2)	in Existing		State	(RMB million)	438.90			195.70			745.80				233.20		661.50			395.40				169.90			760.80			392.60				1,451.40			2,421.60					2,360.50
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	1,172.50			253.30			2,225.70				302.70		2,756.60			1,296.30				288.80			2,166.90			1,653.70				6,084.40			4,040.60					4,485.40
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	71.54			159.21			152.91				92.07		39.41			49.06				22.96			93.59			105.42				598.88			356.58					485.44
		Total	Estimated	Development		Cost	(RMB million)	495.87			167.59			1,042.94				96.92		1,297.28			595.45				80.43			1,045.65			913.29				4,657.82			835.56					1,666.12
			Estimated	Completion		Date		2018			2017			2019				2017		2019			2019				2017			2017			2019				2022			2019					2017
			Construction	Commencement		Date		2016			2013			2011				2011		2015			2013				2007			2009			2010				2006			2015					2014
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	95,423 724.26			5,103 43.11			12,010 54.79				19,407 174.48		4,978 28.75			20,815 108.34				— —			186 1.54			100,033 538.24				— —			130,449 2,282.85					229,656 2,717.18
				Total Planned	GFA (1)		(sq.m.)	191,094			61,083			375,795				34,721		509,601			243,582				33,511			308,631			282,930				1,346,580			317,566					423,885
					Site Area (1)		(sq.m.)	82,360			144,145			291,247				171,226		162,473			178,090				19,565			438,917			188,005				316,743			66,677					182,569
						Type of Property		Residential,	Commercial,	Composite, Carpark	Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial, Other	Residential,	Commercial,	Composite, Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Commercial, Office			Residential,	Commercial,	Composite, Other	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial, Other,	Carpark	Commercial, Other,	Carpark				Commercial, Other,	Carpark
			Land Use	Rights Expiry		Date		21 Jul 2086			11 Jun 2082			20 Dec 2050 to	20 Dec 2080			19 May 2081 to	20 May 2081	Jul 2054 to Jul	2084		Nov 2053 to Oct	2085			09 Oct 2045 to	09 Oct 2075		21 May 2048 to	27 Sep 2078		27 Feb 2051 to	28 Feb 2081			17 Nov 2048 to	02 Jun 2074		27 Apr 2054 to	27 Apr 2084				23 Jul 2053 to	23 Jul 2083
						Land Use		Residential,	Commercial		Residential			Residential,	Commercial			Residential		Residential,	Commercial		Residential,	Commercial			Residential,	Commercial		Residential,	Commercial		Residential,	Commercial			Residential,	Commercial, Public	Facility	Residential,	Commercial,	Underground	Carpark, Composite,	Underground Storage	Residential,	Commercial,	Underground	Carpark, Composite,	Underground Storage
						City		Ma’anshan			Ma’anshan			Tongling				Wuhu		Suzhou			Suzhou				Handan			Baotou			Baotou				Handan			Beijing					Beijing
						Holding Entity		Ma’anshan Yuetong	Property Company Limited		Ma’anshan Hengda Anliang	Property Company Limited		Tongling Hengda Property	Company Limited			Wuhu Hengda Property	Company Limited	Suzhou Heng Ding Property	Company Limited		Suzhou Hengda Property	Company Limited			Hebei Dingjiaqi Real Estate	Development Company	Limited	Hengda (Baotou) Real	Estate Group Company	Limited	Hengda (Baotou) Real	Estate Group Company	Limited		Hebei Dingjiaqi Real Estate	Development Company	Limited	Henglongxing (Beijing)	Property Company Limited				Shahe Hengda (Beijing)	Property Company Limited
						Property Name		Evergrande Oasis Ma’anshan			Portion of Evergrande Royal	Scenic Bay Ma’anshan		Portion of Evergrande Oasis	Tongling			Portion of Evergrande Palace	Wuhu	Portion of Evergrande Metropolis	Suzhou		Portion of Evergrande Royal	Scenic Bay Suzhou			Handan Baihua Jiayuan			Portion of Evergrande Palace	Baotou		Portion of Evergrande Metropolis	Baotou			Handan Beihai Manor			Evergrande Left Riverbank	Beijing				Portion of Evergrande City	Beijing
				Property		No.		IV-27			IV-28			IV-29				IV-30		IV-31			IV-32				IV-33			IV-34			IV-35				IV-36			IV-37					IV-38

– IV-81 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	4,307.80							8,204.50				365.69			2,735.00					3,651.70 (3)					790.90					8,917.50			370.40			249.03				102.27			893.50
			Interest	Attributable		to the Group	(%)	100.0%							100.0%				65.0%			100.0%					100.0%					100.0%					100.0%			100.0%			51.0%				70.0%			100.0%
		Market	Value (2)	in Existing		State	(RMB million)	4,307.80							8,204.50				562.60			2,735.00					3,651.70					790.90					8,917.50			370.40			488.30				146.10			893.50
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	6,871.00							10,869.30				1,276.40			3,802.10					16,323.40					1,287.30					14,442.80			756.40			2,642.00				531.00			4,587.30
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	915.82							1,153.00				406.16			537.92					742.45					175.28					2,057.07			5.61			146.03				53.13			0.54
		Total	Estimated	Development		Cost	(RMB million)	1,493.03							1,523.79				737.40			623.77					7,754.96					400.37					3,494.25			197.22			1,523.37				326.05			2,885.37
			Estimated	Completion		Date		2018							2017				2019			2017					2019					2017					2019			2017			2020				2017			2019
			Construction	Commencement		Date		2015							2015				2016			2015					2016					2014					2004			2004			2017				2013			2009
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	157,855 5,567.48							155,572 3,991.50				78,259 514.21			130,238 3,131.13					569,840 6,679.02					— —					55,338 3,997.54			8,311 484.71			— —				1,335 4.26			— —
				Total Planned	GFA (1)		(sq.m.)	262,542							360,609				222,550			183,920					1,933,006					159,392					235,656			14,714			412,639				125,860			820,767
					Site Area (1)		(sq.m.)	46,011							80,469				187,775			35,000					616,690					111,577					312,164			217,012			74,703				133,846			255,530
						Type of Property		Residential,	Commercial, Other,	Carpark					Residential,	Commercial, Other,	Carpark		Residential, Carpark			Residential,	Commercial, Other,	Carpark			Residential,	Commercial,	Composite, Hotel,	Office, Other,	Carpark	Residential,	Commercial, Other,	Carpark			Residential, Other			Residential, Other			Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark
			Land Use	Rights Expiry		Date		25 May 2054 to	25 May 2084						26 Dec 2053 to	26 Dec 2083			2082 to 2084			27 Apr 2054 to	27 Apr 2084				04 Jul 2056 to	04 Jul 2086				29 Sep 2053 to	28 Sep 2083				31 Dec 2035 to	31 Dec 2065		31 Dec 2035 to	31 Dec 2065		09 Jan 2087 to	09 Jan 2087			15 May 2053 to	29 Sep 2084		11 Oct 2077
						Land Use		Residential,	Commercial, Office,	Underground	Carpark,	Underground	Composite,	Underground Storage	Residential,	Commercial,	Composite,	Underground Storage	Residential			Residential,	Commercial,	Underground	Carpark, Composite,	Underground Storage	Residential,	Commercial				Residential,	Commercial, Office,	Underground	Carpark, Composite,	Underground Storage	Residential,	Commercial, Office,	Underground Storage	Residential,	Commercial, Office,	Underground Storage	Residential				Residential,	Commercial		Residential
						City		Beijing							Beijing				Beijing			Beijing					Beijing					Beijing					Beijing			Beijing			Handan				Hengshui			Tianjin
						Holding Entity		Beijing Zhenghao Property	Company Limited						Beijing Heng Xingsheng	Real Estate Development	Company Limited		Laishui Lihua Real Estate	Development Company	Limited	Henglong (Beijing) Property	Company Limited				Huailai Hengda Real Estate	Development Company	Limited			Hengda (Beijing) Real	Estate Group Company	Limited			Beijing Fuhua Real Estate	Development Company	Limited	Beijing Lilai Real Estate	Development Company	Limited	Handan Hengting Real	Estate Development	Company Limited		Hengshui Shengyu Real	Estate Development	Company Limited	Tianjin Jingxiu Estates	Investment Company	Limited
						Property Name		Evergrande Emerald Court	Beijing						Evergrande Palace Beijing				Evergrande Royal Mansion	Beijing		Evergrande Metropolis Beijing					Evergrande Culture Tourist City	Beijing				Portion of Evergrande Royal	Scenic Bay Beijing				Portion of Evergrande Elite	Shadow Greek Beijing		Portion of Evergrande Elite	Shadow Greek Beijing		Evergrande Emerald Court	Handan			Portion of Evergrande City	Hengshui		Evergrande Tianjin Huaxi Town
				Property		No.		IV-39							IV-40				IV-41			IV-42					IV-43					IV-44					IV-45			IV-46			IV-47				IV-48			IV-49

– IV-82 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	466.38				119.90			673.30			661.44				447.90				35.50			53.13			311.90				34.90				315.70			116.54				100.30 (4)
			Interest	Attributable		to the Group	(%)	90.0%				51.0%			51.0%			60.0%				100.0%				100.0%			74.0%			100.0%				100.0%				100.0%			51.0%				100.0%
		Market	Value (2)	in Existing		State	(RMB million)	518.20				235.10			1,320.20			1,102.40				447.90				35.50			71.80			311.90				34.90				315.70			228.50				100.30
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	2,351.00				1,366.60			3,001.50			3,650.20				1,107.00				48.70			144.70			733.70				250.90				703.60			2,482.30				28,741.90
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	262.06				8.33			812.69			296.59				181.43				30.75			44.66			82.22				51.34				224.21			0.17				520.90
		Total	Estimated	Development		Cost	(RMB million)	1,514.05				699.52			1,639.56			1,837.90				506.21				34.53			87.09			298.33				201.08				462.42			1,473.16				11,343.17
			Estimated	Completion		Date		2020				2020			2019			2019				2020				2017			2017			2019				2019				2017			2022				2030
			Construction	Commencement		Date		2015				2016			2014			2016				2014				2013			2013			2015				2014				2011			2014				2012
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	15,575 137.68				— —			144,317 1,302.34			203,555 1,396.27				16,264 156.30				— —			— —			18,018 250.44				5,350 24.79				— —			— —				95,983 586.76
				Total Planned	GFA (1)		(sq.m.)	620,465				209,625			538,611			618,717				179,848				9,336			29,774			122,887				88,823				128,476			441,814				4,401,269
					Site Area (1)		(sq.m.)	167,998				72,017			160,356			171,239				69,728				64,343			95,730			133,333				101,351				533,333			114,118				183,033
						Type of Property		Residential,	Commercial,	Composite, Office,	Other, Carpark	Residential,	Commercial, Other,	Carpark	Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Composite, Office,	Other, Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Composite, Other			Residential,	Commercial,	Composite, Other	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial, Other		Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Office,	Other, Carpark
			Land Use	Rights Expiry		Date		14 Mar 2051 to	14 Mar 2081			22 Mar 2081			09 Feb 2054 to	09 Feb 2084		17 May 2051 to	17 May 2081			15 Jul 2083				24 Jul 2083			15 Mar 2051 to	15 Mar 2081		12 Oct 2053 to	12 Oct 2083			07 Oct 2053 to	07 Oct 2083			01 Jun 2051 to	01 Jun 2081		22 Aug 2053 to	22 Aug 2083			26 Nov 2050 to	14 Aug 2085
						Land Use		Residential, Office				Residential			Residential,	Commercial,	Education	Residential,	Commercial			Residential				Residential			Residential,	Commercial, Office		Residential,	Commercial			Residential,	Commercial			Residential,	Accommodation and	Catering	Residential,	Commercial			Residential,	Commercial
						City		Handan				Handan			Tangshan			Hengshui				Hohhot				Hohhot			Hohhot			Langfang				Langfang				Luquan			Handan				Qinhuangdao
						Property Name Holding Entity		Portion of Evergrande Metropolis Handan Daye Real Estate	Handan Development Company	Limited		Handan Evergrande Seine Hebei Dingjiaqi Real Estate	Riverside Development Company	Limited	Evergrande Academism Tangshan Tanghsan Fujia Real Estate	Development Company	Limited	Evergrande Oasis Hengshui Hengshui Longze Real	Estate Development	Company Limited		Portion of Evergrande Palace Hengda (Huhehaote) Real	Hohhot Estate Group Company	Limited		Portion of Evergrande Metropolis Hengda (Huhehaote) Real	Hohhot Estate Group Company	Limited	Portion of Evergrande Atrium Inner Mongolia	Hohhot Changshengtai Real Estate	Company Limited	Portion of Evergrande Emerald Langfang Feicui Huating	Court Langfang Real Estate Development	Company Limited		Portion of Evergrande Metropolis Hengda Langfang Real	Langfang Estate Development	Company Limited		Portion of Evergrande Splendor Hengda (Luquan) Real	Luquan Estate Group Company	Limited	Handan Mengchengyaju Hebei Dingjiaqi Real Estate	Development Company	Limited		Portion of Evergrande City Hengda Real Estate Group	Qinhuangdao Qinhuangdao Hengda Cheng	Real Estate Development	Company Limited
				Property		No.		IV-50				IV-51			IV-52			IV-53				IV-54				IV-55			IV-56			IV-57				IV-58				IV-59			IV-60				IV-61

– IV-83 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	59.30				86.69				9.50			120.96			47.60			2,888.20			538.20			117.84				2,390.12			2,383.98			25.10			1,880.20			180.30
			Interest	Attributable		to the Group	(%)	100.0%				63.0%				100.0%			90.0%			100.0%			70.0%			100.0%			60.0%				51.0%			51.0%			100.0%			100.0%			100.0%
		Market	Value (2)	in Existing		State	(RMB million)	59.30				137.60				9.50			134.40			47.60			4,126.00			538.20			196.40				4,686.50			4,676.30			25.10			1,880.20			180.30
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	229.60				1,330.80				59.00			102.20			104.20			10,088.60			731.80			704.60				9,002.80			7,581.40			88.50			4,173.50			370.80
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	—				—				33.06			114.99			107.96			704.37			274.18			—				2,868.30			716.42			2.19			464.34			56.50
		Total	Estimated	Development		Cost	(RMB million)	147.50				872.80				70.82			447.17			135.88			4,035.22			325.96			373.09				4,839.92			1,472.92			50.61			1,360.60			144.38
			Estimated	Completion		Date		2017				2017				2017			2017			2019			2018			2017			2018				2017			2019			2018			2020			2019
			Construction	Commencement		Date		2009				2016				2011			2012			2011			2012			2014			2014				2009			2016			2010			2010			2011
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	— —				122,473 924.44				12 0.04			— —			— —			184,166 2,828.55			107,713 654.00			19,924 71.51				— —			113,009 4,018.58			169 1.47			29,122 227.06			695 2.36
				Total Planned	GFA (1)		(sq.m.)	48,873				219,242				26,031			205,954			110,124			2,032,426			113,436			120,028				1,511,272			355,731			19,053			430,596			52,200
					Site Area (1)		(sq.m.)	245,414				99,050				176,426			50,202			172,676			202,915			25,423			84,686				419,230			113,570			388,726			489,330			289,514
						Type of Property		Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Composite, Other,	Carpark		Commercial,	Composite, Other,	Carpark	Composite, Other,	Carpark		Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial, Hotel,	Other, Carpark	Residential,	Commercial,	Carpark	Residential,	Composite, Other,	Carpark	Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark
			Land Use	Rights Expiry		Date		18 Aug 2049 to	18 Aug 2079			11 Mar 2083 to	01 Sep 2085			19 Mar 2079			24 Nov 2051 to	24 Nov 2081		19 May 2081			05 Sep 2052 to	16 Aug 2085		27 Jan 2055 to	27 Jan 2085		25 Mar 2053 to	22 Oct 2083			31 Mar 2048 to	09 Feb 2084		24 Apr 2054 to	24 Apr 2084		23 Mar 2050 to	07 Jun 2080		23 Mar 2050 to	07 Jun 2080		28 Nov 2077
						Land Use		Residential,	Commercial, Office			Residential				Residential			Residential,	Commercial		Residential			Residential,	Commercial, Office		Residential,	Commercial		Residential,	Commercial			Residential			Residential,	Commercial,	Education	Residential,	Commercial		Residential,	Commercial		Residential
						City		Shijiazhuang				Shijiazhuang				Shijiazhuang			Shijiazhuang			Shijiazhuang			Shijiazhuang			Shijiazhuang			Tangshan				Tangshan			Tianjin			Tianjin			Tianjin			Tianjin
						Holding Entity		Hengda (Shijiazhuang) Real	Estate Group Company	Limited		Shijiazhuang Wei Xuan	Real Estate Development	Company Limited		Shijiazhuang Shengyu Real	Estate Development	Company Limited	Hebei Longhai Real Estate	Development Company	Limited	Hebei Gaojie Shi Real	Estate Development	Company Limited	Shijiazhuang Diyijia Real	Estate Development	Company Limited	Shijiazhuang Xinlong Real	Estate Development	Company Limited	Tangshan Zhaorui	Investment Company	Limited		Tangshan Bozhi Real Estate	Development Company	Limited	Tianjin Dijing Real Estate	Development Limited		Tianjin Jin Li Hu	Investment Company	Limited	Tianjin Yilian Chuangzhan	Property Company Limited		Tianjin Binqiao Investment	Company Limited
						Property Name		Portion of Evergrande City	Shijiazhuang			Evergrande Forest Creek County	Shijiazhuang			Portion of Evergrande Oasis	Shijiazhuang		Portion of Evergrande Metropolis	Shijiazhuang		Portion of Evergrande Atrium	Shijiazhuang		Portion of Evergrande Royal	Scenic Peninsula Shijiazhuang		Shijiazhuang Jingyuan			Portion of Evergrande Palace	Tangshan			Evergrande Dragon Court	Tangshan		Evergrande Royal View Garden	Tianjin		Portion of Evergrande Oasis	Tianjin		Portion of Evergrande Oasis	Tianjin		Portion of Evergrande Metropolis	Tianjin
				Property		No.		IV-62				IV-63				IV-64			IV-65			IV-66			IV-67			IV-68			IV-69				IV-70			IV-71			IV-72			IV-73			IV-74

– IV-84 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	786.50			214.60				1,793.10				3,567.70			15.70			160.63			4.82			208.50				608.13			64.90			581.40			728.90				539.60
			Interest	Attributable		to the Group	(%)	100.0%			100.0%				100.0%				100.0%			100.0%			72.0%			72.0%			100.0%				58.0%			100.0%			100.0%			100.0%				100.0%
		Market	Value (2)	in Existing		State	(RMB million)	786.50			214.60				1,793.10				3,567.70			15.70			223.10			6.70			208.50				1,048.50			64.90			581.40			728.90				539.60
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	2,938.00			777.90				3,514.60				7,185.10			66.20			643.60			100.60			1,005.60				2,772.50			97.60			1,657.00			2,773.80				1,388.00
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	140.86			83.89				183.29				20.74			0.46			106.66			—			56.24				299.57			279.21			52.47			93.50				129.74
		Total	Estimated	Development		Cost	(RMB million)	1,398.24			440.25				813.56				1,445.96			49.48			349.65			69.22			772.13				1,253.79			293.90			694.32			1,186.04				615.95
			Estimated	Completion		Date		2020			2019				2019				2020			2017			2019			2017			2019				2019			2017			2018			2018				2018
			Construction	Commencement		Date		2011			2011				2016				2017			2012			2014			2014			2013				2016			—			2014			2016				2015
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	943 4.26			6,046 52.82				107,996 2,458.82				— —			— —			34,330 276.77			3,521 10.05			3,447 19.85				151,543 1,093.78			— —			21,467 212.12			74,288 712.67				29,514 266.01
				Total Planned	GFA (1)		(sq.m.)	416,673			141,712				226,472				397,766			13,364			139,902			31,333			284,619				441,615			5,033			224,141			329,939				161,035
					Site Area (1)		(sq.m.)	506,159			213,680				88,065				195,155			66,242			106,353			27,376			88,671				115,902			2,604			147,283			126,506				130,266
						Type of Property		Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential, Other,	Carpark			Residential,	Commercial,	Carpark	Residential,	Composite		Residential,	Commercial, Other,	Carpark	Residential, Other,	Carpark		Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial, Other,	Carpark	Commercial			Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential, Other,	Carpark
			Land Use	Rights Expiry		Date		09 May 2081			07 Jun 2081 to	10 Jun 2081			11 Jul 2056 to	11 Jul 2086			23 Jan 2057 to	23 Jan 2087		13 Jun 2082			16 Oct 2052 to	16 Oct 2082		16 Oct 2052 to	16 Oct 2082		20 Jul 2082				05 Jan 2056 to	05 Jan 2086		28 Apr 2050			14 Sep 2047 to	03 May 2086		20 Jul 2056 to	20 Jul 2086			03 Dec 2083 to	01 Jun 2085
						Land Use		Residential			Residential				Residential,	Commercial,	Education, Park and	Green Space	Residential,	Commercial,	Education, Roadway	Residential			Residential,	Commercial		Residential,	Commercial		Residential				Residential,	Commercial		Commercial,	Underground	Carpark	Residential,	Commercial		Residential,	Commercial			Residential
						City		Tianjin			Tianjin				Tianjin				Tianjin			Wuhai			Xingtai			Xingtai			Xingtai				Xingtai			Beijing			Anxi			Fuqing				Fuzhou
						Holding Entity		Tianjin Shanshui Cheng	Investment Company	Limited	Tianjin Yujing Bandao	Investment Company	Limited		Tianjin Yujingwan	Investment Company	Limited		Tianjin Yuefu Real Estate	Development Limited		Wuhai Junjing Real Estate	Development Company	Limited	Xingtai Shuangda Real	Estate Development	Company Limited	Xingtai Chengjia Real	Estate Development	Company Limited	Xingtai Xiangheng Real	Estate Development	Company Limited		Xingtai Henghao Real	Estate Development	Company Limited	Beijing Dongfang Yejia	Culture and Art Company	Limited	Quanzhou Zuanshi	Investment Development	Company Limited	Fuqing Hengda Property	Company Limited			Fuzhou Jin’an Real Estate	Development Company	Limited
						Property Name		Portion of Evergrande Scenic	Garden Tianjin		Portion of Evergrande Royal	Scenic Peninsula Tianjin			Evergrande Royal Scenic Bay	Tianjin			Evergrande Joy Palace Tianjin			Portion of Evergrande Oasis	Wuhai		Portion of Evergrande City	Xingtai		Portion of Evergrande Royal	View Garden Xingtai		Portion of Evergrande Metropolis	Xingtai			Evergrande Scenic Garden	Xingtai		Portion of Beijing Yuhe History	& Culture Conservation Zone	Renovation Project No.1–1 Land	Evergrande Royal Scenic Anxi			Evergrande City Fuqing				Evergrande Scenic Garden	Fuzhou
				Property		No.		IV-75			IV-76				IV-77				IV-78			IV-79			IV-80			IV-81			IV-82				IV-83			IV-84			IV-85			IV-86				IV-87

– IV-85 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	577.30				596.30				658.21				1,898.70			511.60			69.80		297.60		288.30			853.10				1,230.99			594.60			809.70			166.40
			Interest	Attributable		to the Group	(%)	100.0%				100.0%				51.0%				100.0%			100.0%			100.0%		100.0%		100.0%			100.0%				51.0%			100.0%			100.0%			100.0%
		Market	Value (2)	in Existing		State	(RMB million)	577.30				596.30				1,290.60				1,898.70			511.60			69.80		297.60		288.30			853.10				2,413.70			594.60			809.70			166.40
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	1,645.70				1,834.00				2,243.10				3,689.10			1,121.70			109.90		521.70		641.80			2,471.10				4,051.90			774.00			2,418.80			512.00
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	63.98				119.27				51.93				89.99			50.54			28.67		23.88		12.48			402.21				51.42			262.68			29.23			52.14
		Total	Estimated	Development		Cost	(RMB million)	728.99				883.95				551.13				906.23			403.38			45.32		196.22		206.78			1,212.84				533.55			276.51			865.94			265.39
			Estimated	Completion		Date		2018				2018				2018				2019			2018			2017		2018		2018			2020				2018			2017			2018			2018
			Construction	Commencement		Date		2016				2016				2015				2016			2017			2014		2015		2015			2015				2015			2014			2017			2016
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	51,785 366.77				87,951 696.16				31,646 444.88				6,995 170.39			— —			2,720 14.87		25,031 182.20		21,661 193.59			28,095 160.71				31,782 934.07			6,627 75.59			18,925 218.76			— —
				Total Planned	GFA (1)		(sq.m.)	245,663				265,067				171,704				265,769			148,252			14,604		71,760		82,076			322,879				173,969			106,167			284,007			46,555
					Site Area (1)		(sq.m.)	70,495				112,002				173,956				199,443			18,955			15,839		29,031		57,068			191,389				71,498			98,480			87,329			99,694
						Type of Property		Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Composite, Other,	Carpark	Residential,	Commercial,	Carpark	Residential,	Commercial	Residential, Carpark		Residential,	Commercial,	Composite, Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Carpark	Residential,	Commercial,	Composite, Carpark	Residential,	Commercial, Other,	Carpark	Residential,	Composite, Hotel
			Land Use	Rights Expiry		Date		18 Sep 2086				23 Aug 2056 to	23 Aug 2086			08 Sep 2055 to	07 Sep 2085			08 Oct 2066 to	08 Oct 2086		25 Sep 2052			19 Jan 2054 to	19 Jan 2084	09 Oct 2053 to	09 Oct 2083	08 Mar 2055 to	08 Mar 2085		06 Aug 2052 to	23 Apr 2084			04 Jun 2055 to	04 Jun 2085		16 Feb 2054 to	16 Feb 2084		11 Oct 2056 to	11 Oct 2086		30 Sep 2051 to	30 Sep 2081
						Land Use		Residential				Residential,	Commercial			Residential,	Commercial			Residential,	Roadway		Commercial			Residential,	Commercial	Residential,	Commercial	Residential,	Commercial		Residential,	Commercial, Public	Facility		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial,	Accommodation and	Catering
						City		Longyan				Nanping				Putian				Putian			Quanzhou			Quanzhou		Quanzhou		Quanzhou			Sanming				Xiamen			Shishi			Shishi			Wuyishan
						Property Name Holding Entity		Evergrande Oasis Longyan Longyan Hengda Property	Company Limited			Evergrande Royal Scenic Nanping Hengda Property	Nanping Company Limited			Portion of Evergrande Royal Putian Jinbi Property	Scenic Peninsula Putien Company Limited			Evergrande The Coronation Putian Hengsheng Property	Putian Company Limited		Evergrande City Plaza Quanzhou Quanzhou Renjian Property	Company Limited		Portion of Evergrande Emerald Quanzhou Ansheng Property	Court Quanzhou Company Limited	Portion of Evergrande Emerald Quanzhou Ansheng Property	Dragon Court Quanzhou Company Limited	Portion of Evergrande Royal Jinjiang Jinbi Property	Scenic Bay Quanzhou Company Limited		Evergrande Royal Palace Panshi (Fujian) Real Estate	Sanming Development Company	Limited (Xintiandi Branch	Office)	Portion of Evergrande Royal Xiamen Hengda Property	View Garden Xiamen Company Limited		Portion of Evergrande Metropolis Shishi Jinbi Property	Shishi Company Limited		Evergrande First Palace Shishi Shishi Hengda Property	Company Limited		Evergrande Scenic Garden Zhaode (Wuyishan) Hotel	Wuyishan Company Limited
				Property		No.		IV-88				IV-89				IV-90				IV-91			IV-92			IV-93		IV-94		IV-95			IV-96				IV-97			IV-98			IV-99			IV-100

– IV-86 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	852.70			2,105.10			1,364.70				2,622.30			39.30			797.50				481.10				44.10			286.40			399.20				397.30			34.90				53.10
			Interest	Attributable		to the Group	(%)	100.0%			100.0%			100.0%				100.0%			100.0%			100.0%				100.0%				100.0%			100.0%			100.0%				100.0%			100.0%				100.0%
		Market	Value (2)	in Existing		State	(RMB million)	852.70			2,105.10			1,364.70				2,622.30			39.30			797.50				481.10				44.10			286.40			399.20				397.30			34.90				53.10
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	1,918.70			5,966.70			4,930.10				9,942.70			58.90			2,303.00				2,390.10				209.50			1,093.50			611.50				1,340.30			109.40				209.60
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	10.83			211.46			291.58				333.15			10.94			186.29				270.22				11.48			27.75			259.97				117.47			38.67				20.80
		Total	Estimated	Development		Cost	(RMB million)	540.66			2,237.32			2,231.03				3,788.18			19.15			1,006.46				1,599.97				132.00			507.42			316.77				677.13			86.49				126.58
			Estimated	Completion		Date		2018			2020			2021				2023			2017			2020				2018				2018			2020			2018				2019			2018				2018
			Construction	Commencement		Date		2015			2016			2016				2013			2013			2014				2011				2011			2012			2011				2016			2011				2014
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	34,125 444.02			120,500 1,200.21			179,889 1,174.95				47,238 398.07			— —			34,672 231.65				1,950 7.27				10,238 45.23			9,570 58.25			16,139 76.78				28,635 176.98			— —				1,929 11.52
				Total Planned	GFA (1)		(sq.m.)	189,732			746,574			732,260				1,169,125			7,315			352,476				514,406				40,274			187,647			116,689				231,499			32,978				45,319
					Site Area (1)		(sq.m.)	68,224			144,625			172,800				317,016			86,683			357,460				172,502				77,333			139,835			138,355				89,312			218,580				93,309
						Type of Property		Residential,	Commercial,	Composite, Carpark	Residential,	Commercial,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other	Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite	Residential,	Commercial,	Composite, Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other
			Land Use	Rights Expiry		Date		24 Sep 2054 to	24 Sep 2084		08 Aug 2086			01 Nov 2055 to	01 Nov 2085			13 Feb 2051 to	13 Feb 2081		02 Jul 2046 to	02 Jul 2076		29 Dec 2080				27 Sep 2050 to	27 Sep 2080			14 Aug 2079			25 Jul 2082			24 Mar 2051 to	24 Mar 2081			16 Aug 2056 to	16 Aug 2086		07 Apr 2081 to	01 Sep 2081			29 Nov 2053 to	29 Nov 2083
						Land Use		Residential,	Commercial		Residential			Residential				Residential,	Commercial		Residential,	Commercial		Residential,	Commercial			Residential,	Commercial			Residential			Residential			Residential,	Commercial			Residential,	Commercial		Residential				Residential
						City		Zhangzhou			Lanzhou			Lanzhou				Lanzhou			Lanzhou			Lanzhou				Shizuishan				Wuzhong			Wuwei			Xining				Yinchuan			Yinchuan				Yinchuan
						Holding Entity		Zhangzhou Xincheng Real	Estate Development	Company Limited	Gansu Hengyuan Real	Estate Development	Company Limited	Yuzhong Junxing Real	Estate Development	Company Limited		Hengda Real Estate Group	Lanzhou Property Company	Limited	Gansu Yusheng Real Estate	Development Company	Limited	Lanzhou Shenjun Property	Company Limited			Hengda (Shizuishan) Real	Estate Group Company	Limited		Ningxia Jinhai Property	Company Limited		Wuwei Hengda Real Estate	Development Company	Limited	Xining Hengda Real Estate	Development Company	Limited		Ningxia Jin Honghai	Property Company Limited		Hengda (Yinchuan) Real	Estate Group Company	Limited		Ningxia Haotian Real Estate	Development Company	Limited
						Property Name		Portion of Evergrande Royal	Scenic Peninsula Zhangzhou		Evergrande Royal View Garden	Lanzhou		Evergrande Emerald Court	Lanzhou			Portion of Evergrande Oasis	Lanzhou		Portion of Evergrande Metropolis	Lanzhou		Portion of Evergrande Scenic	Garden Lanzhou			Portion of Evergrande Oasis	Shizuishan			Portion of Evergrande Metropolis	Wuzhong		Portion of Evergrande Oasis	Wuwei		Portion of Evergrande Metropolis	Xining			Evergrande Royal View Garden	Yinchuan		Portion of Evergrande Metropolis	Yinchuan			Portion of Evergrande Royal	Scenic Yinchuan
				Property		No.		IV-101			IV-102			IV-103				IV-104			IV-105			IV-106				IV-107				IV-108			IV-109			IV-110				IV-111			IV-112				IV-113

– IV-87 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	324.00			1,185.00			496.07				1,720.80			327.20				106.80			23.20			33.50		570.00			262.10			325.40			4.00			34.40			2,330.40
			Interest	Attributable		to the Group	(%)	80.0%			100.0%			57.0%				100.0%			100.0%				100.0%			100.0%			100.0%		100.0%			100.0%			100.0%			100.0%			100.0%			100.0%
		Market	Value (2)	in Existing		State	(RMB million)	405.00			1,185.00			870.30				1,720.80			327.20				106.80			23.20			33.50		570.00			262.10			325.40			4.00			34.40			2,330.40
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	2,149.20			5,588.60			3,345.80				2,266.30			1,578.40				541.30			75.40			42.50		926.20			650.00			482.00			7.50			106.70			4,120.60
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	65.26			306.30			129.95				209.04			8.21				4.28			0.73			15.21		109.34			0.01			125.66			1.98			35.74			392.77
		Total	Estimated	Development		Cost	(RMB million)	1,086.78			2,624.14			1,646.90				220.05			565.74				163.92			26.76			16.01		235.93			195.42			188.62			32.20			87.04			1,166.79
			Estimated	Completion		Date		2020			2025			2020				2018			2019				2018			2018			2017		2018			2018			2017			2017			2017			2018
			Construction	Commencement		Date		2016			2013			2017				—			2017				2017			2017			2013		2016			2016			2013			2008			2007			2016
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	— —			— —			7,468 53.43				— —			— —				— —			— —			1,153 8.17		44,244 509.85			— —			27,443 246.77			23 0.28			5,281 76.84			106,225 1,464.33
				Total Planned	GFA (1)		(sq.m.)	347,133			912,089			554,281				58,185			176,549				61,218			11,897			7,643		87,851			66,077			45,316			16,110			31,655			388,629
					Site Area (1)		(sq.m.)	66,667			525,029			245,369				173,962			85,866				27,264			7,870			45,401		78,344			99,518			43,588			114,126			146,889			149,793
						Type of Property		Residential,	Commercial,	Carpark	Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial, Office,	Carpark	Commercial, Office,	Carpark		Residential, Carpark		Residential,	Commercial,	Carpark	Residential,	Commercial,	Carpark	Residential,	Commercial		Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Composite, Other	Residential,	Commercial,	Composite, Other,	Carpark
			Land Use	Rights Expiry		Date		19 Sep 2056			11 Aug 2082			10 Jan 2055 to	11 Jan 2085			03 Mar 2043 to	03 Mar 2053		18 Dec 2053 to	18 Dec 2083			18 Dec 2053 to	18 Dec 2083		19 Dec 2053 to	19 Dec 2053		21 Sep 2081		13 May 2063 to	15 May 2063		20 Jan 2057 to	20 Jan 2087		16 Apr 2078			19 May 2074			19 May 2074			30 Apr 2080 to	30 Sep 2080
						Land Use		Residential,	Commercial		Residential, Public	Facility, Green	Space	Residential,	Commercial,	Accommodation and	Catering	Commercial, Public	Facility		Residential,	Commercial			Residential,	Commercial		Commercial			Residential		Residential,	Commercial		Residential,	Commercial		Residential			Residential			Residential			Residential
						City		Yinchuan			Chaozhou			Chaozhou				Guangzhou			Dongguan				Dongguan			Dongguan			Dongguan		Dongguan			Dongguan			Dongguan			Dongguan			Dongguan			Dongguan
						Holding Entity		Ningxia Runjing Real	Estate Development	Company Limited	Chaozhou Hengda Property	Company Limited		Chaozhou Hengxin Real	Estate Development	Company Limited		Hengda Real Estate Group	Company Limited		Dongguan Guanxiang	Commercial and Residential	Company Limited		Dongguan Zhonghui	Property Company Limited		Dongguan Hongfeng	Commercial Development	Company Limited	Dongguan Shenjian Real	Estate Company Limited	Dongguan Huawei Real	Estate Development	Company Limited	Kaixing (Dongguan) Real	Estate Development	Company Limited	Dongguan Chengbang Real	Estate Development	Company Limited	Dongguan Hongjing Real	Estate Company Limited		Dongguan Shenjian Real	Estate Company Limited		Dongguan Qingpengxinyi	Real Estate Development	Company Limited
						Property Name		Evergrande Royal Scenic	Peninsula Yinchuan		Portion of Evergrande City	Chaozhou		Portion of Evergrande Scenic	Garden Chaozhou			Portion of The Third Jinbi	Garden Guangzhou		Portion of Dongguan Furong	Guli Project			Portion of Dongguan Furong	Guli Project		Portion of Dongguan Furong	Guli Project		Portion of Evergrande Royal	View Garden Dongguan	Portion of Evergrande Emerald	Court Dongguan		Portion of Evergrande Emerald	Court Dongguan		Portion of Evergrande Palace	Dongguan		Portion of Evergrande Atrium	Dongguan		Portion of Evergrande Atrium	Dongguan (Phase III)		Evergrande Royal Scenic	Peninsula Dongguan
				Property		No.		IV-114			IV-115			IV-116				IV-117			IV-118				IV-119			IV-120			IV-121		IV-122			IV-123			IV-124			IV-125			IV-126			IV-127

– IV-88 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	118.10				1,788.80				929.34			184.41				672.80				1,618.10				230.80			103.70			1,770.00			415.10				2,129.00			321.58
			Interest	Attributable		to the Group	(%)	100.0%				100.0%				90.0%			90.0%				100.0%				100.0%				100.0%			100.0%			100.0%			100.0%				100.0%			70.0%
		Market	Value (2)	in Existing		State	(RMB million)	118.10				1,788.80				1,032.60			204.90				672.80				1,618.10				230.80			103.70			1,770.00			415.10				2,129.00			459.40
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	267.30				6,738.30				1,527.40			263.90				926.80				4,824.30				303.70			126.10			2,362.40			1,534.50				2,894.90			2,331.90
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	12.26				1,168.03				381.27			106.94				407.27				130.59				134.63			20.54			449.29			61.89				294.10			40.84
		Total	Estimated	Development		Cost	(RMB million)	105.23				4,244.37				531.90			112.56				428.71				1,651.71				141.71			21.62			543.15			808.97				387.56			1,304.49
			Estimated	Completion		Date		2017				2019				2018			2017				2018				2019				2018			2017			2017			2018				2018			2020
			Construction	Commencement		Date		2014				2012				2014			2013				2010				2016				2014			2012			2014			2013				2015			2017
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	2,878 39.00				46,152 341.18				31,079 388.06			252 3.18				15,136 170.10				140,080 1,508.34				— —			2,801 50.78			— —			19,014 99.09				13,417 842.15			— —
				Total Planned	GFA (1)		(sq.m.)	47,731				1,435,216				170,398			51,854				194,749				515,578				63,572			5,937			146,026			350,251				57,255			404,053
					Site Area (1)		(sq.m.)	80,194				2,056,500				74,271			51,271				171,869				135,831				90,079			60,491			44,275			250,777				8,101			115,084
						Type of Property		Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial, Hotel,	Other, Carpark		Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential, Other,	Carpark		Residential			Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark
			Land Use	Rights Expiry		Date		18 Mar 2053 to	18 Mar 2083			13 Mar 2052 to	13 Mar 2082			23 Dec 2052 to	23 Dec 2082		17 May 2052 to	17 May 2082			31 Jul 2062 to	11 Aug 2064			12 May 2056 to	12 May 2086			22 Aug 2053 to	22 Aug 2083		30 Dec 2050 to	30 Dec 2080		17 Dec 2083 to	17 Dec 2083		01 Jul 2053 to	01 Jul 2083			22 Aug 2052			10 Nov 2056 to	10 Nov 2086
						Land Use		Residential,	Commercial			Residential,	Commercial,	Accommodation and	Catering	Residential,	Commercial		Residential,	Commercial			Residential				Residential,	Commercial, Office,	Accommodation and	Catering	Residential, Office			Residential,	Commercial		Residential			Residential,	Commercial			Commercial, Other			Residential,	Commercial
						City		Dongguan				Enping				Foshan			Foshan				Foshan				Foshan				Foshan			Foshan			Guangzhou			Heyuan				Guangzhou			Jiangmen
						Holding Entity		Hongjun (Dongguan)	Property Company Limited			Hengda (Enping) Real	Estate Group Company	Limited		Foshan Nanhai Outai	Property Company Limited		Foshan Nanhai Outai	Property Company Limited			Foshan Nanhai Juncheng	Real Estate Development	Limited		Foshan Nanhai Junkai Real	Estate Development Limited			Foshan Changxin Honglong	Real Estate Company	Limited	Foshan Nanhai Yingyu Real	Estate Development	Company Limited	Guangzhou Xincheng	Property Company Limited		Hengda (Heyuan) Real	Estate Group Company	Limited		Hengda Real Estate Group	Company Limited		Guangdong Jiangmen	Shipyard Company Limited
						Property Name		Evergrande Royal Scenic	Dongguan			Portion of Evergrande Spring	City Enping			Evergrande City Foshan			Portion of Evergrande Emerald	Court Foshan			Portion of Evergrande Cruise	City Foshan			Evergrande Azure Lake Grand	City Foshan			Portion of Evergrande Royal	Scenic Foshan		Portion of Evergrande Royal	Scenic Bay Foshan		Portion of Evergrande Royal	Palace Guangzhou		Portion of Evergrande Metropolis	Heyuan			Evergrande Jewelry Guangzhou			Evergrande Royal Scenic	Peninsula Jiangmen
				Property		No.		IV-128				IV-129				IV-130			IV-131				IV-132				IV-133				IV-134			IV-135			IV-136			IV-137				IV-138			IV-139

– IV-89 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	2,001.20			1,568.60			3,406.80				689.70				1,426.40				312.70			1,368.00				356.30				247.40				22.10			31.50				776.64
			Interest	Attributable		to the Group	(%)	80.0%			100.0%			100.0%				100.0%				100.0%				100.0%			100.0%				100.0%				51.0%				100.0%			100.0%				60.0%
		Market	Value (2)	in Existing		State	(RMB million)	2,501.50			1,568.60			3,406.80				689.70				1,426.40				312.70			1,368.00				356.30				485.10				22.10			31.50				1,294.40
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	8,820.50			12,506.40			10,126.70				2,179.40				5,626.60				417.50			4,476.20				574.10				1,978.80				27.50			39.90				3,113.10
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	850.85			221.77			975.07				148.12				254.99				120.68			873.10				154.97				451.28				10.31			12.85				173.53
		Total	Estimated	Development		Cost	(RMB million)	4,599.67			5,518.28			4,206.39				974.35				2,942.22				127.03			2,407.54				257.17				1,218.50				10.85			13.52				1,121.18
			Estimated	Completion		Date		2019			2025			2020				2020				2018				2018			2021				2017				2022				2017			2017				2019
			Construction	Commencement		Date		2015			2007			2011				2015				2012				2014			2013				2015				2011				—			—				2016
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	205,099 1,253.44			43,585 164.02			210,216 1,419.27				150,901 970.93				127,817 704.11				— —			11,669 89.55				5,895 70.14				34,119 152.70				— —			— —				111,793 1,115.90
				Total Planned	GFA (1)		(sq.m.)	1,685,064			2,277,816			1,622,157				316,657				969,285				59,880			719,798				109,855				436,013				3,953			5,449				414,474
					Site Area (1)		(sq.m.)	597,006			2,703,665			955,580				166,253				420,952				39,405			1,228,925				138,669				369,888				249,732			286,467				84,881
						Type of Property		Residential,	Commercial, Other,	Carpark	Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Hotel,	Other, Carpark	Residential,	Commercial,	Composite, Carpark	Residential,	Commercial, Hotel,	Other, Carpark		Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential, Other			Residential, Other,	Carpark			Residential,	Commercial,	Composite, Other,	Carpark
			Land Use	Rights Expiry		Date		08 Oct 2053 to	25 Nov 2085		08 Jan 2057 to	24 Feb 2081		17 Sep 2080 to	18 Oct 2080			13 Mar 2056 to	13 Mar 2086			16 Jul 2054 to	15 Sep 2086			19 Feb 2053 to	11 Jan 2075		12 Jan 2044 to	17 Aug 2083			04 Feb 2055 to	04 Feb 2085			28 Dec 2052 to	28 Dec 2082			08 Jun 2066			08 Jun 2066				19 Apr 2055 to	19 Apr 2085
						Land Use		Residential,	Commercial		Residential, Office			Residential				Residential, Public	Facility			Residential,	Commercial			Residential,	Commercial		Residential,	Accommodation and	Catering, Cultural	and Sport	Residential,	Commercial			Residential,	Commercial			Residential, Carpark			Residential				Residential,	Commercial, Park	and Green Space
						City		Meizhou			Qingyuan			Qingyuan				Shantou				Shaoguan				Foshan			Yangjiang				Yangjiang				Yunfu				Guangzhou			Guangzhou				Zhanjiang
						Holding Entity		Meizhou Dabaihui Brand	Industrial Park Company	Limited	Hengda Shengyu (Qingxin)	Property Company Limited		Qingyuan Yinhucheng	Investment Company	Limited		Shantou Hengyue Property	Company Limited			Hengda (Shaoguan) Real	Estate Group Company	Limited		Foshan Shunde District	Shunya Fangzhou Real	Estate Company Limited	Yangjiang Yifeng Property	Company Limited			Hengda (Yangjiang) Real	Estate Group Company	Limited		Hengda (Yunfu) Real Estate	Group Company Limited			Hengda Real Estate Group	Company Limited		Guangzhou Hengda	(Zengcheng) Real Estate	Development Company	Limited	Zhanjiang Longchao Real	Estate Development	Company Limited
						Property Name		Evergrande Royal Scenic	Peninsula Meizhou		Portion of Evergrande Splendor	Qingyuan		Portion of Evergrande Silverlake	City Qingyuan			Evergrande Royal Scenic Bay	Shantou			Portion of Evergrande City	Shaoguan			Portion of Evergrande Royal	View Garden Shunde		Portion of Evergrande Hawaii on	the sea Yangjiang			Portion of Evergrande Metropolis	Yangjiang			Portion of Evergrande City	Yunfu			Portion of Evergrande Scenic	Garden Guangzhou Zengcheng	(Phase 2 and 3)	Portion of Evergrande Scenic	Garden Guangzhou Zengcheng			Evergrande Royal View Garden	Zhanjiang
				Property		No.		IV-140			IV-141			IV-142				IV-143				IV-144				IV-145			IV-146				IV-147				IV-148				IV-149			IV-150				IV-151

– IV-90 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	Valuation Date	(RMB million)	78.30				792.80				364.10				1,167.90				215.70			909.89				1,421.70					586.30			888.10					260.70			257.65			539.30
			Interest	Attributable	to the Group	(%)	100.0%				100.0%				100.0%				100.0%				100.0%			51.0%				100.0%					100.0%			100.0%					100.0%			51.0%			100.0%
		Market	Value (2)	in Existing	State	(RMB million)	78.30				792.80				364.10				1,167.90				215.70			1,784.10				1,421.70					586.30			888.10					260.70			505.20			539.30
Development Value (2)		as if	Completed as	at Valuation	Date	(RMB million)	319.60				1,865.50				2,539.20				1,513.90				282.90			2,555.50				4,270.90					1,571.40			5,214.30					377.20			1,222.50			1,211.50
	Development	Cost incurred	up to the	Valuation	Date	(RMB million)	17.89				297.63				54.04				351.18				125.46			954.25				213.80					138.87			113.34					216.81			129.18			126.51
		Total	Estimated	Development	Cost	(RMB million)	181.84				799.77				1,463.53				373.82				134.93			1,004.47				1,740.01					737.77			2,435.29					236.99			549.99			503.90
			Estimated	Completion	Date		2018				2019				2019				2017				2017			2018				2020					2018			2025					2018			2018			2018
			Construction	Commencement	Date		2014				2016				2016				2012				2014			2016				2016					2013			2011					2014			2013			2016
				Pre-sale GFA (1) Pre-sale consideration		(sq.m.) (RMB million)	34,438 215.77				— —				— —				1,677 8.98				5,362 80.31			120,295 1,183.01				49,823 424.94					5,639 37.79			6,384 44.77					4,135 12.22			50,063 309.89			23,339 194.75
				Total Planned GFA (1)		(sq.m.)	69,484				341,628				528,492				133,381				42,334			301,681				529,825					279,498			710,645					107,382			165,430			175,985
				Site Area (1)		(sq.m.)	127,834				111,944				140,604				107,652				63,323			242,800				201,594					130,460			377,995					115,327			94,908			67,304
					Type of Property		Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial, Other,	Carpark		Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Commercial,	Carpark		Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial, Hotel,	Carpark			Residential,	Commercial,	Composite, Carpark	Residential,	Commercial, Hotel,	Other, Carpark			Residential,	Composite, Other,	Carpark	Residential,	Commercial, Hotel,	Office, Carpark	Residential,	Commercial,	Composite, Other,	Carpark
			Land Use	Rights Expiry	Date		16 Jul 2053 to	16 Jul 2083			04 Aug 2050 to	04 Aug 2080			27 Dec 2052 to	27 Dec 2082			19 Dec 2063 to	19 Dec 2066			21 Oct 2083			30 Dec 2042 to	30 Dec 2072			20 Jul 2056 to	20 Jul 2086				06 Jun 2053 to	06 Jun 2083		01 Jan 2046 to	20 Dec 2084				01 Aug 2082			28 Sep 2048 to	29 Nov 2049		15 Apr 2056 to	15 Apr 2086
					City Land Use		Zhanjiang Residential,	Commercial			Zhaoqing Residential,	Commercial,	Accommodation and	Catering	Zhaoqing Residential,	Commercial			Zhongshan Residential				Zhongshan Residential			Zhuhai Residential,	Commercial			Beihai Residential,	Commercial,	Accommodation and	Catering, Cultural	and Entertainment	Beihai Residential,	Commercial		Beihai Residential,	Commercial,	Accommodation and	Catering, Park and	Green Space	Fangchenggang Residential			Guilin Commercial,	Composite		Guilin Residential,	Commercial
					Property Name Holding Entity		Portion of Evergrande Oasis Hengda Real Estate Group	Zhanjiang Zhanjiang Yujing Property	Company Limited		Portion of Zhaoqing Evergrande Zhaoqing Tuanxing Real	Dinghu Haoting Estate Development	Company Limited		Evergrande Royal Town Sihui City Huiwen Real	Zhaoqing Estate Development	Company Limited		Portion of Evergrande Oasis Hengda (Zhongshan) Real	Zhongshan Estate Group Company	Limited		Portion of Evergrande Metropolis Zhongshan Changxin	Zhongshan Hongzhan Real Estate	Company Limited	Evergrande Ocean Spring Zhuhai Zhuhai Hengda Haiquanwan	Property Company Limited			Evergrande Royal Coast Beihai Beihai Junhai Tourism	Culture Company Limited				Portion of Evergrande Metropolis Beihai Jiajing Real Estate	Beihai Development Company	Limited	Portion of Evergrande Royal Beihai Nanguo Tiantang	Scenic Peninsula Beihai Real Estate Development	Company Limited			Portion of Evergrande Royal Hengda (Fangchenggang)	Scenic Bay Fangchenggang Real Estate Group Company	Limited	Portion of Evergrande Plaza Guilin Guijia Real Estate	Guilin Company Limited		Evergrande Bay Guilin Guilin Hengda Real Estate	Development Company	Limited
				Property	No.		IV-152				IV-153				IV-154				IV-155				IV-156			IV-157				IV-158					IV-159			IV-160					IV-161			IV-162			IV-163

– IV-91 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	270.40				810.90				584.50			1,094.00				275.00 (5)				2,365.90				930.41				441.90				133.60				1,291.70			1,998.30			1,726.50
			Interest	Attributable		to the Group	(%)	100.0%				100.0%				100.0%			51.0%				100.0%				100.0%				85.0%				100.0%				100.0%				100.0%			100.0%			100.0%
		Market	Value (2)	in Existing		State	(RMB million)	270.40				810.90				584.50			2,145.10				275.00				2,365.90				1,094.60				441.90				133.60				1,291.70			1,998.30			1,726.50
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	497.70				1,574.50				808.20			4,413.30				4,451.60				5,950.90				4,058.60				1,157.20				203.90				3,042.70			4,893.90			3,728.00
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	228.16				297.75				313.73			661.54				58.58				166.29				205.19				91.30				101.29				214.05			326.93			268.55
		Total	Estimated	Development		Cost	(RMB million)	312.59				611.99				330.24			1,503.28				2,228.26				1,728.46				1,953.95				492.96				120.77				1,133.71			1,720.10			1,244.06
			Estimated	Completion		Date		2019				2019				2018			2020				2020				2020				2020				2019				2018				2019			2020			2019
			Construction	Commencement		Date		2015				2016				2014			2015				2017				2016				2017				2015				2015				2016			2015			2016
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	6,408 35.52				— —				21,225 139.17			22,288 231.92				103,203 692.71				93,457 983.00				— —				87,743 625.83				7,666 39.43				136,334 1,057.41			18,260 149.60			149,858 1,412.88
				Total Planned	GFA (1)		(sq.m.)	141,746				225,873				131,324			541,924				795,379				636,688				601,159				206,907				55,431				405,670			595,056			451,459
					Site Area (1)		(sq.m.)	91,344				83,093				92,593			213,110				50,549				132,394				153,984				87,862				37,240				76,912			67,333			135,705
						Type of Property		Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Carpark		Residential,	Commercial,	Composite, Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Office,	Other, Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Hotel,	Other, Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial, Other,	Carpark	Commercial, Hotel,	Office, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark
			Land Use	Rights Expiry		Date		03 Apr 2055 to	03 Apr 2085			16 Feb 2056 to	16 Feb 2086			15 Jan 2054 to	15 Jan 2084		22 Jan 2054 to	25 Sep 2085			15 Aug 2056 to	15 Aug 2086			22 Apr 2056 to	22 Apr 2086			10 May 2056 to	10 May 2086			19 May 2055 to	19 May 2085			29 Apr 2054 to	29 Apr 2084			01 Dec 2055 to	01 Dec 2085		06 Nov 2053 to	06 Nov 2063		01 Dec 2055 to	01 Dec 2085
						Land Use		Residential,	Commercial			Residential,	Commercial, Park	and Green Space,	Roadway	Residential,	Commercial		Residential,	Commercial			Residential,	Commercial			Residential,	Commercial			Residential,	Commercial,	Cultural and	Entertainment	Residential,	Commercial			Residential,	Commercial			Residential,	Commercial		Commercial,	Accommodation and	Catering	Residential,	Commercial
						City		Liuzhou				Liuzhou				Liuzhou			Liuzhou				Liuzhou				Liuzhou				Liuzhou				Nanning				Nanning				Nanning			Nanning			Nanning
						Holding Entity		Liuzhou Hengda Real	Estate Development	Company Limited		Liuzhou Yaoshi Hengda	Real Estate Development	Company Limited		Liuzhou Hengda Jinbi	Property Company Limited		Liuzhou Zhaofu Property	Company Limited			Liujiang Xian Hengda Real	Estate Development	Company Limited		Liuzhou Yujing Longheng	Real Estate Development	Company Limited		Liuzhou Shanshui Yunhe	Property Company Limited			Nanning Jinbi Hengda	Property Company Limited			Guangxi Honghao Huihuang	Real Estate Development	Company Limited		Nanning Yujing Tianheng	Real Estate Development	Company Limited	Nanning Hengda Urban	Construction Company	Limited	Nanning Yaoshi Longting	Real Estate Development	Company Limited
						Property Name		Portion of Evergrande City	Liuzhou			Evergrande City Liuzhou (Phase	III)			Portion of Evergrande Emerald	Court Liuzhou		Portion of Evergrande Palace	Liuzhou			Evergrande Atrium Liuzhou				Evergrande Royal Palace	Liuzhou			Evergrande Royal Scenic Bay	Liuzhou			Portion of Evergrande City	Nanning			Portion of Evergrande Royal	View Garden Nanning			Evergrande Emerald Court	Nanning		Evergrande International Center	Nanning		Evergrande Palace Nanning
				Property		No.		IV-164				IV-165				IV-166			IV-167				IV-168				IV-169				IV-170				IV-171				IV-172				IV-173			IV-174			IV-175

– IV-92 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	925.30			57.70			432.00				426.30				469.50				323.68				76.80				381.48				592.20			133.40			548.50				53.80
			Interest	Attributable		to the Group	(%)	100.0%			100.0%			100.0%				100.0%				100.0%				55.0%				60.0%				60.0%				100.0%			100.0%			100.0%				100.0%
		Market	Value (2)	in Existing		State	(RMB million)	925.30			57.70			432.00				426.30				469.50				588.50				128.00				635.80				592.20			133.40			548.50				53.80
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	1,809.50			89.20			1,273.80				1,313.30				2,109.80				2,256.50				583.80				2,357.80				770.30			311.90			2,244.50				110.20
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	439.91			60.73			92.02				4.92				194.63				230.31				175.06				196.38				258.71			67.02			37.40				33.64
		Total	Estimated	Development		Cost	(RMB million)	704.40			73.45			658.68				477.03				1,280.04				1,222.84				458.14				1,252.84				272.32			294.01			1,117.55				68.39
			Estimated	Completion		Date		2021			2017			2019				2019				2025				2020				2020				2020				2017			2017			2018				2017
			Construction	Commencement		Date		2014			2015			2016				2016				2011				2016				2015				2016				2014			2014			2012				2010
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	36,461 273.63			23,969 59.78			105,373 852.80				— —				— —				63,151 347.72				4,188 18.81				110,084 657.86				37,007 262.77			— —			29,095 221.13				8,064 21.23
				Total Planned	GFA (1)		(sq.m.)	272,479			31,468			194,997				179,947				467,221				461,107				141,284				462,269				82,512			71,710			367,331				26,673
					Site Area (1)		(sq.m.)	248,870			20,051			62,906				44,633				202,979				89,070				138,993				95,477				249,894			169,798			566,394				126,780
						Type of Property		Residential,	Composite, Other,	Carpark	Residential, Other,	Carpark		Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential			Commercial,	Composite, Hotel,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark
			Land Use	Rights Expiry		Date		14 Oct 2047 to	14 Oct 2077		29 Jun 2055 to	29 Jun 2085		24 Mar 2056 to	24 Mar 2086			15 Apr 2056 to	15 Apr 2086			09 Feb 2050 to	09 Feb 2080			14 Jan 2049 to	14 Jan 2079			09 Dec 2053 to	09 Dec 2083			25 Feb 2086				22 Jul 2053 to	15 Aug 2053		22 Jul 2053 to	15 Aug 2053		30 Dec 2050 to	08 Sep 2085			23 Jul 2080
						Land Use		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial			Residential,	Commercial			Residential,	Commercial			Residential,	Commercial			Residential,	Commercial			Residential				Residential, Office,	Accommodation and	Catering	Residential, Office,	Accommodation and	Catering	Residential,	Commercial			Residential
						City		Nanning			Nanning			Nanning				Nanning				Qinzhou				Qinzhou				Wuzhou				Yulin				Changjiang			Changjiang			Danzhou				Danzhou
						Holding Entity		Nanning Yinxiang Real	Estate Development	Company Limited	Nanning Shengshi Hengda	Real Estate Development	Company Limited	Nanning Chengxin Yayuan	Real Estate Development	Company Limited		Nanning Jinhua Yufu Real	Estate Development	Company Limited		Qinzhou Qinlian Hengda	Property Investment	Company Limited		Guangxi Binhui Property	Company Limited			Guangxi Wuzhou Wanguo	Real Estate Development	Company Limited		Yulin Hengda Jinbi	Property Company Limited			Changjiang Guangyi Real	Estate Development	Company Limited	Changjiang Shengda	Investment Company	Limited	Danzhou Hengda Binhai	Investment Company	Limited		Danzhou Hengda Binhai	Investment Company	Limited
						Property Name		Portion of Evergrande Oasis	Nanning		Portion of Evergrande Metropolis	Nanning		Evergrande Atrium Nanning				Portion of Evergrande Scenic	View Garden Nanning			Portion of Evergrande Oasis	Qinzhou			Evergrande Royal Scenic	Peninsula Qinzhou			Portion of Evergrande Scenic	Garden Wuzhou			Evergrande City Yulin				Portion of Evergrande Qizi Bay	Changjiang Gulf Pearl		Evergrande Qizi Bay Changjiang	Hotel and Conference Centre	Project	Portion of Evergrande Splendor	Danzhou			Portion of Evergrande Metropolis	Danzhou
				Property		No.		IV-176			IV-177			IV-178				IV-179				IV-180				IV-181				IV-182				IV-183				IV-184			IV-185			IV-186				IV-187

– IV-93 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	11,820.60									2,569.40			230.00		408.60			3,290.80					1,721.10				1,033.20				250.05			2,394.40			217.40				349.90
			Interest	Attributable		to the Group	(%)	100.0%									100.0%			100.0%		100.0%			100.0%					100.0%				100.0%				75.0%			100.0%			100.0%				100.0%
		Market	Value (2)	in Existing		State	(RMB million)	11,820.60									2,569.40			230.00		408.60			3,290.80					1,721.10				1,033.20				333.40			2,394.40			217.40				349.90
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	31,137.30									5,869.40			1,154.70		584.90			8,456.70					4,352.50				8,788.60				2,053.10			4,591.40			314.60				2,196.40
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	3,128.71									213.92			27.78		56.84			1,278.49					108.32				235.39				85.04			749.23			154.28				117.74
		Total	Estimated	Development		Cost	(RMB million)	9,053.84									1,712.62			636.55		516.25			3,744.34					1,431.12				5,458.26				1,199.37			1,634.22			184.37				1,295.81
			Estimated	Completion		Date		2022									2019			2018		2019			2019					2019				2018				2020			2019			2017				2023
			Construction	Commencement		Date		2012									2014			2012		2013			2014					2016				2013				2015			2013			2012				2011
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	76,064 1,096.86									10,818 135.17			46,493 329.19		5,639 40.63			20,493 273.28					— —				— —				— —			75,179 944.19			4,771 19.50				30,275 113.88
				Total Planned	GFA (1)		(sq.m.)	2,657,317									477,372			183,069		87,622			1,032,503					371,103				1,406,208				332,360			422,191			53,330				441,088
					Site Area (1)		(sq.m.)	1,865,094									115,408			239,331		122,822			840,339					86,106				1,110,000				266,625			328,286			171,983				271,956
						Type of Property		Residential,	Commercial,	Composite, Hotel,	Other, Carpark						Residential,	Commercial,	Carpark	Residential,	Composite, Other	Commercial,	Composite, Hotel,	Carpark	Residential,	Commercial,	Composite, Hotel,	Office, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Carpark	Residential, Hotel,	Carpark		Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark
			Land Use	Rights Expiry		Date		14 Nov 2045 to	14 Nov 2075								27 Jun 2048 to	27 Jun 2078		30 Dec 2068		27 Jun 2053 to	27 Jun 2083		09 Nov 2063					28 Sep 2073				31 Jan 2050 to	31 Jan 2080			28 Feb 2051 to	28 Feb 2081		22 Mar 2052 to	22 Mar 2082		21 Jul 2052 to	21 Jul 2082			16 May 2051 to	15 May 2082
						Land Use		Residential,	Commercial,	Accommodation and	Catering, Medical,	Cultural and	Entertainment,	Education, Public	Facility, Park and	Green Space	Residential,	Accommodation and	Catering	Residential		Residential,	Commercial		Commercial					Residential, Office				Residential,	Commercial			Residential,	Commercial		Residential,	Commercial, Green	Space	Residential,	Commercial			Residential,	Commercial
						City		Haikou									Haikou			Chengmai		Haikou			Haikou					Sanya				Lingao				Dingan			Sanya			Daqing				Harbin
						Holding Entity		New World China Real	Estate (Haikou) Company	Limited							Haikou Waitan Cheng Real	Estate Company Limited		Hainan Minghao Property	Company Limited	Hengda (Hainan) Real	Estate Group Company	Limited	Hainan Dongfangmingzhu	Real Estate Company	Limited			Sanya Hada Agriculture	Products Trading Company	Limited		Hainan Jincui Real Estate	Development Company	Limited		Hainan Changmao Longhu	Real Estate Investment	Company Limited	Hainan Lingshui	Zonglvquan Property	Company Limited	Daqing Hengda Yongsheng	Real Estate Development	Company Limited		Harbin Hengda Xingye Real	Estate Development	Company Limited
						Property Name		Evergrande Elissa Haikou									Portion of Evergrande Bund	Haikou		Portion of Evergrande Royal	Scenic Bay Hainan	Portion of Evergrande Bay	Haikou		Portion of Evergrande Culture	Tourist City Haikou				Evergrande Royal Palace Sanya				Evergrande Royal Sea Hainan				Evergrande Dingan Royal Lake	Manor Haikou		Evergrande Royal Seaview	Garden Sanya		Portion of Evergrande Oasis	Daqing			Portion of Evergrande City	Harbin
				Property		No.		IV-188									IV-189			IV-190		IV-191			IV-192					IV-193				IV-194				IV-195			IV-196			IV-197				IV-198

– IV-94 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	86.30			528.80				180.80			546.00			280.80				1,587.10				1,331.40				824.80			264.05			428.17			234.10			81.70			807.80
			Interest	Attributable		to the Group	(%)	100.0%			100.0%				100.0%			100.0%			100.0%				100.0%				100.0%				100.0%			67.0%			95.0%			100.0%			100.0%			100.0%
		Market	Value (2)	in Existing		State	(RMB million)	86.30			528.80				180.80			546.00			280.80				1,587.10				1,331.40				824.80			394.10			450.70			234.10			81.70			807.80
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	113.80			2,274.50				251.40			1,832.40			1,113.00				3,420.00				2,905.00				1,289.90			1,038.10			1,108.50			679.60			469.30			1,115.50
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	66.58			116.98				143.81			76.07			72.54				307.49				729.75				502.68			20.98			186.53			46.20			61.78			367.49
		Total	Estimated	Development		Cost	(RMB million)	70.09			1,063.64				151.38			692.68			610.36				1,199.01				1,414.27				601.23			362.75			575.70			297.24			351.01			386.84
			Estimated	Completion		Date		2017			2022				2018			2022			2020				2019				2020				2019			2019			2018			2019			2018			2017
			Construction	Commencement		Date		2013			2016				2015			2017			2010				2016				2011				2012			2016			2016			2016			2014			2011
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	12,704 75.68			15,898 119.18				13,572 126.91			— —			12,384 84.52				170,174 1,685.46				81,858 377.34				— —			— —			121,289 811.43			22,982 191.28			36,620 267.87			86,197 918.36
				Total Planned	GFA (1)		(sq.m.)	25,832			348,422				51,939			182,300			200,722				385,032				474,543				203,280			149,019			167,181			96,921			147,561			134,931
					Site Area (1)		(sq.m.)	102,087			90,703				47,318			47,420			233,318				103,001				243,306				190,351			71,070			31,765			20,185			170,385			298,778
						Type of Property		Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial, Other,	Carpark	Residential,	Commercial, Hotel,	Office, Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Composite, Other,	Carpark	Residential, Other,	Carpark		Residential, Other,	Carpark		Residential, Other,	Carpark		Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Carpark
			Land Use	Rights Expiry		Date		02 Aug 2053 to	02 Aug 2083		19 Jul 2086				09 Jul 2055 to	09 Jul 2085		29 Jun 2050			31 Jul 2049 to	09 Jul 2080			02 Feb 2056 to	02 Feb 2086			26 Feb 2052 to	26 Feb 2083			28 May 2052 to	27 May 2083		02 Jun 2081			02 Jun 2081			19 Jul 2056 to	19 Jul 2086		01 May 2053 to	01 May 2083		29 Jun 2050 to	29 Jun 2080
						Land Use		Residential,	Commercial, Public	Facility	Residential				Residential,	Commercial, Public	Facility	Commercial			Residential,	Commercial			Residential,	Commercial, Public	Facility		Residential,	Commercial			Residential,	Commercial, Public	Facility	Residential			Residential			Residential,	Commercial		Residential			Residential,	Commercial
						City		Harbin			Harbin				Harbin			Harbin			Harbin				Harbin				Harbin				Harbin			Harbin			Harbin			Harbin			Harbin			Harbin
						Holding Entity		Harbin Mingye Real Estate	Development Company	Limited	Harbin Kunye Real Estate	Development Company	Limited		Harbin Chiye Real Estate	Development Company	Limited	Harbin Gaodeng Property	Company Limited		Harbin Zhongcheng Real	Estate Development	Company Limited		Harbin Jiaye Real Estate	Company Limited			Harbin Hengda Weiye Real	Estate Development	Company Limited		Harbin Hengda Weiye Real	Estate Development	Company Limited	Heilongjiang Pubeimingjia	Real Estate Development	Company Limited	Heilongjiang Haiyi Mingjia	Real Estate Development	Company Limited	Harin Xinye Real Estate	Development Company	Limited	Harbin Chengye Real Estate	Development Company	Limited	Harbin Gaodeng Property	Company Limited
						Property Name		Portion of Evergrande Royal	View Garden Harbin		Evergrande Lilac Manor Harbin				Portion of Evergrande Emerald	Court Harbin		Evergrande International Center	Harbin		Evergrande Flower Garden	Harbin			Evergrande Jade Court Harbin				Portion of Evergrande Oasis	Harbin			Portion of Evergrande Metropolis	Harbin		Evergrande Mingjia Harbin			Evergrande Atrium Harbin			Evergrande Peak Harbin			Portion of Evergrande Royal	Scenic Bay Harbin		Evergrande Grande Century	Harbin
				Property		No.		IV-199			IV-200				IV-201			IV-202			IV-203				IV-204				IV-205				IV-206			IV-207			IV-208			IV-209			IV-210			IV-211

– IV-95 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	614.40			840.40		85.40				247.10				200.80				457.40				260.90			493.10			393.49 (6)				1,228.70 (7)			945.30			502.70				5,813.88
			Interest	Attributable		to the Group	(%)	100.0%			100.0%		100.0%				100.0%				100.0%				100.0%				100.0%			100.0%			67.1%				100.0%			100.0%			100.0%				60.0%
		Market	Value (2)	in Existing		State	(RMB million)	614.40			840.40		85.40				247.10				200.80				457.40				260.90			493.10			586.60				1,228.70			945.30			502.70				9,689.80
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	779.50			1,102.40		114,50				1,134.10				268.60				1,256.70				636.50			1,069.50			6,552.40				7,973.10			1,982.20			706.70				25,022.00
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	273.29			556.26		88.20				199.56				199.33				230.23				92.47			139.29			126.83				130.01			132.34			439.79				409.91
		Total	Estimated	Development		Cost	(RMB million)	287.67			585.54		92.84				690.76				209.83				681.59				310.99			413.70			2,667.43				6,332.93			699.70			462.93				6,604.30
			Estimated	Completion		Date		2017			2017		2017				2022				2017				2019				2018			2019			2025				2025			2017			2018				2021
			Construction	Commencement		Date		2014			2010		2013				2013				2013				2012				2016			2013			2012				2007			2016			2015				2015
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	74,470 584.88			77,743 896.55		24,218 81.21				7,188 28.12				15,163 147.70				16,009 96.25				24,418 172.35			13,830 93.37			105,070 728.72				111,556 491.29			160,449 1,222.49			— —				161,224 2,193.59
				Total Planned	GFA (1)		(sq.m.)	122,143			101,461		34,033				206,466				81,380				270,250				96,114			173,522			1,115,034				1,534,427			303,995			195,624				1,754,524
					Site Area (1)		(sq.m.)	113,493			372,728		29,147				106,452				99,537				182,052				25,924			43,864			376,720				1,483,742			83,009			103,342				629,875
						Type of Property		Residential,	Commercial,	Carpark	Residential, Carpark		Residential, Carpark				Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial, Other,	Carpark	Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Composite, Hotel,	Other, Carpark	Residential,	Commercial, Hotel,	Other, Carpark	Residential,	Commercial,	Carpark	Residential,	Commercial,	Composite, Office,	Other, Carpark	Residential,	Commercial, Office,	Other, Carpark
			Land Use	Rights Expiry		Date		10 Feb 2051 to	10 Feb 2081		08 Nov 2049 to	08 Nov 2079	09 May 2052 to	09 May 2082			18 Jul 2052 to	08 Oct 2082			28 Jun 2052 to	28 Jun 2082			28 Jun 2052 to	29 Jul 2082			25 Apr 2056 to	25 Apr 2086		28 Jun 2052 to	28 Jun 2082		24 Mar 2050 to	26 Dec 2081			20 Mar 2047 to	29 Aug 2080		13 Jun 2086			19 Feb 2054 to	19 Feb 2084			08 Oct 2045 to	08 Oct 2075
						Land Use		Residential,	Commercial		Residential		Residential,	Commercial			Residential,	Commercial			Residential,	Commercial, Office			Residential, Office				Residential,	Commercial		Residential,	Commercial, Office		Residential,	Commercial			Residential, Office			Residential			Residential,	Commercial			Residential
						City		Harbin			Harbin		Mudanjiang				Mudanjiang				Qiqihar				Qiqihar				Qiqihar			Qiqihar			Ezhou				Ezhou			Jingzhou			Jingzhou				Wuhan
						Property Name Holding Entity		Evergrande Natural Unity Harbin Harbin Shengmao Property	Company Limited		Portion of Evergrande Harbin Shenghe Property	Harmonious World Harbin Company Limited	Portion of Evergrande Emerald Mudanjiang Hengda	Court Mudanjiang Changjian Real Estate	Development Company	Limited	Portion of Evergrande Oasis Mudanjiang Hengda Yongtai	Mudanjiang Real Estate Development	Company Limited		Portion of Evergrande Emerald Hengda Yongxing	Court Tsitshihar (Qiqihaer) Real Estate	Company Limited		Portion of Evergrande Metropolis Hengda Yongxing	Tsitshihar (Qiqihaer) Real Estate	Company Limited		Evergrande Royal View Hengda Yongxing	Tsitshihar (Qiqihaer) Real Estate	Company Limited	Evergrande Emerald Court Hengda Yongxing	Tsitshihar (Qiqihaer) Real Estate	Company Limited	Portion of Evergrande Sky Hubei Sanjiang Hangtian	Capital Ezhou Commercial Management	Company Limited		Portion of Evergrande Splendor Ezhou Hengda Real Estate	Ezhou Development Company	Limited	Evergrande Golden Metropolis Jingzhou Hengda Real	Jingzhou Estate Development	Company Limited	Evergrande Metropolis Jingzhou Jingzhou Hongxing Plaza	Investment Conpany	Limited		Evergrande Evergreen Garden Wuhan New World Kangju	Wuhan Development Company	Limited
				Property		No.		IV-212			IV-213		IV-214				IV-215				IV-216				IV-217				IV-218			IV-219			IV-220				IV-221			IV-222			IV-223				IV-224

– IV-96 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	1,343.20				1,069.30				922.89				836.35				35.69			175.28			42.50			18.30			193.50			127.26			600.48				429.60			25.80
			Interest	Attributable		to the Group	(%)	100.0%				100.0%				67.1%				67.1%				67.1%			67.1%			100.0%			100.0%			100.0%			66.8%			60.0%				60.0%			100.0%
		Market	Value (2)	in Existing		State	(RMB million)	1,343.20				1,069.30				1,375.80				1,246.80				53.20			261.30			42.50			18.30			193.50			190.60			1,000.80				716.00			25.80
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	2,148.30				2,861.60				3,546.10				2,842.10				132.60			410.10			52.40			10.20			253.60			240.30			2,015.90				977.10			233.20
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	465.53				168.13				264.02				255.69				50.90			4.64			14.77			15.46			126.02			63.11			237.41				301.60			234.87
		Total	Estimated	Development		Cost	(RMB million)	737.79				1,042.68				1,460.56				1,253.86				98.24			67.05			15.54			26.26			132.65			66.43			759.53				317.47			386.90
			Estimated	Completion		Date		2018				2020				2019				2017				2018			2017			2017			2017			2017			2017			2018				2018			2018
			Construction	Commencement		Date		2008				2016				2014				2013				2011			2014			2007			2007			2010			—			2015				2014			2012
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	4,529 33.02				60,161 775.54				186,411 1,435.63				51,697 371.45				37,763 132.64			25,275 384.28			4,935 18.47			— —			— —			9,829 83.04			120,151 1,569.43				35,193 419.75			— —
				Total Planned	GFA (1)		(sq.m.)	299,227				312,036				512,882				465,903				37,763			26,695			7,705			10,601			60,997			31,598			214,377				103,222			66,989
					Site Area (1)		(sq.m.)	370,494				101,892				440,137				506,663				107,785			19,920			154,259			314,901			351,306			134,691			75,459				69,023			199,474
						Type of Property		Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Office,	Other, Carpark	Residential,	Commercial,	Composite, Carpark		Residential,	Commercial,	Composite, Other,	Carpark	Commercial,	Carpark		Residential,	Commercial, Office		Residential,	Commercial,	Carpark	Other, Carpark			Residential,	Commercial, Other,	Carpark	Commercial,	Carpark		Residential,	Commercial,	Composite, Other,	Carpark	Residential, Office,	Other, Carpark		Residential,	Commercial,	Composite, Hotel,	Other
			Land Use	Rights Expiry		Date		28 Apr 2047 to	29 Apr 2077			28 Sep 2056 to	28 Sep 2086			26 Dec 2046 to	26 Dec 2076			29 Oct 2047 to	29 Oct 2077			09 Aug 2050 to	09 Aug 2080		11 Oct 2053 to	11 Oct 2083		29 Dec 2046 to	29 Dec 2076		30 May 2047 to	26 Jan 2078		30 Apr 2077 to	12 May 2080		15 Nov 2047 to	15 Nov 2077		19 Oct 2065 to	19 Oct 2085			27 Mar 2054 to	24 Sep 2084		23 Mar 2051 to	23 Mar 2081
						Land Use		Residential,	Commercial			Residential,	Commercial			Residential,	Commercial			Residential,	Commercial			Residential,	Commercial		Residential,	Commercial		Residential,	Commercial, Office		Residential,	Commercial		Residential			Residential,	Commercial,	Education	Residential, Park	and Green Space			Residential,	Commercial		Residential,	Accommodation and	Catering, Education
						City		Wuhan				Wuhan				Wuhan				Wuhan				Wuhan			Wuhan			Wuhan			Wuhan			Wuhan			Wuhan			Wuhan				Wuhan			Xiangyang
						Holding Entity		Hubei Yiqing Yazhu Real	Estate Development	Company Limited		Wuhan Jinbi Feicui Real	Estate Development	Company Limited		Wuhan Sanjiang Hangtian	Jiayuan Real Estate	Development Company	Limited	Wuhan Sanjiang Hangtian	Panlongcheng Real Estate	Development Company	Limited	Wuhan Sanjiang Hangtian	Investment Development	Company Limited	Wuhan Hengda Jinbi Real	Estate Development	Company Limited	Wuhan Donghu Hengda	Real Estate Developmen	Company Limited	Wuhan Jinbi Luzhou Real	Estate Development	Company Limited	Wuhan Huali Property	Company Limited		Wuhan Sanjiang Dongli	Investment Development	Company Limited	Wuhan Hengda Dushi Real	Estate Development	Company Limited		Wuhan Hengda Chutian	Real Estate Development	Company Limited	Xiangyang Hengda Real	Estate Development	Company Limited
						Property Name		Portion of Evergrande City	Wuhan			Evergrande Emerald Court	Wuhan			Portion of Evergrande Rainbow	Town Wuhan			Portion of Evergrande Dragon	City Wuhan			Portion of Evergrande Capital	Wuhan		Portion of Evergrande Royal	garden Wuhan		Portion of Evergrande Palace	Wuhan		Portion of Evergrande Oasis	Wuhan		Portion of Evergrande Metropolis	Wuhan		Portion of Evergrande Shuang	City Wuhan		Portion of Evergrande Royal	Palace Wuhan			Portion of Evergrande Royal	Scenic Bay Wuhan		Portion of Evergrande Metropolis	Xiangyang
				Property		No.		IV-225				IV-226				IV-227				IV-228				IV-229			IV-230			IV-231			IV-232			IV-233			IV-234			IV-235				IV-236			IV-237

– IV-97 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	25.96			228.60			675.30				590.58				665.88				417.04				364.60			14.25		398.22				90.81			541.00				310.32
			Interest	Attributable		to the Group	(%)	67.1%			60.0%			100.0%				60.0%				60.0%				65.0%				100.0%			69.5%		60.0%				65.0%			100.0%				60.0%
		Market	Value (2)	in Existing		State	(RMB million)	38.70			381.00			675.30				984.30				1,109.80				641.60				364.60			20.50		663.70				139.70			541.00				517.20
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	117.50			502.00			954.50				2,932.00				2,824.90				2,187.70				1,463.60			28.10		3,107.70				761.50			1,806.60				3,480.00
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	12.65			265.33			666.77				240.50				615.33				610.04				166.69			30.58		459.49				61.57			375.95				113.72
		Total	Estimated	Development		Cost	(RMB million)	66.51			279.30			701.86				1,292.67				1,374.95				1,330.72				1,404.97			32.19		1,768.74				580.94			1,009.79				2,510.51
			Estimated	Completion		Date		2017			2017			2018				2020				2020				2022				2022			2017		2022				2019			2021				2026
			Construction	Commencement		Date		2014			2014			2013				2015				2014				2016				2014			2012		2014				2017			2010				2017
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	1,969 7.43			8,334 67.86			6,133 37.61				76,729 492.98				52,041 354.60				44,251 248.77				14,184 43.33			4,367 21.27		105,248 620.09				— —			66,066 331.55				— —
				Total Planned	GFA (1)		(sq.m.)	24,357			119,294			175,796				491,984				514,507				443,931				286,239			12,158		623,184				196,307			378,270				845,472
					Site Area (1)		(sq.m.)	77,734			121,316			265,890				107,257				314,862				121,668				187,024			95,441		334,623				58,651			282,639				207,209
						Type of Property		Residential, Carpark			Residential, Other,	Carpark		Residential,	Commercial,	Composite, Hotel,	Other, Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Office,	Other, Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Composite, Hotel,	Other, Carpark	Residential, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark
			Land Use	Rights Expiry		Date		09 Aug 2077			30 Jun 2054 to	30 Jun 2084		28 Dec 2048 to	28 Dec 2078			30 Dec 2084				03 Aug 2053 to	03 Aug 2083			24 Feb 2053 to	24 Feb 2083			25 Oct 2050 to	16 Oct 2081		31 Dec 2051 to	31 Dec 2081	25 Jan 2050 to	25 Jan 2080			23 May 2052 to	30 Jan 2063		04 Aug 2050 to	11 Jun 2081			30 Dec 2051 to	30 Dec 2081
						Land Use		Residential			Residential,	Commercial		Residential,	Commercial,	Accommodation and	Catering	Residential				Residential,	Commercial			Residential,	Commercial			Residential,	Commercial		Residential,	Commercial	Residential,	Commercial			Residential,	Commercial		Residential,	Commercial			Residential,	Commercial
						City		Xiaogan			Yichang			Yichang				Yichang				Changde				Chenzhou				Chenzhou			Hengyang		Huaihua				Li County			Liuyang				Shaoyang
						Holding Entity		Xiaogan Sanjiang Hangtian	Real Estate Development	Company Limited	Yichang Chutian Hengda	Real Estate Development	Company Limited	Yichang Meiziya Market	Construction Kaifa	Company Limited		Yichang Chutian Hengda	Real Estate Development	Company Limited		Changde Xinze Property	Company Limited			Chenzhou City	Wanxiangyuan Real Estate	Development Company	Limited	Chenzhou Jinbi Property	Company Limited		Hengyang Baorui Property	Company Limited	Huaihua Junda Real Estate	Development Company	Limited		Dadonghuang (Hunan)	Property Company Limited		Liuyang Jinbi Property	Company Limited			Shaoyang City Lushan Real	Estate Development Limited
						Property Name		Evergrande First Palace Xiaogan			Portion of Evergrande Royal	View Garden Yichang		Portion of Evergrande Oasis	Yichang			Evergrande Atrium Yichang				Portion of Evergrande Palace	Changde			Portion of Evergrande Royal	View Garden Chenzhou			Portion of Evergrande Palace	Chenzhou		Portion of Evergrande Oasis	Hengyang	Portion of Evergrande Royal	View Garden Huaihua			Evergrande Royal Scenic Bay	Lixian		Portion of Evergrande Palace	Liuyang			Evergrande Palace Shaoyang
				Property		No.		IV-238			IV-239			IV-240				IV-241				IV-242				IV-243				IV-244			IV-245		IV-246				IV-247			IV-248				IV-249

– IV-98 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	473.88				953.90				301.34				228.70				712.77				101.10		226.40			101.10			1,511.90				486.91			2,460.20			56.70			2,418.10
			Interest	Attributable		to the Group	(%)	60.0%				100.0%				65.0%				100.0%				64.0%				100.0%		100.0%			100.0%			100.0%				73.0%			100.0%			100.0%			100.0%
		Market	Value (2)	in Existing		State	(RMB million)	789.80				953.90				463.60				228.70				1,113.70				101.10		226.40			101.10			1,511.90				667.00			2,460.20			56.70			2,418.10
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	3,758.60				1,651.20				2,524.40				342.10				2,316.40				133.90		473.80			131.20			4,456.10				3,330.10			4,324.90			70.10			5,823.90
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	160.60				813.94				130.24				111.13				556.46				87.64		110.76			47.13			159.85				205.77			972.91			22.65			513.82
		Total	Estimated	Development		Cost	(RMB million)	1,919.41				907.72				1,300.63				157.98				951.48				92.25		242.61			49.61			1,308.86				1,741.15			1,303.54			23.84			1,793.00
			Estimated	Completion		Date		2020				2020				2020				2017				2020				2017		2018			2017			2023				2021			2021			2017			2021
			Construction	Commencement		Date		2015				2013				2016				2011				2015				—		2012			2008			2014				2015			2009			2011			2011
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	36,169 209.01				107,959 532.71				139,186 943.11				— —				7,207 28.86				5,051 23.29		— —			11,957 30.66			28,922 248.09				48,855 343.73			— —			— —			660 6.35
				Total Planned	GFA (1)		(sq.m.)	708,921				358,735				480,090				77,087				373,794				42,082		102,388			21,763			469,601				665,924			506,419			8,566			605,150
					Site Area (1)		(sq.m.)	143,199				204,527				121,039				68,341				193,928				270,663		135,514			139,723			178,644				191,768			174,389			185,376			565,249
						Type of Property		Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Office,	Other, Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Other, Carpark		Residential,	Commercial, Other,	Carpark	Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial, Other,	Carpark	Residential,	Commercial, Office,	Other, Carpark	Residential,	Commercial,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark
			Land Use	Rights Expiry		Date		31 Dec 2054 to	31 Dec 2085			31 Mar 2053 to	31 Mar 2083			03 Jun 2056 to	03 Jun 2086			15 Jul 2051 to	26 Jul 2081			30 Dec 2057 to	30 Dec 2087			04 Oct 2074 to	30 Oct 2076	06 Feb 2052 to	06 Feb 2082		31 Aug 2044 to	31 Aug 2074		16 Apr 2053 to	16 Apr 2083			09 May 2059 to	09 May 2079		29 Jan 2047 to	29 Jan 2077		21 Sep 2078			24 Mar 2045 to	24 Mar 2075
						Land Use		Residential,	Commercial			Residential,	Commercial			Residential,	Commercial			Residential,	Commercial			Residential,	Commercial			Residential,	Education	Residential,	Commercial		Residential,	Commercial		Residential,	Commercial			Residential, Office			Residential,	Commercial		Residential			Residential,	Commercial
						City		Xiangtan				Yiyang				Yueyang				Yueyang				Yueyang				Changsha		Changsha			Changsha			Changsha				Changsha			Changsha			Changsha			Changsha
						Holding Entity		Hunan Zongheng Property	Company Limited			Yiyang Hengrui Property	Company Limited			Yueyang Jintou Property	Company Limited			Yueyang Jinbi Property	Company Limited			Yueyang Jinrui Property	Company Limited			Changsha Xinlin Property	Company Limited	Changsha Hengxi Property	Company Limited		Hunan Xiongzhen	Investment Company	Limited	Zhangsha Xinfu Property	Company Limited			Hunan Yicheng Investment	Company Limited		Changsha Tianxi Property	Company Limited		Hunan Shengji Property	Company Limited		Changsha Baorui Real	Estate Development	Company Limited
						Property Name		Portion of Evergrande Emerald	Court Xiangtan			Portion of Evergrande Oasis	Yiyang			Evergrande Oasis Yueyang				Portion of Evergrande Metropolis	Yueyang			Portion of Evergrande Nanhu	Peninsula Yueyang			Portion of Evergrande City	Changsha	Portion of Evergrande Emerald	Court Changsha		Portion of Evergrande Palace	Changsha		Portion of Evergrande Bay	Changsha			Evergrande Forest Creek City	Changsha		Portion of Evergrande Oasis	Changsha		Portion of Evergrande Metropolis	Changsha		Portion of Evergrande Atrium	Changsha
				Property		No.		IV-250				IV-251				IV-252				IV-253				IV-254				IV-255		IV-256			IV-257			IV-258				IV-259			IV-260			IV-261			IV-262

– IV-99 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	3,337.90				682.43				284.80				505.56			170.40				15.70		254.60			749.60			773.70		3,710.70				1,591.50			35.60			3,597.40
			Interest	Attributable		to the Group	(%)	100.0%				51.0%				100.0%				60.0%			100.0%				94.0%		100.0%			100.0%			100.0%		52.0%				100.0%			100.0%			100.0%
		Market	Value (2)	in Existing		State	(RMB million)	3,337.90				1,338.10				284.80				842.60			170.40				16.70		254.60			749.60			773.70		7,138.70				1,591.50			35.60			3,597.40
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	13,825.90				4,466.40				527.30				4,913.90			253.30				48.20		356.50			2,365.10			1,112.60		14,502.80				3,782.20			251.80			8,436.40
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	372.23				420.18				95.25				175.47			114.90				—		197.68			226.08			315.34		185.60				425.19			27.54			608.36
		Total	Estimated	Development		Cost	(RMB million)	4,048.45				2,035.02				226.90				2,428.42			143.94				20.42		208.08			1,029.79			389.47		2,529.27				1,679.50			241.83			2,063.18
			Estimated	Completion		Date		2028				2021				2017				2022			2017				2017		2018			2022			2017		2020				2018			2017			2022
			Construction	Commencement		Date		2011				2012				2012				2016			2012				2012		2012			2011			2014		2016				2016			2014			2015
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	11,885 66.05				162,902 1,150.79				23,627 108.53				117,269 788.79			1,407 4.25				— —		40,858 206.58			5,181 34.73			27,660 152.32		56,749 1,964.24				41,604 473.15			220 1.50			49,208 983.84
				Total Planned	GFA (1)		(sq.m.)	1,252,780				757,542				88,646				822,384			68,412				5,912		67,717			379,721			135,599		626,504				377,473			68,941			586,595
					Site Area (1)		(sq.m.)	305,604				298,042				49,696				319,053			65,028				47,512		94,832			282,022			98,328		37,867				124,085			92,191			180,365
						Type of Property		Residential,	Commercial,	Composite, Office,	Other, Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential, Carpark		Residential,	Composite		Residential,	Commercial,	Composite, Carpark	Residential,	Composite, Carpark	Residential,	Commercial, Office,	Carpark		Residential,	Commercial,	Carpark	Residential,	Commercial,	Composite, Carpark	Residential,	Commercial,	Composite, Hotel,	Other, Carpark
			Land Use	Rights Expiry		Date		03 Sep 2050 to	03 Sep 2080			26 Jul 2052 to	26 Jul 2082			26 Jul 2052 to	26 Jul 2082			10 Jun 2049 to	24 Oct 2080		01 Apr 2051 to	01 Apr 2081			30 Dec 2050 to	30 Dec 2080	12 Nov 2052 to	12 Nov 2082		01 Apr 2081 to	25 Sep 2081		14 Feb 2084		11 Jan 2046 to	11 Jan 2081			23 Aug 2053 to	23 Aug 2083		14 Feb 2053 to	14 Feb 2083		17 Nov 2054 to	17 Nov 2084
						Land Use		Residential,	Commercial			Residential,	Commercial			Residential,	Commercial			Residential,	Commercial		Residential,	Commercial			Residential,	Commercial	Residential,	Commercial		Residential			Residential		Residential,	Commercial, Office,	Cultural and	Entertainment	Residential,	Commercial		Residential,	Commercial		Residential,	Commercial,	Education
						City		Changsha				Changsha				Changsha				Zhuzhou			Zhuzhou				Changzhou		Danyang			Danyang			Hangzhou		Nanjing				Jiangyin			Pinghu			Hangzhou
						Holding Entity		Changsha Jinxia	Development Construction	Company Limited		Changsha Xiangjiang	Mingyuan Real Estate	Company Limited		Changsha Ruixi Property	Company Limited			Zhuzhou Xiangyu Real	Estate Development	Company Limited	Zhuzhou Jinbi Property	Company Limited			Changzhou Hanjia Property	Company Limited	Danyang Mingyuan Real	Estate Development	Company Limited	Danyang Hengda Property	Company Limited		Hangzhou Suihua Property	Company Limited	Nanjing Linjiang Yujing	Real Estate Company	Limited		Jiangyin Yasheng Hengtai	Property Company Limited		Pinghu Hengda Mingdu	Property Company Limited		Hangzhou Jingli Property	Company Limited
						Property Name		Portion of Evergrande Royal	Scenic Peninsula Changsha			Evergrande Royal Scenic Land	Changsha			Portion of Evergrande Royal	Scenic Bay Changsha			Evergrande Palace Zhuzhou			Portion of Evergrande Metropolis	Zhuzhou			Portion of Evergrande Emerald	Court Changzhou	Portion of Evergrande City	Danyang		Portion of Evergrande Metropolis	Danyang		Portion of Evergrande Royal	View Garden Hangzhou	Evergrande Riverside Nanjing				Evergrande Royal View Garden	Jiangyin		Portion of Evergrande Metropolis	Pinghu		Portion of Evergrande Crystal	International Plaza Hangzhou
				Property		No.		IV-263				IV-264				IV-265				IV-266			IV-267				IV-268		IV-269			IV-270			IV-271		IV-272				IV-273			IV-274			IV-275

– IV-100 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	182.90		491.80				299.90			3.40		622.32			317.93			48.90			2,861.30			1,302.60			678.40			1,923.50				23.20		715.90		3,867.40
			Interest	Attributable		to the Group	(%)	100.0%		100.0%				100.0%			100.0%		80.0%			51.0%			100.0%			100.0%			100.0%			100.0%			100.0%				100.0%		100.0%		100.0%
		Market	Value (2)	in Existing		State	(RMB million)	182.90		491.80				299.90			3.40		777.90			623.40			48.90			2,861.30			1,302.60			678.40			1,923.50				23.20		715.90		3,867.40
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	245.00		1,064.50				1,316.20			4.30		2,155.80			943.10			253.40			4,607.40			2,104.60			953.80			3,336.80				29.50		990.00		8,763.70
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	184.98		192.89				1.62			1.95		146.44			242.90			25.51			172.27			76.76			692.23			132.76				11.44		489.28		81.85
		Total	Estimated	Development		Cost	(RMB million)	194.71		501.06				642.47			2.05		944.30			372.53			179.66			856.19			423.78			728.67			722.14				12.04		515.03		2,326.05
			Estimated	Completion		Date		2017		2018				2019			2017		2020			2017			2017			2018			2018			2018			2018				2017		2018		2018
			Construction	Commencement		Date		2012		2013				2017			2011		2012			2014			2012			2014			2014			2007			2016				2009		2011		2013
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	— —		7,328 45.41				— —			— —		— —			29,860 164.79			— —			11,653 370.44			24,377 732.75			— —			— —				— —		— —		30,223 331.78
				Total Planned	GFA (1)		(sq.m.)	81,042		189,414				220,349			633		234,518			132,154			80,459			231,278			113,142			168,695			174,877				4,349		219,736		777,182
					Site Area (1)		(sq.m.)	98,560		224,417				58,816			115,355		118,842			120,927			113,029			83,427			51,072			982,714			72,434				137,098		315,352		126,985
						Type of Property		Residential,	Composite, Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial, Other,	Carpark	Residential		Residential,	Commercial,	Composite, Carpark	Residential,	Commercial,	Composite, Carpark	Commercial,	Composite, Carpark		Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Carpark	Residential,	Commercial, Hotel,	Other, Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial, Other	Commercial, Office,	Other, Carpark	Residential,	Commercial, Hotel,	Office, Carpark
			Land Use	Rights Expiry		Date		10 Sep 2082 to	28 Feb 2083	20 Jul 2080 to	14 Aug 2084			20 Jul 2080 to	14 Aug 2084		01 Feb 2052 to	01 Feb 2082	24 Mar 2050			22 Aug 2053 to	22 Aug 2083		26 Oct 2051 to	26 Oct 2081		16 Apr 2054 to	16 Apr 2084		05 May 2085			30 May 2047 to	30 May 2077		07 May 2086				20 Dec 2076 to	22 Jan 2078	05 Mar 2050 to	06 Feb 2083	23 Dec 2050 to	23 Dec 2080
						Land Use		Residential		Residential				Residential			Residential,	Commercial	Residential			Residential,	Commercial		Residential,	Commercial		Residential,	Education		Residential			Residential,	Accommodation and	Catering	Residential				Residential		Residential,	Commercial	Residential, Office,	Cultural and	Entertainment
						City		Haiyan		Huaian				Huaian			Jiaxing		Jiaxing			Jiangyin			Lianyungang			Nanjing			Nanjing			Nanjing			Nanjing				Nanjing		Nanjing		Ningbo
						Holding Entity		Haiyan Shengjian Property	Company Limited	Huai’an Hengda Fufeng	Real Estate Development	Company Limited		Huai’an Jiaxin Property	Company Limited		Jiaxing Hengda Property	Company Limited	Jinhu (Zhejiang) Property	Company Limited		Jiangyin Shengjian Property	Company Limited		Lianyungang Hengda	Mingdu Property Company	Limited	Nanjing Meixu Real Estate	Company Limited		Nanjing Xutai Real Estate	Company Limited		Nanjing Hengda Fufeng	Property Company Limited		Nanjing Hengyu Real Estate	Company Limited			Nanjin Handian Real Estate	Company Limited	Jurong Tiangong Property	Company Limited	Chengbo (Ningbo) Property	Company Limited
						Property Name		Portion of Evergrande Royal	Scenic Haiyan	Portion of Evergrande Metropolis	Huai’an			Portion of Evergrande Metropolis	Huai’an		Portion of Evergrande Oasis	Jiaxing	Evergrande Left Lake Land	Jiaxing		Portion of Evergrande Royal	Scenic Jiangyin		Portion of Evergrande Metropolis	Lianyungang		Portion of Evergrande Emerald	Court Nanjing		Portion of Evergrande Palace	Nanjing		Portion of Evergrande Splendor	Nanjing		Evergrande Dragon Court	Nanjing			Portion of Evergrande Oasis	Nanjing	Portion of Evergrande Atrium	Nanjing Jurong	Portion of Evergrande City	Lights Ningbo
				Property		No.		IV-276		IV-277				IV-278			IV-279		IV-280			IV-281			IV-282			IV-283			IV-284			IV-285			IV-286				IV-287		IV-288		IV-289

– IV-101 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	1,059.00				446.40				330.10				436.40				575.70				129.60			228.20			3,271.90		195.20			61.00		513.80			3,529.35			3,110.49			2,081.62
			Interest	Attributable		to the Group	(%)	100.0%				100.0%				100.0%				100.0%				100.0%				100.0%			100.0%			100.0%		100.0%			100.0%		100.0%			90.0%			90.0%			51.0%
		Market	Value (2)	in Existing		State	(RMB million)	1,059.00				446.40				330.10				436.40				575.70				129.60			228.20			3,271.90		195.20			61.00		513.80			3,921.50			3,456.10			4,081.60
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	2,634.50				1,653.50				1,227.00				1,200.50				1,591.80				512.50			295.70			6,004.70		268.10			80.50		715.20			6,303.70			7,194.90			5,697.90
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	256.14				13.15				0.01				160.32				217.84				155.94			99.66			687.56		70.68			49.16		180.57			630.77			89.90			15.54
		Total	Estimated	Development		Cost	(RMB million)	1,230.81				769.83				578.50				565.64				758.35				414.79			104.90			1,345.80		74.40			51.74		231.39			1,451.26			1,637.79			957.07
			Estimated	Completion		Date		2017				2021				2023				2020				2020				2018			2017			2021		2017			2017		2017			2018			2019			2019
			Construction	Commencement		Date		2013				2014				2014				2014				2014				2013			2014			2014		2014			2014		2015			2016			2017			2016
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	15,681 118.83				— —				— —				— —				— —				— —			— —			— —		3,585 45.79			— —		2,752 107.85			38,118 1,347.48			— —			— —
				Total Planned	GFA (1)		(sq.m.)	416,690				231,531				176,403				171,355				251,301				77,155			39,055			136,769		26,396			20,464		76,018			205,101			239,563			315,083
					Site Area (1)		(sq.m.)	312,328				118,808				104,204				55,403				83,789				181,050			69,936			31,307		30,893			40,129		50,964			350,533			401,273			129,188
						Type of Property		Residential,	Commercial,	Composite, Hotel,	Carpark	Residential,	Commercial,	Carpark		Residential,	Commercial,	Carpark		Residential,	Commercial,	Carpark		Residential,	Commercial, Other,	Carpark		Commercial,	Composite, Hotel,	Other, Carpark	Residential,	Commercial, Other,	Carpark	Residential, Hotel,	Other, Carpark	Residential,	Commercial,	Carpark	Residential, Other,	Carpark	Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Carpark	Residential,	Commercial, Other,	Carpark	Residential,	Composite, Carpark
			Land Use	Rights Expiry		Date		15 Oct 2052 to	02 Apr 2084			29 Jul 2050 to	18 Jan 2085			29 Jul 2050 to	18 Jan 2085			29 Jul 2050 to	18 Jan 2085			29 Jul 2050 to	18 Jan 2085			09 Sep 2053			17 Jan 2084			27 Dec 2043 to	27 Dec 2063	24 Feb 2084			17 Jan 2084		24 May 2084			12 Nov 2075			12 Nov 2075 to	22 Nov 2075		22 Dec 2086
						Land Use		Residential,	Commercial			Residential,	Commercial,	Accommodation and	Catering	Residential,	Commercial,	Accommodation and	Catering	Residential,	Commercial,	Accommodation and	Catering	Residential,	Commercial,	Accommodation and	Catering	Residential,	Commercial		Residential			Residential,	Commercial	Residential			Residential		Residential			Residential			Residential			Residential
						City		Ningbo				Ningbo				Ningbo				Ningbo				Ningbo				Quzhou			Shanghai			Shanghai		Shanghai			Shanghai		Shanghai			Shanghai			Shanghai			Suzhou
						Holding Entity		Ningbo Yucheng Property	Company Limited			Ningbo Sanji Jiada Property	Company Limited			Ningbo Sanji Lancheng	Property Company Limited			Ningbo Sanli Xianghe	Property Company Limited			Ningbo Sanji Yongheng	Property Company Limited			Quzhou Hengda Shengjian	Property Company Limited		Shanghai Songyu Property	Company Limited		Shanghai Suihua Property	Company Limited	Shanghai Yue’an Property	Company Limited		Shanghai Rongshan Property	Company Limited	Shanghai Jinbi Property	Company Limited		Shanghai Fengtao Property	Company Limited		Shanghai Fenshun Property	Company Limited		Suzhou Wuxiang Property	Company Limited
						Property Name		Portion of Evergrande Scenic	Garden Ningbo			Portion of Evergrande Peninsula	On The Sea Ningbo			Portion of Evergrande Peninsula	On The Sea Ningbo			Portion of Evergrande Peninsula	On The Sea Ningbo			Portion of Evergrande Peninsula	On The Sea Ningbo			Portion of Evergrande Royal	Scenic Peninsula Quzhou		Portion of Evergrande Royal	View Garden Shanghai		Evergrande Palace Shanghai		Portion of Evergrande Metropolis	Shanghai		Portion of Evergrande First	Palace Sheshan Shanghai	Portion of Evergrande Royal	Scenic Bay Shanghai		Evergrande Royal Seaview	Garden Shanghai		Portion of Evergrande Yulanwan	Shanghai		Evergrande Jewelry Court	Suzhou
				Property		No.		IV-290				IV-291				IV-292				IV-293				IV-294				IV-295			IV-296			IV-297		IV-298			IV-299		IV-300			IV-301			IV-302			IV-303

– IV-102 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	233.30			1,862.70				787.41				240.80			258.60				35.40			795.90				1,279.00				146.30		24.40			435.48 (7)				1,580.03
			Interest	Attributable		to the Group	(%)	100.0%			100.0%				65.0%				100.0%			100.0%				100.0%			99.2%				100.0%				100.0%		100.0%			95.0%				51.0%
		Market	Value (2)	in Existing		State	(RMB million)	233.30			1,862.70				1,211.40				240.80			258.60				35.40			802.40				1,279.00				146.30		24.40			458.40				3,098.10
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	316.10			2,894.60				3,160.90				1,143.20			605.70				185.00			2,525.10				4,975.10				370.70		124.40			2,524.50				4,264.30
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	181.98			511.92				434.30				95.12			308.35				26.76			259.86				355.30				26.10		17.04			18.35				14.27
		Total	Estimated	Development		Cost	(RMB million)	198.03			955.22				1,462.08				664.74			526.88				137.49			1,270.00				2,337.14				159.15		108.20			842.08				1,219.71
			Estimated	Completion		Date		2017			2017				2019				2018			2017				2017			2019				2021				2018		2017			2019				2019
			Construction	Commencement		Date		2013			2011				2013				2016			2011				2012			2016				2016				2012		2013			2017				2017
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	— —			690 11.71				133,354 1,159.74				88,783 592.85			293 1.50				2,724 9.16			106,152 841.00				193,559 1,473.32				— —		— —			— —				— —
				Total Planned	GFA (1)		(sq.m.)	82,121			346,617				401,376				219,960			164,333				57,446			368,044				687,983				48,328		49,338			233,099				242,556
					Site Area (1)		(sq.m.)	92,452			263,300				165,227				84,270			237,834				116,345			124,954				259,015				181,456		105,857			34,818				85,935
						Type of Property		Residential,	Commercial,	Composite, Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Composite, Carpark		Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Composite, Other	Residential, Other,	Carpark		Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Carpark
			Land Use	Rights Expiry		Date		05 Oct 2052 to	05 Mar 2083		10 Mar 2051 to	10 Mar 2081			29 Jun 2052 to	29 Jun 2082			23 Jun 2086			20 Jun 2081				26 Jun 2081			29 Jul 2054 to	29 Jul 2084			02 Jun 2056 to	05 Mar 2087			30 May 2052 to	30 May 2082	10 Jul 2052 to	10 Jul 2082						22 Dec 2056 to	22 Dec 2086
						Land Use		Residential,	Commercial		Residential,	Commercial, Office,	Education		Residential,	Commercial			Residential			Residential				Residential			Residential,	Commercial			Residential,	Commercial			Residential,	Commercial	Residential, Office			Residential,	Commercial			Residential,	Commercial
						City		Wuxi			Wuxi				Wuxi				Suqian			Suqian				Suqian			Xuzhou				Yancheng				Yancheng		Yangzhou			Yuyao				Suzhou
						Property Name Holding Entity		Portion of Evergrande City Wuxi Wuxi Hengda Real Estate	Development Company	Limited	Portion of Evergrande Oasis Wuxi Shengdong Real	Wuxi Estate Development	Company Limited		Evergrande Grand Bay Wuxi Wuxi Yunsha Property	Company Limited			Evergrande Emerald Court Suqian Hengda Lvzhou	Suqian Real Estate Development	Company Limited	Portion of Evergrande Palace Suqian Hengda Huafu	Suqian Property Company Limited			Portion of Evergrande Oasis Suqian Hengda Lvzhou	Suqian Real Estate Development	Company Limited	Evergrande Left Riverbank Xuzhou Runyang Weiye	Xuzhou Property Company Limited			Evergrande Royal View Garden Hengda Real Estate Group	Yancheng Yancheng Chengnan	Property Company Limited		Portion of Evergrande Metropolis Hengda Real Estate Group	Yancheng Yancheng Company Limited	Portion of Evergrande Royal Yangzhou Honglitai Real	Scenic Yangzhou Estate Development	Company Limited	Yuyao Evergrande YuLanTing Yuyao Shengjian Real	Estate Development	Company Limited		Evergrande Joyful Bay Suzhou Suzhou Hengda Real Estate	Development Company	Limited
				Property		No.		IV-304			IV-305				IV-306				IV-307			IV-308				IV-309			IV-310				IV-311				IV-312		IV-313			IV-314				IV-315

– IV-103 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	469.89				40.70			458.90				30.60			1,085.80				361.90				228.20			385.70				1,204.30				1,355.60			675.50				305.44
			Interest	Attributable		to the Group	(%)	90.0%				100.0%			100.0%				100.0%			100.0%				100.0%				100.0%			100.0%				100.0%				100.0%			100.0%				80.0%
		Market	Value (2)	in Existing		State	(RMB million)	522.10				40.70			458.90				30.60			1,085.80				361.90				228.20			385.70				1,204.30				1,355.60			675.50				381.80
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	1,618.60				213.70			1,441.90				59.70			3,901.00				1,935.30				1,040.80			1,320.00				2,701.40				3,176.10			1,641.60				746.40
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	59.30				60.74			62.89				2.72			169.80				128.47				32.90			90.66				221.72				159.56			133.94				110.75
		Total	Estimated	Development		Cost	(RMB million)	710.91				191.32			627.57				20.18			1,709.88				1,154.79				593.10			626.34				982.91				985.10			776.69				328.90
			Estimated	Completion		Date		2019				2017			2019				2017			2018				2020				2019			2020				2018				2020			2017				2017
			Construction	Commencement		Date		2015				2011			2016				2011			2016				2012				2011			2011				2014				2013			2015				2016
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	21,039 180.51				— —			64,642 764.20				— —			10,049 104.03				4,387 25.36				13,610 37.07			6,691 63.29				5,078 44.89				28,619 226.90			7,178 47.45				19,263 185.58
				Total Planned	GFA (1)		(sq.m.)	242,703				73,024			149,765				6,861			530,265				371,471				177,655			213,483				301,509				313,787			260,993				67,402
					Site Area (1)		(sq.m.)	130,993				63,383			55,113				18,841			188,431				222,933				127,455			215,377				199,970				124,968			119,948				51,067
						Type of Property		Residential,	Commercial,	Composite, Other,	Carpark	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Carpark
			Land Use	Rights Expiry		Date		24 Sep 2055 to	07 Sep 2086			21 Dec 2051 to	21 Dec 2081		22 Nov 2056 to	22 Nov 2086			27 Jan 2051 to	27 Jan 2081		06 Apr 2056 to	06 Apr 2086			25 Oct 2052 to	28 Jan 2084			11 Nov 2050 to	11 Nov 2080		02 Nov 2050 to	02 Nov 2080			12 Jun 2054 to	12 Jun 2084			13 Mar 2053 to	13 Mar 2083		12 Feb 2055 to	12 Feb 2085			11 Dec 2053 to	11 Dec 2083
						Land Use		Residential,	Commercial			Residential,	Commercial, Office,	Public Facility	Residential,	Commercial			Residential,	Commercial		Residential,	Commercial			Residential,	Commercial			Residential,	Commercial		Residential,	Commercial			Residential,	Commercial			Residential,	Commercial		Residential,	Commercial			Residential,	Commercial
						City		Zhangjiagang				Zhenjiang			Zhoushan				Changchun			Changchun				Songyuan				Jilin			Changchun				Changchun				Changchun			Changchun				Changchun
						Holding Entity		Zhangjiagang Shengjian	Property Company Limited			Zhenjiang Jia Qi Property	Company Limited		Zhoushan Jingshun Real	Estate Company Limited			Jilin Wancheng Real Estate	Development Company	Limited	Hongji (Changchun) Real	Estate Company Limited			Songyuan Hengda Yusheng	Real Estate Development	Company Limited		Jilin Hengda Yongsheng	Real Estate Development	Company Limited	Shengji (Changchun) Real	Estate Company Limited			Zetao (Changchun) Real	Estate Company Limited			Yongji (Changchun) Real	Estate Company Limited		Jitao (Changchun) Real	Estate Company Limited			Jilin Nuoda Real Estate	Development Company	Limited
						Property Name		Portion of Evergrande Greenview	Villa Zhangjiagang			Portion of Evergrande Oasis	Zhengjiang		Evergrande Royal Scenic Bay	Zhoushan			Portion of Evergrande Emerald	Court Changchun		Evergrande First Palace	Changchun			Portion of Evergrande Royal	Scenic Bay Songyuan			Portion of Evergrande Palace	Jilin		Portion of Evergrande City	Changchun			Portion of Evergrande Royal	View Garden Changchun			Portion of Evergrande City Plaza	Changchun		Portion of Evergrande Bay	Changchun			Evergrande Moon Residence	Changchun
				Property		No.		IV-316				IV-317			IV-318				IV-319			IV-320				IV-321				IV-322			IV-323				IV-324				IV-325			IV-326				IV-327

– IV-104 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	65.70			1,361.60				494.80			373.30				110.50			191.00				829.60			405.00			231.29				242.30			517.70			7.40			460.74
			Interest	Attributable		to the Group	(%)	100.0%			100.0%				100.0%			100.0%				100.0%			100.0%				100.0%			100.0%			51.0%				100.0%			100.0%			100.0%			60.0%
		Market	Value (2)	in Existing		State	(RMB million)	65.70			1,361.60				494.80			373.30				110.50			191.00				829.60			405.00			453.50				242.30			517.70			7.40			767.90
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	103.10			2,883.90				982.10			1,056.50				144.50			407.10				2,211.10			1,139.90			945.60				1,026.60			860.70			32.30			2,019.80
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	28.15			465.62				220.66			63.05				60.03			49.95				71.43			0.25			201.34				44.56			317.68			1.09			189.70
		Total	Estimated	Development		Cost	(RMB million)	45.37			1,320.03				428.31			528.80				63.19			164.79				794.78			385.70			425.43				552.09			443.16			27.30			859.25
			Estimated	Completion		Date		2017			2018				2019			2019				2017			2018				2019			2019			2019				2019			2018			2017			2020
			Construction	Commencement		Date		2010			2012				2014			2016				2014			2011				2017			2015			2015				2013			2016			2010			2016
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	— —			1,574 11.61				87,113 640.67			27,702 201.01				3,916 31.80			3,954 38.49				— —			129 1.38			3,787 32.49				33,804 261.66			24,982 156.89			— —			23,756 161.73
				Total Planned	GFA (1)		(sq.m.)	14,757			416,904				125,236			148,220				28,383			61,671				280,670			144,565			174,163				238,820			181,558			7,066			314,678
					Site Area (1)		(sq.m.)	197,940			149,910				125,076			54,394				59,514			170,324				91,917			49,154			110,741				244,219			111,480			205,558			107,429
						Type of Property		Residential,	Commercial,	Composite, Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Carpark	Residential,	Commercial,	Composite, Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Carpark	Residential,	Commercial,	Carpark	Composite, Other			Residential,	Commercial,	Composite, Other,	Carpark
			Land Use	Rights Expiry		Date		24 May 2060			12 May 2051 to	12 May 2081			07 Dec 2051 to	07 Dec 2081		11 Dec 2053 to	11 Dec 2083			11 Dec 2053 to	11 Dec 2083		13 Jan 2051 to	13 Jan 2081			07 Jun 2055 to	26 Jun 2086		07 Jun 2055 to	07 Jun 2085		22 May 2048 to	22 May 2078			27 Jun 2083			20 Oct 2055 to	20 Oct 2085		27 Jun 2050 to	02 Mar 2081		02 Dec 2052 to	02 Dec 2082
						Land Use		Residential,	Commercial		Residential,	Commercial			Residential,	Commercial		Residential,	Commercial			Residential,	Commercial		Residential,	Commercial			Residential,	Commercial		Residential			Residential,	Commercial			Residential			Residential, Office			Residential,	Commercial		Residential,	Commercial
						City		Changchun			Changchun				Changchun			Changchun				Changchun			Changchun				Ganzhou			Ganzhou			Ganzhou				Jian			Jingdezhen			Jingdezhen			Jiujiang
						Holding Entity		Longji (Changchun) Real	Estate Company Limited		Xinji (Changchun) Real	Estate Company Limited			Jinggao (Changchun) Real	Estate Company Limited		Guangji (Changchun) Real	Estate Company Limited			Taiji (Changchun) Real	Estate Company Limited		Taiji (Changchun) Real	Estate Company Limited			Ganzhou Hengpeng Property	Company Limited		Ganzhou Hengda Real	Estate Company Limited		Jiangxi Xingyu Property	Development Company	Limited		Hengda (Ji’an) Real Estate	Group Company Limited		Hengda (Jingdezhen) Real	Estate Group Company	Limited	Hengda (Jingdezhen) Real	Estate Group Company	Limited	Jiangxi Huashang Ronghe	Property Company Limited
						Property Name		Portion of Evergrande Oasis	Changchun		Portion of Evergrande Metropolis	Changchun			Portion of Evergrande Atrium	Changchun		Evergrande Royal Summit	Changchun (Phase II)			Portion of Evergrande Royal	Summit Changchun		Portion of Evergrande Scenic	View Garden Changchun			Evergrande Royal View Garden	Ganzhou		Portion of Evergrande Emerald	Court Ganzhou		Portion of Evergrande Metropolis	Ganzhou			Portion of Evergrande Royal	View Garden Ji’an		Portion of Evergrande Royal	Scenic Jingdezhen		Portion of Evergrande Metropolis	Jingdezhen		Evergrande Bay Jiujiang
				Property		No.		IV-328			IV-329				IV-330			IV-331				IV-332			IV-333				IV-334			IV-335			IV-336				IV-337			IV-338			IV-339			IV-340

– IV-105 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	752.60				901.48			281.78				129.30			11.50			17.10			1,959.80			378.00 (8)				270.05			846.60			21.60			161.60			45.80
			Interest	Attributable		to the Group	(%)	100.0%				89.0%			51.0%				100.0%			100.0%			100.0%			100.0%			100.0%				51.0%			100.0%			100.0%			100.0%			100.0%
		Market	Value (2)	in Existing		State	(RMB million)	752.60				1,012.90			552.50				129.30			11.50			17.10			1,959.80			378.00				529.50			846.60			21.60			161.60			45.80
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	1,385.80				3,454.30			2,069.10				366.60			43.20			163.00			3,235.70			3,603.20				1,220.30			8,308.70			36.20			399.30			336.30
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	335.03				316.34			153.09				318.70			1.41			5.06			206.03			41.30				131.91			338.55			21.95			56.72			22.58
		Total	Estimated	Development		Cost	(RMB million)	570.53				1,480.63			768.23				479.26			33.95			143.13			620.21			1,419.85				506.74			5,809.22			30.10			209.69			222.05
			Estimated	Completion		Date		2019				2022			2021				2017			2017			2017			2018			2019				2018			2020			2017			2017			2021
			Construction	Commencement		Date		2013				2012			2016				2010			2011			2014			2016			2017				2016			2011			2011			2010			2012
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	12,449 90.30				18,732 172.37			25,371 249.29				— —			— —			— —			57,151 885.80			— —				3,344 32.50			— —			— —			1,932 8.69			— —
				Total Planned	GFA (1)		(sq.m.)	218,019				558,179			283,307				76,461			11,027			47,395			231,651			539,926				149,029			1,633,765			8,129			79,525			84,545
					Site Area (1)		(sq.m.)	70,144				759,473			105,280				1,577,388			192,891			88,492			61,456			63,203				57,489			2,117,748			113,168			92,696			123,575
						Type of Property		Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Commercial, Hotel,	Other		Residential, Other			Other, Carpark			Residential,	Commercial,	Composite, Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Carpark	Residential,	Commercial, Other,	Carpark	Residential,	Composite, Other		Residential,	Composite, Other		Residential,	Commercial,	Composite, Other,	Carpark
			Land Use	Rights Expiry		Date		05 Mar 2053 to	05 Mar 2083			01 Jun 2051 to	01 Jun 2081		26 Jan 2085				24 Nov 2047 to	24 Nov 2077		29 Dec 2050 to	29 Dec 2080		17 Mar 2084			02 Feb 2056 to	02 Feb 2086		31 Mar 2087				14 May 2056 to	14 May 2066		12 May 2051 to	29 Nov 2082		28 Feb 2050 to	28 Feb 2080		13 Sep 2045 to	13 Sep 2075		27 Apr 2052 to	27 Apr 2082
						Land Use		Residential,	Commercial			Residential, Office			Residential				Residential,	Commercial, Sport	and Leisure	Residential,	Commercial		Residential			Residential, Office			Residential,	Commercial,	Accommodation and	Catering	Residential,	Commercial		Residential,	Commercial		Residential,	Commercial		Residential, Office			Residential,	Commercial
						City		Jiujiang				Nanchang			Nanchang				Nanchang			Nanchang			Nanchang			Nanchang			Shangrao				Urumqi			Wujiaqu			Xinyu			Xinyu			Yining
						Holding Entity		Hengda (Jiujiang) Real	Estate Group Company	Limited		Jiangxi Hongji Investment	Company Limited		Jiangxi Jigan Property	Company Limited			Jiangxi Cuilin Shanzhuang	Company Limited		Nanchang Zhongdiantou	Gaoxin Property Company	Limited	Nanchang Zhongdiantou	Gaoxin Property Company	Limited	Nanchang Hengda Zhaoyang	Property Company Limited		Shangrao Hengda Property	Company Limited			Wulumuqi Shengshi Junxing	Real Estate Development	Company Limited	Wujiaqu Zhuoyue Real	Estate Development	Company Limited	Xinyu Xingwang Real	Estate Development	Company Limited	Xinyu Zhongchen Property	Development Company	Limited	Yining Hengda Yayuan	Real Estate Development	Company Limited
						Property Name		Portion of Evergrande Royal	Scenic Jiujiang			Portion of Evergrande City	Nanchang		Evergrande Emerald Court	Nanchang			Portion of Evergrande Oasis	Nanchang		Portion of Evergrande Royal	View Garden Nanchang		Portion of Evergrande	Yujingxiaoqu Nanchang		Evergrande Palace Nanchang			Evergrande Metropolis Shangrao				Evergrande Oasis Urumchi			Portion of Evergrande Splendor	Urumchi		Portion of Evergrande City	Xinyu		Portion of Evergrande Atrium	Xinyu		Portion of Evergrande Atrium	Yining
				Property		No.		IV-341				IV-342			IV-343				IV-344			IV-345			IV-346			IV-347			IV-348				IV-349			IV-350			IV-351			IV-352			IV-353

– IV-106 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	636.10			614.80				57.00			136.60 (9)				1,129.10				650.60				236.20				1,370.96			776.70				976.90			1,195.70				1,989.90			123.80
			Interest	Attributable		to the Group	(%)	100.0%			100.0%				100.0%			100.0%				100.0%				100.0%				100.0%				80.0%			100.0%				100.0%			100.0%				100.0%			100.0%
		Market	Value (2)	in Existing		State	(RMB million)	636.10			614.80				57.00			136.60				1,129.10				650.60				236.20				1,713.70			776.70				976.90			1,195.70				1,989.90			123.80
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	1,289.50			3,582.50				171.10			358.80				5,819.60				2,800.50				953.50				2,603.10			1,478.80				1,663.10			2,656.40				3,292.20			290.50
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	614.17			283.94				46.37			144.82				283.58				221.64				83.29				544.31			258.97				633.66			260.76				240.57			2.97
		Total	Estimated	Development		Cost	(RMB million)	813.02			1,981.76				110.55			200.17				3,221.38				1,461.35				534.69				572.96			597.93				794.55			1,009.39				613.13			143.36
			Estimated	Completion		Date		2020			2023				2019			2018				2026				2026				2019				2019			2018				2020			2018				2019			2017
			Construction	Commencement		Date		2012			2016				2011			2015				2011				2012				2012				—			2014				2012			2015				2015			2013
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	2,217 10.79			17,014 119.09				17,873 49.71			14,021 84.70				50,858 107.56				2,863 14.11				— —				— —			1,835 28.77				— —			— —				49,956 918.06			5,429 28.64
				Total Planned	GFA (1)		(sq.m.)	249,954			753,237				45,388			77,520				1,217,639				537,753				186,764				172,626			203,271				174,635			355,529				210,805			43,501
					Site Area (1)		(sq.m.)	160,203			378,753				325,185			86,143				352,910				112,504				111,400				32,068			152,704				38,592			133,308				74,261			56,921
						Type of Property		Residential,	Commercial,	Composite, Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial, Office,	Other, Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial, Other,	Carpark	Residential, Other,	Carpark
			Land Use	Rights Expiry		Date		27 Apr 2052 to	27 Apr 2082		16 Jan 2077				28 Jan 2051 to	28 Jan 2081		28 Jan 2085 to	29 Jan 2085			09 Jul 2050 to	28 Feb 2083			31 Aug 2081				28 Sep 2051 to	28 Sep 2081			30 Mar 2051			21 Apr 2054 to	21 Apr 2084			18 Dec 2057			31 May 2085				15 Jul 2080			30 Jan 2082
						Land Use		Residential,	Commercial		Residential				Residential,	Commercial, Office		Residential				Residential,	Commercial			Residential				Residential,	Commercial			Commercial			Residential,	Commercial			Residential			Residential				Residential			Residential,	Commercial
						City		Yining			Yichun				Yingtan			Yingtan				An’shan				An’shan				Benxi				Dalian			Dalian				Dalian			Dalian				Dalian			Dalian
						Holding Entity		Yining Jinbi Real Estate	Development Company	Limited	Jiangxi Jimin Kexin Real	Estate Development	Company Limited		Hengda Real Estate Yingtan	Company Limited		Hengda Real Estate Yingtan	Company Limited			Anshan Jiarui Property	Company Limited			Anshan Jiayu Property	Company Limited			Benxi Jiaxi Property	Company Limited			Dalian Junyuan Property	Company Limited		Dalian Hengcheng Real	Estate Company Limited			Hansi (Dalian) Apartments	Development Company	Limited	Dalian Hengke Real Estate	Company Limited			Dalian Dongfang Shengdu	Land Company Limited		Dalian Xicheng Real Estate	Company Limited
						Property Name		Portion of Evergrande Oasis	Yining		Portion of Evergrande Oasis	Yichun			Portion of Evergrande Oasis	Yingtan		Portion of Evergrande Royal	Scenic Yingtan			Portion of Evergrande Oasis	Anshan			Portion of Evergrande Metropolis	Anshan			Portion of Evergrande Oasis	Benxi			Evergrande City Lights Dalian			Portion of Evergrande Royal	View Garden Dalian			Evergrande Golden Avenue	Dalian		Portion of Evergrande Harbor	City Dalian			Evergrande Seasons Dalian			Portion of Evergrande Tanxijun	Dalian
				Property		No.		IV-354			IV-355				IV-356			IV-357				IV-358				IV-359				IV-360				IV-361			IV-362				IV-363			IV-364				IV-365			IV-366

– IV-107 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	60.12		224.80			715.60			424.10 (10)		143.00 (11)				389.40				421.80				726.50				1,306.70				42.00			304.70			60.20		12.30
			Interest	Attributable		to the Group	(%)	60.0%		100.0%			100.0%			100.0%		100.0%				100.0%				100.0%				100.0%				100.0%				100.0%			100.0%			100.0%		100.0%
		Market	Value (2)	in Existing		State	(RMB million)	100.20		224.80			715.60			424.10		143.00				389.40				421.80				726.50				1,306.70				42.00			304.70			60.20		12.30
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	158.70		262.50			1,350.00			1,503.80		1,538.60				1,900.30				2,295.60				3,918.70				5,369.80				197.70			609.90			89.90		27.50
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	25.11		4.29			7.52			32.26		141.56				38.08				431.27				256.27				292.95				3.71			112.60			15.58		1.19
		Total	Estimated	Development		Cost	(RMB million)	50.15		245.29			194.14			512.98		824.36				1,003.25				1,344.06				1,922.69				2,696.50				129.48			268.45			24.33		11.13
			Estimated	Completion		Date		2017		2019			2019			2022		2020				2023				2025				2023				2020				2017			2018			2018		2017
			Construction	Commencement		Date		2014		2017			2017			2013		2011				2016				2010				2011				2016				2007			2013			2010		2012
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	12,780 96.14		— —			— —			1,444 7.63		22,825 91.79				303 1.64				— —				8,007 31.01				103,314 706.35				— —			30,978 229.51			1,471 9.76		3,111 18.46
				Total Planned	GFA (1)		(sq.m.)	18,772		35,000			64,285			193,441		300,072				358,613				471,933				711,822				835,566				39,950			100,576			8,868		4,200
					Site Area (1)		(sq.m.)	28,400		28,396			102,657			66,627		152,247				171,887				338,866				301,934				137,881				359,812			104,410			72,970		217,114
						Type of Property		Commercial,	Composite, Carpark	Hotel			Residential			Commercial, Office,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Commercial,	Composite, Other,	Carpark	Residential,	Commercial, Other,	Carpark	Residential,	Commercial	Residential,	Commercial,	Carpark
			Land Use	Rights Expiry		Date		30 Aug 2083		15 Jul 2050			15 Jul 2050 to	15 Jul 2080		13 Jan 2051 to	13 Feb 2051	29 Aug 2051 to	29 Aug 2081			08 Jun 2051 to	29 May 2084			20 Jun 2050 to	20 Jun 2080			28 Jan 2051 to	29 Mar 2081			20 Mar 2087				07 Jun 2057 to	31 Mar 2061		29 May 2053 to	19 Jun 2083		24 May 2060		27 May 2060
						Land Use		Residential		Residential,	Accommodation and	Catering	Residential,	Accommodation and	Catering	Commercial		Residential,	Commercial			Residential,	Commercial			Residential,	Commercial			Residential,	Commercial			Residential,	Commercial			Residential			Residential,	Commercial		Residential		Residential
						City		Dalian		Dalian			Dalian			Fushun		Fushun				Huludao				Liaoyang				Panjin				Shenyang				Shenyang			Shenyang			Shenyang		Shenyang
						Holding Entity		Dalian Shicheng Real Estate	Company Limited	Dalian Dongfang Yadou	Property Company Limited		Dalian Shengdu Yihe Real	Estate Development	Company Limited	Fushun Jiashun Property	Company Limited	Fushun Jiaxin Property	Company Limited			Huludao Jia Shan Property	Company Limited			Liaoyang Hengsheng	Property Company Limited			Panjin Jiading Property	Company Limited			Shenyang Jiaxing Property	Company Limited			Hengda Xinyuan (Shenyang)	Property Company Limited		Shenyang Jiahui Property	Company Limited		Shenyang Jiaqi Property	Company Limited	Shenyang Jiakai Property	Company Limited
						Property Name		Portion of Evergrande Royal	Scenic Bay Dalian	Portion of Evergrande Seasons	Dalian		Portion of Evergrande Seasons	Dalian		Portion of Evergrande Plaza	Fushun	Portion of Evergrande Palace	Fushun			Portion of Evergrande Royal	Scenic Bay Huludao			Portion of Evergrande Oasis	Liaoyang			Portion of Evergrande Palace	Panjin			Evergrande Left Riverbank	Shenyang			Portion of Evergrande City	Shenyang		Portion of Evergrande Emerald	Court Shenyang		Portion of Evergrande Palace	Shenyang	Portion of Evergrande Bay	Shenyang
				Property		No.		IV-367		IV-368			IV-369			IV-370		IV-371				IV-372				IV-373				IV-374				IV-375				IV-376			IV-377			IV-378		IV-379

– IV-108 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	1,308.30			1,136.50				431.99			782.90				94.50			3,994.80				862.70			213.80			386.80 (12)				577.40			797.80				430.20			470.30
			Interest	Attributable		to the Group	(%)	100.0%			100.0%				87.5%			100.0%				100.0%			100.0%				100.0%			100.0%			100.0%				100.0%			100.0%				100.0%			100.0%
		Market	Value (2)	in Existing		State	(RMB million)	1,308.30			1,136.50				493.70			782.90				94.50			3,994.80				862.70			213.80			386.80				577.40			797.80				430.20			470.30
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	4,054.80			2,946.50				1,960.80			2,445.80				271.80			11,780.00				2,877.40			1,282.90			6,009.60				3,112.10			3,333.00				1,929.70			951.80
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	266.59			263.99				40.00			139.22				8.27			1,745.73				236.73			28.18			242.77				163.97			685.37				626.01			70.84
		Total	Estimated	Development		Cost	(RMB million)	1,860.63			1,367.02				939.26			1,181.91				128.43			4,876.12				1,295.58			724.15			4,383.14				1,833.94			2,164.24				1,553.30			288.56
			Estimated	Completion		Date		2021			2019				2020			2021				2017			2022				2022			2024			2031				2026			2020				2020			2019
			Construction	Commencement		Date		2011			2010				2017			2012				2014			2012				2017			2011			2011				2011			2011				2013			2015
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	— —			2,604 16.23				— —			21,887 133.63				1,161 8.70			— —				— —			290 1.27			— —				2,809 14.26			44,708 106.45				28,227 158.74			60,344 756.28
				Total Planned	GFA (1)		(sq.m.)	725,795			505,785				292,454			400,615				48,051			1,833,131				477,513			249,606			1,452,026				617,973			659,683				348,677			99,727
					Site Area (1)		(sq.m.)	575,404			353,066				88,885			239,169				61,038			351,382				69,621			126,428			121,621				281,687			589,133				373,637			50,066
						Type of Property		Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Composite, Other	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Carpark	Residential,	Commercial,	Composite, Hotel,	Other, Carpark	Residential,	Commercial, Hotel,	Other, Carpark	Residential,	Commercial,	Composite, Carpark
			Land Use	Rights Expiry		Date		31 Dec 2056 to	31 Oct 2064		19 Oct 2050 to	19 Oct 2080			06 Mar 2087			03 Apr 2052 to	20 Apr 2082			29 Nov 2053 to	29 Nov 2083		18 Apr 2052 to	07 Apr 2083			06 Dec 2053 to	06 Dec 2083		17 Jul 2051 to	17 Jul 2081		25 Sep 2051 to	25 Sep 2081			29 Jul 2054 to	29 Jul 2084		25 Jan 2051 to	25 Jan 2081			12 Sep 2052 to	12 Sep 2082		07 Jul 2085
						Land Use		Residential			Residential,	Commercial			Residential,	Commercial		Residential,	Commercial			Residential,	Commercial		Residential,	Commercial			Residential,	Commercial		Residential,	Commercial		Residential,	Commercial			Residential,	Commercial		Residential,	Commercial,	Accommodation and	Catering	Residential,	Accommodation and	Catering	Residential
						City		Shenyang			Shenyang				Shenyang			Shenyang				Shenyang			Shenyang				Shenyang			Yingkou			Yingkou				Yingkou			Dongying				Dongying			Jinan
						Holding Entity		Hengda Changji (Shenyang)	Property Company Limited		Shenyang Yue Tong	Properties Company Limited			Shenyang Jiashang Property	Company Limited		Shenyang Jiajun Property	Company Limited			Shenyang Jiaze Property	Company Limited		Jindao (Shenyang) Real	Estate Development	Company Limited		Jindao United (Shenyang)	Real Estate Development	Company Limited	Yingkou Jialong Real	Estate Company Limited		Yingkou Jiayu Property	Company Limited			Yingkou Jialong Real	Estate Company Limited		Dongying Hengda Huafu	Property Company Limited			Dongying Yujing Property	Company Limited		Jinan Dongjin Fengshan	Property Company Limited
						Property Name		Portion of Evergrande Oasis	Shenyang		Portion of Evergrande Metropolis	Shenyang			Evergrande Shengjing Impression	Shenyang		Portion of Evergrande Atrium	Shenyang			Portion of Evergrande Royal	Scenic Bay Shenyang		Portion of Evergrande Central	Plaza Shenyang			Portion of Evergrande Central	Plaza Shenyang		Portion of Evergrande City	Yingkou		Evergrande Bay Yingkou				Portion of Evergrande Oasis	Yingkou		Portion of Evergrande Huang He	Sheng Tai Cheng Dongying			Portion of Evergrande Palm	Islands Dongying		Portion of Evergrande Longao	East New Metropolis Jinan
				Property		No.		IV-380			IV-381				IV-382			IV-383				IV-384			IV-385				IV-386			IV-387			IV-388				IV-389			IV-390				IV-391			IV-392

– IV-109 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	4,730.50			238.60				2,691.20			319.90			784.20				1,662.90			1,683.40				1,282.50				1,657.50			1,289.90				75.80			607.52			909.12
			Interest	Attributable		to the Group	(%)	100.0%			100.0%				100.0%			100.0%			100.0%				100.0%			100.0%				100.0%				100.0%			100.0%				100.0%			80.0%			80.0%
		Market	Value (2)	in Existing		State	(RMB million)	4,730.50			238.60				2,691.20			319.90			784.20				1,662.90			1,683.40				1,282.50				1,657.50			1,289.90				75.80			759.40			1,136.40
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	13,953.80			502.60				6,239.20			440.40			3,359.60				3,293.90			3,204.80				3,317.60				3,447.60			4,149.20				128.50			1,645.60			3,067.20
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	1,509.42			84.83				131.74			186.26			130.60				633.06			701.24				584.72				138.65			1,096.90				70.84			113.50			52.57
		Total	Estimated	Development		Cost	(RMB million)	5,140.43			225.96				2,598.49			196.07			1,632.10				1,243.06			1,224.27				1,428.22				866.36			2,088.56				96.38			652.91			1,143.49
			Estimated	Completion		Date		2023			2018				2022			2018			2021				2020			2020				2022				2020			2025				2017			2017			2018
			Construction	Commencement		Date		2013			2011				2011			2012			2012				2013			2014				2014				2015			2010				2010			2016			2016
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	539,135 3,927.82			33,763 176.22				— —			72,878 392.12			47,791 189.74				— —			115,446 1,128.21				186,125 1,347.98				82,084 1,309.12			118,973 796.00				5,490 23.03			151,009 1,297.97			4,358 43.41
				Total Planned	GFA (1)		(sq.m.)	1,617,037			79,314				879,091			83,102			521,234				376,217			408,098				448,542				225,585			686,506				37,406			206,202			360,892
					Site Area (1)		(sq.m.)	334,620			234,119				311,630			116,421			143,066				234,112			118,133				103,965				199,751			678,556				134,118			52,245			30,935
						Type of Property		Residential,	Commercial,	Composite, Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Carpark	Residential,	Commercial,	Composite, Office,	Carpark	Residential,	Commercial,	Composite, Office,	Carpark	Residential,	Commercial,	Composite, Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Carpark	Residential,	Commercial,	Carpark
			Land Use	Rights Expiry		Date		18 Dec 2052 to	09 Aug 2085		13 Apr 2051 to	13 Jun 2084			13 Apr 2051 to	13 Jun 2084		19 Oct 2052 to	19 Oct 2082		19 Oct 2052 to	19 Oct 2082			10 Nov 2053 to	30 Apr 2084		30 Apr 2054 to	01 Apr 2084			30 Apr 2054 to	01 Apr 2084			30 Dec 2084			05 Apr 2080 to	07 Sep 2080			28 Apr 2080			21 Aug 2055 to	21 Aug 2085		21 Aug 2055 to	21 Aug 2085
						Land Use		Residential,	Commercial		Residential, Office				Residential, Office			Residential, Office			Residential, Office				Residential,	Commercial		Residential,	Commercial			Residential,	Commercial			Residential			Residential				Residential			Residential,	Commercial		Residential,	Commercial
						City		Jinan			Jinan				Jinan			Jinan			Jinan				Jinan			Jinan				Jinan				Jinan			Jinan				Jinan			Jinan			Jinan
						Property Name Holding Entity		Evergrande Left Riverbank Jinan Jinan Yuanhao Property	Company Limited		Portion of Evergrande City Jinan Jinan Hengda Jinbi Real	Estate Development	Company Limited		Evergrande City Jinan (Junhui) Jinan Junhui Property	Company Limited		Portion of Evergrande Royal Jinan Hengda Feicui	View Garden Jinan Huating Property Company	Limited	Portion of Evergrande Emerald Jinan Huafu Property	Court Jinan Company Limited			Portion of Evergrande Emerald Jinan Xichuang Property	Court Jinan Company Limited		Evergrande Palace Jinan Jinan Xishi Property	Company Limited			Portion of Evergrande Jinbi New Jinan Xiye Property	Town Jinan Company Limited			Portion of Evergrande Longao Jinan Dongjin Longding	Regency Jinan Property Company Limited		Portion of Evergrande Oasis Jinan Hengda Lvzhou	Jinan Property Company Limited			Portion of Evergrande Metropolis Jinan Mingdu Property	Jinan Company Limited		Portion of Evergrande Bright Jinan Hongshulin Property	City Jinan Company Limited		Portion of Evergrande Bright Jinan Jialong Property	City Jinan Company Limited
				Property		No.		IV-393			IV-394				IV-395			IV-396			IV-397				IV-398			IV-399				IV-400				IV-401			IV-402				IV-403			IV-404			IV-405

– IV-110 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	2,754.70				430.80				1,814.80			709.50				1,003.40					27.29			956.90				211.70			260.81			1,393.40				61.50			116.80
			Interest	Attributable		to the Group	(%)	100.0%				60.0%				100.0%			60.0%				100.0%					51.0%			100.0%				51.0%			51.0%			100.0%				100.0%			100.0%
		Market	Value (2)	in Existing		State	(RMB million)	2,754.70				718.00				1,814.80			1,182.50				1,003.40					53.50			956.90				415.10			511.40			1,393.40				61.50			116.80
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	4,939.10				2,059.30				2,906.60			3,785.40				5,437.20					252.60			3,162.80				2,176.00			1,828.80			4,811.50				434.10			551.90
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	1,184.38				121.08				948.14			185.97				226.21					30.90			314.12				87.94			341.67			693.02				93.86			22.56
		Total	Estimated	Development		Cost	(RMB million)	1,993.36				848.46				1,090.32			1,724.95				3,272.05					183.51			1,631.39				1,394.50			1,108.06			2,677.78				362.67			357.49
			Estimated	Completion		Date		2019				2020				2019			2020				2030					2019			2020				2020			2020			2020				2018			2020
			Construction	Commencement		Date		2014				2012				2016			2013				2011					2014			2011				2012			2012			2011				2011			2013
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	69,525 292.29				52,194 206.17				177,918 1,691.06			87,275 302.97				43,095 177.65					27,086 61.87			36,575 153.67				12,837 47.07			— —			139,391 1,604.04				37,056 127.82			11,001 24.58
				Total Planned	GFA (1)		(sq.m.)	656,498				312,380				344,592			603,849				848,916					73,291			579,873				497,875			359,837			508,349				152,449			135,039
					Site Area (1)		(sq.m.)	225,109				202,511				89,583			264,016				1,068,026					76,200			158,223				137,981			170,159			335,790				178,459			87,534
						Type of Property		Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Office,	Other, Carpark	Residential,	Commercial,	Composite, Carpark	Residential,	Commercial,	Composite, Office,	Other, Carpark	Residential,	Commercial, Hotel,	Carpark			Residential,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Office,	Carpark	Residential,	Commercial,	Composite, Carpark	Residential,	Commercial, Other,	Carpark	Residential,	Commercial, Hotel,	Office, Other,	Carpark	Residential,	Commercial,	Composite, Carpark	Residential,	Commercial, Other,	Carpark
			Land Use	Rights Expiry		Date		30 Apr 2054 to	01 Apr 2084			21 Oct 2052 to	21 Oct 2082			20 Feb 2084			19 Jan 2054 to	30 Jul 2084			19 Sep 2050 to	11 Sep 2083				09 Dec 2082			22 Sep 2051 to	22 Sep 2081			30 Dec 2051 to	30 Dec 2081		30 Dec 2051 to	30 Dec 2081		16 Jan 2048 to	09 May 2057			20 Aug 2080			15 Feb 2052 to	19 Mar 2083
						Land Use		Residential,	Commercial			Residential, Office				Residential			Residential, Office				Residential,	Commercial,	Accommodation and	Catering, Cultural	and Entertainment	Residential			Residential, Office				Residential,	Commercial		Residential,	Commercial		Residential,	Accommodation and	Catering		Residential			Residential,	Commercial
						City		Jinan				Jinan				Jinan			Jining				Laiwu					Liaocheng			Linyi				Linyi			Linyi			Qingdao				Taian			Weifang
						Holding Entity		Jinan Xikai Property	Company Limited			Jinan Hengda Xiqu Property	Company Limited			Jinan Yufeng Property	Company Limited		Jining Beihu Hengda	Mingdu Property Company	Limited		Laiwu Hengda Jinbi Tianxia	Property Company Limited				Liaocheng Nanjiao Mingdu	Property Company Limited		Linyi Huafu Property	Company Limited			Linyi Lvzhou Property	Company Limited		Linyi Zhengsheng Property	Company Limited		Qingdao Jinwan Property	Company Limited			Tai’an Tianrun Renhe	Property Company Limited		Shandong Puyun Real	Estate Development	Company Limited
						Property Name		Portion of Evergrande Century	Square Jinan			Portion of Evergrande Atrium	Jinan			Evergrande Peak Jinan			Portion of Evergrande Metropolis	Jining			Portion of Evergrande Splendor	Laiwu				Portion of Evergrande Metropolis	Liaocheng		Portion of Evergrande Palace	Linyi			Portion of Evergrande Oasis	Linyi		Portion of Evergrande Oasis	Linyi		Evergrande Golden Sands	Qingdao			Portion of Evergrande City	Tai’an		Portion of Evergrande Emerald	Court Weifang
				Property		No.		IV-406				IV-407				IV-408			IV-409				IV-410					IV-411			IV-412				IV-413			IV-414			IV-415				IV-416			IV-417

– IV-111 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	950.40				468.42			1,809.00				250.30				43.51				193.00			3,027.90				633.86 (13)			243.60			270.12				197.30				43.40
			Interest	Attributable		to the Group	(%)	100.0%				60.0%			100.0%				100.0%				95.0%				100.0%			100.0%				82.0%			70.0%			65.6%				100.0%				100.0%
		Market	Value (2)	in Existing		State	(RMB million)	950.40				780.70			1,809.00				250.30				45.80				193.00			3,027.90				773.00			348.00			411.90				197.30				43.40
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	3,613.00				1,735.60			3,413.30				671.70				238.30				382.10			4,328.30				2,226.60			445.00			603.30				341.40				116.50
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	308.27				521.20			1,262.12				28.07				26.38				31.77			1,045.04				119.02			58.25			166.16				102.23				27.35
		Total	Estimated	Development		Cost	(RMB million)	1,945.15				877.48			1,622.62				307.04				175.08				125.38			1,262.37				949.65			61.32			230.37				174.43				77.59
			Estimated	Completion		Date		2020				2020			2021				2017				2018				2018			2018				2019			2017			2017				2017				2017
			Construction	Commencement		Date		2012				2012			2014				2012				2012				2011			2015				2016			2015			2012				2010				2010
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	76,987 261.71				— —			79,189 561.11				— —				1,500 11.57				6,528 38.94			97,146 1,059.74				170,824 1,553.36			16,775 195.19			6,789 157.51				5,520 35.67				11,457 64.44
				Total Planned	GFA (1)		(sq.m.)	698,607				266,177			508,074				156,653				79,030				53,723			370,749				291,467			24,036			62,572				56,891				28,239
					Site Area (1)		(sq.m.)	289,254				199,989			143,421				194,483				134,264				34,577			115,006				54,897			36,505			197,054				691,679				121,328
						Type of Property		Residential,	Commercial,	Composite, Office,	Other, Carpark	Residential,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Carpark	Commercial,	Carpark		Residential,	Commercial,	Composite, Other,	Carpark	Commercial, Other,	Carpark			Residential,	Commercial,	Composite, Other,	Carpark
			Land Use	Rights Expiry		Date		03 Mar 2052 to	03 Mar 2082			16 Aug 2051 to	08 Jul 2084		18 Apr 2053 to	10 Apr 2054			04 Jan 2052 to	04 Jan 2082			21 Aug 2078 to	28 Mar 2080			09 Jun 2051 to	09 Jun 2081		22 Apr 2055 to	22 Apr 2085			18 Oct 2056 to	18 Oct 2086		24 Mar 2055 to	24 Mar 2085		06 Jul 2050 to	06 Jul 2060			14 Nov 2047 to	14 Nov 2057			18 May 2049 to	18 May 2059
						Land Use		Residential,	Commercial			Residential,	Commercial		Commercial				Residential,	Commercial			Residential				Residential,	Commercial		Residential,	Commercial			Residential,	Commercial		Residential,	Commercial		Residential, Office				Residential,	Commercial, Office,	Education/Public	Facility	Residential, Office,	Education
						City		Weifang				Zibo			Zibo				Datong				Linfen				Lvliang			Taiyuan				Taiyuan			Taiyuan			Taiyuan				Taiyuan				Taiyuan
						Holding Entity		Weifang Jinbi Property	Company Limited			Gaoxin Zhengcheng (Zi Bo)	Real Estate Development	Company Limited	Zibo Hengda Fanhua	Property Company Limited			Datong Junjing Real Estate	Development Company	Limited		Linfen Zijing Real Estate	Development Company	Limited		Lvliang Junhui Real Estate	Development Company	Limited	Taiyuan Jinshiheng Real	Estate Development	Company Limited		Shanxi Lanhua Kangyu	Real Estate Development	Company Limited	Taiyuan Shengshi Juntai	Real Estate Development	Company Limited	Taiyuan Junjing Real Estate	Development Company	Limited		Hengda (Taiyuan) Real	Estate Group Company	Limited		Taiyuan Mingdu Real	Estate Development	Company Limited
						Property Name		Portion of Evergrande Metropolis	Weifang			Zi Bo Zheng Cheng.Park			Portion of Evergrande Royal	View Garden Zibo			Portion of Evergrande Oasis	Datong			Portion of Evergrande Palace	Linfen			Portion of Evergrande Royal	Scenic Lvliang		Portion of Evergrande Left Bank	Riverfront Taiyuan			Portion of Evergrande City	Taiyuan		Portion of Evergrande Emerald	Court Taiyuan		Portion of Evergrande Royal	Palace Taiyuan			Portion of Evergrande Oasis	Taiyuan			Portion of Evergrande Metropolis	Taiyuan
				Property		No.		IV-418				IV-419			IV-420				IV-421				IV-422				IV-423			IV-424				IV-425			IV-426			IV-427				IV-428				IV-429

– IV-112 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	1,517.00			1,401.00			239.90			1,942.00				437.57			18.10			185.20			89.39				497.30				403.56			26.26			6,118.80			4,414.40
			Interest	Attributable		to the Group	(%)	100.0%			100.0%			100.0%			100.0%				64.0%			100.0%			100.0%			71.0%				100.0%				98.0%			98.0%			100.0%			100.0%
		Market	Value (2)	in Existing		State	(RMB million)	1,517.00			1,401.00			239.90			1,942.00				683.70			18.10			185.20			125.90				497.30				411.80			26.80			6,118.80			4,414.40
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	3,571.90			2,616.10			442.40			7,703.10				1,453.30			34.70			521.40			697.40				723.80				527.40			33.80			9,023.60			7,462.20
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	198.85			217.80			6.53			41.02				435.15			32.37			129.69			28.13				135.88				81.69			20.44			197.57			76.61
		Total	Estimated	Development		Cost	(RMB million)	1,268.28			803.22			100.23			2,893.10				793.70			38.36			338.08			412.12				209.75				85.98			21.51			849.67			1,278.91
			Estimated	Completion		Date		2019			2017			2018			2021				2019			2020			2018			2019				2017				2017			2017			2018			2018
			Construction	Commencement		Date		2013			2016			2015			2015				2014			2011			2011			2012				2015				2012			2012			2016			2016
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	73,323 589.87			147,420 1,559.40			12,064 136.03			38,958 311.65				49,450 285.26			756 7.15			59,480 214.59			12,350 64.81				— —				— —			— —			— —			— —
				Total Planned	GFA (1)		(sq.m.)	449,180			235,209			40,478			939,870				249,012			6,101			130,786			145,570				67,418				28,237			8,988			141,597			268,684
					Site Area (1)		(sq.m.)	341,865			61,289			62,842			249,271				179,636			67,975			106,763			107,824				69,955				16,745			35,831			10,448			42,329
						Type of Property		Residential,	Composite, Other,	Carpark	Residential,	Commercial,	Carpark	Commercial, Other,	Carpark		Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Carpark	Residential,	Commercial,	Composite	Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Composite, Carpark		Residential,	Commercial,	Composite, Other,	Carpark	Residential, Other,	Carpark		Residential,	Commercial, Other		Residential,	Commercial, Other,	Carpark	Residential,	Commercial, Office,	Other, Carpark
			Land Use	Rights Expiry		Date		18 May 2051 to	18 May 2061		04 Feb 2053			29 Jul 2055 to	29 Jul 2085		17 Feb 2054 to	17 Feb 2084			09 Dec 2078			30 Sep 2080			13 May 2078			09 Mar 2049 to	09 Mar 2079			21 Aug 2054 to	21 Aug 2084			23 Aug 2082			23 Aug 2082			30 Dec 2055			28 Jan 2056
						Land Use		Residential, Office,	Education		Residential,	Commercial, Office		Residential,	Commercial		Residential,	Commercial,	Education		Residential			Residential			Residential			Residential,	Commercial			Residential, Office				Residential,	Commercial		Residential			Commercial, Office			Commercial
						City		Taiyuan			Taiyuan			Taiyuan			Taiyuan				Yangquan			Yuncheng			Yuncheng			Yuncheng				Dongguan				Shenzhen			Shenzhen			Shenzhen			Shenzhen
						Property Name Holding Entity		Portion of Evergrande Scenic Taiyuan Deyi Real Estate	Garden Taiyuan Development Company	Limited	Evergrande Future City Taiyuan Shanxi Jiasheng Real Estate	Development Company	Limited	Portion of Evergrande Atrium Taiyuan Wanheng Real	Taiyuan Estate Development	Company Limited	Portion of Evergrande Royal Taiyuan Junheng Real	Scenic Bay Taiyuan Estate Development	Company Limited		Portion of Evergrande Royal Yangquan Shi Liaoyuan	View Garden Yangquan Real Estate Development	Company Limited	Portion of Evergrande Oasis Yuncheng Jinheng Real	Yuncheng Estate Development	Company Limited	Portion of Evergrande Oasis Yuncheng Xinwanrui Real	Yuncheng Estate Development	Company Limited	Portion of Evergrande Metropolis Yuncheng Economic	Yuncheng Development Zone Yijiayi	Real Estate Development	Company Limited	Portion of Evergrande Oasis Zehe (Dongguan) Property	Dongguan Company Limited			Portion of Evergrande Gentleman Shenzhen Jisha Real Estate	Hill Emerald Court Shenzhen Development Company	Limited	Portion of Evergrande Gentleman Shenzhen Shacun Real	Hill Garden Shenzhen Estate Development	Company Limited	Evergrande Sky Tower Shenzhen Qianhai Junlin Industrial	Development (Shenzhen)	Company Limited	Shenzhen Ailian Project Shenzhen Wanjing	Investment Company	Limited
				Property		No.		IV-430			IV-431			IV-432			IV-433				IV-434			IV-435			IV-436			IV-437				IV-438				IV-439			IV-440			IV-441			IV-442

– IV-113 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	9,035.20			1,422.20			60.00			273.40			191.00		166.70			1,058.60		780.00			461.10				758.40			382.27				33.80		557.70				181.40
			Interest	Attributable		to the Group	(%)	100.0%			100.0%			100.0%			100.0%			100.0%		100.0%			100.0%		100.0%			100.0%				100.0%			65.0%				100.0%		100.0%				100.0%
		Market	Value (2)	in Existing		State	(RMB million)	9,035.20			1,422.20			60.00			273.40			191.00		166.70			1,058.60		780.00			461.10				758.40			588.10				33.80		557.70				181.40
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	15,092.80			1,832.90			77.00			603.70			257.50		736.80			1,411.20		2,043.60			586.20				2,112.00			1,712.30				47.00		1,491.00				761.40
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	211.23			451.75			39.86			159.89			33.48		20.28			139.15		120.77			76.73				102.60			205.26				9.23		40.06				25.90
		Total	Estimated	Development		Cost	(RMB million)	1,957.16			475.52			41.96			363.23			35.24		498.02			193.97		853.13			333.46				847.62			892.07				14.21		613.39				484.25
			Estimated	Completion		Date		2018			2017			2017			2017			2018		2020			2017		2018			2018				2019			2018				2017		2018				2017
			Construction	Commencement		Date		2016			2015			2007			2012			2009		2011			2010		2017			2007				2016			2016				2008		2014				2011
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	— —			156,613 1,707.16			9,805 45.61			46,936 191.25			12,365 257.52		203 2.15			57,316 1,154.46		— —			6,567 —				147,563 1,150.44			29,461 212.84				1,209 5.36		39,605 281.45				138,285 548.39
				Total Planned	GFA (1)		(sq.m.)	434,316			183,259			17,060			115,542			12,365		138,978			68,060		314,786			113,037				325,842			321,894				4,961		250,429				183,665
					Site Area (1)		(sq.m.)	85,748			45,924			169,501			62,639			18,061		33,354			37,557		83,848			142,145				65,195			193,148				73,914		118,936				43,540
						Type of Property		Residential,	Commercial, Office,	Other, Carpark	Residential,	Commercial,	Carpark	Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Composite, Carpark	Residential		Residential,	Commercial, Hotel,	Carpark	Residential		Residential,	Commercial,	Composite, Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Carpark	Residential,	Commercial,	Composite, Office,	Other, Carpark	Residential, Carpark		Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Carpark
			Land Use	Rights Expiry		Date		12 Jan 2066			12 Jun 2054 to	12 Jun 2084		31 Oct 2076 to	31 Oct 2076		19 Dec 2050 to	19 Dec 2080		09 Nov 2046 to	09 Nov 2076	07 Jun 2050			06 Mar 2047 to	06 Mar 2077	18 Aug 2056 to	18 Aug 2086		18 Dec 2046 to	20 Aug 2077			14 Jun 2056 to	14 Jun 2086		09 Mar 2051 to	09 Mar 2081			02 Nov 2046 to	02 Nov 2076	20 Mar 2053 to	20 Mar 2083			19 Oct 2050 to	19 Oct 2080
						Land Use		Commercial, New	Industrial		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial	Commercial			Residential,	Commercial	Residential			Residential,	Commercial, Office			Residential,	Commercial		Residential,	Commercial			Residential,	Commercial	Residential,	Commercial			Residential,	Commercial
						City		Shenzhen			Chengdu			Chengdu			Chengdu			Chengdu		Qionglai			Chengdu		Chengdu			Chengdu				Chengdu			Chengdu				Chengdu		Chengdu				Chengdu
						Holding Entity		Jiantao Digits Development	(Shenzhen) Company	Limited	Chengdu Hengda	Xinxicheng Property	Company Limited	Chengdu Wenjiang District	Xinjinkang Property	Company Limited	Chengdu Chenming Property	Company Limited		Aimeigao (Chengdu) Real	Estate Company Limited	Chengdu Qionglai Yiheng	Property Company Limited		Aimeigao (Chengdu)	Property Company Limited	Chengdu Shuren Property	Company Limited		Chengdu Hengda Yinhe	Xincheng Property Company	Limited		Sichuan Weian Health	Products Company Limited		Sichuan Xinbaodi Real	Estate Development	Company Limited		Sichuan Aimeigao Real	Estate Company Limited	Renji Hengye (Sichuan)	Investment Company	Limited		Chengdu Guangjuyuan	Investment Company	Limited
						Property Name		Evergrande Mountain Bay	Huizhou		Portion of Evergrande Emerald	Court Chengdu		Portion of Evergrande City	Chengdu		Portion of Evergrande Royal	View Garden Chengdu		Portion of Evergrande Metropolis	Court Chengdu	Portion of Evergrande Emerald	Court Qionglai		Portion of Evergrande Huazhi	Plaza Chengdu	Evergrande Splendid City	Chengdu		Portion of Evergrande Oasis	Chengdu			Evergrande Royal City Chengdu			Evergrande Shanglin Garden	Chengdu			Portion of Evergrande West	Jincheng Chengdu	Portion of Evergrande New City	Chengdu			Evergrande Atrium Chengdu
				Property		No.		IV-443			IV-444			IV-445			IV-446			IV-447		IV-448			IV-449		IV-450			IV-451				IV-452			IV-453				IV-454		IV-455				IV-456

– IV-114 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	1,792.30			1,149.40			311.37			2,278.60			2,521.53				72.40			5,299.60				524.00			1,037.70			957.50			377.75			370.90			1,260.40			533.00
			Interest	Attributable		to the Group	(%)	100.0%			100.0%			50.6%			100.0%			90.0%				100.0%			80.0%				100.0%			100.0%			100.0%			84.0%			100.0%			100.0%			100.0%
		Market	Value (2)	in Existing		State	(RMB million)	1,792.30			1,149.40			615.00			2,278.60			2,801.70				72.40			6,624.50				524.00			1,037.70			957.50			449.70			370.90			1,260.40			533.00
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	11,554.90			1,799.70			1,272.40			3,931.40			4,929.80				199.20			21,639.50				4,534.10			2,132.40			1,993.30			1,558.50			1,822.30			6,040.80			2,494.90
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	856.15			87.42			11.15			969.07			869.48				23.89			1,709.63				130.12			127.45			793.11			92.81			345.82			84.82			6.77
		Total	Estimated	Development		Cost	(RMB million)	5,915.79			781.85			280.56			1,484.78			1,280.91				108.87			7,057.98				2,461.45			497.33			1,263.16			781.35			1,263.61			2,935.09			1,205.96
			Estimated	Completion		Date		2024			2020			2018			2019			2021				2017			2025				2023			2020			2019			2019			2020			2019			2020
			Construction	Commencement		Date		2010			2015			2015			2015			2010				2010			2010				2016			2016			2011			2011			2011			2017			2018
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	108,114 435.04			24,171 217.94			— —			22,155 311.09			— —				5,501 22.70			142,496 1,288.35				53,586 343.57			53,399 910.09			236,634 1,185.38			— —			— —			— —			— —
				Total Planned	GFA (1)		(sq.m.)	2,149,619			214,776			97,309			605,221			461,560				45,344			2,749,450				979,229			184,847			420,362			306,899			390,997			1,153,718			475,007
					Site Area (1)		(sq.m.)	926,437			62,100			62,100			113,382			63,232				54,280			950,072				31,232			34,492			103,177			56,482			96,366			204,003			83,997
						Type of Property		Residential,	Commercial, Hotel,	Other, Carpark	Residential,	Commercial, Hotel,	Carpark	Residential,	Commercial,	Carpark	Residential,	Commercial, Office,	Other, Carpark	Residential,	Commercial, Office,	Carpark		Residential,	Commercial,	Composite, Carpark	Residential,	Commercial,	Composite, Hotel,	Other, Carpark	Residential,	Commercial,	Composite, Carpark	Residential,	Commercial,	Composite, Carpark	Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Carpark	Residential,	Commercial,	Carpark	Residential,	Commercial,	Composite, Carpark	Residential,	Commercial,	Carpark
			Land Use	Rights Expiry		Date		22 Mar 2048 to	08 Mar 2078		26 Feb 2055 to	26 Feb 2085		26 Feb 2055 to	26 Feb 2085		31 Jul 2054 to	31 Jul 2084		24 May 2051 to	24 May 2081			22 Jan 2048 to	08 Oct 2085		26 Jan 2046 to	26 Jan 2076			10 Aug 2056 to	10 Aug 2086		01 May 2054 to	01 May 2084		27 Jan 2048 to	27 Jan 2078		28 Oct 2086			03 Sep 2040 to	03 Sep 2080		03 Dec 2042 to	10 Sep 2080		03 Dec 2042 to	10 Sep 2080
						Land Use		Residential,	Commercial		Residential,	Commercial, Public	Facility	Residential,	Commercial, Public	Facility	Residential,	Commercial		Residential,	Commercial,	Research		Residential,	Commercial		Residential,	Commercial			Residential,	Commercial		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial
						City		Chengdu			Chengdu			Chengdu			Chengdu			Chengdu				Chengdu			Chengdu				Chengdu			Chengdu			Dazhou			Chengdu			Chengdu			Chengdu			Chengdu
						Property Name Holding Entity		Portion of Evergrande Royal Chengdu Tianfu Shuicheng	Scenic Peninsula Chengdu Real Estate Development	Company Limited	Portion of Evergrande Central Chengdu Hengda	Square Chengdu Xindongcheng Property	Company Limited	Evergrande Central Square Chengdu Xihua Property	Chengdu Phase 2 Company Limited		Portion of Evergrande Chengdu Hengda	Caojiaxiang Plaza Chengdu Xinbeicheng Property	Company Limited	Evergrande Junlinge Chengdu Sichuan University Science	Park (South District)	Development Company	Limited	Portion of Evergrande Metropolis Chengdu Anheng Property	Chengdu Company Limited		Portion of Evergrande Paradise Chengdu Xinyi Real Estate	Peninsula Chengdu Development Company	Limited		Evergrande Paradise Mansion Xinjin Hengda Xincheng	Chengdu Property Company Limited		Evergrande River Palace Chengdu Shengshi Ruicheng	Chengdu Property Company Limited		Evergrande Yonghewan Dazhou Yongqiao (Sichuan)	Property Company Limited		Evergrande Royal Scenic Sichuan Yatian Ruihe	Chengdu Investment Company	Limited	Evergrande Royal Scenic (Jinjun) Jinzun (Chengdu) Real	Estate Development	Company Limited	Evergrande The Coronation Chengdu Yulong Yihao	Chengdu (Plot A1) Real Estate Development	Company Limited	Evergrande The Coronation Chengdu Yulong Erhao	Chengdu (Plot A2) Real Estate Development	Company Limited
				Property		No.		IV-457			IV-458			IV-459			IV-460			IV-461				IV-462			IV-463				IV-464			IV-465			IV-466			IV-467			IV-468			IV-469			IV-470

– IV-115 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	283.20			466.60			397.60				76.40				390.20 (14)			1,698.80 (15)			290.20				472.70				868.20				24.90			230.60		40.30		419.60
			Interest	Attributable		to the Group	(%)	100.0%			100.0%			100.0%				100.0%				100.0%			100.0%			100.0%				100.0%				100.0%				100.0%			100.0%		100.0%		100.0%
		Market	Value (2)	in Existing		State	(RMB million)	283.20			466.60			397.60				76.40				390.20			1,698.80			290.20				472.70				868.20				24.90			230.60		40.30		419.60
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	396.30			648.60			1,049.90				133.60				2,543.60			9,724.20			550.20				1,046.20				4,420.20				34.70			568.30		239.10		1,879.00
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	348.05			304.54			202.14				23.02				417.05			518.74			208.74				281.32				428.33				27.74			—		—		66.31
		Total	Estimated	Development		Cost	(RMB million)	376.91			320.57			540.50				54.00				1,771.77			5,512.17			351.76				595.22				2,586.75				29.20			199.00		141.72		1,006.86
			Estimated	Completion		Date		2017			2018			2019				2017				2019			2019			2017				2018				2025				2018			2017		2017		2019
			Construction	Commencement		Date		2014			2015			2017				2010				2016			2007			2011				2015				2011				2011			2014		2014		2017
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	— —			14,913 101.83			— —				8,218 42.60				1,166 6.04			124,004 539.29			29,983 90.12				24,330 117.58				87,873 209.67				286 1.84			— —		— —		— —
				Total Planned	GFA (1)		(sq.m.)	71,506			121,072			206,299				20,167				556,957			1,934,779			146,217				238,353				906,054				7,868			77,411		70,376		350,937
					Site Area (1)		(sq.m.)	131,001			81,573			50,646				102,963				129,368			2,384,044			127,568				64,510				246,990				91,545			45,761		63,331		96,285
						Type of Property		Commercial, Hotel,	Other, Carpark		Residential,	Commercial,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Composite, Other,	Carpark	Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Carpark		Residential,	Commercial,	Composite, Other,	Carpark	Commercial,	Composite, Other,	Carpark	Residential, Carpark		Residential, Carpark		Residential,	Commercial,	Composite, Other,	Carpark
			Land Use	Rights Expiry		Date		21 Oct 2053			29 Apr 2055 to	29 Apr 2085		28 Aug 2056 to	28 Aug 2056			21 Oct 2050 to	21 Oct 2080			15 Aug 2083 to	02 Aug 2086		18 Jun 2047 to	06 Sep 2086		12 Dec 2050 to	12 Dec 2080			23 Nov 2054 to	23 Nov 2084			19 Nov 2050 to	30 Dec 2083			29 Jul 2077 to	31 Oct 2080		15 Oct 2053 to	22 Feb 2084	15 Oct 2053 to	22 Feb 2084	16 Sep 2056 to	16 Sep 2086
						Land Use		Commercial			Residential, Office			Residential,	Commercial			Residential,	Commercial,	Education		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial			Residential,	Commercial,	Accommodation and	Catering	Residential,	Commercial			Residential			Residential,	Commercial	Residential,	Commercial	Residential,	Commercial
						City		Nyingchi			Luzhou			Mianyang				Nanchong				Panzhihua			Meishan			Ziyang				Ziyang				Anyang				Hanzhong			Xian		Xian		Jiaozuo
						Holding Entity		Linzhi Hengda Tourism	Development Company	Limited	Hengda (Luzhou) South	City Property Company	Limited	Mianyang Xinmaoyuan	Trading Company Limited			Hengda (Nanchong) Real	Estate Group Company	Limited		Panzhihua Hengda Real	Estate Development	Company Limited	Hengda Xinfeng (Pengshan)	Property Company Limited		Ziyang Wancheng Property	Company Limited			Sichuan Ruoyu Real Estate	Development Company	Limited		Anyang Tongruida Real	Estate Development	Company Limited		Hanzhong Hualian Property	Company Limited		Xi’an Jiazhi Property	Company Limited	Xi’an Yingyu Property	Company Limited	Jiaozuo Yujing Property	Company Limited
						Property Name		Aiding Tibet Project Linzhi			Portion of Evergrande Royal	Scenic Bay Luzhou		Evergrande Emerald Court	Mianyang			Portion of Evergrande Oasis	Nanchong			Portion of Evergrande City	Panzhihua		Portion of Evergrande Splendor	Pengshan		Portion of Evergrande City	Ziyang			Evergrande Metropolis Ziyang				Portion of Evergrande Oasis	Anyang			Portion of Evergrande City	Hanzhong		Portion of Evergrande Royal	View Garden Xi’an	Portion of Evergrande Royal	View Garden Xi’an	Evergrande City Jiaozuo
				Property		No.		IV-471			IV-472			IV-473				IV-474				IV-475			IV-476			IV-477				IV-478				IV-479				IV-480			IV-481		IV-482		IV-483

– IV-116 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	222.28			142.68			1,522.10				428.30				202.30			823.70				374.77				104.14				268.16			378.70				141.36			1,086.60
			Interest	Attributable		to the Group	(%)	53.0%			53.0%			100.0%				100.0%				100.0%			100.0%				55.0%				57.0%				64.0%			100.0%				60.0%			100.0%
		Market	Value (2)	in Existing		State	(RMB million)	419.40			269.20			1,522.10				428.30				202.30			823.70				681.40				182.70				419.00			378.70				235.60			1,086.60
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	2,171.90			1,068.30			10,081.40				2,342.90				848.20			3,484.80				2,307.00				744.90				1,302.30			2,100.80				1,109.40			4,598.70
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	40.55			79.23			428.33				115.57				80.71			370.72				257.08				2.56				58.72			119.65				78.35			352.73
		Total	Estimated	Development		Cost	(RMB million)	1,007.08			620.23			5,121.44				1,383.04				474.24			2,081.91				1,079.65				360.35				592.32			1,046.23				612.39			2,636.01
			Estimated	Completion		Date		2019			2018			2023				2020				2020			2019				2021				2018				2019			2018				2018			2019
			Construction	Commencement		Date		2016			2016			2010				2014				2015			2016				2016				2014				2016			2016				2016			2015
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	177,122 1,382.68			— —			104,719 653.21				16,352 103.95				26,993 141.84			203,057 1,465.21				176,998 1,388.09				13,601 78.64				103,327 878.88			168,377 1,299.37				— —			122,151 584.16
				Total Planned	GFA (1)		(sq.m.)	351,542			181,180			1,657,045				514,118				184,334			545,826				347,508				138,315				186,862			341,824				197,427			985,822
					Site Area (1)		(sq.m.)	108,571			72,377			892,080				170,124				50,779			204,621				117,592				100,546				79,702			138,477				63,881			368,407
						Type of Property		Residential,	Commercial, Other,	Carpark	Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Composite, Hotel,	Other, Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Carpark	Residential,	Commercial,	Composite, Other,	Carpark
			Land Use	Rights Expiry		Date		25 May 2053 to	25 Mar 2083		25 May 2053 to	25 Mar 2083		06 Jan 2048 to	06 Jan 2078			18 Jun 2053 to	18 Jun 2083			18 Jun 2053 to	18 Jun 2083		18 Jan 2056 to	14 Apr 2086			24 Jan 2047 to	24 Jan 2077			13 Aug 2053 to	13 Aug 2083			24 Dec 2055 to	24 Dec 2085		18 Aug 2056 to	18 Aug 2086			31 Aug 2056 to	31 Aug 2086		07 Jun 2054 to	07 Jun 2084
						Land Use		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial			Residential,	Commercial			Residential,	Commercial		Residential,	Commercial			Residential,	Commercial, Office			Residential,	Commercial			Residential,	Commercial		Residential,	Commercial			Residential,	Commercial		Residential,	Commercial
						City		Kaifeng			Kaifeng			Luoyang				Luohe				Luohe			Nanyang				Nanyang				Pingdingshan				Pingdingshan			Puyang				Shangqiu			Shangqiu
						Holding Entity		Kaifeng Jiancheng Real	Estate Development	Company Limited	Kaifeng Kaicheng Real	Estate Development	Company Limited	Hengda (Luoyang) Real	Estate Group Company	Limited		Luohe Yusheng Real Estate	Development Company	Limited		Luohe Yusheng Real Estate	Development Company	Limited	Nanyang Hengda Property	Company Limited			Nanyang Yi Hexin Real	Estate Development	Company Limited		Pingdingshan Hengrong	Property Company Limited			Pingdingshan Yujing	Bandao Property Company	Limited	Puyang Yujing Property	Company Limited			Shangqiu Hengwan Property	Company Limited		Shangqiu Shilong Real	Estate Development	Company Limited
						Property Name		Portion of Evergrande Royal	View Garden Kaifeng		Portion of Evergrande Royal	View Garden Kaifeng		Portion of Evergrande Oasis	Luoyang			Portion of Evergrande Metropolis	Luohe			Portion of Evergrande Royal	Scenic Luohe		Evergrande Royal View Garden	Nanyang			Evergrande Royal Scenic Bay	Nanyang			Portion of Evergrande Metropolis	Pingdingshan			Evergrande Royal Scenic	Peninsula Pingdingshan		Evergrande YueLong Court	Puyang			Evergrande Emerald Court	Shangqiu		Portion of Evergrande Metropolis	Shangqiu
				Property		No.		IV-484			IV-485			IV-486				IV-487				IV-488			IV-489				IV-490				IV-491				IV-492			IV-493				IV-494			IV-495

– IV-117 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	645.00			1,929.10			276.10				22.40			1,109.16				31.30			194.80			689.70			112.15			201.10				249.84			620.80				160.90
			Interest	Attributable		to the Group	(%)	100.0%			100.0%			100.0%				100.0%			90.0%				100.0%			100.0%			100.0%			55.0%			100.0%				60.0%			100.0%				100.0%
		Market	Value (2)	in Existing		State	(RMB million)	645.00			1,929.10			276.10				22.40			1,232.40				31.30			194.80			689.70			203.90			201.10				416.40			620.80				160.90
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	2,299.00			4,826.30			1,143.00				129.30			2,814.00				81.60			560.20			1,964.30			270.80			655.40				1,319.10			1,772.80				328.50
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	100.26			490.34			14.14				—			252.59				43.17			98.87			169.13			172.86			9.13				129.94			280.43				120.78
		Total	Estimated	Development		Cost	(RMB million)	1,117.45			1,873.47			571.09				75.29			1,083.95				77.63			329.96			962.30			181.96			311.00				671.02			943.06				183.57
			Estimated	Completion		Date		2019			2019			2019				2017			2018				2017			2018			2018			2017			2017				2019			2019				2020
			Construction	Commencement		Date		2017			2014			2015				2013			2016				2013			2015			2015			2015			2013				2016			2012				2012
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	— —			— —			115,327 686.08				— —			43,302 514.36				923 4.57			13,191 101.59			93,984 647.81			3,015 24.40			17,916 81.76				145,639 1,006.89			36,640 223.78				15,070 72.82
				Total Planned	GFA (1)		(sq.m.)	358,720			685,170			208,600				31,147			356,881				13,491			122,965			311,939			75,664			132,181				236,542			336,484				70,635
					Site Area (1)		(sq.m.)	106,233			154,096			144,247				130,295			158,644				79,002			233,060			118,164			87,431			323,530				62,556			185,052				130,248
						Type of Property		Residential,	Commercial,	Composite, Other	Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Composite, Other,	Carpark		Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Carpark	Residential,	Commercial,	Composite, Carpark	Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Composite, Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Carpark
			Land Use	Rights Expiry		Date		18 Sep 2056 to	18 Sep 2086		31 Jan 2048 to	31 Jan 2078		14 Apr 2055 to	14 Dec 2085			14 Jan 2052 to	14 Jan 2082		16 Feb 2055 to	16 Feb 2085			16 Jan 2051 to	16 Jan 2081		14 May 2053 to	14 May 2083		29 Jun 2055 to	29 Jun 2085		13 Feb 2055 to	13 Feb 2085		31 Aug 2046 to	31 Aug 2076			30 Aug 2084			29 Mar 2052 to	29 Mar 2083			30 Jul 2081
						Land Use		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial			Residential,	Commercial,	Education	Residential,	Commercial			Residential,	Commercial		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial, Office		Residential,	Commercial			Residential			Residential, Office				Residential
						City		Xian			Xian			Xian				Xian			Xian				Xinxiang			Xinxiang			Xinxiang			Xinyang			Xinyang				Xuchang			Xuchang				Yangling
						Property Name Holding Entity		Evergrande City Plaza Xi’an Xi’an Hengsheng Property	Company Limited		Evergrande International Town Yuansheng (Xi’an)	Xi’an Company Limited		Portion of Evergrande Bay Xi’an Xi’an Hengying Property	Company Limited			Portion of Evergrande Royal Xi’an Jintu Property	Scenic Xi’an Company Limited		Evergrande Dragon Bay Xi’an Xi’an Yongyuan Property	Company Limited			Portion of Evergrande Atrium Xinxiang Mingdu Property	Xinxiang Company Limited		Portion of Evergrande Royal Xinxiang Sanlian Property	Scenic Bay Xinxiang Company Limited		Portion of Evergrande Royal Xinxiang Yujing Property	Scenic Bay Xinxiang Company Limited		Portion of Evergrande Emerald Xinyang Junjing Real	Court Xinyang Estate Company Limited		Portion of Evergrande Metropolis Henan Dayou Real Estate	Xinyang Development Company	Limited		Portion of Evergrande Emerald Xuchang Pingshan Property	Court Xuchang Company Limited		Portion of Evergrande Oasis Xuchang Dijing Property	Xuchang Company Limited			Portion of Evergrande City Shaanxi Yaoze Sihai Real	Yangling Estate Development	Company Limited
				Property		No.		IV-496			IV-497			IV-498				IV-499			IV-500				IV-501			IV-502			IV-503			IV-504			IV-505				IV-506			IV-507				IV-508

– IV-118 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	559.78				561.51			245.10				1,191.30				492.40				8,748.50				1,442.48				670.70				3,400.00			225.68			110.30				235.00
			Interest	Attributable		to the Group	(%)	51.0%				51.0%			100.0%				100.0%				100.0%				100.0%				50.2%				100.0%				100.0%			70.0%			100.0%				100.0%
		Market	Value (2)	in Existing		State	(RMB million)	1,097.60				1,101.00			245.10				1,191.30				492.40				8,748.50				2,872.90				670.70				3,400.00			322.40			110.30				235.00
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	7,798.30				2,177.00			371.40				3,692.80				887.00				14,866.70				4,447.10				1,334.70				5,385.60			2,308.80			1,059.00				831.50
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	32.64				144.51			243.66				261.47				25.34				11.21				1,472.27				155.58				189.38			105.69			24.20				66.92
		Total	Estimated	Development		Cost	(RMB million)	4,266.77				547.87			277.39				1,868.81				233.16				2,256.67				1,622.12				449.60				615.57			1,476.39			637.02				549.74
			Estimated	Completion		Date		2019				2019			2018				2018				2017				2017				2020				2019				2018			2019			2020				2021
			Construction	Commencement		Date		2014				2016			2015				2014				2013				2010				2014				2016				2016			2016			2015				2011
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	21,720 131.19				122,260 1,778.62			67,958 167.63				168,139 1,143.65				43,167 297.77				12,472 246.12				88,393 937.37				108,185 1,151.55				91,898 2,629.91			130,106 738.82			25,597 152.88				79,446 254.88
				Total Planned	GFA (1)		(sq.m.)	1,469,710				191,778			152,861				670,917				177,618				768,357				498,978				169,991				191,919			513,365			244,752				202,548
					Site Area (1)		(sq.m.)	735,760				81,016			88,000				938,228				198,422				126,730				743,347				43,312				72,590			132,779			103,043				197,054
						Type of Property		Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Hotel,	Other, Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Office,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Composite, Other,	Carpark	Residential,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Composite, Other
			Land Use	Rights Expiry		Date		02 Mar 2081				20 Sep 2086			02 May 2085				19 Jul 2052 to	29 Jun 2086			22 May 2053 to	22 May 2083			08 Dec 2049 to	08 Dec 2079			03 Mar 2079 to	26 Jul 2085			Sep 2084				03 May 2086			10 Apr 2084			Jun 2055 to Nov	2086			12 Nov 2050 to	12 Nov 2060
						Land Use		Residential				Residential			Residential				Residential,	Commercial,	Accommodation and	Catering	Residential, Office				Residential,	Commercial			Residential				Residential				Residential			Residential,	Commercial		Residential,	Commercial			Residential,	Commercial
						City		Kaifeng				Zhengzhou			Zhengzhou				Zhengzhou				Zhengzhou				Zhengzhou				Zhengzhou				Zhengzhou				Zhengzhou			Zhoukou			Zhumadian				Chongqing
						Holding Entity		Kaifeng Guoji Cheng Yihao	Industrial Development	Company Limited		Zhengzhou Jiuzhi Real	Estate Development	Company Limited	Zhengzhou Heguang	Property Company Limited			Xinxiang Yujing Property	Company Limited			Zhengzhou Yubang Property	Company Limited			Henan Xingke Property	Company Limited			Zhengzhou Henglin Property	Company Limited			Zhenzhou Zhongkai	Property Company Limited			Henan Henglong Property	Company Limited		Zhoukou Huayu Industry	Company Limited		Zhumadian Kaifaqu	Yucheng Real Estate	Development Company	Limited	Chongqing Hengda Fucheng	Real Estate Development	Company Limited
						Property Name		Portion of Evergrande Future	City Zhengkai			Evergrande City Zhengzhou			Portion of Evergrande Emerald	Court Zhengzhou			Portion of Evergrande Splendor	Zhengzhou			Portion of Evergrande Oasis	Zhengzhou			Portion of Evergrande Metropolis	Zhengzhou			Portion of Evergrande Scenic	Garden Zhengzhou			Evergrande Atrium Zhengzhou				Evergrande YueLong Court	Zhengzhou		Evergrande Metropolis Zhoukou			Portion of Evergrande Metropolis	Zhumadian			Portion of Evergrande Scenic	Garden Fuling
				Property		No.		IV-509				IV-510			IV-511				IV-512				IV-513				IV-514				IV-515				IV-516				IV-517			IV-518			IV-519				IV-520

– IV-119 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	245.50				1,083.40				722.90			2,409.50				4.00			61.64				34.56			326.50			1,038.16			1,143.93			48.25			43.80		89.20
			Interest	Attributable		to the Group	(%)	100.0%				100.0%				100.0%			100.0%				100.0%			98.8%				60.0%			100.0%			61.0%			61.0%			61.0%			100.0%		100.0%
		Market	Value (2)	in Existing		State	(RMB million)	245.50				1,083.40				722.90			2,409.50				4.00			62.40				57.60			326.50			1,701.90			1,875.30			79.10			43.80		89.20
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	950.40				5,781.10				1,117.60			12,759.50				5.20			227.00				328.50			640.70			4,330.80			4,991.60			105.20			57.70		112.00
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	122.86				345.78				376.24			2,804.94				4.50			7.28				50.20			181.60			296.32			669.55			73.50			51.71		21.63
		Total	Estimated	Development		Cost	(RMB million)	516.91				3,093.09				421.92			7,356.54				4.74			126.93				242.30			297.52			1,640.52			1,997.88			77.37			54.43		22.76
			Estimated	Completion		Date		2021				2021				2020			2025				2017			2017				2018			2019			2019			2021			2017			2017		2017
			Construction	Commencement		Date		2010				2013				2014			2008				2008			2011				2013			2014			2006			2014			2006			2008		2011
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	40,085 251.22				8,476 73.54				8,981 91.39			482,672 4,829.53				— —			— —				7,388 49.51			— —			— —			— —			— —			626 2.78		537 1.92
				Total Planned	GFA (1)		(sq.m.)	208,043				1,049,335				172,781			2,774,457				1,881			58,310				104,786			108,162			577,585			643,716			28,312			21,878		9,958
					Site Area (1)		(sq.m.)	248,965				230,172				70,940			1,863,181				146,825			29,720				64,290			55,634			906,961			205,941			906,961			548,043		115,521
						Type of Property		Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Composite, Hotel,	Other, Carpark	Other			Residential,	Commercial,	Carpark		Residential,	Commercial,	Composite, Carpark	Commercial, Office,	Carpark		Residential,	Commercial, Office,	Other, Carpark	Residential,	Commercial, Office,	Carpark	Residential,	Commercial, Other,	Carpark	Residential,	Commercial, Other	Residential,	Commercial, Other,	Carpark
			Land Use	Rights Expiry		Date		11 Jun 2079				15 Feb 2054 to	15 Oct 2083			19 Jul 2053 to	19 Jul 2083		19 May 2046 to	19 May 2076			15 Nov 2046 to	05 Jan 2077		26 Oct 2060				27 Apr 2053 to	17 May 2085		08 Dec 2053			16 Jun 2045 to	16 Jun 2055		29 Apr 2054 to	29 Apr 2064		16 Jun 2045 to	16 Jun 2055		10 Jul 2047 to	10 Jul 2057	31 Mar 2051 to	31 Mar 2061
						Land Use		Residential,	Commercial			Residential,	Commercial			Residential,	Commercial		Residential,	Commercial,	Composite		Residential,	Commercial		Residential,	Commercial			Residential,	Commercial		Commercial			Residential,	Commercial		Residential,	Commercial		Residential,	Commercial		Residential,	Commercial	Residential,	Commercial
						City		Guiyang				Guiyang				Guiyang			Guiyang				Guiyang			Guiyang				Guiyang			Chongqing			Chongqing			Chongqing			Chongqing			Chongqing		Chongqing
						Holding Entity		Guizhou Guangjuyuan Real	Estate Development	Company Limited		Guizhou Jicheng Real	Estate Development	Company Limited		Guizhou Hengda Changji	Real Estate Development	Company Limited	Guiyang New World Real	Estate Company Limited			Hengda Real Estate Group	Guiyang Property Company	Limited	Guiyang Haiming	Investment Construction	Development Company	Limited	Guiyang Jiude Real Estate	Development Company	Limited	Tongjing (Chongqing)	Investment Development	Company Limited	Tongjing (Chongqing)	Property Company Limited		Tongjing Honghang	(Chongqing) Property	Company Limited	Lianxing (Chongqing)	Investment Company	Limited	Chongqing Hengda Jiyu	Property Company Limited	Hengda (Chongqing) Real	Estate Group Company	Limited
						Property Name		Portion of Evergrande City	Guiyang			Portion of Evergrande Royal	Garden Guiyang			Portion of Evergrande Emerald	Court Guiyang		Portion of Evergrande New	World Guiyang			Portion of Evergrande Oasis	Guiyang		Portion of Evergrande Metropolis	Guiyang			Portion of Evergrande Atrium	Guiyang		Evergrande Liangjiang	Headquarter Intelligence EcoCity		Evergrande Tongjing	International Town Chongqing		Evergrande Energetic City	Chongqing		Evergrande Tongjing Town	Chongqing		Portion of Evergrande City	Chongqing	Portion of Evergrande Royal	View Garden Chongqing
				Property		No.		IV-521				IV-522				IV-523			IV-524				IV-525			IV-526				IV-527			IV-528			IV-529			IV-530			IV-531			IV-532		IV-533

– IV-120 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	1,317.40				1,657.20			173.20					1,548.10			313.20			2,074.40			354.90			208.10			1,443.10			145.90			112.86			661.20				174.10
			Interest	Attributable		to the Group	(%)	100.0%				100.0%			100.0%					100.0%			100.0%			100.0%			100.0%			100.0%			100.0%			100.0%			60.0%			60.0%				100.0%
		Market	Value (2)	in Existing		State	(RMB million)	1,317.40				1,657.20			173.20					1,548.10			313.20			2,074.40			354.90			208.10			1,443.10			145.90			188.10			1,102.00				174.10
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	3,819.70				4,407.50			256.40					3,354.10			836.60			5,109.10			1,124.60			657.30			3,112.80			224.30			292.60			2,219.00				1,583.20
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	112.81				174.24			365.25					150.14			8.64			453.24			2.55			2.24			334.48			123.98			59.63			188.37				1.24
		Total	Estimated	Development		Cost	(RMB million)	1,518.80				1,602.99			384.47					1,059.63			320.10			2,155.60			449.84			262.92			1,245.12			130.50			91.38			690.90				957.34
			Estimated	Completion		Date		2020				2020			2018					2019			2019			2018			2018			2018			2018			2020			2018			2019				2022
			Construction	Commencement		Date		2014				2016			2007					2014			2017			2011			2011			2011			2011			2010			2016			2016				2017
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	44,663 267.36				— —			— —					75,150 710.91			— —			— —			— —			— —			— —			12,624 39.44			— —			— —				— —
				Total Planned	GFA (1)		(sq.m.)	618,777				408,526			138,572					437,660			113,084			699,871			146,052			85,363			404,258			49,389			31,489			232,016				293,923
					Site Area (1)		(sq.m.)	131,700				278,526			1,798,093					236,857			906,961			189,745			37,174			28,454			141,898			318,188			8,572			53,579				164,772
						Type of Property		Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial, Hotel,	Office, Other	Commercial, Office,	Other, Carpark				Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Carpark	Residential			Residential			Residential			Residential			Residential,	Commercial,	Carpark	Residential,	Commercial,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential, Other,	Carpark
			Land Use	Rights Expiry		Date		11 Feb 2054 to	11 Feb 2084			30 Mar 2060			28 Dec 2046 to	18 Sep 2066				30 Aug 2053 to	30 Aug 2063		16 Jun 2045 to	16 Jun 2055		29 Mar 2051 to	29 Mar 2061		29 Dec 2061			29 Dec 2051			29 Dec 2061			Nov 2050 to	Nov 2060		29 Jun 2063			25 May 2062				28 Dec 2046 to	18 Sep 2066
						Land Use		Residential,	Commercial,	Cultural		Residential			Residential,	Commercial,	Accommodation and	Catering, Cultural	and Entertainment	Residential,	Commercial		Residential,	Commercial		Residential,	Commercial		Residential			Commercial			Residential			Residential,	Commercial		Residential,	Commercial		Residential				Residential,	Commercial,	Accommodation and	Catering, Cultural	and Entertainment
						City		Guiyang				Chongqing			Chongqing					Chongqing			Chongqing			Chongqing			Chongqing			Chongqing			Chongqing			Chongqing			Chongqing			Chongqing				Chongqing
						Property Name Holding Entity		Evergrande City Square Guiyang Guiyang Zhongyu Yunshang	Real Estate Development	Company Limited		Evergrande Emerald Bay Chongqing Heshengyu Real	Chongqing Estate Development	Company Limited	Portion of Evergrande Health Hengda (Jiangjin) Real	and Tourism City Chongqing Estate Group Company	Limited			Portion of Evergrande Scenic Chongqing Hengda Xinquan	Garden Chongqing Property Company Limited		Evergrande Tongjing Tongjing Boda (Chongqing)	International Town Chongqing Property Company Limited		Evergrande Future City Hengyang (Chongqing) Real	Chongqing (Plot 1–4) Estate Development	Company Limited	Evergrande Future City Ruiyang (Chongqing) Real	Chongqing (Plot 5) Estate Development	Company Limited	Evergrande Future City Taiyang (Chongqing) Real	Chongqing (Plot 6) Estate Development	Company Limited	Evergrande Future City Kaiyang (Chongqing) Real	Chongqing (Plot 7–9) Estate Development	Company Limited	Portion of Evergrande Atrium Chongqing Hengda Jun Xin	Chongqing Real Estate Development	Company Limited	Evergrande Yudouhui Group A Chongqing Weigang	Chongqing Property Company Limited		Evergrande Yudouhui Group C Chongqing Zhongyu	Property Development	Company Limited		Portion of Evergrande Royal Chongqing Yuantuo Real	View Splendor Chongqing Estate Development	Company Limited
				Property		No.		IV-534				IV-535			IV-536					IV-537			IV-538			IV-539			IV-540			IV-541			IV-542			IV-543			IV-544			IV-545				IV-546

– IV-121 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	34.20			3,528.20				1,373.80				562.20			1,008.72			1,540.62			698.20				402.00				335.00			835.50				5.50			2,587.10
			Interest	Attributable		to the Group	(%)	100.0%			100.0%				100.0%				60.0%			60.0%			60.0%			100.0%				100.0%				100.0%			100.0%				100.0%			100.0%
		Market	Value (2)	in Existing		State	(RMB million)	34.20			3,528.20				1,373.80				937.00			1,681.20			2,567.70			698.20				402.00				335.00			835.50				5.50			2,587.10
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	162.40			7,806.60				6,936.20				3,285.80			5,761.00			3,657.40			3,850.60				1,817.20				3,039.60			2,667.50				35.80			6,584.40
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	4.17			1,370.08				367.89				14.57			56.63			735.35			629.35				380.27				3.77			264.47				0.22			809.97
		Total	Estimated	Development		Cost	(RMB million)	92.74			3,182.94				3,085.45				589.61			1,006.80			774.05			2,050.40				1,319.83				1,906.77			1,309.30				23.05			2,592.89
			Estimated	Completion		Date		2017			2020				2025				2019			2020			2019			2026				2019				2030			2020				2017			2021
			Construction	Commencement		Date		2014			2012				2015				2011			2011			2011			2011				2007				2016			2015				2013			2015
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	1,901 14.05			231,422 1,622.17				139,954 1,350.07				— —			— —			9,505 326.20			66 0.93				18,912 101.52				— —			7,318 76.77				— —			89,913 760.13
				Total Planned	GFA (1)		(sq.m.)	42,313			1,206,477				1,164,770				196,255			345,657			195,836			758,733				405,477				624,597			498,045				11,408			925,839
					Site Area (1)		(sq.m.)	31,540			345,774				314,680				59,416			73,933			59,416			367,407				827,604				166,912			113,779				46,272			207,135
						Type of Property		Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Composite, Office,	Other, Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial		Residential,	Commercial, Office		Residential,	Commercial, Office,	Other	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Hotel,	Other, Carpark	Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Other, Carpark			Residential,	Commercial,	Composite, Office,	Other, Carpark
			Land Use	Rights Expiry		Date		24 Dec 2053 to	24 Dec 2063		22 Apr 2051 to	22 Apr 2081			18 Aug 2055 to	18 Aug 2085			29 May 2063			25 May 2063			25 May 2063			27 Jan 2054 to	27 Jul 2081			26 Dec 2047 to	08 Oct 2081			26 Dec 2047 to	08 Oct 2081		09 Jun 2055 to	03 Jun 2085			24 Apr 2078 to	17 Sep 2079		28 May 2055 to	28 May 2085
						Land Use		Residential,	Commercial		Residential,	Commercial			Residential,	Commercial,	Education		Residential,	Commercial		Residential			Commercial			Residential,	Commercial			Residential,	Commercial, Office			Residential,	Commercial, Office		Residential,	Commercial			Residential			Residential,	Commercial,	Cultural and	Entertainment,	Education
						City		Chongqing			Guiyang				Guiyang				Chongqing			Chongqing			Chongqing			Kaili				Kunming				Kunming			Kunming				Kunming			Kunming
						Holding Entity		Chongqing Hengda Xinding	Property Company Limited		Guiyang Zhongyu Zhidi	Real Estate Development	Company Limited		Guiyang Zhongyu Zhidi	Real Estate Development	Company Limited		Chongqing Zhongyu	Property Development	Company Limited	Chongqing Zhongyu	Property Development	Company Limited	Chongqing Zhongyu	Property Development	Company Limited	Guizhou Kaidi Property	Company Limited			Hengda Xinyuan (Kunming)	Property Company Limited			Kunming Qiheng Real	Estate Development	Company Limited	Kunming Heng Chang	Property Company Limited			Yunnan Heding Real Estate	Development Company	Limited	Yunnan Hengyun Property	Company Limited
						Property Name		Portion of Evergrande Royal	Scenic Bay Chongqing		Portion of Evergrande Central	Park Guiyang			Evergrande Central Square	Guiyang			Evergrande Zhongyu Chongqing	(Plot No.3)		Evergrande Zhongyu Chongqing	(Plot No.9)		Portion of Evergrande C C Land	Plaza		Portion of Evergrande City Kali				Portion of Evergrande Splendor	Kunming			Portion of Evergrande Splendor	Kunming (Phase III)		Portion of Evergrande Metropolis	Kunming			Portion of Evergrande Atrium	Kunming		Portion of Evergrande Yunbao	Palace Kunming
				Property		No.		IV-547			IV-548				IV-549				IV-550			IV-551			IV-552			IV-553				IV-554				IV-555			IV-556				IV-557			IV-558

– IV-122 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	184.20			8.70			757.90			18.10			1,277.90					1,097.00			458.11			8.60			114.60			1,556.47			283.94				952.70			7,106.70
			Interest	Attributable		to the Group	(%)	100.0%			100.0%			100.0%			100.0%			100.0%					100.0%			61.0%			100.0%			100.0%			51.0%			45.9%				100.0%			100.0%
		Market	Value (2)	in Existing		State	(RMB million)	184.20			8.70			757.90			18.10			1,277.90					1,097.00			751.00			8.60			114.60			3,051.90			618.60				952.70			7,106.70
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	492.70			11.20			1,294.00			41.10			4,484.30					2,655.20			3,307.10			12.50			178.60			6,840.90			2,209.30				2,295.80			16,662.40
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	103.78			6.91			140.04			13.36			403.28					302.76			280.47			3.20			44.81			439.59			396.85				131.45			215.12
		Total	Estimated	Development		Cost	(RMB million)	508.72			7.27			360.00			28.44			2,331.50					1,473.37			1,962.83			4.95			71.14			2,257.35			1,282.77				894.53			2,872.38
			Estimated	Completion		Date		2017			2017			2018			2017			2019					2021			2019			2017			2017			2020			2021				2019			2023
			Construction	Commencement		Date		2011			2011			2014			2007			2007					2015			2012			2013			2009			2016			2013				2014			2015
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	4,767 24.51			108 1.24			36,251 384.76			1,088 5.79			47,667 348.43					— —			— —			2,368 12.50			15,577 98.79			112,906 1,092.67			98,562 446.22				16,006 189.69			55,112 693.50
				Total Planned	GFA (1)		(sq.m.)	99,547			2,828			125,580			8,778			759,460					336,616			653,839			2,368			31,146			846,474			406,175				300,279			1,135,509
					Site Area (1)		(sq.m.)	190,963			77,387			76,041			378,700			1,798,093					62,024			236,907			91,928			191,078			263,148			182,270				358,030			63,971
						Type of Property		Residential,	Composite, Hotel,	Other, Carpark	Residential,	Commercial, Other		Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark		Residential,	Commercial, Other		Residential,	Commercial,	Carpark	Residential,	Commercial		Residential,	Commercial,	Carpark	Residential,	Commercial,	Composite, Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Composite, Other,	Carpark	Residential,	Commercial,	Carpark
			Land Use	Rights Expiry		Date		11 Nov 2050 to	27 Jul 2084		30 Jun 2061			30 Aug 2053 to	30 Aug 2063		14 Feb 2047 to	14 Feb 2057		28 Dec 2046 to	18 Sep 2066				27 Feb 2064			30 Dec 2051 to	30 Oct 2063		17 Oct 2047 to	17 Oct 2057		16 Oct 2047 to	17 Oct 2057		30 Dec 2054 to	30 Dec 2064		25 Nov 2063 to	06 Jan 2064			30 Aug 2053 to	30 Aug 2063		30 Nov 2055 to	30 Nov 2065
						Land Use		Residential,	Commercial, Office		Residential			Residential,	Commercial		Residential,	Commercial,	Clubhouse	Residential,	Commercial,	Accommodation and	Catering, Cultural	and Entertainment	Residential			Residential,	Commercial		Residential,	Commercial,	Education, Carpark	Residential,	Commercial,	Education	Residential,	Commercial		Residential				Residential,	Commercial		Residential,	Commercial
						City		Qujing			Chongqing			Chongqing			Chongqing			Chongqing					Chongqing			Chongqing			Chongqing			Chongqing			Chongqing			Chongqing				Chongqing			Chongqing
						Holding Entity		Qujing Zhongxi Property	Company Limited		Chongqing Hengda Yongjun	Real Estate Development	Company Limited	Chongqing Hengda Xinquan	Property Company Limited		Hengda (Chongqing) Real	Estate Group Company	Limited	Hengda (Jiangjin) Real	Estate Group Company	Limited			Beimeng Shihui	(Chongqing) Property	Company Limited	Tongjing Gonghao	(Chongqing) Property	Company Limited	Hengda (Chongqing) Real	Estate Group Company	Limited	Hengda (Chongqing) Real	Estate Group Company	Limited	Chongqing Yongli Property	Company Limited		Kaicheng (Chongqing) Real	Estate Development	Company Limited		Chongqing Hengda Xinquan	Property Company Limited		Chongqing Hengda Xingai	Property Company Limited
						Property Name		Portion of Evergrande Metropolis	Qujing		Portion of Evergrande Emerald	Court Yongchuan		Portion of Evergrande Emerald	Court Chongqing		Portion of Evergrande Palace	Chongqing		Portion of Evergrande Splendor	Chongqing				Evergrande Lu Village	Chongqing		Portion of Evergrande Greenland	New City Chongqing		Portion of Evergrande Oasis	Chongqing		Portion of Evergrande Metropolis	Chongqing		Portion of Evergrande Century	City Chongqing		Evergrande Mountain Palace	Chongqing			Portion of Evergrande Royal	Scenic Peninsula Chongqing		Portion of Evergrande Central	Plaza Chongqing
				Property		No.		IV-559			IV-560			IV-561			IV-562			IV-563					IV-564			IV-565			IV-566			IV-567			IV-568			IV-569				IV-570			IV-571

– IV-123 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

	Market Value (2)	Market Value (2)	Attributable to	the Group as at	the Group as at	Valuation Date	(RMB million)	3,001.02			171.90				54.80		483.53			4,466.40				856.30				1,438.50				321.30				2,657.00				456.60				1,753.00				654.60
			Interest	Attributable		to the Group	(%)	76.4%			100.0%				100.0%		51.0%			100.0%				100.0%				100.0%				100.0%				100.0%				100.0%				100.0%				100.0%
		Market	Value (2)	in Existing		State	(RMB million)	3,930.10			171.90				54.80		948.10			4,466.40				856.30				1,438.50				321.30				2,657.00				456.60				1,753.00				654.60
Development Value (2)		as if	Completed as	at Valuation		Date	(RMB million)	10,458.60			436.80				80.50		5,091.00			8,871.00				1,856.20				3,019.60				1,782.40				7,783.30				1,361.50				3,553.80				2,164.10
	Development	Cost incurred	up to the	Valuation		Date	(RMB million)	671.37			167.70				8.11		212.22			130.60				104.96				294.89				123.46				21.45				12.22				365.45				5.90
		Total	Estimated	Development		Cost	(RMB million)	3,254.67			324.98				18.03		2,501.49			1,446.55				898.43				955.55				638.83				3,035.01				485.02				1,180.47				822.30
			Estimated	Completion		Date		2022			2018				2017		2022			2020				2019				2019				2019				2022				2019				2020				2019
			Construction	Commencement		Date		2012			2011				2012		2011			2016				2016				2016				2017				2017				2017				2012				2012
				Pre-sale Pre-sale	GFA (1) consideration		(sq.m.) (RMB million)	284,871 2,864.51			6,409 19.07				678 4.04		27,929 139.58			— —				— —				154,596 1,902.53				— —				— —				— —				— —				— —
				Total Planned	GFA (1)		(sq.m.)	1,090,834			147,503				7,316		986,794			503,541				272,861				335,812				200,516				926,069				152,736				355,701				260,053
					Site Area (1)		(sq.m.)	194,488			217,007				95,594		540,573			108,898				55,557				103,196				51,965				358,214				35,244				245,091				108,478
						Type of Property		Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial, Other	Residential,	Commercial,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial, Other,	Carpark		Residential, Other,	Carpark
			Land Use	Rights Expiry		Date		02 Feb 2048 to	02 Feb 2058		20 Apr 2051 to	10 Dec 2083			28 Nov 2052 to	18 Jun 2083	01 Jan 2080			25 Feb 2056 to	25 Feb 2086			09 Apr 2054 to	09 Apr 2084			31 Mar 2085				05 Apr 2045 to	24 Jan 2058			04 Mar 2049 to	04 Mar 2079			14 Nov 2053 to	14 Nov 2083			19 Nov 2055 to	19 Nov 2085			19 Nov 2055 to	19 Nov 2085
						Land Use		Residential,	Commercial,	Education	Residential,	Commercial			Residential,	Commercial	Residential			Residential,	Commercial			Residential,	Commercial			Residential				Residential,	Commercial			Residential,	Commercial, Office			Residential,	Commercial			Residential,	Commercial			Residential,	Commercial
						City		Chongqing			Zigong				Zigong		Zunyi			Foshan				Foshan				Guangzhou				Huizhou				Foshan				Foshan				Huizhou				Huizhou
						Holding Entity		Chongqing Jianzhi Real	Estate Company Limited		Hengda (Zigong) Real	Estate Group Company	Limited		Zigong Xinmao Property	Company Limited	Zunyi Xinguang Real Estate	Development Company	Limited	Foshan Yulang Tong Real	Estate Development Limited			Foshan Sanshui District	Shengli Real Estate	Company Limited		Guangzhou Shunli	Investment Company	Limited		Meidu Jianfeng (Huizhou)	Property Company Limited			Sanshui Yingsheng (Foshan)	Real Estate Development	Company Limited		Xiecheng (Shunde Foshan)	Real Estate Company	Limited		Guangsheng Huaqiao	(Dayawan) Real Estate	Development Company	Limited	Huizhou City Guangxin	Real Estate Development	Company Limited
						Property Name		Portion of Evergrande The	Coronation Chongqing		Portion of Evergrande Oasis	Zigong			Portion of Evergrande Metropolis	Zigong	Portion of Evergrande City	Zunyi		Evergrande Joy Town Foshan				Evergrande Royal Alcazar	Foshan			Evergrande Scenic Garden	Zengcheng			Evergrande MeiDou Yishan	Haiwan Huizhou			Evergrande Zilin Garden Foshan				Evergrande Dragon Emerald	Shunde			Evergrande Palm Island Huizhou				Evergrande Palm Island Huizhou	(Plot L)
				Property		No.		IV-572			IV-573				IV-574		IV-575			IV-576				IV-577				IV-578				IV-579				IV-580				IV-581				IV-582				IV-583

– IV-124 –

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

APPENDIX IV

Notes:

1 All areas are stated in approximations.
2 All values are stated in approximations.
3 We have ascribed no commercial value to the part of the property without title documents nor without full payment of land premium. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of such part of the properties attributable to the Group would be RMB822,100,000.
4 We have ascribed no commercial value to the part of the property without title documents nor without full payment of land premium. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of such part of the properties attributable to the Group would be RMB3,845,800,000.
5 We have ascribed no commercial value to the part of the property without title documents nor without full payment of land premium. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of such part of the properties attributable to the Group would be RMB466,000,000.
6 We have ascribed no commercial value to the part of the property without title documents nor without full payment of land premium. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of such part of the properties attributable to the Group would be RMB317,154,240.
7 We have ascribed no commercial value to the part of the property without title documents nor without full payment of land premium. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of such part of the properties attributable to the Group would be RMB397,765,000.
8 We have ascribed no commercial value to the part of the property without title documents nor without full payment of land premium. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of such part of the properties attributable to the Group would be RMB685,200,000.
9 We have ascribed no commercial value to the part of the property without title documents nor without full payment of land premium. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of such part of the properties attributable to the Group would be RMB64,100,000.
10 We have ascribed no commercial value to the part of the property without title documents nor without full payment of land premium. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of such part of the properties attributable to the Group would be RMB27,900,000.
11 We have ascribed no commercial value to the part of the property without title documents nor without full payment of land premium. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of such part of the properties attributable to the Group would be RMB237,600,000.
12 We have ascribed no commercial value to the part of the property without title documents nor without full payment of land premium. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of such part of the properties attributable to the Group would be RMB718,100,000.

– IV-125 –

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

APPENDIX IV

13 We have ascribed no commercial value to the part of the property without title documents nor without full payment of land premium. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of such part of the properties attributable to the Group would be RMB9,676,000.
14 We have ascribed no commercial value to the part of the property without title documents nor without full payment of land premium. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of such part of the properties attributable to the Group would be RMB168,300,000.
15 We have ascribed no commercial value to the part of the property without title documents nor without full payment of land premium. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of such part of the properties attributable to the Group would be RMB381,200,000.

– IV-126 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

Attributable to	the Group as at	Valuation Date	(RMB million)	818.30			113.80			368.00			49.90		730.80		199.16		2,536.20(3)		138.00			129.64		463.80				386.90		162.80		2,705.10
Interest	Attributable to	the Group	(%)	100.0%			55.0%			100.0%			100.0%		100.0%		51.0%		100.0%		100.0%			70.0%		100.0%				100.0%		100.0%		100.0%
	Market Value(2)	in Existing State	(RMB million)	818.30			206.90			368.00			49.90		730.80		390.50		2,536.20		138.00			185.20		463.80				386.90		162.80		2,705.10
Estimated	Completion	Date		2020			2018			2019			2019		2020		2020		2024		2019			2020		2020				2017		2019		2017
Total	Planned	GFA(1)	(sq.m.)	330,674			153,891			322,335			27,266		129,809		231,313		810,483		198,909			67,939		485,449				42,566		57,115		949,175
		Site Area(1)	(sq.m.)	129,473			57,368			171,898			20,393		25,061		129,399		854,165		66,303			32,939		58,326				512,271		16,446		993,678
		Type of Property		Residential,	Commercial, Other,	Carpark	Residential,	Commercial, Other,	Carpark	Residential,	Commercial, Other,	Carpark	Commercial, Office,	Carpark	Residential,	Commercial	Commercial, Other		Residential,	Composite, Carpark	Residential,	Commercial,	Composite, Other	Residential,	Commercial, Other	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Composite, Other	Residential		Other
Land Use	Rights Expiry	Date		12 Dec 2086						03 Sep 2052 to	03 Sep 2082		01 May 2053 to	10 Feb 2081	24 Jul 2056		09 Apr 2051		12 Feb 2077 to	23 Sep 2079	13 Sep 2053 to	13 Sep 2083		30 Aug 2054 to	30 Aug 2054	22 Jul 2086				11 Aug 2064		30 Dec 2051		20 Mar 2047 to	20 Mar 2077
		Land Use		Residential			Residential, Commercial			Residential, Commercial			Residential, Commercial		Residential, Commercial		Commercial		Residential, Commercial		Residential, Commercial			Residential		Residential				Residential, Commercial,	Education	Commercial		Residential, Commercial,	Office
		City		Hefei			Baotou			Cangzhou			Langfang		Shijiazhuang		Handan		Tianjin		Quanzhou			Lanzhou		Chaozhou				Foshan		Foshan		Foshan
		Holding Entity		Hengrui (Hefei) Property Company Limited			Baotou Hengda Real Estate Development	Company Limited		Hebei Longwei Real Estate Development	Company Limited		Langfang City Zhongding Real Estate	Development Company Limited	Hengrun (Hebei) Real Estate Development	Company Limited	Hebei Dingjiaqi Real Estate Development	Company Limited	Hengda (Tianjin Jixian) Real Estate Group	Company Limited	Meiya (Quanzhou) Tourism Development	Company Limited		Gansu Shengda Real Estate Development	Company Limited	Chaozhou Hengchen Property Company	Limited			Foshan Nanhai Xinzhongjian Real Estate	Development Company Limited	Foshan Sanshui Fangao Estates Investment	Company Limited	Foshan Shanshui Nengrun Real Estate	Development Company Limited
		Property Name		Evergrande YueLong Court Hefei			Evergrande Emerald Court Baotou			Portion of Evergrande City Cangzhou			Evergrande Zhongding Project Langfang		Evergrande Central Plaza Shijiazhuang		Handan Taihongsen Commercial	Building	Portion of Evergrande Splendor Tianjin		Evergrande Atrium Quanzhou			Portion of Evergrande City Plaza	Lanzhou	Evergrande Metropolis Chaozhou				Portion of Evergrande Royal Scenic	Peninsula Foshan	Portion of Foshan Shanshui Longpan		Portion of Foshan Shanshui Longpan
	Property	No.		V-1			V-2			V-3			V-4		V-5		V-6		V-7		V-8			V-9		V-10				V-11		V-12		V-13

– IV-127 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

Attributable to	the Group as at	Valuation Date	(RMB million)	231.00			653.30				1,775.93			1,780.90			339.80				289.80		120.90		161.70			882.93				52.08				1,379.10			87.77
Interest	Attributable to	the Group	(%)	66.0%			100.0%				65.0%			100.0%			100.0%				90.0%		100.0%		100.0%			58.0%				58.0%				100.0%			51.0%
	Market Value(2)	in Existing State	(RMB million)	350.00			653.30				2,732.20			1,780.90			339.80				322.00		120.90		161.70			1,522.30				89.80				1,379.10			172.10
Estimated	Completion	Date		2018			2020				2024			2019			2020				2021		2021		2018			2036				2025				2023			2022
Total	Planned	GFA(1)	(sq.m.)	219,770			542,122				884,753			437,494			255,093				459,963		172,691		146,967			3,594,803				130,200				535,890			238,523
		Site Area(1)	(sq.m.)	65,017			89,073				339,912			145,831			92,791				147,252		61,392		41,739			3,346,851				195,094				237,336			101,363
		Type of Property		Residential,	Commercial,	Composite, Other	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other	Residential,	Commercial,	Composite, Other	Residential,	Commercial,	Composite, Other,	Carpark	Other		Other		Residential,	Commercial,	Composite	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Hotel,	Other	Residential,	Commercial,	Composite, Carpark	Residential,	Commercial,	Composite, Other,	Carpark
Land Use	Rights Expiry	Date		27 Dec 2054 to	27 Dec 2074		29 Sep 2086 to	29 Sep 2086			10 Oct 2063 to	17 Dec 2063					28 Jan 2051 to	24 Mar 2084			23 May 2051 to	23 Aug 2081	06 May 2080 to	07 May 2080	07 Nov 2056 to	07 Nov 2086		30 Aug 2035 to	20 Nov 2065			27 Mar 2033 to	19 Dec 2062			19 Aug 2052 to	19 Aug 2072		30 Dec 2050 to	30 Dec 2080
		Land Use		Residential, Office			Residential, Education				Residential, Office, Medical,	Commercial, Cultural,	Education, Public Facility	Residential			Residential, Commercial				Residential, Commercial		Residential, Commercial		Residential, Commercial			Residential, Commercial				Residential, Commercial,	Office			Residential, Industrial			Residential, Commercial
		City		Jieyang			Jieyang				Shantou			Shantou			Yangjiang				Zhaoqing		Zhaoqing		Zhaoqing			Zhaoqing				Zhaoqing				Zhuhai			Beihai
		Holding Entity		Hengda (Jieyang) Investment Management	Company Limited		Jieyang Hengda Property Company Limited				Damin (Shantou) Plant Development	Company Limited		Henghe (Shantou) Property Company Limited			Yangjiang Yangdong Huameiju Real Estate	Company Limited			Zhaoqing Dinghu Tuanxing Real Estate	Development Company Limited	Zhaoqing Dinghu Tuanxing Estates	Investment Company Limited	Zhaoqing Guosheng Laser Technology	Production Limited		Guangdong Juting Fengfang Real Estate	Development Company Limited			Guangdong Juting Fengfang Hotel Company	Limited			Zhuhai Hengxin Sugar Industry Company	Limited		Fuda (Beihai) Investment Company Limited
		Property Name		Evergrande Palace Jieyang			Evergrande Oasis Jieyang				Evergrande Bund Shantou			Evergrande Bund Shantou			Evergrande Royal View Garden	Yangjiang			Portion of Zhaoqing Evergrande Dinghu	Haoting	Portion of Zhaoqing Evergrande Dinghu	Haoting	Portion of Evergrande Emerald Court	Zhaoqing		Portion of Evergrande Century Fancy	World Zhaoqing			Portion of Evergrande Century Fancy	World Zhaoqing			Evergrande Emerald Court Zhuhai			Evergrande Atrium Beihai
	Property	No.		V-14			V-15				V-16			V-17			V-18				V-19		V-20		V-21			V-22				V-23				V-24			V-25

– IV-128 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

Attributable to	the Group as at	Valuation Date	(RMB million)	150.70				202.47				98.12		489.90				729.20				394.80			224.70		49.98			106.90				280.28				239.65			83.88
Interest	Attributable to	the Group	(%)	55.0%				51.0%				55.0%		100.0%				100.0%				80.0%			100.0%		60.0%			51.0%				70.0%				63.7%			60.0%
	Market Value(2)	in Existing State	(RMB million)	274.00				397.00				178.40		489.90				729.20				493.50			224.70		83.30			209.60				400.40				376.10			139.80
Estimated	Completion	Date		2021				2022				2023		—				—				2018			2020		2018			2018				2019				2019			2024
Total	Planned	GFA(1)	(sq.m.)	272,088				717,422				177,167		—				—				200,007			261,251		234,221			310,171				229,731				121,399			311,697
		Site Area(1)	(sq.m.)	84,018				174,093				107,908		6,998,000				10,417,333				194,510			52,792		71,664			67,700				60,527				96,359			84,348
		Type of Property		Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Other		Other				Other				Residential,	Commercial,	Composite	Other		Residential,	Commercial,	Composite, Carpark	Residential,	Commercial,	Composite, Hotel,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial, Office,	Carpark	Residential,	Commercial, Carpark
Land Use	Rights Expiry	Date						18 Feb 2053 to	18 Feb 2083			09 May 2015 to	04 Jul 2081	Aug 2048 to	26 Aug 2050			Aug 2048 to	26 Aug 2050			01 Aug 2054 to	01 Aug 2084		06 Nov 2054 to	06 Nov 2084	24 Dec 2052 to	24 Dec 2082		14 Oct 2054 to	14 Oct 2084			15 Aug 2056 to	15 Aug 2086			23 Mar 2044			23 Dec 2050 to	23 Dec 2080
		Land Use		Residential, Commercial				Residential, Commercial				Residential, Commercial,	Education	Agricultural and Tourism				Agricultural and Tourism				Residential, Commercial			Residential, Commercial		Residential, Commercial			Residential, Commercial				Residential, Commercial				Commercial, Education,	Public Facility		Residential, Commercial
		City		Guigang				Guilin				Qinzhou		Baoting Li	and Miao	Autonomous	County	Baoting Li	and Miao	Autonomous	County	Wanning			Jingmen		Suizhou			Suizhou				Xiangyang				Yichang			Huaihua
		Holding Entity		Hengda (Guigang) Huananmao Property	Company Limited			Wanli (Lingui) Real Estate Company Limited				Jinzonglu (Qinzhou) Commercial City	Investment Development Company Limited	Hainan Baoting Hongsen Technology	Development Company Limited			Hainan Baoting Huayi Gaoxiao Agriculture	Development Company Limited			Huayu (Wanning) Real Estate Development	Company Limited		Jingmen Royal View Property Company	Limited	Suizhou Tianxin Real Estate Development	Company Limited		Minjiang (Suizhou) Real Estate Development	Company Limited			Xiangyang Hengda Feicui Real Estate	Development Company Limited			Yichang Sanjiang Hangtian Real Estate	Development Company Limited		Tianrun (Huaihua) Real Estate Development	Company Limited
		Property Name		Evergrande City Guigang				Evergrande City Guilin				Portion of Evergrande Xuefu Qinzhou		Portion of Evergrande Cultural Tourist	City Baoting			Portion of Evergrande Cultural Tourist	City Baoting			Evergrande Shuanghai Bay Wanning			Portion of Evergrande Royal View	Garden Jinmen	Evergrande Metropolis Suizhou			Evergrande Roayl Palace Suizhou				Evergrande Emerald Court Xiangyang				Portion of Yichang Commercial Buhang	Street		Evergrande Royal Scenic Bay Huaihua
	Property	No.		V-26				V-27				V-28		V-29				V-30				V-31			V-32		V-33			V-34				V-35				V-36			V-37

– IV-129 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

Attributable to	the Group as at	Valuation Date	(RMB million)	303.72			442.32				141.70				686.94			655.40		393.28			197.68			335.40		574.29	95.85			617.90			524.94		227.50
Interest	Attributable to	the Group	(%)	60.0%			60.0%				65.0%				60.0%			51.0%		80.0%			80.0%			100.0%		90.0%	62.0%			100.0%			60.0%		100.0%
	Market Value(2)	in Existing State	(RMB million)	506.20			737.20				218.00				1,144.90			1,285.10		491.60			247.10			335.40		638.10	154.60			617.90			874.90		227.50
Estimated	Completion	Date		2021			2025				2021				2020			2022		2022			2022			2019		2021	2025			2018			2017		2019
Total	Planned	GFA(1)	(sq.m.)	557,250			941,584				218,643				510,805			400,355		134,237			85,328			99,795		178,029	177,263			271,290			620,669		120,154
		Site Area(1)	(sq.m.)	118,967			252,583				59,640				49,397			56,623		10,716			3,554			24,949		39,328	27,913			58,624			665,346		58,869
		Type of Property		Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial, Office,	Carpark	Residential,	Commercial, Carpark	Residential,	Commercial, Other,	Carpark	Residential,	Commercial, Other,	Carpark	Residential,	Commercial	Commercial	Residential,	Commercial, Other,	Carpark	Residential,	Commercial, Office,	Carpark	Other		Residential,	Commercial,	Composite, Carpark
Land Use	Rights Expiry	Date		01 Dec 2060			01 May 2050 to	01 May 2080			25 Mar 2054 to	25 Mar 2084			25 May 2052 to	25 May 2082		14 Aug 2040 to	16 Aug 2040	09 Jul 2042			11 Oct 2053 to	11 Oct 2083		14 Feb 2057 to	14 Feb 2087	20 Jan 2052	30 Aug 2044 to	14 Oct 2080		06 Jun 2056 to	06 Jun 2086		13 May 2047 to	01 Nov 2079	29 Sep 2051 to	29 Sep 2081
		Land Use		Residential			Residential, Commercial				Residential, Commercial				Residential, Commercial			Commercial		Commercial			Residential, Commercial,	Composite		Residential, Commercial		Residential, Commercial	Residential, Commercial			Residential, Commercial			Residential, Commercial		Residential, Commercial
		City		Xiangtan			Xiangtan				Yueyang				Changsha			Changsha		Changsha			Changsha			Changsha		Changsha	Zhuzhou			Changzhou			Changzhou		Wuxi
		Holding Entity		Mingsheng (Xiangtan) Property Company	Limited		Songjiang Wanshun (Hunan) Investment	Company Limited			Jinxi (Yueyang) Property Company Limited				Hunan Xiangtian Real Estate Development	Company Limited		Changsha Tianying Real Estate Development	Company Limited	Furong Haoting (Hunan) Real Estate	Development Company Limited		Xianghe (Changsha) Company Limited			Jinrai (Changsha) Property Company Limited		Xingsu (Hunan) Property Company Limited	Hengye (Zhuzhou) Real Estate Development	Company Limited		Changzhou Hengyun Real Estate	Development Company Limited		Maoshan (Jiangsu) Property Investment	Company Limited	Junlang (Jiangsu) Property Company Limited
		Property Name		Evergrande Shuxiang Mendi Xiangtan			Evergrande Royal Scenic Peninsula	Xiangtan			Evergrande Royal Scenic Bay Yueyang				Portion of Evergrande Centuried	Financial Square		Evergrande Huangxing Road Project	Changsha	Portion of Evergrande Junyuefu	Changsha		Portion of Evergrande Junyuefu	Changsha		Evergrande Shang Lin Yuan Changsha		Evergrande Yufu Changsha	Evergrande Royal Scenic Bay Zhuzhou			Evergrande Royal Scenic Changzhou			Portion of Evergrande Royal Scenic	Peninsula Changzhou	Evergrande Jewelry Court Wuxi
	Property	No.		V-38			V-39				V-40				V-41			V-42		V-43			V-44			V-45		V-46	V-47			V-48			V-49		V-50

– IV-130 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

Attributable to	the Group as at	Valuation Date	(RMB million)	497.00			383.80		274.60			231.36			1,701.00		335.11		1,401.17		746.84			247.80		335.11		517.60			816.30				538.30
Interest	Attributable to	the Group	(%)	100.0%			100.0%		100.0%			80.0%			100.0%		49.0%		51.0%		51.0%			100.0%		62.0%		100.0%			100.0%				100.0%
	Market Value(2)	in Existing State	(RMB million)	497.00			383.80		274.60			289.20			1,701.00		683.90		2,747.40		1,464.40			247.80		540.50		517.60			816.30				538.30
Estimated	Completion	Date		2020			2017		2019			2019			2019		2020		2019		2019			2019		2025		2019			2022				2020
Total	Planned	GFA(1)	(sq.m.)	466,661			274,128		249,576			361,882			119,413		35,720		216,817		205,331			233,505		390,531		126,295			423,225				145,080
		Site Area(1)	(sq.m.)	140,201			177,932		114,444			76,847			49,199		8,916		104,440		120,254			82,164		148,344		39,657			147,673				46,020
		Type of Property		Residential, Other,	Carpark		Other		Residential,	Commercial,	Composite, Carpark	Residential,	Commercial, Other,	Carpark	Residential,	Commercial, Carpark	Residential, Other,	Carpark	Residential,	Composite, Carpark	Residential,	Commercial,	Composite, Carpark	Residential, Other,	Carpark	Residential,	Commercial, Carpark	Residential,	Commercial,	Composite, Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark
Land Use	Rights Expiry	Date		03 Feb 2055 to	03 Feb 2085		29 May 2081		27 Jan 2086						24 Oct 2086		22 Nov 2085		22 Dec 2086		01 Mar 2057 to	01 Mar 2087		20 Sep 2081		28 Sep 2051 to	28 Sep 2081
		Land Use		Residential, Commercial			Residential, Commercial		Residential			Residential, Commercial			Residential		Residential		Residential		Residential, Commercial			Residential		Residential, Commercial		Residential, Commercial			Residential, Commercial				Residential
		City		Taizhou			Lianyungang		Lianyungang			Pizhou			Nanjing		Shanghai		Suzhou		Wuxi			Yangzhou		Changchun		Ganzhou			Ji’an				Nanchang
		Holding Entity		Jiaojiang Xianghe (Taizhou) Real Estate	Development Company Limited		Lianyungang Hengda Cheng Real Estate	Company Limited	Yongsheng (Lianyungang) Real Estate	Development Company Limited		Xuzhou Jiulongyuan Hotel Management	Company Limited		Nanjing Shengji Real Estate Company	Limited	Shanghai Jingqi Real Estate Development	Company Limited	Suzhou Shengjian Property Company Limited		Wuxi Shengjian Property Company Limited			Jinhua (Yangzhou) Real Estate Development	Company Limited	Xinmao (Changchun) Real Estate	Development Company Limited	Hengda (Ganzhou) Real Estate Company	Limited		Hengxi (Ji’an) Real Estate Development	Company Limited			Jiangxi Heng Yao Property Company Limited
		Property Name		Taizhou Hongjia Street Zhujiadian	Village Ligaitao Construction Project	(Urban World)	Portion of Evergrande City	Lianyungang	Evergrande Forest Creek County	Lianyungang		Evergrande Forest Creek County Pizhou			Evergrande Xishan Nanjing		Evergrande First Palance Jiangwan	Shanghai	Suzhou Jun Lan Ting		Evergrande Dragon Bay Wuxi			Evergrande Royal Palace Yangzhou		Evergrande Yu Shui Zhuangyuan	Changchun	Evergrande Royal Palace Ganzhou			Evergrande Royal Scenic Peninsula	Ji’an			Evergrande Emerald JunTing Nanchang
	Property	No.		V-51			V-52		V-53			V-54			V-55		V-56		V-57		V-58			V-59		V-60		V-61			V-62				V-63

– IV-131 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

Attributable to	the Group as at	Valuation Date	(RMB million)	695.30				227.87		563.30				314.90		781.00		337.62			1,284.90				1,192.22			282.00		333.90			810.60				554.40
Interest	Attributable to	the Group	(%)	100.0%				51.0%		100.0%				100.0%		100.0%		51.0%			100.0%				49.0%			60.0%		100.0%			100.0%				99.0%
	Market Value(2)	in Existing State	(RMB million)	695.30				446.80		563.30				314.90		781.00		662.00			1,284.90				2,433.10			470.00		333.90			810.60				560.00
Estimated	Completion	Date		2020				2019		2020				2020		2020		2020			2025				2020			2023		2021			2030				2025
Total	Planned	GFA(1)	(sq.m.)	185,410				207,735		646,413				334,224		269,304		370,067			1,056,773				1,029,963			447,525		333,900			623,515				373,333
		Site Area(1)	(sq.m.)	58,984				37,787		466,185				111,038		133,308		121,153			293,979				108,572			149,228		69,346			456,546				533,333
		Type of Property		Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial, Carpark	Residential,	Commercial	Residential,	Commercial, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial, Office,	Carpark	Residential,	Composite, Other	Residential,	Commercial,	Composite	Other				Other
Land Use	Rights Expiry	Date						08 Nov 2052		31 Jan 2062 to	31 Jan 2062			13 Sep 2045 to	13 Sep 2075	03 Aug 2085		14 Mar 2080			31 Mar 2051 to	31 Mar 2082			21 Oct 2052			06 Dec 2086		17 Nov 2056 to	17 Nov 2086		19 Aug 2052 to	20 Aug 2082			04 Jul 2076
		Land Use		Residential				Commercial		Residential				Residential, Office		Residential		Residential			Residential, Commercial				Office			Residential		Residential, Commercial			Residential, Commercial,	Office, Cultural and	Entertainment, Public	Facility, Transit Station	Residential
		City		Nanchang				Urumqi		Urumqi				Xinyu		Dalian		Dalian			Panjin				Jinan			Linyi		Linyi			Qingdao				Qingdao
		Holding Entity		Jiangxi Heng Yao Property Company Limited				Xinjiang Baitian’e Real Estate Development	Company Limited	Wulumuqi Hengxin Jiacheng Real Estate	Development Company Limited			Xinyu Fuchen Property Development	Company Limited	Dalian Hengchuang Real Estate Company	Limited	Hengsheng Sunshine Xindi (Dalian) Property	Company Limited		Panjin Haili Property Company Limited				Jinan Hengda Chengxi Property Company	Limited		Hengjin (Linyi) Property Company Limited		Huaqian (Shandong) Property Company	Limited		Haiwen (Qingdao) Property Company Limited				Haozhou (Qingdao) Property Company	Limited
		Property Name		Evergrande Emerald LongTing	Nanchang			Evergrande City Lights Urumchi		Evergrande Green Metropolis Urumchi				Evergrande Atrium Xinyu		Evergrande Harbor City Dalian		Evergrande Atrium Dalian			Evergrande Binhe Shijia Panjin				Evergrande International Financial	Center Jinan		Evergrande Emerald Court Linyi		Evergrande Central Square Linyi			Portion of Evergrande Dragon Bay	Qingdao			Portion of Evergrande Yuelongtai	Qingdao
	Property	No.		V-64				V-65		V-66				V-67		V-68		V-69			V-70				V-71			V-72		V-73			V-74				V-75

– IV-132 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

Attributable to	the Group as at	Valuation Date	(RMB million)	1,537.68(4)			145.81				113.19		408.40		309.50		221.60				2,547.30(5)		311.90			612.90			443.10			931.90		132.80
Interest	Attributable to	the Group	(%)	60.0%			55.0%				55.0%		80.0%		100.0%		100.0%				100.0%		100.0%			100.0%			100.0%			100.0%		100.0%
	Market Value(2)	in Existing State	(RMB million)	2,562.80			265.10				205.80		510.50		309.50		221.60				2,547.30		311.90			612.90			443.10			931.90		132.80
Estimated	Completion	Date		2020			2021				2020		2018		2018		2018				2019		2019			2020			2019			2021		2018
Total	Planned	GFA(1)	(sq.m.)	865,814			249,815				260,516		276,631		292,432		201,044				1,631,005		310,132			250,441			322,693			922,673		166,377
		Site Area(1)	(sq.m.)	116,239			68,051				89,868		54,986		64,200		142,987				508,865		83,893			87,264			220,088			217,468		51,362
		Type of Property		Residential,	Commercial,	Composite, Other	Residential,	Commercial,	Composite, Office,	Carpark	Residential,	Commercial, Other	Residential,	Commercial, Carpark	Residential, Carpark		Residential,	Commercial,	Composite, Hotel,	Carpark	Residential,	Commercial, Hotel	Residential,	Commercial,	Composite, Carpark	Residential,	Commercial,	Composite	Residential,	Commercial,	Composite, Carpark	Other		Residential,	Commercial,	Composite, Carpark
Land Use	Rights Expiry	Date		17 Oct 2086			08 Nov 2056 to	08 Nov 2086			04 Jan 2087		24 Feb 2053 to	24 Feb 2083	22 Feb 2052 to	22 Feb 2082	22 Feb 2052 to	22 Feb 2082			26 Jun 2053 to	22 Dec 2083	28 Oct 2086						03 Nov 2056 to	30 Nov 2086		03 Dec 2042 to	10 Sep 2080
		Land Use		Residential, Office, Public	Facility, Park and Green	Space	Residential, Commercial				Residential		Residential, Commercial		Residential, Commercial		Residential, Commercial				Residential, Commercial		Residential			Residential			Residential, Commercial			Residential, Commercial		Residential
		City		Weihai			Zibo				Linfen		Taiyuan		Huizhou		Huizhou				Chengdu		Chengdu			Luzhou			Chengdu			Chengdu		Nanchong
		Holding Entity		Weihai Huafu Property Company Limited			Mingshang (Shandong) Property Company	Limited			Hengping (Linfen) Real Estate Development	Company Limited	Taiyuan Hengdelong Real Estate	Development Company Limited	Huizhou Gubaowan Hunqing Culture	Industrial Park Company Limited	Huizhou Dayawan Yuezhu Property Company	Limited			Hengda (Dayi) Real Estate Group Company	Limited	Chengdu Jiuyuan Chemical Company Limited			Luzhou Hengda Beicheng Property Company	Limited		Chengdu Wanhao Property Company Limited			Chengdu Yulong Sanhao Real Estate	Development Company Limited	Kairui (Nanchong) Property Company	Limited
		Property Name		Evergrande Royal Coast Weihai			Evergrande Emerald Court Zibo				Evergrande Yuelongtai Linfen		Evergrande Bay Taiyuan		Portion of Evergrande Xiaoguiwan	Garden Huizhou	Portion of Evergrande Xiaoguiwan	Garden Huizhou			Portion of Evergrande Royal Scenic	Garden Chengdu	Evergrande Royal Palace Chengdu			Evergrande Palace Luzhou			Evergrande Metropolis Nanchang			Portion of Evergrande The Coronation	Chengdu (Plot B)	Evergrande City Nanchong
	Property	No.		V-76			V-77				V-78		V-79		V-80		V-81				V-82		V-83			V-84			V-85			V-86		V-87

– IV-133 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

Attributable to	the Group as at	Valuation Date	(RMB million)	218.30				553.60(6)				153.60			898.30			297.31			177.43			641.16			527.80			13.16		800.24				110.10
Interest	Attributable to	the Group	(%)	100.0%				100.0%				100.0%			100.0%			58.0%			51.0%			90.0%			100.0%			51.0%		51.0%				100.0%
	Market Value(2)	in Existing State	(RMB million)	218.30				553.60				153.60			898.30			512.60			347.90			712.40			527.80			25.80		1,569.10				110.10
Estimated	Completion	Date		2020				2018				2022			2019			2020			2018			2020			2023			2017		2024				2020
Total	Planned	GFA(1)	(sq.m.)	348,287				334,544				480,013			425,304			579,511			631,019			623,190			427,296			7,795		1,161,045				189,163
		Site Area(1)	(sq.m.)	124,886				62,204				160,020			109,053			161,189			190,611			93,867			95,299			838		290,118				22,986
		Type of Property		Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other	Residential,	Commercial,	Composite, Other	Residential,	Commercial, Office,	Other, Carpark	Residential,	Commercial, Hotel,	Office, Carpark	Residential,	Commercial, Other,	Carpark	Residential,	Commercial, Hotel,	Other, Carpark	Commercial, Carpark		Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial, Other,	Carpark
Land Use	Rights Expiry	Date		17 Feb 2057 to	17 Feb 2087							19 Nov 2082			01 Jan 2055 to	01 Jan 2085		29 Jan 2050 to	29 Jan 2060		02 Mar 2051			19 Jun 2052 to	20 Jun 2082		16 May 2063			20 Aug 2078		26 Oct 2086				08 Jan 2087
		Land Use		Residential, Commercial				Residential, Commercial				Residential, Commercial			Residential, Commercial			Residential, Commercial			Commercial			Residential, Commercial,	Research		Residential			Commercial		Residential				Residential
		City		Hebi				Xi’an				Xi’an			Xianyang			Xinyang			Kaifeng			Guiyang			Guiyang			Chongqing		Kunming				Kunming
		Holding Entity		Baolisen (Hebi) Real Estate Development	Company Limited			Xi’an Chuangheng Real Estate Development	Company Limited			Juncheng (Xi’an) Technology Investment	Company Limited		Hengyuan (Xianyang) Property Company	Limited		Dayang (Xinyang) Property Company Limited			Kaifeng Guoji Cheng Wuhao Industrial	Development Company Limited		Bohua (Guizhou) Property Company Limited			Nanrun (Guizhou) Real Estate Development	Company Limited		Tongjing Wenlong (Chongqing) Property	Company Limited	Kunming Henghai Real Estate Development	Co., Ltd			Kaimao Yunnan Real Estate Development	Company Limited
		Property Name		Evergrande Metropolis Hebi				Evergrande Emerald Dragon Court	Xi’an			Evergrande Atrium Xi’an			Evergrande Royal View Garden	Xianyang		Evergrande Royal Scenic Bay Xinyang			Portion of Evergrande Future City	Zhengkai		Guiyang Binhe Left Coast			Evergrande Royal Palace Nanming	Guiyang		Evergrande Nanmenjin Street	Chongqing	Evergrande JiuLong Bay Kunming				Evergrande Dragon River Court	Kunming
	Property	No.		V-88				V-89				V-90			V-91			V-92			V-93			V-94			V-95			V-96		V-97				V-98

– IV-134 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

Attributable to	the Group as at	Valuation Date	(RMB million)	370.90				565.23		177.59				251.00			872.40				695.00				224.40				135.40			678.60				110.00			183.00
Interest	Attributable to	the Group	(%)	100.0%				51.0%		70.0%				100.0%			100.0%				100.0%				75.0%				100.0%			100.0%				100.0%			100.0%
	Market Value(2)	in Existing State	(RMB million)	370.90				1,108.30		253.70				251.00			872.40				695.00				299.20				135.40			678.60				110.00			183.00
Estimated	Completion	Date		2019				2021		2020				2021			2019				2019				2020				2019			2020				2019			2022
Total	Planned	GFA(1)	(sq.m.)	544,039				254,542		575,363				297,608			121,429				213,201				368,583				132,573			531,903				84,000			182,957
		Site Area(1)	(sq.m.)	103,954				127,271		183,091				38,452			31,033				64,655				93,833				30,000			254,388				30,000			60,986
		Type of Property		Residential,	Commercial,	Composite, Other,	Carpark	Residential		Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial, Office,	Carpark	Residential,	Commercial,	Composite, Hotel,	Other, Carpark	Residential,	Commercial,	Composite	Residential,	Commercial,	Composite
Land Use	Rights Expiry	Date		04 Jan 2053 to	10 Dec 2085			16 Dec 2056 to	16 Dec 2066	07 Dec 2058				18 Oct 2032 to	18 Oct 2062		07 Jan 2057 to	07 Jan 2087			20 Nov 2053 to	20 Nov 2083			25 May 2080				05 Nov 2051 to	05 Nov 2081		16 May 2052 to	17 Oct 2086			05 Sep 2063			20 Jun 2052 to	20 Jun 2082
		Land Use		Residential, Commercial				Residential, Commercial		Commercial, Composite				Residential, Commercial			Residential, Commercial				Residential, Commercial				Residential				Residential, Commercial			Residential, Commercial				Residential			Residential, Commercial
		City		Qujing				Chongqing		Zunyi				Huizhou			Dongguan				Dongguan				Huizhou				Huizhou			Huidong				Huizhou			Huizhou
		Holding Entity		Henggongda (Qujing) Property Company	Limited			Chongqing Yongli Property Company Limited		Zunyi Hengda Qiangui Real Estate	Development Company Limited			Weishun (Huizhou City) Company Limited			Hengzhan (Dongguan) Real Estate	Development Company Limited			Dongguan Mayongzhen Gumei Real Estate	Investment Company Limited			Kailianda (Huizhou City) Investment	Company Limited			Lianfeng (Huizhou City) Company Limited			Donghai Yijing (Huidong) Investment	Company Limited			Guanghuifeng (Huizhou) Property Company	Limited		Huayuanhong (Huizhou) Development	Company Limited
		Property Name		Evergrande Oasis Qujing				Evergrande Royal Palace Chongqing		Portion of Evergrande Emerald Court	Zunyi			Evergrande Royal View Garden	Huizhou		Evergrande Royal Garden Dongguan				Evergrande Left Riverbank Dongguan				Evergrande YueLong Court Huizhou				Evergrande Moon Bund Huizhou			Evergrande Dragon Bay Huizhou				Evergrande Emerald Court Huizhou			Evergrande Atrium Huizhou
	Property	No.		V-99				V-100		V-101				V-102			V-103				V-104				V-105				V-106			V-107				V-108			V-109

– IV-135 –

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

APPENDIX IV

Attributable to	the Group as at	Valuation Date	(RMB million)	524.90				788.50		1,305.90				553.55
Interest	Attributable to	the Group	(%)	100.0%				100.0%		100.0%				51.0%
	Market Value(2)	in Existing State	(RMB million)	524.90				788.50		1,305.90				1,085.40
Estimated	Completion	Date		2020				2020		2020				2021
Total	Planned	GFA(1)	(sq.m.)	532,528				369,587		350,834				309,998
		Site Area(1)	(sq.m.)	141,558				49,227		88,390				79,103
		Type of Property		Residential,	Commercial,	Composite, Other,	Carpark	Commercial, Carpark		Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial, Other,	Carpark
Land Use	Rights Expiry	Date		17 Jun 2051 to	17 Jun 2081			25 Jan 2057						29 Apr 2068 to	26 Oct 2068
		Land Use		Residential, Commercial				Commercial		Residential				Residential
		City		Huizhou				Foshan		Zhongshan				Zhongshan
		Holding Entity		Rongruifa (Huizhou) Investment Company	Limited			Yichuang (Foshan Shunde) Real Estate	Company Limited	Hengjun (Zhongshan) Real Estate	Development Company Limited			Hongtai (Zhongshan) Real Estate	Development Company Limited
		Property Name		Huizhou Guangyao Jiangjun Lake				Evergrande Central Square Shunde		Evergrande Royal Palace Zhongshan				Evergrande Royal Scenic Zhongshan
	Property	No.		V-110				V-111		V-112				V-113

– IV-136 –

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

APPENDIX IV

Notes:

1 All areas are stated in approximations.
2 All values are stated in approximations.
3 We have ascribed no commercial value to the part of the property without title documents nor without full payment of land premium. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of such part of the properties attributable to the Group would be RMB1,880,700,000.
4 We have ascribed no commercial value to the part of the property without title documents nor without full payment of land premium. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of such part of the properties attributable to the Group would be RMB1,022,400,000.
5 We have ascribed no commercial value to the part of the property without title documents nor without full payment of land premium. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of such part of the properties attributable to the Group would be RMB2,123,500,000.
6 We have ascribed no commercial value to the part of the property without title documents nor without full payment of land premium. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of such part of the properties attributable to the Group would be RMB148,600,000.

– IV-137 –

APPENDIX IV

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

Attributable to	the Group as at	Valuation Date	(RMB million)	—(3)				—(4)			—(5)		—(6)				—(7)			—(8)				—(9)				—(10)				—(11)			—(12)		—(13)
Interest	Attributable to	the Group	(%)	100.0%				100.0%			100.0%		100.0%				100.0%			100.0%				100.0%				100.0%				51.0%			100.0%		51.0%
	Market Value in	Existing State	(RMB million)	—				—			—		—				—			—				—				—				—			—		—
Estimated	Completion	Date		2020				2018			2018		2020				2020			2018				2019				2022				2020			2023		2021
Total	Planned	GFA(1)	(sq.m.)	599,138				423,613			325,843		362,465				4,586,511			325,732				174,960				918,841				104,069			261,251		417,519
		Site Area(1)	(sq.m.)	164,970				140,406			98,053		120,786				3,427,962			109,511				48,707				226,116				26,017			175,278		174,419
		Type of Property		Residential,	Commercial,	Composite, Hotel,	Other, Carpark	Residential,	Commercial, Other,	Carpark	Residential,	Commercial, Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial, Hotel,	Office, Other, Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other	Other		Residential,	Commercial,	Composite, Other,	Carpark
Land Use	Rights Expiry	Date
		Land Use		Residential				Residential, Commercial			Residential, Commercial		Residential, Commercial				Residential, Commercial			Residential, Commercial,	Accommodation and	Catering		Residential, Commercial				Residential, Commercial				Residential			Residential		Residential
		City		Anqing				Bozhou			Huangshan		Xuancheng				Baoding			Ningde				Harbin				Harbin				Jingzhou			Jingzhou		Huzhou
		Holding Entity		Yuecheng (Anqing) Property Company	Limited			Yuecheng (Bozhou) Property Company	Limited		Yuecheng (Huangshan) Project Company	Limited	Yuecheng (Xuancheng) Property Company	Limited			Hengda (Baiyangdian Wenquan Cheng) Real	Estate Group Company Limited		Ningde Hengda Property Company Limited				Kaiye (Harbin) Real Estate Development	Company Limited			Zhenye (Harbin) Real Estate Development	Company Limited			Jingzhou Guangrun Property Company	Limited		Huayuan (Jingzhou) Property Company	Limited	Wuhonghu (Huzhou) Property Company	Limited
		Property Name		Evergrande Jewelry Court Anqing				Evergrande Emerald Court	Bozhou		Evergrande Left Riverbank	Huangshan	Evergrande Royal Scenic	Xuancheng			Evergrande International	Hotspring Tourist City		Evergrande Royal Scenic	Peninsula Ningde			Evergrande Royal Palace Harbin				Evergrande Central Square Harbin				Evergrande Emerald Court	Jingzhou		Portion of Evergrande Tiangu	Royal Scenic Jingzhou	Evergrande Yujing Huzhou
		Property No.		VI-1				VI-2			VI-3		VI-4				VI-5			VI-6				VI-7				VI-8				VI-9			VI-10		VI-11

– IV-138 –

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

APPENDIX IV

Attributable to	the Group as at	Valuation Date	(RMB million)	—(14)				—(15)		—(16)				—(17)				—(18)			—(19)				—(20)			—(21)			—(22)				—(23)		—(24)
Interest	Attributable to	the Group	(%)	100.0%				99.0%		100.0%				100.0%				100.0%			100.0%				100.0%			100.0%			75.0%				100.0%		100.0%
	Market Value in	Existing State	(RMB million)	—				—		—				—				—			—				—			—			—				—		—
Estimated	Completion	Date		2019				2019		2020				2020				2019			2019				2019			2018			2018				2018		2021
Total	Planned	GFA(1)	(sq.m.)	228,106				153,177		445,468				267,892				245,030			231,637				140,425			154,652			143,160				305,641		363,648
		Site Area(1)	(sq.m.)	101,890				70,317		140,727				90,818				79,054			78,206				61,228			77,326			82,754				26,239		163,657
		Type of Property		Residential,	Commercial,	Composite, Other,	Carpark	Residential, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Carpark	Residential,	Commercial,	Composite, Other	Residential,	Commercial,	Composite, Other,	Carpark	Commercial		Residential,	Commercial,	Composite, Other
Land Use	Rights Expiry	Date
		Land Use		Residential				Residential		Residential, Commercial				Residential, Commercial,	Education			Residential			Residential				Residential			Residential, Commercial			Residential, Commercial				Residential, Commercial		Residential, Commercial
		City		Lianyungang				Nantong		Shaoxing				Shengzhou				Yangzhou			Yangzhou				Yangzhou			Changchun			Changchun				Changchun		Pingxiang
		Holding Entity		Henglong (Lianyungang) Real Estate	Development Company Limited			Nantong Shengjian Property Company	Limited	Shaoxing Yongheng Property Company	Limited			Hengda (Shengzhou) Property Company	Limited			Hengfu (Yangzhou) Real Estate Development	Company Limited		Shengji (Yangzhou) Real Estate Development	Company Limited			Xushengfa (Yangzhou) Real Estate	Development Company Limited		Zhongbao (Jilin) Real Estate Development	Company Limited		Changchun Aosheng Property Company	Limited			Taiji (Changchun) Real Estate Company	Limited	Henghui (Pingxiang) Real Estate Company	Limited
		Property Name		Evegrande Yufeng Lianyungang				Evergrande Grand Court Nantong		Evergrande Royal View Garden	Shaoxing			Evergrande Yuefu Shengzhou				Evergrande Emerald Court	Yangzhou		Evergrande Palace Yangzhou				Evergrande Yuelong Court	Yangzhou		Evergrande Beihu Impression	Changchun		Evergrande Tanxi Manor	Changchun			Evergrande International Center	Changchun	Evergrande Royal Palace	Pingxiang
		Property No.		VI-12				VI-13		VI-14				VI-15				VI-16			VI-17				VI-18			VI-19			VI-20				VI-21		VI-22

– IV-139 –

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

APPENDIX IV

Attributable to	the Group as at	Valuation Date	(RMB million)	—(25)				—(26)				—(27)				—(28)			—(29)				—(30)				—(31)			—(32)			—(33)			—(34)			—(35)
Interest	Attributable to	the Group	(%)	100.0%				100.0%				100.0%				100.0%			100.0%				85.7%				100.0%			100.0%			100.0%			90.0%			60.0%
	Market Value in	Existing State	(RMB million)	—				—				—				—			—				—				—			—			—			—			—
Estimated	Completion	Date		2021				2022				2019				2019			2022				2021				2020			2021			2022			2023			2018
Total	Planned	GFA(1)	(sq.m.)	229,529				716,292				295,205				192,846			869,813				412,936				523,640			573,285			532,534			380,115			47,747
		Site Area(1)	(sq.m.)	65,960				267,106				85,644				57,679			214,835				138,197				192,288			189,002			196,517			262,231			14,867
		Type of Property		Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite, Carpark	Residential,	Commercial,	Composite, Office,	Other, Carpark	Residential,	Commercial,	Composite, Other,	Carpark	Residential,	Commercial,	Composite	Residential,	Commercial,	Composite, Other	Residential,	Commercial,	Composite, Other	Residential,	Commercial,	Composite, Carpark	Residential,	Commercial, Other,	Carpark
Land Use	Rights Expiry	Date
		Land Use		Residential, Commercial				Residential				Residential, Commercial				Residential, Commercial			Residential, Commercial,	Accommodation and	Catering		Residential, Commercial				Residential, Commercial			Residential			Residential			Residential			Residential
		City		Jiujiang				Nanchang				Nanchang				Nanchang			Nanchang				Shenyang				Chengdu			Luzhou			Luzhou			Nanchong			Chongqing
		Holding Entity		Jiujiang Zhonghai Shihao Property Company	Limited			Nanchang Hengfu Real Estate Development	Company Limited			Hengqiang (Nanchang) Property Company	Limited			Nanchang Zhongdiantou Gaoxin Property	Company Limited		Hengteng (Nanchang) Property Company	Limited			Shenyang Jiajing Property Company Limited				Jinjinjiang (Chengdu) Real Estate	Development Company Limited		Hengda (Luzhou) New City Property	Company Limited		Hengda (Luzhou) East City Property	Company Limited		East City (Nanchong) Property Company	Limited		Chongqing Zhongyu Property Development	Company Limited
		Property Name		Evergrande Bay LongTing	Jiujiang			Evergrande Forest Creek City	Nanchang			Evergrande Shidaizhiguang	Nanchang			Evergrande YuLanFu Nanchang			Evergrande YueLongTai Nanchang				Evergrande Peak Shenyang				Evergrande Forest Creek County	Chengdu		Evergrande City Luzhou			Evergrande Royal Scenic	Peninsula Luzhou		Evergrande YueLong Court	Nanchong		Evergrande Yudouhui Group B
		Property No.		VI-23				VI-24				VI-25				VI-26			VI-27				VI-28				VI-29			VI-30			VI-31			VI-32			VI-33

– IV-140 –

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

APPENDIX IV

– IV-141 –

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

APPENDIX IV

Notes:

1 All areas are stated in approximations.
2 All values are stated in approximations.
3 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB1,275,400,000.
4 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB409,900,000.
5 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB338,500,000.
6 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB536,200,000.
7 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB2,749,900,000.
8 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB819,400,000.
9 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB393,600,000.
10 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB1,957,500,000.
11 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB96,135,000.
12 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB148,900,000.
13 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB537,489,000.
14 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB188,100,000.

– IV-142 –

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

APPENDIX IV

15 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB781,704,000.
16 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB2,267,400,000.
17 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB419,600,000.
18 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB748,000,000.
19 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB1,129,900,000.
20 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB425,600,000.
21 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB307,100,000.
22 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB253,725,000.
23 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB768,400,000.
24 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB362,300,000.
25 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB295,000,000.
26 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB1,313,000,000.
27 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB1,678,200,000.
28 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB1,119,000,000.

– IV-143 –

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APPENDIX IV

29 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB5,478,300,000.
30 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB549,743,940.
31 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB230,400,000.
32 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB963,900,000.
33 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB738,900,000.
34 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB342,090,000.
35 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB107,460,000.
36 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB359,601,000.
37 We have ascribed no commercial value to the property. For Group’s management reference, had the relevant title documents been obtained and the land premium been fully settled, the market value of the properties attributable to the Group would be RMB873,120,000.

– IV-144 –

VALUATION REPORT OF HENGDA REAL ESTATE GROUP

APPENDIX IV

Attributable to	the Group as at	Valuation Date	(HKD million)	9.80		11,000.00
Interest	Attributable	to the Group	(%)	100.0%		100.0%
	Market Value(2)	in Existing State	(HKD million)	9.80		11,000.00
Existing	Monthly	Rental	(HKD million)	—		12.80
Occupancy as	at Valuation	Date	(%)	0%		79%
	Completion	Date		1963		1985
	Number of	CPS		—		—
	Total GFA(1)	(Excl. CPS)	(sq.m.)	120		32,557
	Property Expiry Date of Type of	No. Property Name Holding Entity City Land Tenure Property		VII-1 Unit 4D, Majestic House, Tsim Sha Tsui Yingtian International Investment Hong Kong 23 Jun 2038 Commercial	Company Limited	VII-2 China Evergrande Centre Pioneer Time Investment Limited Hong Kong 24 Jun 2862 Office	Notes:	1 All areas are stated in approximations.	2 All values are stated in approximations.

– IV-145 –

GENERAL INFORMATION

APPENDIX V

1. RESPONSIBILITY STATEMENT

This circular, for which the Directors collectively and individually accept full responsibility, includes particulars given in compliance with the Listing Rules for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this circular is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this circular misleading.

2. DISCLOSURE OF INTERESTS

(a) Interests and short positions of directors and chief executives of the Company in the shares, underlying shares and debentures of the Company and its associated corporations

As at the Latest Practicable Date, the interests and short positions of the directors and chief executives of the Company in the shares, underlying shares and debentures of the Company and any associated corporations (within the meaning of Part XV of the SFO) which were required to be (i) notified to the Company and the Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO (including interests and short positions which the directors and chief executives of the Company were taken or deemed to have pursuant to Divisions 7 and 8 of Part XV of the SFO), or (ii) entered in the register required to be kept under Section 352 of the SFO or (iii) required to be notified to the Company and the Stock Exchange pursuant to the Model Code for Securities Transactions by Directors of Listed Issuers (the “ Model Code ”) adopted by the Company were as follows:

Long positions in the Shares and underlying Shares

				Underlying		Percentage	Percentage
Name of		Number of		Shares pursuant	Aggregate	of Shares
Directors	Capacity	Shares		to share options	interests	in issue1
LU Hua	Beneficial	1,133,713		11,003,597	12,137,310		0.15
	owner
HUANG Wei	Beneficial		–	9,941,861	9,941,861		0.12
	owner
MOU Yong	Beneficial		–	7,190,305	7,190,305		0.09
	owner
LIU Chong	Beneficial		–	7,188,880	7,188,880		0.09
	owner
WU Jiesi	Beneficial	3,400,000		–	3,400,000		0.04
	owner
LI Wai	Beneficial	1,180,880		–	1,180,880		0.01
Keung	owner

– V-1 –

GENERAL INFORMATION

APPENDIX V

Note:

The percentage was calculated based on 8,058,124,983 Shares in issue as at the Latest Practicable Date.

Save as disclosed above, none of the directors and chief executives of the Company had, as at the Latest Practicable Date, any interests or short positions in any shares and underlying shares or debentures of the Company or any of its associated corporations (within the meaning of Part XV of the SFO) which would have to be notified to the Company and the Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO (including interests and short positions which the directors and chief executives of the Company were taken or deemed to have pursuant to Divisions 7 and 8 of Part XV of the SFO), or which were entered in the register required to be kept by the Company under Section 352 of the SFO, or which were required to be notified to the Company and the Stock Exchange pursuant to the Model Code.

(b) Interests and short positions of the Shareholders in the Shares and underlying Shares

As at the Latest Practicable Date, so far as is known to any director or chief executive of the Company, the interests and short positions of the Shareholders (other than directors or chief executives of the Company) who had interests or short positions in the Shares and underlying Shares which would fall to be disclosed to the Company under the provisions of Divisions 2 and 3 of Part XV of the SFO, or which were entered in the register required to be kept by the Company pursuant to Section 336 of the SFO, and, where any Director is a director or employee of such Shareholders, the names and the positions held by them in such Shareholders, were as follows:–

						Capacity of
				Percentage		the Director
Name of	Capacity of	Number of Shares held		of Shares	Name of	in the
Shareholder	Shareholder	by Shareholder		in issue1	Director	Shareholder
		Long position	Short position
Shum Yip	Interest in	4,965,577,2322	–	61.62	LU Hua	Chairman and
Group	controlled					Director
	corporation
					HUANG	Director and
					Wei	President
					MOU Yong	Director
					LIU Chong	Vice President
					LIU	Director and
					Shichao	Chief
						Financial
						Officer

– V-2 –

GENERAL INFORMATION

APPENDIX V

						Capacity of
				Percentage		the Director
Name of	Capacity of	Number of Shares held		of Shares	Name of	in the
Shareholder	Shareholder	by Shareholder		in issue1	Director	Shareholder
		Long position	Short position
Shum Yip	Beneficial	4,897,856,631	–	60.78	LU Hua	Chairman and
Holdings	owner					Director
	Interest in	67,720,6013	–	0.84	HUANG	Director and
	controlled				Wei	President
	corporation
					MOU Yong	Director
					LIU Chong	Vice President
					LIU Shichao	Director

Notes:

The percentage was calculated based on 8,058,124,983 Shares in issue as at the Latest Practicable Date.
Shum Yip Group is deemed to be interested in the 4,965,577,232 Shares which Shum Yip Holdings is interested in by virtue of Shum Yip Holdings being its direct wholly-owned subsidiary.
These 67,720,601 Shares were held by Goldclass Industrial Limited, a wholly-owned subsidiary of Successful Years Holdings Limited, which in turn is wholly-owned by Shum Yip Finance Company Limited (“ SYF ”). SYF is a wholly-owned subsidiary of Shum Yip Holdings and accordingly, Shum Yip Holdings is deemed to be interested in these 67,720,601 Shares.

Save as disclosed above, as at the Latest Practicable Date, the Company had not been notified by any person (other than directors and chief executives of the Company) who had interests or short positions in the Shares and underlying Shares under the provisions of Divisions 2 and 3 of Part XV of the SFO, or which were entered in the register required to be kept under Section 336 of the SFO.

3. COMPETING INTERESTS

As at the Latest Practicable Date, Dr. LU Hua is the chairman and a director, Mr. HUANG Wei, is the president and a director, Mr. MOU Yong and Mr. LIU Shichao are directors, and Mr. LIU Chong is the vice president, of both Shum Yip Holdings and Shum Yip Group. Shum Yip Holdings and Shum Yip Group, through their subsidiaries and associates, have interests in property investment and development businesses in PRC.

– V-3 –

GENERAL INFORMATION

APPENDIX V

In addition, Mr. MOU Yong is also a non-executive director of Road King Infrastructure Limited (1098.HK), an associated company of the Company, whose shares are listed on the Stock Exchange and engages in property investment and development businesses.

Save as disclosed above, as at the Latest Practicable Date, none of the Directors or his or her respective close associates were considered to have an interest in a business which competes or was likely to compete, either directly or indirectly, with the business of the Group other than those business to which the Directors or his or her close associates were appointed to represent the interests of the Company and/or the Group.

4. DIRECTORS’ INTEREST IN CONTRACTS AND ASSETS OF THE GROUP

As at the Latest Practicable Date,

(a) none of the Directors were materially interested in any contract or arrangement subsisting and which was significant in relation to the business of the Group; and
(b) none of the Directors had any interest, direct or indirect, in any assets which had been acquired or disposed of by or leased to any member of the Group or were proposed to be acquired or disposed of by or leased to any member of the Group since 31 December 2016, being the date to which the latest published audited consolidated financial statements of the Company were made up.

5. MATERIAL CONTRACTS

The following are contracts (not being contracts entered into in the ordinary course of business carried on or intended to be carried on by the Group) entered into by the members of the Group within the two years immediately preceding the date of this circular and which is or may be material:

(a) the sale and purchase agreement dated 21 December 2015 entered into between the Company as purchaser and Shum Yip Holdings as vendor, pursuant to which the Company agreed to acquire approximately 95% of the issued share capital of Fairwind Power Limited for the consideration of RMB1,914,000,000;
(b) the second supplemental agreement dated 24 June 2016 entered into amongst the Company, Shum Yip Holding, 深圳市農科集團有限公司 (Shenzhen Nongke Holdings Company Limited) (“ Nongke* ”) and Shum Yip Group, pursuant to which the parties to it agreed to amend and supplement certain terms (including the downward adjustment of the consideration by RMB157,020,000) of the conditional sale and purchase agreement dated 27 January 2014 entered into amongst the Company as purchaser, Shum Yip Holdings as vendor, Nongke and Shum Yip Group (as amended by the supplemental agreement dated 8 May 2014 entered into amongst the same parties) in respect of the acquisition of the entire issued share capital of Shenzhen Bio-Agriculture Company Limited by the Company from the Shum Yip Holdings for the consideration of RMB5,589,000,000;

– V-4 –

GENERAL INFORMATION

APPENDIX V

(c) the capital increase agreement dated 20 December 2016 entered into amongst深業置地有限公司 (Shum Yip Land Company Limited) (“ SY Land ”) (an indirect wholly-owned subsidiary of the Company), 深國際前海投資管理(深圳)有限公司 (Shenzhen International Qianhai Investment and Management (Shenzhen) Co., Ltd.) (“ SIQ Investment ”) and 深國際前海置業(深圳)有限公司 (Shenzhen International Qianhai Real Estate (Shenzhen) Co., Ltd.) (“ SIQ Real Estate ”, a wholly-owned subsidiary of SIQ Investment), pursuant to which SY Land agreed to make a capital contribution of RMB1.12 billion to SIQ Real Estate in return for 50% equity interest in SIQ Real Estate (which was consolidated into SY Land’s financial statements thereafter);
(d) the cooperation framework agreement dated 11 May 2017 entered into between Medos Limited (a wholly-owned subsidiary of the Company) (“ Medos ”) and Profit City Global Limited (“ Profit City ”) in relation the formation of Shum King Company Limited (a company which is owned as to 50% by each of Medos and Profit City) (the “ JV Co ”) to participate in the tender for New Kowloon Inland Lot No. 6567, Kai Tak Area 1K Site 1, Kai Tak, Kowloon, Hong Kong (the “ Land ”), and to engage in the development of the Land and the sale or lease and the management of the properties to be constructed on the Land; pursuant to the said agreement, each of Medos and Profit City has committed to provide shareholder’s loan in the amount of HK$13 million to the JV Co principally to finance its payment of the deposit payable upon submission of the tender and has agreed to an obligation to finance the funding requirement of the JV Co should the JV Co be successful in the tender; as the JV Co’s bid for the Land had not been successful, Medos and Profit City agreed to terminate the said agreement, and the JV Co had repaid all its shareholders’ loan in the aggregate amount of HK$26 million to its shareholders;
(e) the equity transfer agreement dated 24 May 2017 entered into between Shumyip Southern Property (Group) Co., Ltd. (“ Shumyip Southern ”) as transferor and Hengda Real Estate Group Guangdong Property Development Co., Ltd. (“ Hengda Guangdong ”) as transferee in relation to the disposal by Shumyip Southern of the entire equity interest and shareholder’s loan in Foshan City Sanshui Shumyip Property Co., Ltd. for a consideration of RMB2,575,608,822.78 plus interest on shareholders’ loan;
(f) the equity transfer agreement dated 24 May 2017 entered into between Shumyip Southern as transferor and Hengda Guangdong as transferee in relation to the disposal by Shumyip Southern of the entire equity interest in Foshan City Sanshui Shumyip Investment Co., Ltd. for a consideration of RMB45,536,400;
(g) the equity transfer agreement dated 24 May 2017 entered into between SY Land as transferor and Hengda Guangdong as transferee in relation to the disposal by SY Land of the entire equity interest and the shareholder’s loan in Foshan City Sanshui Shumyip Hotel Co. Ltd. for a consideration of RMB199,001,000.07 plus interest on shareholders’ loan;

– V-5 –

GENERAL INFORMATION

APPENDIX V

(h) the equity transfer agreement dated 24 May 2017 entered into between Shumyip Pengji (Group) Co., Ltd. (“ Shumyip Pengji ”) as transferor and Hengda Real Estate Group Nanjing Property Co., Ltd. as transferee, in relation to the disposal by Shumyip Pengji of the entire equity interest and the shareholder’s loan in Shenzhen Pengji Assets Management Co., Ltd. for the consideration of RMB2,604,575,600 plus interest on shareholders’ loan;
(i) the equity transfer agreement dated 5 June 2017 entered into between Taizhou Shumyip Pengji Investment Co., Ltd. (“ Taizhou Pengji ”) as transferor and Jingjiang Country Garden Property Development Co., Ltd. as transferee in relation to the disposal by Taizhou Pengji of the entire equity interest and shareholder’s loan in Taizhou City Pengxiang Property Co., Ltd. for the consideration of RMB361,482,040 plus interest on shareholder’s loan;
(j) the new cooperation framework agreement dated 16 June 2017 entered into between Medos and Profit City in relation the continued operations of the JV Co to participate in the tender for land in Hong Kong, and to engage in the development of such land and the sale of, and/or the provision of ancillary management of the properties to be constructed on such land; pursuant to the said agreement, each of Medos and Profit City has committed to provide the JV Co a revolving shareholder’s loan in the amount of up to HK$15.5 million to finance the deposit payable by the JV Co upon submission of such tender as the board of directors of the JV Co considers appropriate form time to time and the necessary expenses arising therefrom;
(k) the shareholders’ agreement dated 14 July 2017 entered into amongst Medos, Profit City, the Company (as guarantor for Medos), Road King Infrastructure Limited (as guarantor for Profit City) and the JV Co to provide for the arrangements regarding the operations and management of the JV Co to engage in the development of Tuen Mun Town Lot No. 520 at Kwun Chui Road, Area 56, Tuen Mun, New Territories, and the sale of and provision of ancillary management for the properties to be constructed thereon; pursuant to the said agreement, the aggregate capital commitment to be provided by each of Medos and Profit City to the JV Co, whether by way of shareholders’ loans and/or other form of financial assistance, will not exceed HK$3,000 million;
(l) the Principal Investment Agreement;
(m) the First Supplemental Investment Agreement;
(n) the Second Supplemental Investment Agreement; and
(o) the Third Supplemental Investment Agreement.

– V-6 –

GENERAL INFORMATION

APPENDIX V

6. LITIGATION

On 12 September 2014, Shum Yip Terra (Holdings) Company Limited (“ Shum Yip Terra ”), a 75.05%-owned subsidiary of the Company, and its wholly-owned subsidiary, Wuhan Shum Yip Terra Property Development Company Limited (“ Wuhan Terra ”), received a “notification for the appointment of defender/application for legal aid during the prosecution review phase” from The People’s Procuratorate of Jianli County of Hubei Province (the “ People’s Procuratorate ”), informing Shum Yip Terra and Wuhan Terra that materials in respect of the suspected corporate offence of bribery against both of them were transferred to the Public Prosecution Bureau of the People’s Procuratorate for prosecution review. The People’s Procuratorate considered that relevant regulations were violated by Wuhan Terra in the course of its acquisition of state-owned land for the purpose of the Terra-Nanhu Rose Bay Project, causing a loss of income from state-owned land to the state. In connection with the matter, the People’s Procuratorate has frozen certain bank accounts of Shum Yip Terra and Wuhan Terra. As at 30 June 2017, the balance of the frozen bank accounts of Wuhan Terra amounted to RMB549,162,000, whereas the frozen bank accounts of Shum Yip Terra have been fully released. Such balance had been accounted for in the balance of restricted cash of the Company.

In the year 2016, Wuhan Terra and the three ex-members of management of Wuhan Terra were prosecuted by the People’s Procuratorate for the offences of bribery by organization and offering bribes to organization (the “ Litigation ”). As at 31 December 2016, a provision in the amount of RMB542,413,000 had been made in the accounts of the Group in respect of the Litigation.

The People’s Court of Jianli County of Hubei Province handed down its first-instance judgment in respect of the Litigation on 28 September 2017. Wuhan Terra and the three ex-members of management of Wuhan Terra were found guilty and were convicted of the offence of bribery by organization. Wuhan Terra was ordered to pay a total of RMB557,412,970 (an illegal gain of RMB542,412,970 and a fine of RMB15,000,000), and each of the three ex-members of management of Wuhan Terra was sentenced to imprisonment for one and a half year.

Wuhan Terra filed an appeal against the judgment in respect of the Litigation on 9 October 2017.

The Litigation is still under appeal as at the Latest Practicable Date.

Save as disclosed above, at the Latest Practicable Date, no member of the Group was engaged in any litigation or arbitration of material importance and no litigation or claim of material importance was known to the Directors to be pending or threatened against any member of the Group.

– V-7 –

GENERAL INFORMATION

APPENDIX V

7. DIRECTORS’ SERVICE CONTRACTS

As at the Latest Practicable Date, none of the Directors had entered, or proposed to enter, into a service contract with any member of the Group which is not expiring or determinable by the Group within one (1) year without payment of compensation (other than statutory compensation).

8. EXPERTS AND CONSENTS

The following are the qualifications of the experts who have given a statement, an opinion or a letter contained in this circular:

Name Qualification KPMG Certified Public Accountants CBRE Property Valuer PwC Certified Public Accountants

Subject to the disclaimers set out in Appendix II and Appendix IV to this circular, each of the above experts has given and has not withdrawn its written consent to the issue of this circular with the inclusion of its statement as set out in this circular and references to name in the form and context in which it appears in this circular.

As at the Latest Practicable Date, none of the above experts had any shareholding directly or indirectly in any member of the Group nor any right (whether legally enforceable or not) to subscribe for or to nominate persons to subscribe for securities in any member of the Group, nor did any of them have any interest, directly or indirectly, in any asset acquired or disposed of by or leased to any member of the Group or proposed to be acquired or disposed of by or leased to any member of the Group since 31 December 2016, being the date to which the latest published audited financial statements of the Company were made up.

9. GENERAL

(a) The registered office of the Company is at 8th Floor, New East Ocean Centre, 9 Science Museum Road, Tsim Sha Tsui, Kowloon, Hong Kong.
(b) The share registrar and transfer office of the Company is Tricor Standard Limited at Level 22, Hopewell Centre, 183 Queen’s Road East, Hong Kong.
(c) The company secretary of the Company is Mr. LEE Ka Sze, Carmelo. He is a solicitor of the High Court of Hong Kong.
(d) Unless otherwise stated, the English text of this circular shall prevail over the Chinese text in the case of inconsistency.

– V-8 –

GENERAL INFORMATION

APPENDIX V

10. DOCUMENTS AVAILABLE FOR INSPECTION

Copies of the following documents will be available for inspection during normal business hours from 9:00 a.m. to 5:00 p.m. (except Saturdays, Sundays and public holidays) at the principal place of business of the Company in Hong Kong at 8th Floor, New East Ocean Centre, 9 Science Museum Road, Tsim Sha Tsui, Kowloon, Hong Kong from the date of this circular up to and including 11 December 2017:

(a) the articles of association of the Company;
(b) the annual reports of the Company for the three financial years ended 31 December 2014, 2015 and 2016 respectively;
(c) the interim report of the Company for the six months ended 30 June 2017;
(d) the financial information of Hengda Real Estate in the form as set out in Appendix II of this circular;
(e) the report on unaudited pro forma financial information of the Group, the text of which is set out in Appendix III of this circular;
(f) the Valuation Report in the form as set out in Appendix IV of this circular;
(g) the written consents referred to in the section headed “ Experts and Consents ” in this appendix;
(h) the material contracts referred to in the section headed “ Material Contracts ” in this appendix; and
(i) this circular.

– V-9 –

AI assistant

Macau E&M Holding Limited — Proxy Solicitation & Information Statement 2017

49906_rns_2017-11-23_efe2c612-48e4-431d-816a-d4539890a37c.pdf

THIS CIRCULAR IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION

MAJOR TRANSACTION CAPITAL CONTRIBUTION TO HENGDA REAL ESTATE GROUP COMPANY LIMITED

the board of Directors

DEFINITIONS

DEFINITIONS

DEFINITIONS

DEFINITIONS

DEFINITIONS

(Stock Code: 00604)

MAJOR TRANSACTION CAPITAL CONTRIBUTION TO HENGDA REAL ESTATE GROUP COMPANY LIMITED

INTRODUCTION

LETTER FROM THE BOARD

THE INVESTMENT AGREEMENT

Date

Parties to the Principal Investment Agreement

Parties to the Second Supplemental Investment Agreement

Parties to the Third Supplemental Investment Agreement

Amount of Capital Contribution

Conditions

Basis of determining the amount of the Capital Contribution

Timing for the Capital Contribution

Performance undertaking and indemnity

Performance undertaking

Dividend payment prior to the entering into of the Reorganisation Agreement

Dividend payment after the entering into of the Reorganisation Agreement

Exit rights

Lock-up undertaking by Kailong Real Estate

Undertaking by the Subsidiary

INFORMATION ABOUT HENGDA REAL ESTATE

LETTER FROM THE BOARD

REASONS FOR AND BENEFIT OF THE ENTERING INTO OF THE INVESTMENT AGREEMENT

1. The development strategy of Hengda Real Estate and potential synergy and benefits of the Proposed Reorganisation

2. The prevailing market conditions

3. The land reserves of Hengda Real Estate and the development potentials of its projects

4. The terms of the Investment Agreement being beneficial to the Group

LETTER FROM THE BOARD

FINANCIAL EFFECTS OF THE TRANSACTIONS

Assets and liabilities

Earnings

LISTING RULES IMPLICATIONS

LETTER FROM THE BOARD

1. The Company has no access to information required for the compilation of the valuation report

3. Impracticable and unduly burdensome to arrange for the valuation report

(I) Accountants’ report

(II) Management discussion and analysis

GENERAL

RECOMMENDATION

ADDITIONAL INFORMATION

1. FINANCIAL INFORMATION OF THE GROUP

2. INDEBTEDNESS STATEMENT

3. MATERIAL ADVERSE CHANGE

4. WORKING CAPITAL

5. FINANCIAL AND TRADING PROSPECT OF THE GROUP

Business outlook

The Shenzhen market is in the period of adjustment, but quality assets still have long-term value

APPENDIX I

Housing rental is becoming predominant as the long-term effective mechanism of the real estate industry gradually develops

Means of acquiring land needs to be changed as it is more and more difficult to acquire land resources

Financial strategy

Corporate prospect

Hengda Real Estate Group Company Limited* (恒大地產集團有限公司)

Important Notice

Material Risk Warnings

I. The risk associated with a higher gearing ratio

II. Uncertainty risk associated with sale of inventories

III. The risk associated with the greater scale of the restricted assets

Contents

Definitions

I Profile of the Company and the Relevant Intermediaries

I. Corporate Information

IV. Information on the Relevant Intermediaries

(I) Accounting Firm

II Corporate Bonds

III. Credit Rating and Ongoing Rating Arrangements

(III) Convening Bondholders’ Meetings

(IV) Performance of Duties of the Entrusted Manager

III Financial and Asset Conditions

Macau E&M Holding Limited Proxy Solicitation & Information Statement 2017

**Hengda Real Estate Group Company Limited* (恒大地產集團有限公司)**